Forum Replies Created
Hi Collie,
If you have available funds to cover relocating the house and the renovation, then consider getting finance for the land only,
upon completion of the renovation you should have a fair amount of equity to continue investing,Regards
Steven
Mortgage broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Ho Minxii,
$30K is an adequate amount to get you started on a purchase of approx. $200K,
Extracting your current available equity at a higher LVR may give you a higher deposit; this option will involve LMI,
Talk to a mortgage broker to see what options are available to you, Cheers.Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
This article from the SMH dated 14.8.04 highlights the perils of mixing private and investment funds in a redraw,
http://www.smh.com.au/articles/2004/08/13/1092340458713.html?from=storylhs&oneclick=true
Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Ed,
Be aware of the tax implications when using a redraw for the purpose of investment,
Private funds intermingled with investment funds can cause implications on the interest deductions on investment finance,Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Ed,
Regarding credit providers and products, contact a couple of Mortgage Brokers, who have access to a wide range of lenders,
I doubt serviceability will even be an issue,Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Ed,
Consider a split loan with an offset attached to the non deductible portion of the split, place the equity in the offset until such time as required for deposits on separate loans.Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi keira
You may be entitled to a partial refund on the LMI, I suggest you contact your lending institution for further details,
Also, have you checked with your credit provider to see if break costs will apply on the loan?Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi FC,
$200K loan at 10%
Interest only repayments = $1.667 per month x 12 months = $20.004 per yearRegards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi FC,
It’s not $20 per year, its $20.004 per year. (Twenty Thousand and Four dollars)
I hope this helps,
If your still not quite sure, keep asking, that’s what this forum is for, cheers.Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Inez,
Depends on your circumstances, but generally its best to keep loans separate and avoid cross colaterisation,Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi FC,
You are nearly there,
With interest only repayments the term is irrelevant, but based on your example of a $200K loan at 10% your interest only repayments would be $1.667 pm = $20.004 per year.
So lets assume you have an interest only term of 5 years, after 5 years you would have made in total $100.020 in interest only repayments,
Keep in mind, at the conclusion of your interest only loan period, (in this example its 5 years) you will still have a remaining debt of $200K,
in most cases you will have the choice to either negotiate another interest only loan period, such as 5 or 15 years etc, or commence principle and interest repayments on the $200K loan,Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi FC.
If your repayments are interest only, the principle will not reduce,
E.g., $200.000 loan, interest only, 10-year term,
After 10 years of interest only repayments the balance remaining on the loan will remain at $200.000 Hope this helps,Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi GE,
If you extend the LOC after the reno you will have access to the extra estimated $33K in equity, this may come in handy for future deposits etc,Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi EW,
I would look at financing the initial deal using as little of your $130K as possible, prime lending will get you anywhere between 90% to 100% LVR, with subprime lending generally around 80% LVR,
Once the Reno is completed you could then access the increase in equity via a LOC etc for future deposits/closing costs on separate loans,
In the meantime, if you have non-deductible debt, consider offsetting this with the balance remaining from the $130K.Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Unfortunately lending institutions will not extend the loan on an initial property purchase to cover the car loan, until such time as you have enough equity in the property to cover both the lenders maximum LVR exposure and the car loan.
Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Nswsren, welcome to the forum
If your father is guarantor you will still be required to demonstrate that you can service the loan independently,
Another option would involve your father as a co borrower on the loan, Keep in mind this may cause further implications with regards to names on the title and the FHOG.Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Dan,
Commercial lending is usally around 70% LVR, higher rates apply,Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Montagoo & welcome to the forum,
Your best option regarding types of loans would be to contact a Mortgage Broker with access to a wide range of lenders,
If you intend to access equity via your PPR, I would suggest you structure a split loan with the PPR as security with a separate 80/20 basic discounted loan on the new purchase, I would also look at the benefits of attaching an Offset to the non deductible portion of the split loan.Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Myydral,
Congrats on your good news,
I would sugest you keep the loans separate, access the equity on your current unit and use these funds for the deposit and closing costs on the next purchase,
You are probably already aware that you will not be able to claim the interest on borrowed funds for the new car, cheers.Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Alf,
The credit contract is not valid until such time as you sign the letter of offer from the ANZ.
Its probably a good idea to check this with your broker,Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
