Forum Replies Created
- tigermiger wrote:Sorry for my slow reply… I'm trying to keep the relationship but it's not going well ;-(
I do like the area to live and would be happy to live in the house after our relationship breakdown. We built the house 5years ago in Victoria – house title and Commonwealth loan (p&i) is in both our names. Home loan amount is at $205k and houses of equivalent for sale is advertised approx $350k.
i would like to buy out my ex fiancee with all intentions to live there but if after a few months I can't afford to stay I will rent it out instead.
How do him and I agree on a house value? Am I best to approach 2 real estates to give a letter stating the value and then take the average from the two?
How do I go about & what is the best way for me to structure a new loan in my name solely and remove him from all things related to the house?
thank you.
Best option would be getting a valuation done. That way you should get a proper market value, and if you do rent it out you have proof for CGT purposes if it comes time to sell later down the track.
Have a solicitor do the paperwork for buying out his half to avoid any issues and then take out a loan in your name only, preferably IO as you may rent it out.
A decent broker can help you out on the above, including the valuation.
Cheers
Tom
Agree with Colin above. To optimise your repayment structure, the $60K in the loan offset linked to the IP should be in your PPOR offset account.
At a 5% interest rate, that's about $3,000 a year in interest deductions that you are missing out on.
Cheers
Tom
Hi Jenny,
Like Richard said, lenders will either need evidence of genuine savings or in the case of non-genuine savings have evidence of the funds to complete. So a promise to pay $5K a month until settlement isn't enough to allow lenders to give unconditional.
You would also need to save for the stamps, etc in addition to the deposit which depending on where you are buying might mean another $10K.
On par with Richard in that the smaller loan amounts doesn't effect the free service offered.
Cheers
Tom
It seems you have a reasonable equity position and setting up your IP loan as interest only is the correct thing to do so it's been a good start by yourself.
As others have mentioned, more information would be needed before making recommendations.
Cheers
Tom
Jamie M wrote:PLC wrote:Living 2kms from the racetrack you can't escape the hype and atmosphere.
Just avoid wandering into the mounting yard – they throw hay makers in there. I couldn't believe that footage – disgusting stuff.
Cheers
Jamie
Can't believe someone would have the nerve to do something like that in front of thousands of witnesses and cameras. Some people just have no morals and couldn't give a s**t.
Sad society that we live in.
Cheers
Tom
That is the issue with a lot of self employed people. While annual revenue might be high, after deductions the taxable income is much lower which leads to a lower borrowing capacity.
As the others have said, find yourself a decent broker who can help you through the muddle. Along with what Jamie has suggested, lenders have differing servicing calcs so there might be some out there who are more sympathetic to your current situation.
Cheers
Tom
I wish that I forgot about it. My money was on Verema who ended up breaking a leg and being put down. Shows how well I was going.
Living 2kms from the racetrack you can't escape the hype and atmosphere.
Cheers
Tom
Heed the warnings of the above.
While a cheaper interest rate may seem enticing, any money you might save may pale in comparison with potential lost thousands in deductibility if not structured correctly.
Cheers,
Tom
Horses for courses. If you have the time and patience with dealing with people when they are harassing you with IP issues, then it may work out doing it yourself.
I on the other hand don't have the time so a property agent is invaluable. Anything comes up (especially in older properties), one phone call to me and I make a quick decision and they take care of the rest (in most cases).
Cheers
Tom
Hi Peo,
Likewise not an accountant but from memory if you are going from an IP to PPOR, after eventually selling CGT is based on the proportion of time it was rented to the time it was a PPOR.
Therefore a valuation at the time of moving in for the PPOR phase is unnecessary and wont be used.
Obviously check with your accountant.
Cheers
Tom
Stevie2013 wrote:Listening to the recent “Your Money Your Call” podcasts Ive decided it’s time to jump on fixing the interest rates before the bank beat me to it & begins raising.Assuming that I don’t intent on selling I’m interested to know if others out there that have fixed or or about to are locking in 2, 3 or 5 year fixed rates. The property professor on the panel is locking in his at 5 years… 3 seems to be the number I'm most comfortable with right now
Thanks in advance!
They have already beaten you. Fixed rates are a different beast to variable and lenders use different criteria to set them and are continuously adjusting them.
Not to say that they aren't viable but your primary reason to fix shouldn't be to beat the banks.
Cheers
Tom
As Catalyst mentioned you can "sell" your share to him, I'm not sure of the rules in SA but it will most likely incur stamp duty costs and there might also be some CGT to pay on your behalf when selling if the investments have increased in value since you bought it.
Do the numbers first before you decide to do anything.
Cheers
Tom
Another one to consider – Ivor at Naison Real Estate in Northcote.
Cheers
Tom
Jamie M wrote:dragun wrote:I've read a number of books and articles that say you should always at least ask the question to a prospective broker whether they are willing to refund a part of their commission.Without sounding rude – I'd politely decline the business.
Cheers
Jamie
Accurate in my case too.
The way I see it, I'm offering a service where I am not asking for anything in return. To actually pay a client for the right to do some work for them doesn't quite cut it with me.
I would like to see them try and go direct to a bank where the knowledge in most cases is not as great and ask for a rebate and see how far they get.
I do however reward referrers with gifts of various sorts.
Cheers
Tom
To me it doesn't matter if the client is buying their first property worth a few hundred thousand or their umpteenth property with a portfolio in the millions, I try to get a better than carded rate after finding the suitable product for their needs. So as Michael said above everyone has equal standing. Though a lot of lenders do have natural tiered interest rates dependent on amount borrowed.
As for financing options, you would have heard the term "not putting all you eggs in the one basket," the same applies to financing properties. You don't finance all your properties in a large portfolio with the same lender due to the reasons you and Michael mentioned above. Good brokers can help avoid these issues.
Cheers
Tom
If you're buying an IP as well, then as mentioned above it should be ok as long as the existing debt is also fully deductible and the funds go directly on the new purchase.
If you're buying a PPOR then it will cause issues.
Cheers
Tom
The OP must have written to Scott Pape directly as well because in todays Sunday Herald Sun here in Melbourne, in his column the same question was posted.
His reply was "if you have 20% deposit you don't need to go through a rebate broker. That's because NAB's discount brand Ubank currently offers the cheapest variable mortgage, and they don't pay commissions."
Wrong advice on so many levels.
Cheers
Tom
