Forum Replies Created
Luckyone,
Let us know what your broker recommends.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Yields are high but not spectacular – got them written down somewhere – will post them when I unpack…..maybe in a week knowing me!
Underground is Coober Pedy. Lightning Ridge is a little damper and to live underground would lead to pneumonia so I was told.
I didn’t mention this but the absent CG has put me off buying – just doesn’t fit my strategy.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
My money is with Mel and Terry.
If the property is taxable income producing (pos or neg) then expenses are deductible.
I don’t agree that a LODOC is automatically deductible just because you sign the declaration – depends on the purpose of the borrowing.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Make sure you have your finance squared away first.
Most major lenders need it put together by a builder on a fixed price contract.
Owners builders are not popular at all!
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Most lenders no longer have an issue with age. I have got a 30 year loan for a 75 yr old fellow not so long ago.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Imagine a LOC to be like a credit card.
You pay to set it up.
It sits there doing nothing and costing little if not nothing.
One day you need to draw some funds and you do so.
You now pay interest on this debit balance each month.
You can pay it off or use it up to the limit at any time.
If you need, and security and servicability permit you can raise the limit.
Hope this is helpful!
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Do a search as there was a pretty detailed thread on the Property forum.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Best I can offer you is a NODOC at 65% @ 6.85% variable.
If you get an ABN then an 80% LODOC is possible but rate will be higher.
Best of luck,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Well the $250 is what I paid for my last inspection – for that I got a detailed written report and a guided tour of the property where he pointed out each defect and advised me of the seriousness and necessary action.
$300 for approx 4 hours travel sounds at the high end of reasonable to me.
I think I would try to negotiate here. Is there not a local builder who meet you there?
It would be wrong to think it too much to spend on a cheap property. Major repairs cost the same regardless of the value of the property indeed by your reasoning it would be proportionally more expensive to have $5 000 worth of repais done on this place than on a $200 000 place – if you get my drift.
Add to this the 200km each way for the tradesman…..
Could be a very costly move not to have it done and it does form part of your purchase costs for taxation purposes.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Redwing – it was 1996 when I was there and I didn’t look at real estate at all.
It isn’t the sort of place my purchasing strategy has me looking at. Just passing on my impression and my clients opinion.
By the way I am off to Lightning Ridge next week to visit my wife – will let you know what it is like there. I hear the rental market is bouyant [
]Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Redwing is right in the outcome where your debt will be non effective tax wise. Selling and rebuying is a solution.
A cheaper solution (though still pricey) is to “sell” the old PPOR to a trust for max market value with 100% borrowings. You will not pay CGT and your new PPOR assumes the CGT exemption.
You can then have the debt in the IP and the Cash in the PPOR.
If you think this might happen again then borrow 80% of the new PPOR and lodge the cash in an offset where it can be drawn for the third PPOR leaving the debt intact.
As always see an accountant!
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Pat,
LVR means Loan to Value ratio.
Basically it is the % that the loan forms of the purchase price or valuation for a refinance.
So then a property purchased for $250 000 with a $200 000 loan will have an 80% LVR.
Where in Malaysia do you live? I spent 3 fantastic years in Pulau Pinang.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
All the majors will follow suit. Sometimes the smaller local lenders hold off for a little to attract new clients but they always catch up eventually!
Have a great weekend everyone.
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
These aren’t desperate people at all. They are usually developers looking for short to medium term finance that don’t fit the mould of the residential borrower and as such aren’t catered for by the Mum and Dad lenders.
These sorts of rates are factored into their proposals and are covered by the projected return.
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
For a final word on P&I vs IO remember this.
If you have any non deductible debt such as a PPOR loan then you should go IO on the IP.
This allows you to direct both lots of Principle into the non deductible debt.
Have a great weekend folks.
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Itsa,
That is a call that is really up to you. You need to decide what you want to achieve then we can tailor a plan to suit – whether it be one acquisition or two depends on your strategy. Best to think this out clearly rather than make it up as you go along.
Remember those who fail to plan, plan to fail.
You shouldn’t be scared of Mortgage Insurance – without it you wouldn’t have the flexibility to borrow more than 80%.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
IO loans are easy.
Amount times rate divided by 100.
So $200 000 times 6.85% divided by 100 = $13 700.
Divide this by 52 to get a weekly payment.
by 12 for a monthly payment.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Normally this is the case. Where someone like a developer wants additional funds for infrastructure they go for second mortgages.
For example I have a client who has a first mortgage against a large piece of land and needs additional funds to develop it. He is willing to pay 24% over 12 months for it.
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Second mortgages are inherently more risky. Most banks don’t do them anymore.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Generally the higher the return the higher the risk.
However these would be secured by residential property so I imagine this minimises the risk. This is not investing in real estate though.
There are all sorts of investments like this including venture capital, solicitors mortgages, mezzanine funds etc
All the best,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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