Forum Replies Created
Hi Robbo
Firstly welcome to the forum and I hope you enjoy your time with us.
Not sure which State you are in but in the main the concept is the same for every location.
I certainly wouldn't be putting you father in the Title due to the added Stamp Duty Costs (as you mentioned) but also due to the potential CGT your parents would incur.
Undoubtedly your potential future earning capacity will be healthy given your Profession so why don't you look to put the property in you sole name. The Title dictates the ownership and consequently the Tax liability.
What you then do is put the mortgage in joint names (You and your father) .
Couple of little tricks to insure your parents PPOR is not used as security and something we do fairly regularly for a fair number of Professional forum members.
Happy to answer any particular questions you might have..
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I have written an article on just this subject in the February edition of the API magazine.
Personally done around 40 separate Strata Title blocks in Brisbane since 1997 everything from a 4 pack to a 24 block in New Farm.
Darren at RPI has given you a pretty good break down of costs.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I have to say i can understand why some lenders would not consider the application under a residential lending policy as they would deem it more development in nature.
In saying this i have dozens of forum clients who do exactly this and we have never had an issue.
A couple of lenders we deal with are totally aware what we / client is trying to achieve and in fact work with us with such applications.
I have one forum client who has done 5 separate applications in 2012 and we have negotiated discounts on booth application, valuation fees etc.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Given that the NCCP legislation didn't come in until 2011 this would have still been possible in 2010.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Wilko
I agree it is a feature hardly worth mentioning these days as legislation has almost defeated the purpose.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
No Ian Citibank do not accept NRAS properties as security.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Look hate to ever correct anyone who has responded to a post but just to clarify Yes you can invest in a Unit Trust or syndicate that in turns invests in a development etc.
Has to be done correctly but can be done.
Also in regards to the annual compliance cost of running a SMSF this needs to be outweighed by the Annual management costs of your Retail fund as well as the increased annual return you can expect to receive.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks BGN very valuable 2nd post.
Derek, sorry noticed i missed one of your earlier questions.
No 90% is not the norm in fact far from it and only a handful of lenders who will go that far.
Happy to PM the lenders to you if you need them.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Mat
Don't want to appear negative but can you enlighten us why 'Finance will not be a problem for you' as the security is always of interest to potential lenders.
As Shahin mentioned even if you can finance the deal on-selling the property can often be an issue as you have to rely on the purchasers ability to be able to finance such a security.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Shane
Firstly welcome to the forum and i hope you enjoy your time with us.
I think you need to first establish whether you can actually access the equity in either of the properties
In regard to the Brisbane property is the $50K current equity (difference between Bank valuation & loan balance) because if it is the amount you can access will considerably less.
Realistically lenders will go to a maximum 90% lvr although will need to know what the additional loan will be used for.
In regards to your NZ equity then in the main you are going to be limited to NZ lenders as with 1 exception no Australian lender will take NZ property as security.
I am not au fait with current NZ lending policy but i imagine lenders are just as conservative as they are here in OZ.
I think once you establish whether either option is realistic then you can make a clearer choice which way to go forward.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Wilko
Hate to say being self employed i don't think you would have any chance as the lender is always going to want to ensure the current set of Accounts are upto date and sufficient to service the new loan.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hate to say any lender is going to require updated figures for any new borrowing.
Under NCCP even switching from P & I to an IO loan requires a Preliminary Assessment in order to be fully compliant.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Wilko
Yes certainly feasible and pre NCCP was done on a regular basis.
Now of course slightly difference under Responsible Lending Guidelines.
Loan would still need to be re-assessed under normal terms.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Now how did i know you would say that lol.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Jack
Ok will see what i can do for you but are you sure.
Sun come out for 15 minutes this morning and then disappeared.
Only seen it twice since December.
Encouraging news is that it will dry for the rest of the week but max of 6 degrees !!!!
Back next week so can you make sure the heat is turned down a tad.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hard to comment without a bit more information on the actual numbers.
If merely reducing your repayments over the next 12 months is a goal then you could look at a 1 year fixed at 4.99%.
Doing this interest only would make a difference to your current expenditure.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes further questions of such nature should be placed in the Overseas Section.
In saying this the posts would be best placed in the UK Forum 'Property Tribe' where you find people speaking the same language.
Whilst i have property in the UK and was born and bred here i find i am out of touch when i return.
Nothing like actually living here and transacting on a regular basis.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi again Wilko
Assessing a loan for a SMSF loan has no bearing on your personal liabilities.
Loan is assessed on a couple of things:
1) Your employer's superannuation contribution. (If S/E your average voluntary contributions)
2) If Fund is an existing fund the growth in the year.
3) The anticipated rental income from the property being purchased.
Course it is not quite as easy as all that.
In regards to a lodoc loan then all liabilities have to be declared.
The only difference is that you are not required to produce the normal documentation when ii comes to Tax Returns etc for verification of income.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Wilko
No hate to say it doesn't matter whether it is the same Bank or a separate lender.
Any guarantee you sign will be taken into consideration when assessing serviceability going forward.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Where are you based HKR ?
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
