Forum Replies Created
I think that must be terms that are used by this lender only.
The Australian terms are regulated or unregulated meaning any consumer debt is regulated and business debt isn’t. In the case of properties this applies to your home as opposed to an IP.
He should endeavour to use the industry standard terms to avoid confusing clients – and us [biggrin]
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.
Sounds correct to me.
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 can get higher than 70% but the rate is quite a bit higher.
Do you have residential property to use as security?
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 the ATO can show you are doing it purely to reduce tax they will disallow it.
You also need to get market rent or the ATO will disallow it.
You will also sacrifice your CGT exemption which can be worth a lot if the housing market booms again.
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 requirement is that you live in the property for 6 months starting within the first 12 months.
I don’t know where the other two posters got their info from as this is what the legislation states.
There are ways to cheat the system but it is fraudulent and criminal to do so. Many people are caught.
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 For-Freedom:Thankx voigtstr. But why many investors said they need to create room for interest rate rise in their cash on cash return %? Is that becoz they choose the variable interest rate?
Yes
The banks will try to maintain a competitive rate so your only concern are RBA rises. The banks won’t jack the rate up just to make money from you!
Of course if you are very concerned then fixing may be a viable option. Having said that 80% of my investors choose IO Variable as part of a professionals lending package.
Best of luck,
Simon
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 chrisconuts:I disagree. The first home owners grant is only available to someone who hasn’t owned a property before, once you have owned a property you aren’t eligible:
From http://www.firsthome.gov.au/
“Neither the applicant nor their spouse (or de facto) must have owned and occupied a home after 1 July 2000.
Neither the applicant nor their spouse (or de facto) must have claimed this grant previously. “Chris
Chris,
Your quote is quite correct and before Jun 2000 any property owned would disallow the FHOG.
However if you study your quote you will read that you must own AND occupy a property to lose the FHOG. Thats why I stressed that Ben (the chap asking the question) can buy an IP but not live in it.
But the Stamp Duty exemption is a whole different kettle of fish and an Ip will disqualify you from it. I suggested to him this morning , when he called, that he may well lose this and it is equally as valuable as the FHOG and often more so.
Keep on watching my posts and picking me up – at some point I will be wrong!
Thanks
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 buy an investment property and never live in it yourselves then you will all still keep your FHOG entitlements.
Check it out yourself.
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.
Another parochial Western Australian [blush2] I remember that you are either a West Aussie or from Over East. Tip of Cape York or Southern Tassie matters not. You are from Over East and not to be trusted [blink]
Still talking secession? I was told once that during Federation there was some loophole where the Perth Colony was invited to join rather than just join and it leaves a legal avenue by wich WA can easily secede.
I am from Perth too mate and love it there. Grew up in Lesmurdie but have also lived in Freo.
I guess that is the beauty of cycles. Your argument that Perth is now booming and hence the east coast will follow probably holds as much water. But either way – if you are looking for a residential IP I am thinking it more likely that you are buying closer to the top of the current cycle rather than at the bottom. But – like me – if you are a long term buy and holder (long term = 20+ years) then it matters not if you pick the cycle. It is more an issue for short term harvesting of equity to buy the next IP.
I haven’t the data to prove cycles but I still believe.
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 clairem:I haven’t managed to find any CF+ properties yet around Perth. Maybe I’m not working hard enough at it. But how long can prices keep going up? Are any of you finding opportunities around Perth or is now the time to wait for the bubble to burst? And what other areas are there – the stock market is pretty high as well? I’d appreciate others views or ideas on whether there are opportunities in Perth that I’m just missing and whether nows the time to invest in a different asset class to property.
I suggest that Perth is still booming for two reasons.
Firstly the resources demand is high and Perth is at the fore of that.
Secondly, we have just had the mother of all booms in Australia. Perth naturally lags the East Coast. If this is true then we can expect the boom to finish as it has done on the East Coast.
If my ideas are correct then the first growth in the market will be seen in Sydney and Melb. Many buyers are buying now in expectation. Others will wait for it to start then buy in Bris, Hobart, Adelaide and Perth in expectation of the ripple effect. Regional centres too.
So what does this mean?
I suggest that Perth prices are high. They may correct soon in the order of 5-15%. Any subsequent growth will be signalled by renewed strength in Syd and mel markets.
Of course this is just my thoughts as an investor and not financial advice.
Happy to discuss it with anyone.
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.
Yes use a Tas conveyancer. They know the local laws and systems.
The only real issue will be the added time for docs to be signed ets But factor this in and no problems.
Why buy in Tasmania? The outlook for growth is not promising and the populations isn’t growing.
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.
What is your area?
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.
V8 hit the nail on the head.
Pay the principal off your PPOR ONLY if you intend staying there for a long long time – if you feel that you will eventually outgrow the home and turn it into an IP then use IO with an offset account to get the best of both worlds.
Do some searches as much has been written on this topic in this forum.
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.
Your solicitor will be able to help you draft a JV agreement that covers what actions you will take in the event of a disagreement or one party needing out.
if he has a lot of knowledge, money and experience then what does he want from you? What is your risk tolerance?
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.
Unless you both can approach it in a purely businesslike and unemotional manner then invariably it is a bad idea.
Doing something with a friend may cost you the friendship. The unexpected will occur and he will want his money back when the market is low.
Almost always better for you to borrow the money and go alone.
but there are exceptions – look at Steve and Dave.
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.
How much do you want for the Jeep?
Any pics?
Will it tow a 1 tonne boat?
Simon
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.
Sue,
These are not real estate investments. All you are buying is a depreciating asset that is able to be leased.
You should treat this as a business and finance it accordingly. Don’t expect the same LVRs and rates as residential home loans. If you have a business plan you may get funding but otherwise it will be similar lending to a car loan.
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.
http://www.strategicwealthmanagement.com.au
Ask for Nick and say Simon sent you.
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.
Why don’t you call the council, and without identifying yourself or your property, ask some generic questions?
Maybe mention that you are thinking of moving to the area or such?
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.
For a start I do not know your market well.
But it is a generally accepted rule that a 3-4 bedroom middle class home in the inner ring of suburbs usually performs well.
Why don’t you contact Michael Yardney’s team? They are experts in selecting Melbourne IPs for clients and can probably even help sort out finance.
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.
