Forum Replies Created
Hi Guys,
I had a question.
Why is the LOC needed?. Could you just use the eqity from the PPR as a direct deposit for the IP.
So instead of having interest from the LOC(which is used for investment) and the Interest from the IP both being tax deductible, you would just have one interest payment for the IP that would be tax deductible (assuming its neg geared). While the rent could still go to the Offset.I'd be great to hear your thoughts guys.
I'd try and hold on to them.
Just imagine what they'll be worth in another ten years!
Have you looked into all your options for getting more funds?
Are you using a broker? or just approaching each bank yourself?
Great thanks for all your help guys!
Great thanks Terry,
You spoke of exemptions for main residences, could I claim I planned to live in one of them? and only pay GST on the other.
For example, would someone who built a new home as their PPOR, and then sold six months later, be liable for GST.
Sorry if I'm labouring the point, as I know you did say there were exemptions for main residences. It's just that if there's any loophole I'd like to explore it.
Cheers
Dean
Also,
Perhaps if you have children, one of them could go gaurentuer?
Even without the farm, you have properties that have value, and perhaps with a gaurentuer, that could help?
Just a suggestion.
Hi treborsuj,
Would it be possible to subdivide part of the land?
Is there any part of the land that isn't used for farming?
You could sell that part off to help with funding?
Hi Manic,
I think you should at least give it a go. My sister and I have managed 2 IP's for years and never had problems. Ultimately when there's big problems, you have to deal with them anyway even when you have a property manager.
You can get a residential tenancy kit from most newsagents, which has the lease agreement, property condition form and the bond form. It costs ten dollars and is pretty easy to follow.
My advice is also do your due diligence. Call peoples references and be thorough. With residential leases, they tend to favour the tenant.
Oh and one other tip, once a lease lapses, and becomes periodical, you must give 60 days notice to the tenant to vacate. There's little things like that that can catch you out.
Good luck!
Hi Guys,
Terry is it true that if you buy a property, which is your PPOR, then say at some point (say 2 years later) it becomes an investment property. You don't have to pay any CGT(if you sold it) for six years after you lived in it?
Your thoughts?
Dean
Hi Guys,
Terry is it true that if you buy a property, which is your PPOR, then say at some point (say 2 years later) it becomes an investment property. You don't have to pay any CGT(if you sold it) for six years after you lived in it?
Your thoughts?
Dean
Hi guys,
Certainly not. That was just my understanding. I thought by approaching another lender, under a trust structure you may be able to secure more funds?
Hi Guys,
JXF and Unreal, another option that works for some people is starting a trust and then approaching another bank to lend you money. People usually use funds from an LOC from the first bank or some cach as the deposit. This can work because banks view trusts differently and more interested in whether you can service the debt and not whether you have too much exposure. basically banks can get nervous when one lender has too many loans, as you've discovered. But when you approach a new lender under a trust structure they only worrying about one property. The one you want to buy, not the others you have with another bank.
Feel free to send me an email if you want any more help.I work for a guy who does home loans for the Comm bank and has done stuff like this before. It's always handy to get a second opinion.
Cheers
Dean
Yes It could be possible especially with all the equity you have in the land.
I might be ably to help you. Shoot me an email at [email protected]
Cheers
Dean
Hi Kkatlea,
I know a mortage innovator who is very good. Great knowledge and lot's of experience with helping investors. He writes loans for the Comm bank and is good at getting stuff across the line.
If you want his details just shoot me an email at [email protected] and I'll pass them.
Good luck!
Dean
Hi guys,
Would someone be able to explain what you mean about "splitting loans" ?
Loan 1 $437,000
Loan 2 (new split secured on PPOR) = $560k x 80% – $437k = $11,000 – Is this like an LOC on the the loan?? As in the $11,000 is available to draw down at any time? Or is it actually another loan?If someone could explain that would be great!
Loan 3 $230k (IP 1)
Loan 4 (new split secured on IP 1) = $370,000 x 80% – $230k = $66,000No worries captain M.
Well if you do want a second opinion give Andrew Griffiths a call on 0402294429.
He used to work for the Comm bank so is pretty cluey about how to set things up.
If you do call, just explain how you got the number.
Cheers
Dean
Hi Steve,
I feel your pain! I've just had to sell a commercial property to free up funds.
You could also form a trust and then approach another bank, as the new bank will view your debt differently to your current one.
My new broker is very good with structure so if you want some advice he'd probably be happy to talk to you.
Dean
I agree with Terry,
You shouldn't need to cross collateralise to access the cash and it will really bite you down the track if you want to sell on of the properties or use the equity the banks can get a bit iffy.
Have you thought of getting another opinion. My mortgage broker very good with structuring and explaining the ramifications of it all.
If you want to have a chat to him just for some advice let me know.
Cheers
DeanHey James,
I agree with Sonya. But once you know your budget I think Chippendale in Sydney's inner city is a great spot. I've just bought a 3 bedroom apartment there for 540,000 and it's renting at 800 a week. It's close to 2 universities the city, and the old CUB site is being developed with new apartments going in so the whole area is going to be really nice in a few years.
I think you'd also need a very good team to purchase from overseas. I'm not sure about accountants. But I do know a Broker(A guy I've used) who specialises in innovative mortages and does loans for the Comm bank. He's very experienced and quick and could probably help you plus give you some good advice.
Let me know if you want his details.
Cheers
Dean
Yep I couldn't get on either.
