Forum Replies Created
What would you be looking to buy the property off the investor for so we can calculate the potential profit return.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Gemma
In the main lenders do apply a 20% increase of the prior year income rather than merely take an average of the last 2 years figures however in saying that we deal with a couple of lenders that merely take the latest years figures.
On that basis and all other factors being equal the Guarantee could be released with the right lender.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi S
Shoot me an email and i can send you a PDF copy of the article.
Sign up for the Property Know How Club meetings and come along as i will be talking at the meetings.
Trust me after a month in the UK on holiday i am champing to get back to Brisbane and back to work.
Johann, thankfully there is limit of how many pairs of shoes you can get in a suitcase.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Tin
Yes i do but remember no lender is going to give your potential buyer Unconditional Approval on an OTP property as it will always be subject to as final valuation.
Happy to help out.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Jenny
No silly thing is that some lenders work off a percentage of Gross Turnover as shown on your BAS and only require your last 2 statements.
In some cases we can annualise the income based on a 6 months BAS and then apply a turnover calculation.
Bottom line is you should never commit to something where you cannot clearly meet the repayments..
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Exactly as Alistair says at a lower lvr on a Commercial property but no chance on a residential property.
We have done a couple with Unit Trust where the property is self funding and the lender can assign the Lease to cover their repayments.
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Yours in Finance
Richard Taylor | Australia's leading private lender
MK agree with Jac (as always) but if rates fall much lower you should be able to get + cash flow with P & I.
All a matter of education and associating yourself with the right type of person to source the properties.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Of course there are also Non Cash Deductions such as Capital Allowances / Depreciation which can be claimed and therefore this will help balance the shortfall on the household budget.
These are claimed in the same proportion as the ownership of the Title i.e Sole Ownership / Joint Tenants / Tenants in Common etc etc.
Have to bear in mind that any Capital Allowance claimed during the period of ownership is deducted from the Cost Base if the property is old in the future.
In regards to your PPOR Boshie what i would do will depend on what are your long term intentions for the property. .
Once we are aware of this there are a couple of strategies you could look at adopting.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Jenny an Income Accelerator is a way of increasing your short term income to enable you to be able to invest in more long term property.
Whilst my background in the UK was Currency / Share trading i wouldn't recommend this as a strategy for investors.
Ideally potential investors want to reduce their non deductible debt whilst increasing their deductible debt.
When they have paid off their non deductible debt they can look at reducing the deductible debt and producing true cash flow.
Rental income cash flow can then replace PAYG income.
An Income Accelerator could be a small one off development that you do or a short term investment etc to increase your income. Such an increase could be a modest weekly / monthly / annual amount to boost serviceability.
They only 2 factors which limit investors are serviceability and equity and with a strategy in place to overcome these then there is no reason why an investor cannot substantially increase their portfolio.
It is something we will be covering at our Property Know How Club meetings over the coming year.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Jack, see you do not intend to listen to your Broker's advice in 2013…….
There was me suggesting 1 more dependant could actually increase your serviceability.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Jack
Happy New Year to you and Sally. Hope the kids had a good Xmas.
See you must be on night shift answering this time of night / day.
Talk to you when i get back.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
All comes down to negotiation.
You could still be looking at 1% + depending on the location.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Alex
Why don't you get in touch with Nigel again at the Property Know How Club.
I know you have spoken to him a couple of times but Nigel's membership is growing fast and he has a good US set up know with a growing number of members investing in the US.
We are starting to hold monthly meeting all around Australia and even overseas within the next 12 months.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Gemma
The answer to both of your questions is fairly simple in the current climate and that is the Personal Guarantee would not be released.
In the case of a Director moving on and resigning (I have been there and done that) this requires the loan to be re-written. Unless the lender is satisfied with the Guarantees provided with the remaining Directors they would not release the Guarantee from the Director being released.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Equity
Yes that is correct minimum of 2 Years and then you require your Diploma in MB.
Depending on your Aggregator most will require membership of one of the industry bodies.
Course over and above this you need membership of an External Dispute Body such as COSL and your Professional Idemnity etc etc.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Remember Ross any Condition needs to be accepted by the Vendor.
I am a great believer in trying to combine conditions under a Due diligence condition rather than have 101 individual conditions.
As long as your Solicitor ensures you are well covered then try and keep it simple for the vendor to accept.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi MK
That's ok it is what the forum is all about learning from others.
Lets work thru your questions:
1) Yes the interest will still be deductible as long as the intention of the funds is to earn an investment income. Would be the same as buying an off the plan property in Australia. The interest on the deposit will be deductible from the day interest is charged.
2) Can't have it both ways. Yes hate to say you need to declare any foreign income. Where Tax has already been paid in the Country of source you will receive a Tax Credit for the Tax already paid and only pay the balance.
3) Yes you will a Tax deduction on the interest during the construction phase and also remember if you decide to retain the property you may be entitled to receive some Depreciation deductions etc. Must admit one of the QS on the site should be able to help you better on the Indian Depreciation rules.
As long as you understand it might tie up your funds if you end up funding the deal entirely from your PPOR equity.
Make sure your Mortgage Broker is au fait with those lenders that have a liberal 'cash out' policy.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sure Kevin can you email me your email address.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Joe i agree with you and thankfully i have never been divorced.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Me thinks it was a case of a typo with Nigel's response as we have arranged finance for dozens of his clients and he has always made it clear to them that the interest would be deductible.
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Yours in Finance
Richard Taylor | Australia's leading private lender
