Forum Replies Created
As Richard pointed out it won’t work in the SMSF as it can only acquire assets from a related party which are valued at a maximum of 5% of the total SMSF investment portfolio value.
As Michael pointed out you need to investigate the tax implications of the loan for the IP as you should maximise the tax effectiveness of the loan and any expenses and/or deductions that are available by having both the property and the loan in the name of the person in the highest income tax bracket.
Some very good comments Terry. I doubt that I would consider purchasing a property in SE Asia (especially Thailand) as the risks are extremely high and as Terry said you should be prepared to lose the money. It will also be very difficult to obtain finance.
There shouuldn’t be a problem with the UT purchasing the property from the SMSF. However, it would need be conducted on a commercial basis and to satisfy the super legislation the investments made by SMSFs must be made and maintained on a strict commercial basis, so the fund trustee must ensure the asset valuation is robust and the purchase or sale price of the SMSF asset must reflect its true market value.
My understanding is that the ATO states you must obtain an independent valuation report to determine the market value before purchasing the asset from the super fund. You must also ensure there is a written contract in place and that the terms of the contract are on commercial basis.
The tax treatment of the proceeds of the sale will depend upon whether the SMSF is in accumulation or pension phase.
I agree with Anthony. It may also be worthwhile considering building up equity as quickly as possible in the property and delaying the car purchase until you have sufficient equity to use a LOC secured against the property to fund the car loan as you’ll obviously be able to access a cheaper interest rate than a car loan will have. Perhaps you could purchase a cheaper car initially to meet your transport needs and then upgrade to the ideal car once that equity has been built up.
Hi Nath
It sounds very much like he is mustering his bids to show increased interest in the properties. However, having being involved in property repossessions for 2 major Australian banks, I have seen stranger things happen, especially when the bank is desperate to offload the property for accounting reasons. However, I doubt they will drop lower than any minimum reserve that they have established as this is the minimum they need to break even on the loan, otherwise it will be booked as a loss and this obviously has an adverse effect on their balance sheet. However, be mindful of the fact that at times banks are seeking to free up the bad debt provisions held on their balance sheets for accounting reasons. It’s a good idea to go to the auction and get as much experience as possible. In fact I’d suggest going to quite a few auctions to get a feel for the process before you reach the point of actively bidding for a property. As for your funds being held overseas is there any specific reason? If and when your ready to purchase you’ll need them at hand to settle on the property unless of course you have obtained short-term bridging finance.
I would get in touch with the council or use a different bank
They still have not released a deal.
Its been 10 weeks.
So much for getting 40,000 people to switch.
Bad move for Choice
I would go to another bank.
I can't see a problem.
Should simulate the market
Go to another Bank, there are many options out there
Here is a letter from One Big Switch, showing they dont have any banks as yet. I wonder if they ever will.
Wednesday 17 August
40,306 consumers register with the CHOICE Big Bank Switch
Dear KaneFirst of all, from all the CHOICE Big Bank Switch team, thanks for registering to be eligible to take part in Australia’s first ever Big Bank Switch.
As an early adopter you are one of the first 40,306 Australian consumers who have registered to join one of the fastest growing consumer campaigns in Australian history.
One Big Switch is in a process of negotiation with a number of Australian lenders and is trying to source home loan offers for registrants which offer a genuine group discount.
We are working night and day to try and secure a discount, but the reality is these discussions could take several weeks; we will keep you in the loop the whole way.
If One Big Switch is successful in its negotiations with lenders it will then be a matter for you to decide whether any of the group discounts are right for you, and for the individual lenders who may make discount offers to decide if you are eligible to take up any discount offer.
If you have time please click the link below to answer a few simple questions. Your answers will help us source home loan offers with a genuine group discount.
If you have not logged in before, you will need your password that was sent to you in your welcome email to log in.
Thanks again for all your support over the last two weeks.
The One Big Switch Team
I agree to deal with only one banker.
I used to refer people to multiple bankers as they desired the best rate. But it only makes thing difficult.
Now I refer customers to one bank and one bank onlyMrDarcy wrote:Hello Mr Darcy
Be aware if you are going to refinance to ANZ, they are giving a $1000 cash back for making the switch. This is available either by going direct, being referred or via brokers. [/quote]
Checked out your site Kane..
pretty neat![/quote]
Thanks Mr Darcy, we are releasing a new, more modern site in 2 weeks. <moderator: delete advertising>
MrDarcy wrote:I am moving from Commbank to ANZ as per the above statements and with 1% off over 700k id be keen to see if that doesnt sway the sour taste..Sorry to be blunt but money is money at the end of the day and I can assure you CB wont be any better..
I was going through a split with my wife and they printed copies of all of my statements in a branch and handed them over to her.. Then also charged ME for it.. (I had two days earlier marked all accounts with a note saying that she was removed from all access!!)
Needless to say this didnt help in the finance split!!!!!!!
At the end of the day people make mistakes and I still use Commbank.. I need them to continue the journey!
I'd give ANZ a go.. Its a good deal and if investing is what your into, It should be the overall focus..
If I was fleeced 40k by a bank mistake, Id be getting it back or taking it further
But if your business partner has let it go, maybe you could too?
At least crunch the numbers on it 1st..
Cheers
Hello Mr Darcy
Be aware if you are going to refinance to ANZ, they are giving a $1000 cash back for making the switch. This is available either by going direct, being referred or via brokers.
jdufall wrote:Hi allI am looking at refinancing my PPOR and IP loans, my current finance is with a credit union and they have a limit of what they can lend me which is well under what I can service and need for my investing. I have talked to a mortgage broker and he has put forward the Commonwealth Bank as an option. The package was there Premier Banking, which appears to have flexible options in going forward.
Does anyone have any experience with this type of package, good or bad, or a similar package with another bank. The ANZ is not an option.
Cheers
John
Hi John, its a very good package and I have placed a number of customers to this package.
I would also ask you to consider the NAB choice and the Bank of Melbourne advantage.
Bank of Melbourne are giving up to .95% off as a special offer.
nicolas_b wrote:Are Low Doc / No Doc loans still available?What are the requirements?
Minimum deposit / Maximum deposit?
Would someone qualify $650 K deposit, ($50K to be set-aside for mortgage payments) borrowing $400k.
With such a high deposit, you could do Low-Doc, Rams is the leader in this market up to 80% LVR or go to one of the majors. You will need to be referred to credit management to be approved.
Sounds like CBA is the option, they have good rates at the moment. 6.96% or 7.27 comparison on a 95% LVR
sonyasal wrote:HiJust wondering whether anyone has been able to source a very good investor loan recently. Looking for interest only with highest lend possible. Any loans offering 95% lends anymore?
Would love to hear people's thoughts and experiences. How hard is it to secure a loan these days with new lending criteria etc.
Thanks
Sonya
Hi Sonya, CBA and NAB are currently doing 95% or 5% deposit.
have a word to them.Hi Brendon
I recommended doing your own research
FYI The Bank of Melbourne and NAB are the most competitive.
Happy to place you in touch with one of their specialist lending staff.
Henry Adams wrote:Hi, Just a quick question, What's the difference in applying the loan directly through the bank compares with using mortgage broker ? I'm starting to look for a suitable lender for my IP loan, at the moment I'm with Bankwest and should I apply second account for IP loan (semi firewalling with Bank west) or with different lender ? Thanks.Hi Henry, it depends who you see at the bank. I recommend seeing the bank's mobile banker. They are highly trained to give quality advice and to recommend the right product for you.
They also give special offers which brokers are unable to give.
I recommend having a shop around.
