Remember that any interest gain is taxable if it is outside and offset account. If in an offset account it is deamed as savings therefore your “return” is whatever the variable rate is. For example 4.17% variable isa 4.17% tax free savings so effectively a return in reverse :)
This reply was modified 8 years, 4 months ago by Colin Rice.
I wasn’t aware that that was even an option ( extending OI!). Well, if we can extend our OI loan for another 5 years, then yeah, we would definitely like to keep it.
Easily done via refinance to anther banks assuming serviceability is OK which isn’t difficult to verify in most cases.
In regards to Benny’s comment about an MB being familiar with Emerald a call to the bank you are considering (made by MB) to check any postcode restrictions would satisfy that concern.
Also another point to consider is that you will have a valuation shortfall compared to initial purchase price so may need to access some equity from PPOR to make up the shortfall, thats if it isn’t already cross collaterlised which can be sorted out at the same time as the refinance.
May also pay to run a few different valuation types with a few lenders such as desktops that often come in higher than full vals or kerbsides.
Did you buy this property via a Property Marketing Company disguised as an “educator” or something similar?
This reply was modified 8 years, 4 months ago by Colin Rice.
This reply was modified 8 years, 4 months ago by Colin Rice.
Finance would likely be limited to 80% LVR or less due to the size of the apartments and depending on the m2 may be limited to a few lenders or possibly none so cash buyers only?
This reply was modified 8 years, 4 months ago by Colin Rice.
Tell your mate to go along as you always pick up a nugget or two from seminars, even if it is what not to do.
Before committing to anything would need to have a chat to an experienced and successful property investor about the suggested strategy Stone are spruiking.
Hint: there are a few on here :)
This reply was modified 8 years, 4 months ago by Colin Rice.
Depends on your strategy? Is it cash flow or capital growth you are chasing?
Generally land increases in value and building decrease in value. In saying that the older style apartments usually have a greater land component than newer similar properties.
Rule of thumb for land / building ratio is 70 / 30 so this may help you determine your strategy.
Also would be a wise move to ask for last 2 years financials and minutes of the AGM from the strata manager via the selling agent to check what works are in the pipeline as older buildings will need ongoing maintenance.
I guess at the end of the day, they’re passing their opinion off as fact. Dangerous, yes. Outside their scope, certainly.
Couldn’t agree with you more about who to listen to, but so many accountants are narrowly trained that unless they’re heavily investing themselves, I wouldn’t go near them for structuring advice either!
I work with accountants that are property investors and I know more about structuring finance than they do yet legally limited on how deep the advice gets never mind the average bean counter who often gives the exact opposite advice that is required.
And when I say “run this past your accountant before proceeding” I cringe with tongue in cheek.
This reply was modified 10 years, 4 months ago by Colin Rice.
Not surprised at all and also wont be surprised if the ATO are preparing to launch a full scale assault on IP loans as the majority will be set up incorrectly.
I have given specific advice to clients to then have the teller or loans officer attempt to undermine it. I tell my clients to call me whilst in the branch and put me on the perpetrator to advise accordingly, lol.
I could share some doosies that would make your head spin with advise that has been given to clients. the people delivering it are either extremely ignorant and dangerous or deliberately undermining my advice!
This reply was modified 10 years, 4 months ago by Colin Rice.
This reply was modified 10 years, 4 months ago by Colin Rice.