Forum Replies Created
Hi I absolutly agree with the above, you need to obtain some independant professional advise as everyones situation is different and also regions are different.
In saying this Im not sure from an investment perspective though that selling and then re buying again into the same market is a good idea (it depends what end of the market your in) there are a lot of associated costs involved with buying and selling which you could avoid, you also have quite a bit of equity which you could simply put out to work for you and make you more.Kylie S
Mortgage Consultant & Property Investor
0412614965
[email protected]Hi there was a forum error, I only clicked it once but it added it heaps of times..it did it also on the person who posted before me
Kylie S
Mortgage Consultant & Property Investor
0412614965
[email protected]hi admin..i think there is something wrong with the forum..its adding more posts of the same..when only clicked add reply once
Kylie S
Mortgage Consultant & Property Investor
0412614965
[email protected]Hi before I can say what may be an option for you, please advise further info.
ie:
Whats the current market val of the land? Do you owe anything on the land?
Are you building a dual occupancy?
Are you looking for a lodoc or fulldoc? If full doc, servicibility will need to be established to cover any existing loans plus this one.
Also as mentioned above by another member there is construction (development) finance which lends on the end value (completed project)
Please advise of the above I I will help steer you in the right direction and give you some options on where to lookKylie S
Mortgage Consultant & Property Investor
0412614965
[email protected]Hi before I can say what may be an option for you, please advise further info.
ie:
Whats the current market val of the land? Do you owe anything on the land?
Are you building a dual occupancy?
Are you looking for a lodoc or fulldoc? If full doc, servicibility will need to be established to cover any existing loans plus this one.
Also as mentioned above by another member there is construction (development) finance which lends on the end value (completed project)
Please advise of the above I I will help steer you in the right direction and give you some options on where to lookKylie S
Mortgage Consultant & Property Investor
0412614965
[email protected]Hi before I can say what may be an option for you, please advise further info.
ie:
Whats the current market val of the land? Do you owe anything on the land?
Are you building a dual occupancy?
Are you looking for a lodoc or fulldoc? If full doc, servicibility will need to be established to cover any existing loans plus this one.
Also as mentioned above by another member there is construction (development) finance which lends on the end value (completed project)
Please advise of the above I I will help steer you in the right direction and give you some options on where to lookKylie S
Mortgage Consultant & Property Investor
0412614965
[email protected]Hi before I can say what may be an option for you, please advise further info.
ie:
Whats the current market val of the land? Do you owe anything on the land?
Are you building a dual occupancy?
Are you looking for a lodoc or fulldoc? If full doc, servicibility will need to be established to cover any existing loans plus this one.
Also as mentioned above by another member there is construction (development) finance which lends on the end value (completed project)
Please advise of the above I I will help steer you in the right direction and give you some options on where to lookKylie S
Mortgage Consultant & Property Investor
0412614965
[email protected]Hi before I can say what may be an option for you, please advise further info.
ie:
Whats the current market val of the land? Do you owe anything on the land?
Are you building a dual occupancy?
Are you looking for a lodoc or fulldoc? If full doc, servicibility will need to be established to cover any existing loans plus this one.
Also as mentioned above by another member there is construction (development) finance which lends on the end value (completed project)
Please advise of the above I I will help steer you in the right direction and give you some options on where to lookKylie S
Mortgage Consultant & Property Investor
0412614965
[email protected]Hi..what was your plan when you purchased the block?
Where is the land? Is there a market for rentals?Kylie S
Mortgage Consultant & Property Investor
0412614965
[email protected]Hi Yes I have one, they are not that crash hot..as you need to have a vent for the hot air, so we had to put it out the window..which really defeats the purpose as the hot air just comes in through the window as well as blowing the hot air back in.
The only way to do it would be to cut a whole in the wall so you could put out the vent, this is something I didnt want to do.On the other hand my mum uses one that she has to put in ice water which doesnt need the venting pipe…but its really as efficient as a good fan and and ice cold washer on your forehead.
You may appreciate spending the extra few dollars and getting a split system for the desired area.
