Forum Replies Created
Hi Max
I hope your statement 'Digging into your Super" to buy land, build and then live in it was not literal.
If so my friend you have broken so many sections of the SISA Legislation it is not funny and the Fund would more than likely be considered Non Complying.
If you would like to tell us more maybe we can throw further comment on your suggestion.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
There comes a time in your investing journey when you have to engage the services of fellow professionals.
Sure you can spend every minute of the day reading, re-searching and viewing various properties however you have to decide what time is worth and how much you potentially could loose by missing opportunities,
Often I say to potential clients they could go and research every lender, ring up their credit departments try and ascertain the right structure to suit their current situation check out mortgage insurers policy etc etc however in the main most don't have the time or the ability to do so. Most accept this and use our services.
Sourcing a property requires a similar skill set and one i would personally suggest using someone who does this for clients.
Remember use someone who has done it once or twice before and built their own portfolio and not doing it solely to feather own nest.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
You say partner ? Do you live together ?
If so unlikely Darryl i would say:
Is it possible? – NO.
Is it ethical? NO.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Marty
All depends on the deal itself.
I get referred a dozen or so a week and must admit i pick and choose which ones i do.
Would need to know more before i committed to consider such a relationship.
Do you have any details of actual deals.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sounds like they were a bit dopey in their action.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I agree i prefer to buy ppositvelty geared property from Day 1.
If the property isnt positvely geared then there are a few strategies to increase the return.
Everyone to their own but i prefered to use my positive cash flow to pay down my loans secured against my buy and holds.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
No Charlie you wont finance a property in Northern Ireland from a UK lending institutions in a SMSF or otherwise.
As discussed previously there is only 1 lender in the UK who will finance property to non residents and they are purely location based. :London and the SE only.
There are a couple of ways to finance an overseas deal inside a SMSF but will depend on a couple of factors.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
John i hear finance markets are opening up a little in Florida.
We have been helping UK clients buy in Florida for years but i understand that Australians can now qualify for finance on soome of these smaller apartment blocks.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
nardz an interest only loan with 100% offset account will certainly improve the cash flow position of the particular property and could make the property neutral or positively geared but remember it will only be a short term aide.
A dog of a property will be a dog of a property irrespective of what the cash flow position is like.
Yes we always and try and buy below market value and certainly when buying for our clients we do.
If you are looking at improving your cash flow why not look at vendor financing options.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
E Wolfe firstly welcome to the forum and i hope you enjoy your time with.
There are many ways to start your portfolio and JacM has certainly mentioned one way.
If you want a copy of my API interview on how i built my portfolio please let me know.
Believe it or not there are still lenders that will lend over 100% depending on the purchase price and the location.
Used and structured correctly you could buy a couple of properties with very little deposit.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes sounds like a typical answer from a sausage machine broker.
Surprised they didn't also ask would you like fries with that on the way out.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks guys and in fact thanks to everyone who came along and made me as a Qlder very welcome on the night.
Look forward to the next one when we can open up other topics of conversation.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Enjoy yourself down there Johann
Was looking forward to seeing you in Melbourne when i was down there last week doing a investor presentation.
Maybe at the next one when your back.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Wow I wouldn't rely on an Excel spreadsheet to work out serviceability for any lender let alone the big 4.
As Michael mentioned with all 4 using some form of credit scoring serviceability is the least of your concerns.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
There are a couple of other costs that Jac M has included and these include:
1) 2 x Audit fees
2) 2 x Bank Audit fees for confirming the interest statement etc
3) The Accounting fees will be a little higher than $660.
We put out clients thru a couple of companies and you can add an extra $1000 to that figure minimum.
See can't see why anyone would set up 2 funds but i am sure we will find out from Y Stress.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
DCT oh trust me i have done my fair share in Brisbane
I did the old Nundah Bowls Club 53 unit development.
1.15M – $3,25 in 18 months. Paid for the Annual holiday that year.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Y your total deductible contributions being both employer and employee are limited to $25,000 per member per year so depending on your incomes going to be fairly limited.
Non deductible contributions are limited $150,000 per Tax year or $450,000 over a 3 year period so again fairly limited.
Regretfully you cannot buy the property in a Unit Trust and have the Super Fund as sole Unit holder.
The Fund cannot control the investment decisions within the Trust.
Such arrangements are being closely looked at by the ATO.
Nice in theory cannot be done in practice.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hate to say Y not quite as easy as that.
If with a Related Party loan you need to lend to hold the Asset in the Bare Trust and the loan needs to be documented.
The only reason why the Bank would be difficult is if serviceability was not evident or the security was unacceptable and
a both matters would need to be considered in RP lending.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sorry Y Stress
Why oh why would you set up 2 SMSF's with the set up costs, Annual compliance & Audit costs involved.
Sorry but as a SMSF specialist i simply cannot agree with the advice you have offered.
Land Tax is a small expense when it comes to the overall running of an longer term investment.
Jac's idea of spreading your investment over a mix of cash flow and capital growth properties makes far more sense.
Remember you can not draw a pension on capital growth alone.
Cheers
Your in Finance
Richard Taylor | Australia's leading private lender
No Stamp Duty on a Option Contract in Qld which i nice but of course SD on the Transfer to your name.
Nice deal if you can pick those up all day long.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
