Forum Replies Created
You are right. Pretty standard question.
This doesn’t happen in Australia. Foreclosures are fairly uncommon and usually proceed to auction. Lenders are required to get a fair market price not just dump them to recover the loan outstanding.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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 are right. Pretty standard question.
This doesn’t happen in Australia. Foreclosures are fairly uncommon and usually proceed to auction. Lenders are required to get a fair market price not just dump them to recover the loan outstanding.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
Originally posted by troynbec:Simon
Why would a female only group concern you? Do you argue at Fernwood gym to let you in? Would it make any difference it were for a particular nationality (Asian groups are common), what about left handers, short people? I believe there is even groups for amputees. You could join that group, but you can guess the qualification!! Maybe a group for finance brokers? Nah, who would go to that?????
My wife (Bec) is greatly looking forward to this event, & I have encouraged her to be involved. I believe this is a great forum for women to meet & discuss their interests & involvement in property investing. Like it or not they face disadvantages that men do not face, as well as have an advatage over us men in some cases as well! It is all part of the investing game!
If this still concerns you, then maybe start your own male version of it? At least that will show the world that we men are equal to our female counterparts[biggrin]
Personally, I hope this womens group is a huge success, & I am certain it will be.
You go girls
Troy
TroynBec
You can have more than you’ve got because you can become more than you are
All your points are very valid and I don’t dispute them.
Just is a shame that men get vilified for being men yet few bastions of maleness are left. Any that are left are under threat from women’s rights groups. Yet women are encouraged to do women only stuff.
A recent initiative was recently under threat just down the road here. The Men’s Shed is a place where old retired guys meet and do woodwork and other stuff together. Seems to really fit a need that retired guys have after leaving a productive career. Was nearly closed down because the name and concept was politically incorrect …
Boys cannot go to Girl Guides and I couldn’t even camp overnight with my girls as I was a man. Yet scouts was forced to open it’s doors to both boys and girls. Not suggesting that is wrong but it never seems to cut both ways.
Just to make my background clear – I was the first ever male member of the American Womens Association. The Women bit didn’t worry me but I did hope that people didn’t assume I was American . [biggrin] This was an expat social group for foriegners living in other countries. All geared up for wives only.
What sort of reaction do you reckon a fella would get if he advertised a men’s only investment group? Seriously think over that one.
I am curious – what disadvantages do women face as investors. I know some pretty impressive female investors who don’t seem to face any. I would even suggest that if a female investor feels the need to learn away from 50% of the population then she has probably got other issues that might make a successful investing career a challenge – no slights intended to your missus.
I hope the whole thing is an unmitigated success. I am all for some things being for boys and some things for girls. Just seems that there aren’t too many boy things left these days …..
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
Why would you exclude men?
Isn’t that illegal?
Do they intimidate you?
Not trying to make you feel defensive – just wondering why I would be barred from such a meeting of minds because I have a different mix of chromasomes? [biggrin]
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
If you didn’t buy another PPOR then you will have to pay CGT on the last 3.5 years growth. ie 6 years CGT exemption plus 0.5 years occupancy.
This means you have averaged growth of $35K pa. Over 3.5 years this is roughly $120K.
Remember that you can then deduct stamp duty and other buying/selling costs.
You also get to apply a 50% discount to the CG as you have owned the asset over 12 months.
In effect I am guessing your income for that year will be increased by $60K roughly. Maybe less if you had significant costs to deduct.
As far as paying tax you need to add the $60K to your salary and work out the new tax rate.
None of this is accurate as I have made a few assumptions. You should really ask an accountant.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
Tax office only care about your income from the house and expenses. What you pay in rent (or not) is of no interest.
So just tenant it, keep records and do your tax.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
Yes you can.
You will get the same benefits PLUS
You will get a CGT exemption for at least the period you occupied it as a home and maybe an additional 6 years depending on the nature of your relationship with your partner. If you are renting or boarding with her compared to cooccupying a home as a couple….. best to speak to an accountant.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
No not at all.
Whilst I might suggest things to consider or even give some generalised tips I would never consider writing a financial plan for a client nor make any recomendations for what a client should be buying.
I just help set up the finance.
As a fellow investor I sometimes chat about what I do …..
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
Originally posted by foundation:Originally posted by Katiebaby84:Simon – thanks so much for the tip! A lot of people have told me to be careful when it comes to FP’s.. [hmm]
I’d second that, but add don’t take financial advice from Real Estate Agents or Mortgage Brokers either. [wink]
F. [cowboy2]
Absolutely – neither of whom are licensed or insured to give advice.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
Katie,
If you plan on seeing a FP then make sure you do so with your eyes open. Maybe see a few.
