Forum Replies Created
Yes that is true Derek, maybe I should bring the printed out strategy report from the JDL strategies to the other mortgage broker to see if they can perform better (hopefully it shouldn’t offend any people involved).
Here’s the additional Fees and Disbursements that I must pay on top of that $8500 (this comes from the jdlfinanceaustralia.com.au Finance manager):
Application Fee (Override: No) $0.00
Loan Stamp Duty (Override: No)
Lender Mortgage Insurance (Override: No) $0.00
Extra Valuation Fee $220.00
Split Loan Fees (Override: No) $0.00
Mortgage Registration $232.00Property Fees (Override: No) $14,827.10
Conveyancing Fee $1,500.00
Title Transfer Stamp Duty $12,525.00
Transfer Fee $802.10
Total Fees (including Mortgage Registration) $15,279.10@derek: The JDL Fee is as follows:
Commission $8700
GST $870
Less Initial Payment $880 (the joining fee)
so in total is $8690Which will be counted as “costs” for the purchase of the property investment and financed as such. THerefore I do not need to pay upfront with cash in order to proceed (because it is capitalized on top of the loan so they said that it is Tax deductible fully)
in details, the fee is for preparing and arranging the following items:
1. Final Reports before the hand over.
2. Full depreciation schedule
3. Property research and negotiations
4. Full inclusions list
5. Plans
6. Liaising with builders (if this is new property).
7. Bank and Solicitors on my behalf
8. Meetings and strategy development on behalf of the JDL team.ok, can anyone here share what we should be asking to the mortgage broker before we sign the deal with them ?
I’m curious to use mortgage broker to find me a good loan for my IP rather than visiting the Big4 personally myself.Terryw wrote:Before you sign make sure you do your research as those fees are large.I think part of the fee may be deductible upfront. Part of it would relate to borrowing cost and so could be claimed over 5 years. part would be buyers agent type fee for locating the property and this would be claimable against CG when sold and then part of it for finding the tenant and that could possibly claimed all upfront.
I wonder if you did it all yourself and didn't pay the fee would the property still be negative geared?
Yes, that’s what I would’ve thought $8700 is very big to me, but then again the client manager convince to me that it is just a small fee compares to what I can get from the building depreciation and the negatively geared property in COOMERA, so far I’m still not yet convinced if this deal is worthed or not.
Thanks for the reply, I’ll keep you all updated with my case with JDL strategies after I had a talk with the client manager who’s calling me everyday waiting for me to sign the document to restructure my existing loan with my bank and purchase this IP in another state that I’ve never visited or even knew it exists.
Terryw wrote:Henry,From your initial post I thought there was 1 fee, but it appears there are acutally 2?
$880 joining fee and a $8700 fee. Is that correct?
Terry yes, I’ve just received the Preliminary Strategy Report which is a detailed transaction of what I should do to secure the retirement, so it seems that they have arrange everything from the loan with the bank, the property in COOMERA ($435k) and the potential tenant all in one, so all I need to do is just sign and get the ball rolling by negative gearing $251 per month until the property got enough CG
Therefore they charged me $8700 for the initial Investment and the $880 is the joining fee once off, for the subsequent IP purchase, they will charge me $3500.
Terryw wrote:Yes, financially you would be better off by renting out your unit and renting the one next door. But this would be dependant on the loan amount etcThis is because if your property is negative geared then you can claim any loss against your income and will save tax.
BTW, it is still possible to rent out your home and have it CGT exempt too.
To a certain degree is yes Terry, Can we say that if you are renting one if your room to a tenant downstairs, then we can say that 50% of the house is shared so that we can claim negative geared to ATO ?
Terry, thanks for the respond, yes you got me thinking now if that joining fee $880 can be tax deductible or not.
Derek wrote:Portfolio PI wrote:If it is tax deductible then you will get back your tax rate on that amount. so if its $8700, and you are paying 37% tax, you will receive 37% back at the end of the financial year if it is a tax deduction.Cannot see how the fee is deductible – at best may be able to be used to offset future capital gains.
Yes, that is somehow I’m in doubt for the joining fee of $880 so now I am still waiting for the response from my accountant too of whether this is true or not ?
But according to JDL strategies account manager that I’m talking with it is deductible ?
Derek wrote:Hi Henry,On limited information supplied some of the following may not be relevant.
Coomera is one of those new release suburbs (has been for a while) and with more land to come.
AT best I would imagine rent return would be around 5% so you are out of pocket for rates, insurance, body corporate (if relevant) and the net differential between rent and interest rates.
For newer properties depreciation is often used, particularly in the early days, to help offset some of the shortfall between inflows and outgoings. You also need to bear in mind that depreciation only reduces your taxable income by the stated amount.
It is not a rebate – for example if your on the highest possible tax bracket your taxable income reduces by let's say $10K in which case you manage to save yourself about $4700 in income tax. The remaining $5300 comes from your pocket. If your taxable income is below the top bracket the amount of tax saved reduces in accordance with our income tax scales.
The only way you will get your money back is through capital growth, when that arrives.
Thanks people for your suggestion and explanation, I am now more enlightened on this matter, I thought that the agency fee $8700 which can be tax deductible (according to Julio himself) + depreciation = well worth more than the $ 8700 itself can someone confirm this please ? I'm new to this property investment world and would love to know if this deal is make sense or just a scam to take advantage of newbie like me ?
Cheers,
Henry
Yeah, I also signed up already with JDL recently after paying $880, and now their investment strategy is to get a property in COOMERA for $435k while charging me once off $8700
When I ask them about how can I gain profits if they charged me $8700 in front ?
their answer is by hoping that the building depreciation can give you more than $10k (fingers crossed)Does anyone here know or can share anything about JDL Strategies please ?
