Forum Replies Created
As well as redraw can you topup the mortgages to 95%? Even with LMI this may be cheaper than business finance.
Does the business have any real estate component? If so a mortgage there will be straightforward.
Lastly speak to a business banker about a loan against the business.
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.
Gimme a break – I was watching a terrific movie on the ABC.
Nice to be back.
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 people believe that the larger a complex the more likely there will always be other properties on sale at any given time. This creates competition when selling and can reduce the achievable price.
I personally don’t know if this is true in effect.
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.
Couple of points:
Should read 10+5+5, being two five year options at the tenants discretion to take up. Ensure there is a mechanism to raise rent included in the lease.
All outgoings should include maintenance and insurance – the lease should specify exactly what.
It is vital you get a copy of the lease before you go further – it is a crucial document. Some even consider that this is what you are buying – the land and buildings are just extras!
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 Dr Y:If however you are living in the property ignore what I have just said and pump as much cash into the sucker as quickly as you can.
Agreed but ONLY if you plan to live in this property until you die or sell it when you wish to move on.
If there is any chance of you renting this place out at any stage then do not pay any more than interest. To achieve the same effect pump as much money into an offset as you can which is virtually the same as paying it off.
The advantage is that the funds can be used for a new PPOR leaving the original loan fully deductible.
AND NO redraw is not the same thing!
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.
Why do you wish to pay it off so fast?
There may well be another boom in 5-7 years as history might suggest.
If you were to control (not own) 2 or 3 IPs that go up by 50% then surely this is better than one paid off IP?
Not advice – just food for thought.
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.
Len,
Checked my emails and you are right – I missed replying to your single email. My sincerest apologies for the distress it seems to have caused.
And thanks for pointing it out several months later in public. It always helps to get constructive criticism.
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.
How embarrassing [blush2]
I do know other good brokers in Newcastle and am happy to give you their names. Save you pulling the phone book and tossing a dart at it.
Perhaps your accountant knows some too?
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.
Good advice.
Except for Len’s. Given that each submitted application will find it’s way onto your CRA I would not advise applying and swapping lightly.
Also remember that this professional will do the bulk of his work for you at the very initial stages. So if you see several and let them all come up with proposals you will in effect be wasting a lot of time. Now this is your choice and is also part of our profession – we do get a lot of tyre kickers.
See a few brokers and see who you feel you can work with is my advice but don’t let each one think he is your final choice like some folks do. Is not an honest way of conducting business.
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.
Matt,
You want a mentor – in fact a proven mentor.
What are you willing to offer in return? What can you bring to the table?
Or are you hoping for a kindly old fella who will guide you to success from the goodness of his heart? [biggrin]
All the best mate
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.
In todays buyers market an agent would be a fool not to try to get his vendor to accept a lower deposit.
It is generally the vendors solicitor who insists on the 10%.
This is so that if the buyer defaults there is sufficient monies held for penalty payments, costs etc and noone has to chase you for the rest of it.
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 lenders will allow the loan to be in both names whilst leaving the title in one name if you treat yourself as a defacto couple on the application.
Then of course she will legally be no longer entitled to the FHOG, but at least you wont have to pay the stamps twice.
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.
Risk and return has a strong relationship. Basic stuff folks.
For 24% pa – more actually after compounding effect the risk is going to be higher than a term deposit.
I wouldn’t be placing all my eggs in this one risky basket and I doubt that any professional would call that good advice Aussie Lad.
Each to their own tho.
What would I do?
I would seek and pay for professional advice. I also know who I would approach to have a plan written and run for me that would increase this $1M many times in the medium term.
I would not act on advice from a bunch of well intentioned strangers. Some may be 16 years old with no financial experience as far as you know. Maybe even myself [blink]
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 are a few more options. Some costlier than others.
The PPOR could be sold to a spouse or a trust. Sell it for full worth and borrow this plius purchase costs and then you have it geared 100+%. Downside is there may be stamp duty involved.
You can borrow against the IP to fund the new PPOR. Keep this loan on a split and IO. All income reduces this loan only. Slow method.
You can buy the new PPOR and borrow as much as possible then using a margin lending account gear it again and buy into an income based managed fund. Let this margin loan capitalise and use all income to kill the non deductible debt. This is a higher risk strategy as the managed fund may have poor performing years but it is faster.
Alternatively you can use the same strategy using high cashflow IPs.
Would you buy this ex PPOR at todays price as an investment? If not then maybe selling is the solution?
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.
Brett,
Don’t fall into the trap of needing to have a lovely home as your starter home. That is something you work towards.
Alternatively view it as an IP that you need to live in for 6 months in order to get the FHOG ans Stamp Duty exemption which in Sydney is worth more usually.
Lastly you don’t need a financial advisor. They usually deal in managed funds and will often steer you from IPs. The only one I know who prefers property as the main vehicle is Steve Navra. http://www.navra.com.au and http://www.navrainvest.com.au
To find out your borrowing ability contact a mortgage broker such as Richard or myself and ask them to run some figures and advise you of your borrowing ability based upon your income and your deposit. This can be done very quickly by email or over the phone if you catch us at our desks!
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.
What security are you offering and what are you willing to pay?
There is always money available and these are the key issues usually.
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.
I know quite a few up here being in the Industry myself and in Newcastle. I can send you to any number of them. Just let me know what sort of thing you are after.
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.
Sorry – I meant to borrow the 20% deposit plus money for purchase costs from the IP loan. Ensure you have a split loan showing the two different amounts as the loan for the home wont be deductible.
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 have a lot of equity and in the absence of any other info I would suggest you keep the IP as the cashflow is handy and you can use the equity..
There are a lot more variables that you haven’t given us so the advice is very general.
I would draw the IP loan up to provide a 20% deposit plus costs for the PPOR.
Is it a long term PPOR? ie your forever home? If so then it may be worth considering selling the IP to minimise non deductible debt.
All loans should be IO with all excess cashflow being directed into an offset account against the PPOR. This combined with additional cashflow investments should see non deductible debt gradually minimised.
Sorry – without knowing your situation and goals better I can offer very little advice.
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.
I wouldn’t be too dsesperate if I was you.
It may lead you into accepting terms that aren’t in your best interests
It may lead you into paying too much when an agent detects that desperation and
There is no need to be too concerned. Average house prices are not rising at the moment so you have some time to start working on that deposit and finding a great deal.
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.
