Forum Replies Created
Hi Richard,
I have a contact at CBA, in credit assessment that said they will consider a RTB scenario, based on the strength of the applicant. A collegue of mine did a similar deal with Maxis, however, it was a fair while ago and their policies may have changed since then with regard to these deals, so you maybe right.
Cheers
Matt Centrone
Investor Finance
[email protected]
Ph: (08) 81325913
Mob: 0402 278 019
90% loan in country local no drama, couple of options available depending on your situation. CBA or Maxis just to name couple.
Drop me a line or give me a call to discuss
Matt Centrone
Investor Finance
[email protected]
Ph: (08) 81325913
Mob: 0402 278 019Hi Chris,
Yeah I have read the book you were discussing, by Margaret Lomas and know what Line of Credit you are talking about. There are actually a number of banks and lenders that have this type of facility available but there are always subtle differences in the products and it depends on your situation and where you want to invest, which will determine which lender to go for. Give me a call or drop me an email with some more details of your situation and I'm happy to go through the options with you.
Cheers
Matt Centrone
Investor Finance
[email protected]
Direct Line: (08) 81325913
Mob: 0402 278 019Hi
I agree with Richard that depending on the LVR then pre-sales are not a pre-requisite.
There are some private lenders out there that will lend on Gross Realisation rather than Hard costs, whcih is probably the type of facility you will want to look for if you don't have pre-sales but the bottom line of the deal must be solid. If I know a few more details regarding the deal I could point you in the direction of some private lenders you may be able to help you.
Cheers
Matt Centrone
Investor Finance
[email protected]
Ph: (08) 8212 0788 Mob: 0402278019Hi fiveyears,
I'll try to help, but a few more details are necessary.
1. "an area" is that vacant land? What is it zone? rural, commercial, residential?
2. What is your plan? To develop then sell?Depending on the purpose and the parameters of the deal depends on how to go about finance.
Cheers
Matt Centrone
Investor Finance
[email protected]
Ph: 0402278019HI Ian,
I'm new to this forum and based in Adelaide, but I have read numerous posts from both Richard Taylor and Terry W and they both put forward intelligent and logical posts with regards to finance and investment so give Terry a call. I'm sure he'll be able to help you.
Cheers
Matt Centrone
Property Investor and Financial Strategist
[email protected]
Ph: (08) 8212 0788 Mob: 0402 278 019Hi ybuddha,
Yes you can claim tax deduction on the portion of the loan that you use for investment property. What you can do is split the loan so it is easier for your accountant, so that the portion of the loan that is to purchase for you PPoR is in one account and the remaining LOC for deposits on future investment properties is in another account. This can still be under the same loan facility. Look at what's called a professional package. Most banks have them with different names, but they operate so you can have numerous splits and loan facilities with usually only one annual fee.
Cheers
Matt Centrone
Property Investor and Financial Strategist
[email protected]
Ph: (08) 8212 0788 Mob: 0402278019Hey Nonnie,
Before you spend $3000, I would shop around. Speak to financial advisers, accountants speak to specialised finance brokers. Do your own research on property investment.
For example:1) The financial software they provide, there are a number of different softwares available on the internet to assess the financials of property investments and they usually only cost around $200.
2) Setting up a financial structure which is basically getting you into a suitable loan facility for future investing, I do this for my clients for free, because as a broker I get paid by the lender. I can use over 25 lenders and banks so I doesn't bother me where I go to for my clients
3) Annual Property portfolio reviews, again I do this for my clients for free.
4) Most financial planners would not charge you anywhere near that much for a detailed financial plan just as Richard Taylor alluded to in his post.Have a think about it.
Cheers
Matt Centrone
Property Investor and Financial Strategist
[email protected]
Ph: (08) 82120788 Mob: 0402278019Hi NonnieE,
Just out of interest how much does it cost to become one of their clients and what service do they provide?
Cheers Matt
Matt Centrone
Property Investor and Financial Strategist
[email protected]
Ph: (08) 8212 0788, Mob: 0402278019Hi Duc,
I'm from Adelaide also and I know that the property market here at the moment is very exciting. I think Marc's advice is very good in that if you structure some of your loans so that the $600K sits in an offset account, the cash will still be available in case of an emergency, however it will offset against your interest repayments giving you more cash flow.
If you are looking to expand your property portfolio, you may not want to use all of the cash, but maybe half. With $300k for deposits and costs you could conservatively purchase a further $1.2m of property so long as you could service the debt through future rents and income.
