Forum Replies Created
Yes Jamie don't you just love such advice from lenders.
Shame they won't put it in writing.
Whatever you do not take up such advice as you will be paying for it forever and a day.
Good structured advice away from your Bank is the way to go.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
All good points made so far.
With limited savings / equity might want to keep your cash in savings and consider a 100% standalone investment loan.
We are finding many investors are seeking such a product and spent a while trying to put such product together.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Tiggar
Firstly welcome to the forum and i hope you enjoy your time with us.
Sorry to come in late in the post but i think the snow here in the UK has slowed down my internet connection.
Thankfully i am leaving today so will be back in the warm shortly.
I had to read your post a couple of times as i couldn't believe what I was reading.
3 Years is ridiculous to even if it 19th Century and i would definitely listen to any suggestions JacM offers as she is a Queen when it comes to renovation.
On the finance side i am not totally convinced that your loan has been set up correctly (maybe suitable for the Bank but not for you the investor) and this might need tweeking to ensure you are maximising your deductions.
Also be interested to see what your Tax Returns look like as i am not sure you are fully claiming what you should.
I think i would be getting some Professional advice allround so that you can start going forward and not backward anymore.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Tambo
You won't pay back anything on any of the Depreciation claimed however the Capital Allowance claimed will be deducted from the Cost Base on the original sale price when calculating Capital Gains.
Hope this helps.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Craig
Who valued the property ?
If it was your Bank have you thought about getting a separate valuation from another lender.
Had one last week for a forum member which came up by $80,000 on a second valuation compared to his own lenders figure.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Agree with you Andrew.
Sure will be having my Call Option contract updated as i think there will be some excellent buying.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Mick
Feel free to shoot me an email and i can send over my Ebook i wrote last year on SMSF.
Yes agree with Shahin last one we set up thru our Financial Planning Licensee they charged $2200.
SGB is certainly one of the leaders in the SMSF sphere but with lenders launching new product each day matter of reviewing each deal prior to submission.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Eric
Hate to say if your lender does not offer an offset account on a fixed rate and the funds will eventually be used for a PPOR (if they would be used for investment you could possible utilise a redraw feature) there is very little you can do.
Probably best to look at placing the funds on a Term Deposit in the name of lowest Tax payer and try and maximises your interest return between now and when you require the funds.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
The flood issue is very true however i have to say the biggest issue is the finance issue.
I have had 2 previous forum clients look at the property however the biggest issue was finance.
Given the cash / equity amount you would need to contribute the return seems to dimnish.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Have to disagree i love 1 bedroom units however find that often you cannot buy them cheap enough.
I own a block of 18 units in Brisbane with 4 of them 1 bedroom and the rate of return is far better than the 14 x 2 bedroom units.
In saying that i prefer to own and control the whole block rather than a single unit within the complex.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Andrew
In my experience such NRAS recommendation would not be in Brisbane as i have not see one that has valued up here.
Done a few in Sydney which have seemed to have provide good investments for the purchaser.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes there is no trouble in making multiple offers as don't forget the seller has to accept them.
Depending on which State the property is going to be in you should consider getting a Solicitor to draw up your Special Conditions.
If you are making multiple offers then i would ensure that each offer has a limited time frame and requires acceptance by the seller before a given date / time.
Make sure your finance and finance structures are in place before you do.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Newcastle
No i don't think you are over estimating your returns at all.
Of course just because the Gross rate of return equals 6-7% it doesn't not mean the property will not cost you $$$ to hold.
I think you need to add additional analysis to your criteria to make sure the investment property is suitable.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Rents increased by 30% over night as landlords had to make up the net cash shortfall from elsewhere.
If of course your properties are positively geared then really not going to make much difference to you but certainly make a difference to the tenants pocket.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Mik
Welcome to the forum and i hope you enjoy your time with us.
There are many differing scenarious and structures i would suggest but would need a lot more information to enable me to provide a more accurate answer.
I have a couple of forum clients who are doing exactly the same and to be honest once we received additional information the advice was totally different for each.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Matty
Firstly welcome to the forum and I hope you enjoy your time with us.
I am not sure whether i have read your post correctly but you cannot have the loan in 2 names and the mortgage documents iin one name whichever you go to. The loan and mortgage documents will be in the same name.
There is however no reason why the Title cannot be in 1 name and the loan / mortgage documents in 2 names.
Would need a little more information to give you a more accurate assessment of which lenders would be suitable.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks Darren enjoyed the read very helpful and useful to polish up on the forthcoming changes.
Will definitely be in touch in the year.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Heh Jac
Looking at your handle photo reminds me of a property I looked at in the UK last week.
Was around 21 Sq M and i think it was marketed as a 2 bedroom house lol.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Course one of the best ways to reduce your PPOR repayments is to reduce the actual loan balance.
Often investing and getting a better investment rate of return than the borrowing rate you are being charged can produce excellent results.
Make a provision for CGT from your profit and place the balance in your offset account.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi JT7
Do you think i should be putting up my hourly rate up from 1 x latte per hour then ?
We will be coming to Sydney with the Property Know How Club so look forward to meeting as many members as we can over the year.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
