Forum Replies Created
quote:
Michael,
Melanie is spot on so I won’t rehash what she has alredy outlined.
Its worth considering becomming a broker even if its just to service your own finance for the following reasons.
* The commission structure is pretty handsom
* Its part of your education anyway
* Its often not just a box ticking exercise as many brokers have access to low rates that the man on the street can only obtain via a broker
* Most loans have a brokerage allocated to the cost of the finance built into the loan conditions..you may as well take the fees for yourself.There will be some probity issues to deal with in submitting an application for yourself… but its worth considering.
Regards
Rob[8D]
Would you really go through all the expense and time to set up as a broker to do your own finance? Thats like getting qualified and fully insured as a mechanic to work on your own car.
Just find a broker you can trust and who looks after you. Don’t resent the commission they earn for that.
Melanie sounds like a great broker to me.
Houses only…. whatever a broker earns isn’t costing the mortgagee a cent. The mortgagee pays no more by using a broker than if they did everything themselves. The other way to look at the coin is to see yourself getting a professional to do a lot of your legwork for free.
Are you a glass half full or a glass half empty sort of guy?
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985As far as finance there are lots of options available but I suspect these might narrow down once we have more detail.
The deal will most likely be commercial. Do you plan on holding or selling?
If you hold then you will need to consider that some lenders want P+I over 10 years. I do have some lenders who will do IO indefinately on 100% LVR – but of course the interest is higher..
You will need an LVR of 70% with many banks.
Lastly an option may be mezzanine funding which may be the most flexible of all and perhaps the most expensive – although often attractive to larger scale developments.
Cheers
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Ash,
Love to give advice – it’s what makes my world go around. Could you help me out by posing a question?
I mean you want to invest in Australia and can we advise you…..wow where to start[
]Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985There a number of different ways to find something like this. I suggest that the major effort is required in identifying the project. If the numbers stack up then most reputable brokers will be able to finance something like this.
I think you need to focus on finding the deal – this will be your bottleneck!
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Jim,
Consider a Professional Package. See if your bank offers it. This means no reval costs.
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985There is no minimum time frame specified. You can call the Office of State Revenue to discuss this but they will not commit to anything definate.
I don’t think this has been tested by anyone. I believe that anything between 1 day and twelve months would be covered under the guidelines. I guess you need to decide what you are comfortable with.
http://www.osr.nsw.gov.au then just follow the links to FHOG.
There is nothing to change as far as home loan to investment loan with most banks.
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Maggie,
Yield is commonly calculated by multiplying the weekly rent by 52 then dividing it by the purchase price. Then multiply by 100.
ie 200 x 52/200 000 x 100
where $200pw is the rent and $200 000 the purchase price.
In this case no outgoings are deducted.
There is software available where all the information can be plugged in and a spreadsheet will show the result per week.
I hope this helps
This is no magic formula. Just a quick method of comparison.
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Before I endeavour to reply can you tell me what you hope to achieve with your loan and why your advisor suggested one over the other?
There are reasons why one might choose one over the other and I would like to make sure the advice suits you!
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Can anyone discuss depreciation of a professional library compared to simply claiming a deduction per book.
I suspect it might be useful for those materials purchased prior to one becoming an investor.
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Home Loan Guy is spot on. I would advise you to pay IO on any deductable debt whilst you have any non deductable debt.
Cheers
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Glenn,
I suspect the seminar promoted properties supplied by the folk running the seminar…
Seriously,
If you do go this path I would consider drawing a 20% deposit from your home loan then funding a seperate mortgage on the IP. Both elements will be deductable. Have your PPOR loan split for ease of accounting.
Whether this makes it positive geared is only poss to tell with all the figures. You will need to include alll interest paid against the IP in both loans, as well as other costs. Many of these promoters will also use the non cash deductions such as depreciation to make the end result pos geared.
Other promoters will suggest having a higher deposit to make a property pos geared. I think this is cheating a bit….any property will be pos geared if the deposit is high enough!
Anyway good luck.
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985The seagulls are coming in to pounce [
]This might be useful
Good luck,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985If you are an investor you can claim educational expenses. If you are planning to be an investor you cannot.
Educational expenses must relate to your income producing activity. eg if you were planning to be a builder then any training is not deductable. However if you are a builder then ongoing education is…I hope this makes sense!
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985amyscu,
My experience is NSW and my experiences are based on this state. I have completed the real estate course at the TAFE and offer these comments.
Nothing is binding until the contract has been signed by both parties. Any deposit paid by you is a sign of good faith and really means little. In fact many agents don’t bother with this deposit unless they feel the offer isn’t genuine.
The agent is legally bound to present all offers. Whilst you feel aggrieved how much worse would it be for the other purchaser or indeed the vendor if there was a higher offer that an agent didn’t communicate out of some loyalty to you? Remember he has been appointed by and will be paid by the vendor.
If there is a higher offer on the table then you will need to make a more attractive offer. This is how the market works. The property isn’t sold to you unless the vendor has signed the contract. Put yourself in the vendors shoes.
I am sorry to offer advice that may not be welcome and I sincerely hope that this works out for you.
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Des and Sue,
I feel you will be better served by first looking in the area you know best, however for many reasons it is appropriate to buy elsewhere.
As far as saving deposits there is no right or wrong way.
A major disadvantages is the time spent saving. You need to determine whether you can save a deposit faster than the growth being experienced in your target area. If you believe that prices will rise faster than you can save then it may be prudent to utilise your existing equity to fund your next deposit.
If you do so then consider drawing the 20% deposit from your current property to fund this next loan rather than simply offering the first property as security. This will avoid you cross collaterising securities.
All the best.
Simon
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