Forum Replies Created
If the property is lowset then you can probably work on $1100 / square metre or so.
Driveways, landscaping etc will be extra but should be well within budget.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sorry don't quite understand your post.
Are you asking can I renovate a property using cash funds in your SMSF that is owned outright by your SMSF. If so the answer is YES
The bigger issue is how are you managing your SMSF when you are not a resident.
Unless you have a member of the Fund who is a resident your are breaching the SISA legislation and the Fund is likely to be non complying.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Actually it is each members account that can earn $100,000 per annum without paying any Tax at all and then only 15% thereafter.
A husband and wife could earn a 100K each and pay no Tax.
Personally i don't have a problem with it at all and can't see it making any real difference to the average person.
Remember a fund value of $2M earning 5% would not have too pay Tax. Also it only affects people in Pension phase.
Of course in saying all of this it has to legislated yet and that might be easier that it sounds.
The increased Contribution Tax payable on salaries over 300K which was in last years budget is still to become Law.
Tell me where you can invest and pay a lesser rate than inside a SMSF and i will stop my contributions tomorrow.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Would you go as far as the Gold Coast or must it be Brisbane.
For GC i can certainly recommend my Accountant who is an expert on Vendor Finance. He should be we have done more than a few.
Let us know.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Tim
Be very careful about utilizing a redraw facility especially if you are referring to a PPOR as you are likely to cause yourself real issues when it comes to the interest deductibility.
When you say you are $10K short are you sure that is the case ?
Personally i wouldn't suggest you use any of your own funds for an investment property purchase especially if you have a non deductibility home loan,
You would better off paying down your PPOR loan and then setting up a sub loan for the same amount to maximize the interest deductibility.
With many new exciting Investment loan products you might be surprised as to how much you actually need to go forward with your new purchase.
Have you considered setting up a Self Managed Superannuation Fund and taking out a SMSF loan to invest in direct property?
Certainly becoming more popular by the day with the number of enquiries we are receiving for such a product.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sleep is for whimps but chocalate is a different matter.
No if's or but's about you will be considered self employed payslips or not.
Unless the business is losing money however after paying yourself it will be of benefit to you.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks Darryl appreciate the wrap (sorry bit of a play on installment contracts there).
i am based in Brisbane and have done a couple of hundred installment contracts personally under my Vendor Finance Company First Home Owners Group Pty Ltd so should be able to assist you. At one time i think we had VF half of Rockhampton lol.
Let us know what you are seeking and i can see if i can't come up with something.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Let me know what you are after might be able to help further.
I am based in Western suburbs but have properties all over Brisbane.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Mikal
As JacM quite correctly states regretfully you cannot claim travel expenses to go and look at property area you are thinking of investing in.
Not sure why you would spend considerable dollars to go on a road trip half way across the country to an area where you are unfamiliar with as there is a limited amount of information you can get in a weekend.
In my opinion you are better of engaging the services of a Professional more local to the area in which you are looking at and getting them to source the property for you.
Done properly the cost can be Tax deductible from day 1 rather than being added to the cost base of the property when you sell as is the case with a buyers agent.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi E Wolfe
Sure feel free.
I am working thoughout Easter so drop me an email over the weekend and I can come straight back to you.
Email address below will find me.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Tim
As a Financial Planner of course i have to have Managed Funds in my arsenal of products as some clients like to spread their risk in this manner but more and more i work with clients who understand that the equity managed carry with them volatilty and prefer to look at rolling over their Super into a SMSF and buying a residential property with the aid of gearing and allow the tenant, tax man and employer to pay down the loan for them and create wealth over the longer term.
One of the downsides with Managed Fund especially as the equity markets have had a great run over the last 18 months is that the market will not rise indefinitely and of course we are all expecting a correction. This can be healthy in the long run but you have have the stomach to be able to accept the fact that you may have lost part of your superannuation and have to wait until it recovers.
For me property is an easier sleep at night remedy.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sure Vinny would you also like us to provide a guarantee on the first years profit as well.
Seriously mate some of us spend years doing our research and spend thousands of dollars and you want us to start listing on a public forum where all the diamonds lie.
Next thing you will want fries with that also.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes i agree a lot better.
Don't mind swapping the awards (think i had progressed past property novice) for the white space.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi EWolfe
Firstly welcome to the forum and i hope you enjoy your time with us.
Secondly whoooo right there.
Your first investment property acquisition needs careful care and consideration and i for one would not be rushing in and buying a relocatable home.
Away from the fact that financing such a deal is going to be both difficult to obtain a decent lvr and secondly attract a higher interest rate as freckle has mentioned there is very little chance of capital growth.
When we work with a client we try and match the sort of property we recommend to their longer term investing objectives and assuming you are buying the property in your personal name would normally recommend a property that does is cash flow positive from day 1 with a sensible amount of gearing.
Get the first one right and there is no reason why your investing journey cannot be a prosperous one going forward.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Let us know the numbers and we can work it out for you Sam.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Look guys i hate to disagree but i come across positive cash flow deals regularly without going to mining town, developing or renovating to create equity.
It all boils down to knowing your areas inside out doing your research so that for every dollar you offer you can ascertain the exact return.
Then being fairly aggressive in your offer (Getting your finance pre-approved upfront helps your negotiations) and it becomes like digging for diamonds in the dirt.
I spent a decade building and growing my portfolio and certainly could not have done so without buying properties which gave me good quality cash flow.
This is the same attributes i allocate to my investor clients when analysing a deal for them.
At the end of the day the property should stand on it's own two feet with the Capital Allowance & Depreciation claims being like the cream on top.
If you are unsure as to where to start engage the services of someone with experience in the field.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Robert, "Pay cash for the property and then go and get a Bank loan for 90% of the value"
2 immediate issues:
1) You wont get any lender / mortgage insurer do a 90% cash out loan.
2) You will have just lost the Tax deductibility on the entire interest as the purpose of the loan would not now be for investment.
There are several correct ways to maximize your deduction and equity position going forward and neither of the above would be recommended.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes i think would go well on either show.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Sam
Yes do your calculations on the full amount being borrowed irrespective of the security being used.
If the loans are being structured correctly you will find your are taking out 2 separate loans so need to factor in the jnterest cost.
If the numbers are still not adding up then maybe look at a buyers agent or a financial planner who recommends property.
Must confess properties we source for clients are more often cash flow positive from day 1
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As Don mentioned there are a few that will do SMSF NRAS and in fact another lender came on board only this week.
Remember the loan will be based against purchase price or valuation whichever is the lower so ensure that your lender or Broker discloses to you what the actual valuation came in at to ensure that you are not paying over the odds for the property.
This can often be the case with NRAS so be careful.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
