Forum Replies Created
Hi Mitm,
No need for an LOC secured against a PPR, when a split loan with IO repayments will provide the same result and is usually more economical,
As already mentioned an offset linked to the non-deductible portion of the split loan will give you the flexibility to pay down or preserve the debt,
And for those who still prefer to use an LOC, the above scenario would still be applicable if One portion of the split was an LOC, Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Andre,
A foreign investor will require permission from the FIRB in order to purchase property in Australia,
this link below to the FIRB web site may help, Cheers.
http://www.firb.gov.au/content/real_estate.aspRegards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Originally posted by dj71:Steven, The option of split loan and 100% offset linked to new PPOR loan is something I don’t fully understand. Is the new PPOR loan a portion of the split loan or is it an entirely new loan. Either way does that mean there will be a portion that is for PPOR thus unclaimable.[confused2]
Dave
Hi Dave,
The new PPR loan would be a separate loan @ 80% LVR secured by the new purchase, the remaining 20% and purchase costs stamp duty etc will come from the non deductible split that is secured against the Perth IP,You could then access the maximum equity on the Perth IP via the investment split and park this in the offset linked to the new PPR loan, this would reduce your non deductible debt for the period the funds remain in the offset account.
Interest only repayments on the PPR loan will preserve the initial debt if you decide to convert it to an IP at a later stage, Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Dave & welcome to the forum,
Have you considered setting up a split loan on the Perth IP,
One portion of the split will be for investment the other portion of the split would be your deposit and closing costs on a separate loan for the purchase of the new PPR,You could also attach an 100% offset linked to the new PPR loan and place the funds from the investment split into this if required. Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Cojah,
With a 10% deposit you may qualify for a 90% non-genuine savings loan,You mentioned you have a 5% deposit plus stamp duty and that you are entitled to the FHOG,
This may be enough to cover your 10% deposit and closing costs, stamp duty etc, on a 90/10 non-genuine loan, Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Rob,
Agreed, it was a good report, good to see some factual figures,Hi Don & Liz
That agent story sounds very familiar, I have an aussie client currently selling off his entire NZ Portfolio,
He bought very well and will realize some capital gain, but due to one reason or another the returns were below his initial expectations, as always due diligence is paramount, all the best with your expedition, Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Rob,
Keeping in mind the point of difference can determine success and failure, how about a vegetarian Internet café, or a combined laundry mat & Internet café, Surf & Clean! Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Nigel,
Any of the Mortgage Brokers who regularly contribute to this forum should be able to help you,
As Rob mentioned, with email phone post etc location isn’t a problem, Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Prady,
The additional 6% is to cover the purchase costs, stamp duty and lenders mortgage insurance.
LMI capitalized to 97%
This is where you add the LMI (Lenders Mortgage Insurance) to the loan,
Some lenders will allow you to increase the loan amount from 95% to 97% LVR to include the cost of lenders mortgage insurance.LVR = Loan to Value Ratio
The estimated $23.000 includes transfer stamp duty, land transfer registration, mortgage registration, and LMI.
Interest rates on 106% finance are higher than 100% finance.
I hope this helps, Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Prady & welcome to the forum,
Without any savings/deposit & assuming you are entitled to the $12.000 FHOG, you will require 106% Finance,
E.g., based on a $300.000 purchase in VIC including closing costs stamp duty etc but excluding legal fees.
95% finance with LMI capitalized to 97% LVR
Estimated funds required: $30.000 less $12K grant = $18.000100% finance
Estimated funds required: $23.500 less $12K grant = $11.500The rates for 106% finance are approx. 8.55%
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Nigel,
Be wary how you structure the refinance, a lot of lenders will xcoll your portfolio if you let them, when the time comes talk to a Mortgage Broker.The lender prepared to lend the highest amount may not necessarily be the best option,
Subject to your future plans a professional package may be the better option, cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Amused,
At 80% LVR you have $86.000 in equity with the combined properties mortgaged with the ANZ, if the $86K is sufficient then I would look at refinancing these loans first, and look at refinancing the CBA loan after construction is completed.BTW, at the moment it seems all your properties are cross-collateralized, I would suggest keeping these loans separate when you do refinance/extract equity, If you need help with this call or drop me a line. Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
There is no need to purchase the NZ properties outright; you can get Low Doc finance in NZ, cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Freedom,
At 80% LVR your available equity is $56.000E.g., Value: $260.000 @ 80% LVR = $208.000
Minus the current loan balance of $152.000 = $56.000 in available equity,If you need to access more equity a higher LVR may be an option, but mortgage insurance will apply over 80% LVR.
I hope this helps, Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Andy & welcome to the forum,
Unfortunately its very difficult to offer any help without further information,
loan amount, purchase price, location, LVR etc etc, or feel free to contact me if you prefer not to disclose this information on the forum, Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Snap Rob, great minds think alike.Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
I’m not 100% certain, but what if you purchased the new property in a Trust and then rent the property from the Trust,
If this scenario were possible then the equity from the IP and the remaining portion of the loan on the new purchase would be deductible debt,One of the problems with this scenario may include, The IP may have to be transferred in to the trust in order for the Trust to access the equity in the IP, Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
I’m not an accountant but I don’t think you could claim the interest on the 50K LOC, as you would be claiming the interest on borrowed funds for the purpose of paying interest on borrowed funds, I would strongly urge you to get professional advice before you proceed, cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Well done Rob, the site looks very good,
BTW, for those unaware, the VIC $5000 grant was due to expire in June 05 but I beleive it has been extended to December 05, Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Terry,
I think asdf wants to use the equity in the IP, if that’s the case then a split loan would do the job, Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
