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With a company title as opposed to a normal strata/torrens title, you don't actually hold any certificate of title to the real estate. You own a set number of shares or units within a "company" that owns the complete building, which gives you the right to occupy an area of the building (i.e. your apartment).
Due to the restrictions encountered with company titles, you may find it harder to onsell, realise less CG, and lenders are wary of lending to properties sold though company titles.
Cheers
Tom
I know the building you are talking about. It's been there a few years and is close to VUT. The pocket the building is located within isn't exactly the greatest area either. Personally think there are better places and property types to invest in, as others have mentioned, capital growth would be very limited with so many apartments within that building always up for sale or rent amongst other things
Cheers
Tom
Agree with Joe. Point Cook would be a no go for me.
How do you travel to work? Public transport, car? Would you consider Hallam and Narre Warren too far to commute to the city every day for work?
What area are you renting in at the moment? Do you like it there?
Cheers
Tom
I've had a fair few of these come to me to refinance the last few months. It seems that a lot of people at the end of 2007 and early 2008 were scared of the high interest rates at the time and expecting rates to increase further decided to lock them into long term fixed rates.
Fast forward 5 years, the GFC and record low interest rates, all these people who have had high repayments can finally breath a sigh of relief as they exit their term loan and refinance at much lower rates.
I think you will see many more of these 5 year fixed deals expiring in the next few months as well.
Cheers
Tom
As Derek mentioned, google to find the applicable stamp duty for your state. Some have discounts depending on whether its for a PPOR, first home buyer, so it will vary.
There's also other costs such as conveyancing fees, adjustment of rates, mortgage registration, title search, etc which can be a few thousand.
Most people use 5% of the purchase price as an estimate like Derek.
Cheers
Tom
The catch apart from the temptation of spending the offset money as Terry alluded to is that if you take out say a 30 year loan with 5 years IO, the calculated repayments once the IO period is over (for the remaining 25 years) is much higher than standard to account for the shorter remaining term. However in saying that you can normally extend the interest only period further once it finishes.
it shouldn't be harder to secure an IO loan, in the end you are paying the same amount of interest to the bank so they aren't losing any money by you being on IO repayments.
Cheers
Tom
As Shahin mentioned, it all depends on how aggressive you want to be with your saved funds. Depending on your risk tolerance, you might want to use it on the one property, or could have the option of using some funds on a second IP if using higher LVR's.
Also need to factor in what plans you have for any future PPOR's to consider funding structures.
Cheers
Tom
Hi Carson, as Derek mentioned, if you have enough equity in the property you can go to 100% finance of the new property plus stamp duty, etc. You say you have paid the place off, so it seems you should be fine on this point.
The deposit/costs would be taken out as a separate LOC/term loan on the exisitng property, with the remainder taken out on the property being purchased.
The advantage of using your existing property for the deposit, etc is no cash is needed on your part to further your portfolio, and if the borrowed funds are being used for investment purposes, then the complete loan being taken out (regardless of the security it is against) is tax deductible.
Cheers
Tom
I agree to some point on what you say. Sometimes the client doesn't even know they have a default, and then when they apply for a loan, it comes out but it's too late then. Hence why I always recommend they acquire a copy of the credit file beforehand so there are no nasty surprises.
In the case of the OP, it seems that they knew about the default as they mentioned they paid it out a few months back, but had an application rejected in the last few days. That suggests to me that the broker should have known about it, and used that to funnel the deal to the right lender(s).
Cheers
Tom
As you rented the property out first and then lived in it, to calculate CGT you need to work out the percentage of the time it was an IP and use that with the total gain to work out what will form part of your taxable return.
Say using your example, total gain was $500K-$127K = $373K, and your IP percentage is 6/12 = 50%, then your CG which is taxable is $373K x 0.5 = $186.5K.
You would also apply for a 50% discount as you have held the property over 12 months, so it will decrease further to $93.25K.
However when you see your accountant, there may be extra expenses that might be added to the cost base and sale of property that could lessen CG further.
Cheers
Tom
Yep, anytime a loan application is made (approved or not), it finds it way onto your credit file. Most people don't realise this when they go to lender after lender seeing what they can do, and then all of sudden their credit rating has been tarnished.
Cheers
Tom
Qlds007 wrote:Cheers Nigel Yes 33 degree days and 85% humidity aren't fun at the best of time.
And that is the reason I couldn't live up north. Humidity and I aren't exactly the best of friends.
Good to hear things are okay and slowly getting back to normal.
Cheers
Tom
Hi Weetbix,
Northcote is a great area, good access to public transport, reasonably close to the city, High St shopping and eateries, borders with some high value suburbs, a lot of things going for it. Only just with your budget, you might be limited to apartments or a smallish unit. Not that it is a bad thing, it just might not suit what you're looking for.
Cheers
Tom
As a spouse, you can sign on as a co-borrower even though the title is only in your wife's name.
However as Shahin mentioned, what are the reasons behind being knocked back twice already? Need to ascertain what is wrong.
Cheers
Tom
As was seen with Keating when he tried abolishing it the first time around, the market would collapse, prices would fall dramatically as supply outweighs demand which means plenty of family homes are worth way less than what they were bought for.
Would be political suicide for any government to introduce.
Cheers
Tom
In that case if you are looking to improve cashflow by consolidating the credit card debt with the other two loans, it would be something like this (assuming LVR is acceptable) .
Security: PPOR
Loan 1 – Consolidation of original mortgage and renovation loans (as long as the reno loan wasn't used for any personal related expenses). Setup as Interest Only
Loan 2 – Loan to pay off credit card (22.5K). Setup as P&I. Also setup offset account and link to this loan and any savings along the line can be placed in here.
Your credit card is bad debt that needs to be chipped away first. The purpose of the above setup is to help you do this while maximising your deductible debt.
Just need to be aware that when you refinance, your lender will reassess your financial situation. From your previous posts, it seems that your husband hasn't started his new job yet as you are in the process of moving to Melbourne first? That will be an issue with serviceability.
Cheers
Tom
