Forum Replies Created
Hi Matt,
The eligibility requirements for FHOG state that you cannot have purchased any property pre-GST (1st July 2000), nor purchased any property after that date in which you have resided in for at least 6 months (which basically are your investment properties).
If you meet the above criteria, plus the other eligibility requirements for your state, age, values, etc, then you are eligible for FHOG when you purchase your first PPOR in which you will live.
Cheers
Tom
TYU,
If you pass servicing without the need of your wife's income then it is fine. If you don't pass then you have the option of using her income for servicing purposes.
Technically, as long as you have any net surplus within a lenders guideline, it will count. In saying that serviceability is only one part of the overall picture from a lenders point of view, with other things taken into account to determine your risk rating.
Cheers
Tom
Hi TYU,
All lenders have a default living expense when they assess loans as part of their NSR. Despite the title and loan being in your name only, they will still consider you as married and will treat living expenses as such (which is obviously a higher figure than that of a single person).
Cheers
Tom
Fair enough. I would say the biggest downfall in using DSR is living expenses don't take into account marital status, number of dependents, which not only varies between lenders, but with some by huge amounts.
Hence why they use NSR. I suppose us brokers have got it easy with all the serviceability calculators lenders give us to use to determine this.
Cheers
Tom
Hi Devilz,
As others have mentioned, don't pay for the car via a loan, as it isn't deductible debt since it is being used for personal purposes.
I think you may overestimated the positive gearing, with both your properties rented and claiming expenses, your net profit would be in the region of a few thousand for the year, not $10K. Unfortunately we all have to pay some sort of tax.
Cheers
Tom
APerry wrote:Hi Gerrit, The First Home Owners Grant (and reduction in stamp duty in some states) is a compelling reason to purchase yourself a house first, even if you only live in it just long enough to qualify and then turn it into an IP. Apart from this, it probably makes more financial sense to purchase IP's and rent. Although purchasing a PPOR has less inherent risk and also has lifestyle benefits. Regards Alistair PerryWhat a lot of people don't realise is that you might still be eligible for the FHOG at a later date even if you start an investment property portfolio first. So you can wait and buy your PPOR when you are ready instead of doing it just for the initial cash outlay.
Cheers
Tom
TYU,
I think you have misunderstood what we were trying to say. When taking into account the LOC, the lender will use the worst case scenario and calculate repayments on the total limit amount of the LOC for servicing despite what you are thinking of withdrawing.
i.e. you take out a LOC for $100K at interest rate of 6%, and despite only intending to initially use say $50K of it, the lender wont care and will use the $100K at 6% for calculating repayments. So your last example is correct in the way you worked out your repayments. The $100K figure is not the repayment itself.
Though I don't know why you are using the annual salary x 30% for your calculations?
Cheers
Tom
With respect to DSR and the offset account, no it isn't taken into account, as the lenders view is that it can be withdrawn at any time to be used on something else.
DSR is really old school. Lenders typically use the NSR method in calculating serviceability. Different guidelines between lenders may mean that there might be situations that with one lender you might not meet serviceability whereas with another it will.
LOC's are generally revolving with no set term and are calculated at interest only, and lenders will calculate on the maximum limit (as Derek has mentioned).
Cheers
Tom
Yep, generally 10% is the norm deposit required initially, though you can try to negotiate it lower. Balance is paid at settlement.
As for being self-employed, no reason it needs to be any harder than normal PAYG salary if you have a decent history.
Cheers
Tom
Hi Kelie,
Heres a link from the ATO site regarding part renting a property.
http://www.ato.gov.au/corporate/content.aspx?menuid=0&doc=/content/00262404.htm&page=10
From what it says, If you do claim deductions, it is done a floor basis area.
As Catalyst says, your accountant will know better.
Cheers
Tom
Hi Kara,
Welcome to the forum.
A deposit bond is basically a substitute for a cash deposit that the vendor receives when contracts are signed. No physical cash actually changes hands, it's basically a document that says you're good for the 10% come settlement time. As it isn't actual cash, the vendor doesn't have to accept it. That's why if you are intending to use a deposit bond, then you should get the approval of the vendor first.
There are a few mobs out there who do deposit bonds, and they charge a fee for them, depending on the time you need it for.
As Shahin mentioned they expire at settlement time, so you would need your finances available by then. Hence nothing stopping you purchasing in March 2013, but you would need a settlement time in July.
Cheers
Tom
Can think of plenty of ways, but the downside is they are all illegal.
One thing I thought of a few years back was to plonk excess money into an overseas poker site account which is based on US dollars, and let it sit there until the Aussie dollar dropped back to historic levels, and then pull the money out making a tidy profit. Decided against it, as I would have blown the money instead by playing with it. Plus who know how long I would have had to wait for the dollar to drop down.
Cheers
Tom
Much more inviting Joe. Tell you what, you have some nice green grass there on the front lawn. Around my area, the green has faded to yellow from the dry weather we have had lately.
Or is that an older photo you have put up?
Cheers
Tom
Hi Rosebud,
As Jamie mentioned, without a deposit of your own, the only way would be a guarantor loan.
Another option depending on whether your renting situation classifies as genuine savings, is if you can get you hands on a cash deposit via a gift, sale of assets, etc, some lenders might be willing to take you on.
You also would have some stamp duty, conveyancing, etc to pay, but that would be more than offset via any grants you would receive as a first home buyer buying a new home in SA.
Cheers
Tom
Looking at the national depositing funding website you listed above Shedin, they offer your deposit for a property as a personal loan, which surprise surprise, is only for choice properties constructed by builders approved by them, and is financed through brokers affiliated through them. Fingers in all the pies.
Though how they can get finance approved with only a personal loan as a 5% deposit is bewildering.
Cheers
Tom
Joe,
Agree with the others. That main pic with newspapers over the windows suggests squatters have been living there, not a good look.
Updated nice wide shot of the front, added with at least a backyard shot with the others you already have would do wonders.
Cheers
Tom
Generally as Terry mentioned, you can't hide them as that would be considered fraud if something happens down the track and they aren't disclosed.
You can protect assets somewhat using trusts, you would need to seek professional advise for your circumstances.
Cheers
Tom