Jamie M wrote:ksherwell wrote:I recommend having a shop around.Be careful with this though. What most people don’t realise is that “shopping around” can result in multiple hits to their credit file if each lender is submitting an app. A few hits in a short period of time will start to make lenders nervous.
Cheers
Jamie
Why is this So ?
few hits meaning that the borrower is serious in looking for a better deal right ?
Andrew_A wrote:Henry Adams wrote:Andrew_A wrote:This area is a minefield of marketeering, so need to do your research even more carefully than normal.Keep in mind one of the big concessions you accept sometimes with the new builds out here is the small block size, also I don't like developments with narrow streets and rows of houses that all look like each other, though if the numbers look good then it could stack up.
LOL, is it ? I thought that the agent who works for me (JDL Strategies) has carefully select this property for my own condition for the best CG suburbs ? This is also reflected in the newest Smart Property Investor magazine this week.
Henry I would think you were being sarcastic but the last sentence about SPI magazine has me not sure.
you’re right Andrew somehow I am now thinking to invest in Lower NSW North Shore area for better future.
James and Gurjjeet, many thanks for the reply and suggestion, you are right I feel that this JDL Strategies has misled me to buy in this area for CG purpose
Terryw wrote:$8,500 is a very large fee! ( i will do it for $8,000 whatever it is).However, if you are happy to pay this, and it does relate to an investment property then it would be far better to borrow it (in terms of tax) then using cash as the cash can come off non deductible debt first.
However, by borrowing it how much extra is the LMI going to cost?
Actually to be precise it is $ 8700 once off and JDL Strategies mention that this fee will be covered once we get Tax Depreciation for the house which will be $10k+ in the first year.
Catalyst wrote:$ 435.000 2 bedroom 1 Bathroom 1 garage. In Coomera??? LOLWhy would you???
Is that too expensive for now ?
I wouldn’t have a clue as I’m in NSW
itsandrew wrote:It's interesting too Henry that the median price for units is only 339k. (Domain.com.au says 310k). Big discrepency to 435k. There would need to be good reasons that the price being asked is worth it. Check out domains info here http://apm.domain.com.au/Research/?AddressLine=Coomera&LocationType=Suburb&State=QLD&SuburbId=8804 Very few unit sales in the previous 12 months as well – about 2.5 per month average.Andrew
Yeah I know, that is why I just wondering if anyone here think that Coomera will be a great location to choose as now Brisbane QLD property price is falling down according to the SPI magazine.
Andrew_A wrote:This area is a minefield of marketeering, so need to do your research even more carefully than normal.Keep in mind one of the big concessions you accept sometimes with the new builds out here is the small block size, also I don't like developments with narrow streets and rows of houses that all look like each other, though if the numbers look good then it could stack up.
LOL, is it ? I thought that the agent who works for me (JDL Strategies) has carefully select this property for my own condition for the best CG suburbs ? This is also reflected in the newest Smart Property Investor magazine this week.
Hi,
When you have a look at this report I wonder why Coomera is still going down: http://www.investsmart.com.au/property-research/QLD/4209/Coomera.asp
I’ve been recommended by the team at JDL strategies to buy 2 bedroom Unit in Coomera for $435k in this suburbs for the reason of best for capital growth eventhough the Capital Growth is going down.
jsoohoo wrote:gurjjeet wrote:Hi Everyone I am in process of buying my first IP in Coomera. I have finally taken my first step after 6 months of confusion etc. & right now I am in cooling off period of contract which is making me write this query. I would appretiate some help. I am buying a near new 4 bedder house on small land (around 380m2) is this a right choice as I am not local. Though I found a lot of similar size block there. This house is mainly made of wood except the front face of house, I have heard of termite problem in Gold Coast but is it big n Coomera. I do not want end up paying for repairs every day outta my pocket. Thanks in advanceI'm curious gurjjeet, what made you choose Coomera? I'm also thinking of buying my first IP in Coomera region as well. But for me its a tough choice between Ipswich and Coomera because I've heard good things about both places.
The way I see it, Ipswich has alot happening for future employment, housing demand due to affordability, new infrastructures, transport etc however so does Coomera but I reckon the boom isn't for a while, correct me if I'm wrong? I was told my an agent the rental market now is dying down as there are more vacant houses in the area and tenants have more options to choose from. Coomera is also more expensive than Ipswich, and I'm abit unsure as to whether I want to plunge my money there because it'll definitely be negative geared well I guess same with Ipswich.
Cheers.
Yes, I also been suggested by my agent JDL strategies to buy in Coomera, QLD, 4209 for a townhouse unit $ 435.000 2 bedroom 1 Bathroom 1 garage.
I wonder if this is still a good place to buy this year but according to this report it doesn’t seems to be any good recently: http://www.investsmart.com.au/property-research/QLD/4209/Coomera.asp
Any comments are welcome.
tonywwp wrote:………….. I recently bought a 2yr old 3 bdm house in Coomera QLD that was listed at $429k … I offered $360k and got it.. this way you build equity into the purchase early on.Regards
Tony Born
Senior Mortgage Consultant
Member PIPA
Email: [email protected]
Mb: 0407 617 141
Ask me about a free Property Investor ToolboxHi Tony,
How’s it going ?
I was suggested by JDL strategies to buy my investment property in Coomera, QLD, 4209 for a townhouse unit $ 435k 2x2x1
I wonder if this is a good place to buy this year according to this report it is still going down : http://www.investsmart.com.au/property-research/QLD/4209/Coomera.asp