If you would like to catch up and have a chat about how to structure you finances, give me a call or send me an email.
All the best,
Matt Centrone
Investor Finance
108 King William St
ADELAIDE SA
[email protected]
Office: (08) 82120788 Mob: 0402278019Hi Peter,
I definitely recommend an investment plan for all my clients. What I actually do is work out with my clients their goals long term and short term. This is formalised and written down. I start by preparing a property portfolio review, which basically looks at their current financial situation, the structures they have in place, their avaiable cash flow and then show them their potential and work out a strategy of how to achieve their goals. I then review these goals with my clients every 6 to 12 month.
Mate I think its great that you've decided to sell the block and have made the decision to start growing your portfolio. Like I said I don't really know the Port Elliot rental market very well but I imagine that it would be very seasonal so you've probably made the right decision. I don't think you'll have any problem purchasing $400K IP with the figures you have stated above. My question is what type of property is it and how is the rent "guaranteed." I am sometimes wary of rent guarantees. Also I'd be happy to prepare a property portfolio review for yourself free of charge as this is a service a do for all my clients for free.
Or if you just want to catch up and have a chat about how to structure the purchase of the investment property, drop me a line or give me a call. One thing I will say is that it is very important to have the right structure from the start because this usually determines your borrowing and purchasing capacity in the future.
Cheers,
Matt Centrone
Property Investor and Financial Strategist
[email protected]
Office: (08) 82120788 Mob: 0402278019Yeah, I agree with you mate. I know a couple of people who have used them, but its not my cup of tea.
All the best
Matt Centrone
Property Investor and Financial Strategist
[email protected]Hi Thonas,
I've encountered this type of loan, and basically what happens is that the lender charges around 4% interest but also capitalises 4% on your loan amount for a specified period which may be 3 or 5 years, meaning that your loan amount is actually increasing, after the specified period runs out, the interest rate then reverts back to around 8% or whatever the rate is for the product. The theory behind the loan is that after 5 years the growth from the property should have exceeded the amount capitalised. It can be useful if you want to get in to the market but still maintain your cashflow.
Cheers
Matt Centrone
Property Investor and Financial Strategist
[email protected]Hi Peter, A few more answers. 1) An offset account, is a transactional account like a savings account however it's amount is offset against your loan amount. For example if you have a loan of $200K and $20K in your offset account, you only pay interest on $180K. If you then spend $10k from the offset account you pay interest on $190K. 2) Investment plan, again there are no right or wrong answers. My current investment plan is to buy and hold, however, I know people who buy and sell and do quite well. I was suggesting that you could build on the land and then rent it out, but I don't know the Port Elliot rental market very well, however consider that if you built you could claim substaintial depreciation on the property and seeing that you already own the land freehold, if you got reasonable rent, it might turn into a positively geared property inwhich case I would definitely hold onto it. Look forward to hearing from you again, Matt Centrone Property Investor and Financial Strategist. [email protected] multiple property specialists
You could definitely get a higher LVR than 60% if its considered a commercial lend. You could also try to value the units individually and lend against them as residential with different lenders, (longer and more expensive process, however this could mean getting up to 95% on each unit individually).
Cheers
Matt Centrone
Property Investor and Financial Strategist
[email protected]Hi Peter,I'm from Adelaide too, its good to see someone else on this forum from SA. Firstly you should unlock the equity in your PPoR with either a LOC or an offset account facility. They both operate in a very similar fashion. However depending on the amount you borrow and which lender you use depends on your interest rate and the fees associated with the loan facility. You can do this to 80% LVR avoiding lenders mortgage insurance, however I know some serious investors who go up to 95% LVR, it just depends on what risk you are comfortable with. You would then use these available fund for deposits and costs of future investment properties. Again you could use funds putting down 20% deposit and borrowing the other 80%, however there is also the option of putting down 5% and borrowing the other 95%. There is no right or wrong answers, it really depends on your goals, what you are comfortable with and your investment plan over the long term. Also, think about what you want to do with you vacant land as it could be geenrating income for you if you built on it. This is quite a basic overview.Peter, I'm think of starting a property investment group in Adelaide so investors and like minded people can get together once a month and share their experiences and views on things. If you are interested send me an email. All the best with your investing.MattProperty Investor and Financial Strategist [email protected] property specialists
