Forum Replies Created
Hi Karen & welcome to the forum,
Are you entitled to the FHOG?
If you don’t have the required deposit,then finance at a higher LVR may be an option.Regards
Steven
Mortgage Broker[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.
Originally posted by Martine:Hi All
Can anyone help me with my queries please.I purchased a block of land for $35000 now valued at $80000, owed $10000, used the equity to buy another block for $137500 and build for $135000, borrowed $282500 to pay off initial loan and finance new venture, now valued at $360000.
1. Do I need to refinance to release the first block of land so that I have this for future equity?Providing you have enough equity and the loan is portable, you may be able to transfer the security across to the 2nd IP,
I aim to rent the house for $200.00 per week with loan repayments at approx $500.00 per week, capital gains is good.
2. Is this a negative geared property and how can I make it more neutral or positive?
With the current loan of $282500 and out of pocket repayments of $300 per week after receiving $200 per week rent.You are negative geared, Interest only repayments may help increase cashflow,
3. I assume that I would have equity in my first IP if I release it from the bank but how do I manage another loan to buy my third IP without being too much out of pocket? I also plan to rent this one out.
From a lending institutions perspective, (depending on your level of income) serviceability may be problem on future debt, a higher return on investment may be an option,I have read Steve’s books and some other investment books they are all great and make sense but I am having trouble understanding how to work out the negative, positive gearing especially when there is a capital gains and equity. I hear that people can invest on an average income with little out of pocket, is this True?
Thanks for your help
MartineRegards
Steven
Mortgage Broker[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 louroza,
With $41K available equity/deposit, you will be in need of a 90/10 or possibly a 95/5 loan with LMI.Regards
Steven
Mortgage Broker[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 Blondie beck,
You may need to do some research, try the search function on this site or google,
here are some links with info on trusts to get you started.http://www.strategicwealth.com.au/documents/5Reasons.pdf
http://www.sjq.com.au/sjq/site.cfm
http://www.ntaa.com.au/ntaacorp_partnershipoftrustexp.html
https://www.propertyinvesting.com/forum/topic/12469.html?SearchTerms=loan,structure
Regards
Steven
Mortgage Broker[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 Busta,
There are a few lenders currently offering 100% finance, Pepper, Liberty, St George to name a few, certain lenders allow you to borrow over 100% to cover purchase costs, stamp duty legals etc,These types of loans attract higher rates along with LMI or LEF fees, be aware of the break costs.
Regards
Steven
Mortgage Broker[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.
Originally posted by Marisa:I am after the best low doc loan on the market at present… Many thanks
HI Marisa,
The best is not always the cheapest,
There are so many Low Doc products on the market at present, with rates ranging from 6.47% to 13.75%
The best low doc loan on the market will be the one that suits your criteria.Regards
Steven
Mortgage Broker[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.
Non resident lending criteria.
Normal fees apply,
80% Max LVR for non-self supporting loans.
Normal LVRs apply for self-supporting loans.
You may be required to obtain prior approval from the Foreign Investment Review Board.Regards
Steven
Mortgage Broker[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 Cherie,
To clarify, an offset is a different product altogether to a LOC or a redraw,
An offset will not effect deductibility of interest, where as a LOC or redraw generally will.Regards
Steven
Mortgage Broker[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 GSSW,
Don’t be frazzled, the mechanics of an offset can at times be confusing to many people,
Your confusion may stem from a misconception of how an offset operates; I hope the following helpsYour situation.
Current loan balance $105.000
Funds in Offset account $109.000
Currently available in redraw $87.000
Required minimum loan repayments $750 per month, on a P&I 25/30 year term loan.
Estimated original loan amount of $187.000
($82K redraw + current balance of $105K = $187K)You currently have a loan balance of $105K, the interest payable on this is offset by the $109K sitting in the Offset account, so effectively you are not being charged interest on the $105K,
But, because your loan repayments are P&I you are still making principle repayments,However if you had a loan with interest only repayments, the monthly repayments would be Zero,
Your monthly repayments are not going into a black hole, but is helping to pay down your PPR loan (non-deductible debt) at a faster rate; this is the primary benefit of an offset account.BTW, Be careful if you intend to use the funds available in the redraw for investment purpose, as this may cause problems come tax time, a split loan may be a better option.
Regards
Steven
Mortgage Broker[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 Kerwyn,
Who is the lender?Regards
Steven
Mortgage Broker[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.
Newgen,
I suggest you call the CBA and ask for the break costs on your fixed loan,
If you do refinance with St George, consider the pro package @ 6.37%Regards
Steven
Mortgage Broker[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.
At the moment its hard to ignore Adelaide Banks 3 years fixed rate @ 6.50% with free 100% offset,
I expect more lenders will compete.Regards
Steven
Mortgage Broker[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 Calvin,
Your situation is fairly unique, think about which option offers the greater benefit,
is it the 80% discount you currently receive on your PPR mortgage, or is it the deductions you will receive on an investment loan?In both scenarios you are paying down debt to release equity for use as deposits on further investment, which portion of the split loan you decide to concentrate on paying down First will depend on the answers to the above, Cheers.
Regards
Steven
Mortgage Broker[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 Calvin,
Another option to consider,
Organise a split loan with redraw and an offset attached to the investment split, No need for a LOC,
In normal circumstances the offset is attached to the non-deductible portion of the loan, but in this case you may want to take advantage of your employer paying 80% of the interest on your PPR debt.Regards
Steven
Mortgage Broker[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 Calvin,
Yes you are correct; the offset would have to be linked to the mortgage,
BTW, That is a fantastic deal your getting with your employer,
Cheers.Regards
Steven
Mortgage Broker[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 Rose,
This article on the residex web site may be of interest to you,
http://www.residex.com.au/index.php?content=article12Regards
Steven
Mortgage Broker[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 Rose,
Here is a link to an article on the residex web site that you may find useful,
http://www.residex.com.au/index.php?content=article12Regards
Steven
Mortgage Broker[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 Calvin,
This is a good strategy, and its used by many investors, this structure will work with either an offset or a LOC or both.Regards
Steven
Mortgage Broker[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 Gilad,
Unless you are buying of the plan, You are still required to pay transfer stamp duty on a purchase in Victoria, This is not to be confused with mortgage stamp duty.
For further info have a look on the Vic gov site. http://www.vic.gov.auRegards
Steven
Mortgage Broker[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.
BTW, The VIC Govt.has abolished Mortgage Stamp Duty, as of 1st July 2004.
Regards
Steven
Mortgage Broker[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.
