Forum Replies Created
Neo,
I have only ever submitted it with a loan application and it has always been available for settlement.
I am sure that if you lodge it yourself it should only take a few weeks.
Why don’t you give them a call?
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.
Jason,
The friend is wrong. Any property can be used as an IP. Unfortunately your parents structure will not be tax effective.
They need to see an accountant. One idea might be to sell the property to a trust for a good price, pay the stamp duty and exercise the CGT exemption – no tax is paid on any profit.
Borrow 100% plus costs and use the proceeds to build their new home.
This will result in a loan against the IP and a minimal loan (if any) against the new PPOR.
Hope this helps,
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.
Blossom,
Thats quite correct. You may buy an IP and still have access to the FHOG for your home.
As to the original question about a weekend – I would be very cautious proceeding in this manner. The FHOG is for your home and to claim it for what is not your home is fraudulent.
Whilst the rules may seem flexible I am advised that the audit process is not.
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.
Some lenders will not lend above 80% in towns with less than 10 000 population size. This is a LMI issue.
There are mainstream lenders who will go up to 90% and offer you normal loan rates to do so.
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.
There are many investors here in Newcastle who operate these properties very successfully.
I own a property with 5 bedrooms which is currently returning $420 per week and after a reno in the NY I expect it to be closer to $500. This is clearly cashflow positive and in a good solid capital growth area too.
I have medical students keen to get into it as I offer little extras such as ADSL and rent it exclusively to them which they love for group study and support. I have a mature student who collects rent and maintains order for me in exchange for the best room.
Local PMs will also manage them for you if required.
There will be fundamental differences between this sort of rental and also renting to a family – I think it is a pretty standard rule that higher returns usually = higher risk.
I am also uncertain whether a flooded laundry would be considered not fair wear and tear and could be deducted from a bond unless you could somehow prove it to be done deliberately?
I think it should be understood that to get these returns the investment is a little more hands on and should be viewed as a business as much as a rental property. I do know other landlords who have foresaken the higher rent to let to a single family because of this increased workload – one lady I know took an active interest in the students welfare only to find she took the role of their parent and had all sorts of teary phonecalls about boyfriend and car problems!
Best of luck with your investments,
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.
I found it wqorthwhile to actually make an appointment to sit down with the Duty Planner and go through all the possibilities. I thought they were very helpful but I have heard that some councils don’t enjoy that reputation. Ask around and you should quickly learn the best way to approach your council.
It’s one thing to maximise the usage but you need to calculate what is best usage…what I mean is given the choice between say two three bedders or three two bedders some knowledge of the market demand may well sway you one way or the other.
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.
What goes around comes around.
To me it refers to the way I should treat others.
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.
You will need the plans drawn up before you get the DA from council – they will need to see the site plans at least.
Depending on the project you may not need an architect. Our last one was two identical houses and the builder had the plans drawn up which were satisfactory to council.
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.
Paula,
When borrowing money there are two issues.
First is deposit and second is serviceability or income.
It depends which one is weaker whether you pay out the debts or whether you save a deposit.
Sounds like you have a low deposit. I suggest you save money and pay the minimum off your debts. When you are ready to buy your broker will let you know the deposit size needed and whether any should be used to reduce your debts prior to buying.
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.
That isn’t true.
Interest and other costs can be claimed for any period the property earns taxable income.
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.
Equity loan is OK if you have the income to service it.
Tara,
You need to speak to your broker and have him run some figures using your income and your expected rent to see what can be achieved.
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.
jason,
Where did you get that info from?
Check out http://www.osr.nsw.gov.au
You will see that there is no minimum time needed to occupy the residence as a home. However it must be occupied within the first 12 months. This was done, I believe, to allow existing leases to expire.
However I have heard that they are auditing and the proof they are asking for is three months.
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.
To take it one step further – if your partner hasn’t used it but you have or you own a home and you are defacto or married then she has no entitlement.
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.
There are some pretty good fixed rates still available. Five years fixed from 6.29%.
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.
At this price range some banks don’t use valuers. I can relate a story of someone I know who prepares a folder of all comparable sales and other information (which supports his valuation) and convinces his lender of equity rises with that!
If the lender wants to help find the equity to finance the next deal (and the next loan) then they can be quite supportive of higher valuations.
When you appoint a broker make sure you tell him your plans and don’t just send him off looking for the cheapest rate as most do.
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.
Your friend will need a min 5% deposit to buy. Don’t include the FHOG as this will be needed to cover LMI, SD and other purchase costs.
So at the price range listed she will need $6 – 7.5K genuine savings. The more she has the better.
She will also need the income to service a debt like this.
Assuming no dependents and a small credit card she will need about $30K pa. There are so many variables involved so treat this as a rough figure only.
Hope this helps,
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.
Check out some of the smaller towns around Newcastle.
Would be at the 2 hour mark perhaps a little further.
What about out Lithgow way as well?
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.
Sue,
Talk to a broker…being self employed for under 2 years doesn’t necessarily mean a LODOC. I did a land loan for a guy self employed for one year on the strength of his BAS.
Lower interest rate too.
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.
Give them a call and ask them.
Has there been any renovations done recently?
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.
From discussing this with investment clients I would suggest it is always worthwhile having a schedule drawn up.
Talk to Deppro. http://www.deppro.com
I have heard great things about them and am using them myself. Discuss it over the phone with them and see what they advise.
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.