Few FPs will recommend property. They generally don’t invest in it themselves and their business is selling managed funds, insurances and saving plans to you. That is how most make their money. One that charges a fee for service and rebates the comissions may be more impartial but I still doubt their experience with IPs.
I think they should be renamed managed fund brokers rather than financial advisors [suave2]
Do some more reading and start researching properties. Aim at looking at a lot of properties. I would rather see you buy the 50th property you see than the first. You will be better able to get a good grasp of value that way.
All the best,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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 is no right answer.
Buying a home means you have a nondeductible debt that you can use all your income to reduce together. You can also buy a run down property and improve it to build equity faster. You will get the FHOG and SD benefits.
All equity you realise is CGT free and can be freed up by increased borrowings at any time.
Equity gained can by either payments into the loan, improvements or market growth can be harnessed to buy additional IPs.
Alternatively you can buy IPs first. You will pay rent that is not deductible and earn rent that is taxed. You wil not get the FHOG and will prob lose the SD exemptions for good.
I think in a slow market such as this one I would be looking to buy a PPOR first. But that is purely a personal choice. I enjoy living in my own home.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
Originally posted by UnknownSoldier:good info guys… another question that worries me
i understand properpty generally inflates but isnt it all bound to run out or slow down??? its like property is rising 5-10% every year but our wages certainly arent going up that much so eventually there must be a point wheres property will just keep going up and up so much that most people wont even be able to buy a bungalow in an outta suburban town.. the mediam melbourne house price for example is something like $320k!Good point. Funny thing is that I remember people saying just that when the Sydney median house price hit $200K. How can the average family buy a home they said?
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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 is no best place and not all lenders are the same.
Is like asking what is the best car for you? Without knowing your needs I couldn’t answer that one either!
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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 cannot each borrow half on the same property.
What you must do is borrow the full amount with both names on title.
The issue is that when you borrow to buy your next property you will be assessed as owing the full amount on the first one. It may hurt your serviceability.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
The quick answer is yes – you can borrow against the IPs to buy a PPOR.
However, when you do topup a loan to release funds then the interest on the new part of the loan is not deductible. So if you top up several loans then you need to make sure each new borrowing is recorded on a split so that you can differentiate which is deductible and which is not.
What might be easier to do is to cross collaterise the IPs with the new PPOR and keep the loans all seperate. This way you can borrow 100% for the new PPOR using the IPs as security.
But by doing this you will have a 100% loan against your PPOR that is not deductible.
Tax effective wise you are probably best to sell one or more IPs to free the funds to buy a PPOR outright.
You can then buy IPs again. This will gi=ve you the more effective taxation structure.
If you don’t wish to sell the IPs you can sell them to a Trust controlled by you. The trust will then borrow 100% and you have the cash to buy a PPOR and a 100% decutible debt against the IP.
This will incur costs. Trusts cost about $1-2K to create and you will have to pay stamp duty on the transfer. But if you are in a high enough tax bracket then this may be an expense recovered quite quiuckly. This stamp duty will be a similar cost to an Agents Fees to sell an IP so don’t discount this strategy in favour of selling outright on cost alone.
At the end of the day you should get an accountants advice before making any decisions.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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 should be able to borrow in the company name and go guarantor yourself.
If your broker can’t help drop me an email explaining where you are located and I may be able to suggest someone that can help seeing as you are in a rush.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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 is no rush. property prices are not heading up.
Start by reading. Visit your library or look on eBay to start an inexpensive collection of your own.
I recommend “The Richest man in Babylon to start with”
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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 more points to complicate your decision.
1. If you live in it first you get a CGT exemption.
2. You don’t lose the FHOG if you rent it. You can still use it when you do buy a home.
Your repayments can be lower. Consider an IO loan. Without knowing the loan size I cannot give you figures. What deposit are you planning on using?
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
Regardless of the name these properties all go to market the same as other’s. Usually to Auction to ensure a decent “market” price is achieved.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
Originally posted by Kuade:I would avoid auctions. They’re focussed on making the seller as much as possible and the buyer has no negotiation power. They’re good to visit and watch to get an idea on what interest the property has though.
I think auctions are focussed on getting the REA as much as he can by turning over property sales faster.
Melb has an established auction scene and people readily buy and sell this way. other cities not so much and many buyers are scared off by a process they feel they don’t understand, cannot control and doesn’t let them know what sort of money the property may sell for.
However, if you can find a motivated vendor combined with a slow market an auction could be perfect.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