Kylie S
Mortgage Consultant & Property Investor
0412614965
[email protected]Hi Bridgebuff,
I agree with Elka, I believe there will be a CG event in your strategy.Kylie S
Mortgage Consultant & Property Investor
0412614965
[email protected]Hi please look up CGT on the ATO website as I believe it land is always a capital gains event, when you build on it, you need to hold the dwelling as a PPOR for the specific amount of time and can claim it as your PPOR as long as it is the only one
I understood your question as being your property has just been completed…is this correct because if it has and you sell now you will find you could very well be liable for CGT, if it has been built for 12 months and you have not earned any income from it (ie rent) then it is not a CGT event.
cheersKylie S
Mortgage Consultant & Property Investor
0412614965
[email protected]Hi, as you havent moved into this property as yet if you sell it would be viewed as an investment and you will be liable for CGT.
I would personally keep this property and use the equity to start buying investments, then if you choose to sell later, you will reduce or eliminate your capital gains liability.Kylie S
Mortgage Consultant & Property Investor
0412614965
[email protected]Hi as she wants to use it as an investment property in the long term it is probably best to go interest only to maintain cashflow.
She can then make additional payments if she gets a redraw or an offset with the facility.
All in all it depends on her current financial situation and what her goals are in the years to come to make an adequate assessment.Kylie S
Mortgage Consultant & Property Investor
0412614965
[email protected]Hi everyone, just want to make a comment.
Please dont be biased in views on other peoples skills & knowledge I can appreciate towards one who has been a part of the forum for quite some time, but for those of us whom have only just found this forum (in the last week or so)
This forum is about knowledge and offering your own skills and experience whilst at the same time gaining new knowledge….
In actual fact for those of us who are new to this forum, we dont know where each of us has been or what we have to offer in the way of knowledge and experience. I for one, have 10 years experience in investing, developing, building and assisting people with mortgage consulting and I am here on the forum to offer any knowledge I can to others who ask and to also learn from other skilled professionals.Kylie S
Mortgage Consultant & Property Investor
0412614965
[email protected]Hi
You could look at the option of borrowing through developer finance. You can borrow up to 85% GRV (final value of your project) for full doc and 75% for lodoc.For example only lodoc at 75% of the final value ie: you metioned approx 900K each , thats $1.8K, 75% of that is $1.35 which would allow:
$600K + costs for your land purchase
$600K for your construction costs
Plus a little left over if you needed it to cover some interest costs for the year of construction.
Interest rates vary for this product but approx 9-11.5% for lodocI hope this info helps
Kylie S
Mortgage Consultant & Property Investor
0412614965
[email protected]Hi, MB means mortgage broker and nodoc means no documents required, ie: you usually dont have to show assets or liabilities and dont have to sign a stat dec on your income. However this loan is only suitable if you have the required deposit (or equity elsewhere) These loans are usually around a 70%LVR, so you need 30% from elsewhere as well as your costs to buy.
A lodoc is slighlty similar, the lend is up to 95% from some lenders, usually around 80% however you need to submit assests & liabilities and sign a stat dec on your declared income. You also must be self employed.
If your friend has $1Mill in equity they certainly will be able to restructure to get additional finance for further investments.
kind regards
kylie
Mortgage Consultant
[email protected]Hi
In regards to units (if possible stay away from them) the reason is because you actually on own the space in between your walls..what appreciates is land vlaue which in turn is driven by supply & demand. With units you dont own any land.As a FHOG, in NSW you do have to occupy it for 12 months. In regards to sub leasing a room i dont think this would be a problem as you are occupying the property. Contact your accountant to clarify.
If you are in NSW as a first home buyer you will also be eligible for govt stamp duty excemptions..so if you buy under $500k you may be eligible to claim full stamp duty costs which saves you many thousands of dollars.
And therefore if you have 10% deposit it goes towards the property principle.
If you have any further questions feel free to email me as I have helped many first home buyers into the market
regards
kylie
Mortgage Consultant
[email protected]hi just food for thought on this kind of product..i have done the figures on it & yes you owe more at the end but for my own properties they actually come out ahead and will allow me to hold more properties. this is due to the region my properties are in are still experiencing growth with a high rental demand.
The best thing is obviosly the positive cash flow…
You can actually start the recapitilisation again at the end of 3 years, so you will have 6 years of lower repayments and then dont have to pay any DEF.
The actual fact is the interest rate is just above a lodoc interest rate
Im continuing to investigate the usefullness of this product on my own invesments and if all goes well I will offer this to my clients.
kind regards
kyliesorry thats $100 per week cash flow+ in the above scenario
