Forum Replies Created
Dan there has been similar models with no branch or franchise networks before and they didn't survive either.
As i say i actually encourage such competition as so many client's realise what little they get in the way of structured loan planning from such organisations.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Lesham
Depending on how much are you talking about why don't you educate yourself and look at doing your own project.
Are you looking for a rate or return or a increase in capital?
Once we are aware of this then we can perhaps make some clearer recommendations.
We get enquiries from client's all day long wanting to invest in some of our developments.
We don't need to take external finance but when I talk to the clients what they often is a rate of return.
We can then often put them into some of our second mortgage schemes and they get a better rate than they would on an development.
As i say it is all about deciding what are requiring initially and then associating yourself with someone who can provide this.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Can't comment in London as all of the properties we source for our investor Clients in the UK we deal direct with the Vendor / Developer but in Australia a Land registry search will tell you the initial registered address as at the time of Transfer.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Yoly
Education is what you need and in my opinion you can never have too much.
Nigel Kibel a long time forum member from Melbourne runs the Property Know How Club and provides free quality education in variety of investment areas.
Why not join up on his website / facebook page and download some of the free articles, go along to a meeting or two.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Will depend on the Tax code you use in your Tax return and whether you can been seen to be doing it regularly enough off to be classified as a business.
It is the same with investors who buy and sell shares and want to try and claim the costs of education, publications and subscriptions etc. Trying to persuade the ATO you do it regularly enough to make it a business isn't easy if you only trade once a month or so.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Keiko
With the right lender there is no limit to the amount of investment properties you can purchase.
Lenders will accept between Nil – 100% of the Gross Rental income so you need to ensure you structure the loans correctly and with the right lender to be able to carry on purchasing property.
Seen too many clients find that they are unable to proceed because their structure was incorrect.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hate to say Prime that is incorrect.
Paul would not qualify for the FHOG or State equivalent if he or his partner buy individually or together another PPOR once he has claimed the Grant on the initial property.
The Stamp Duty concession might be different depending on which State she buys in.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Paul
Hopefully you got my reply.
I am actually in the UK for Xmas and New Year but still working.
I did respond to you so feel free to come back to me and i can certainly try and guide you in the right direction.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
HI Paul
No i hate to say if you define your partner as your spouse then regretfully no you can't claim the FHOG a second time even if she purchases in her sole name.
Refer to the OSR in your State for definition of 'Spouse'.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Juichi, i wrote an article on the subject a few months ago in the Financial Planning Journal and will copy it to the forum once i get back from the UK.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Dan i have to say i would think for what Matt is trying to achieve CBA would be one of the last lenders i would approach as their equity release product is antiquated in comparison to what else in the market.
Matt, hope everything is well. Yes definately as we discussed suggest you have a Solicitor draw up a legal document to provide your mother in law with additional comfort.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Cubez
Wow sounds from the description you have laid out we are talking major structural changes to the house as you wouldn't normally engage a Project Manager on a simple home renovation with a standard licensed builder.
Now in regards to financing there are a couple of potential issues which probably need to be considered.
I am unsure as to how old your mother is but i assume she is 45 +.
Under NCCP consideration would be given to her serviceability and the ability to support any loan post the standard retirement age. Whilst i am not aware of any of her personal details you need to ensure that finance is a possibility before going much further.
As she no longer lives in the property i assume she has her PPOR elsewhere so at least that issue will be a plus point when it comes to financing as lender will not like the fact that she might have to sell her PPOR in order to repay back any outstanding loan.
Finally make sure that the increased rent / value warrants the capital expenditure.
Might just be easier to rent out as is and start investing.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Paul
Couple of ways to think about the financing of the deal:
1) Ask the vendor if he would be prepared to sell the property under Vendor Terms either using installment finance or similar.
2) Look at a lodoc loan for say 70-80% of the purchase price / valuation and then either get the Vendor to provide a 2nd mortgage carry back (Limited lodoc lenders that will allow this but they are out there) or use a 2nd mortgage Company that offers such private financing.
Hate to say you will pay a higher interest rate for a 2nd mortgage and it is likely that the loan will need to be a P & I loan but structured correctly you may find you have created additional equity by buying under market value in the first place.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Without full details bigo difficult to provide you an immediate suggested lender but in the main would depend if you intend too to borrow 100% and use the 20% balance as collateral security.
If so you are going to be limited to lenders but of course down the track could prove the most Tax effective move.
As i say not a matter of plucking a lender out the sky more a matter of analysing your requirements and seeing who would be most suitable.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As Terry has mentioned Yes in most States you may need a Contract drawn up first prior to marketing the property although not in Qld.
In Qld the Disclosure documents will need to be drawn up but the Contract is normally drawn up by the selling agent once you have a interested buyer.
The Selling agent will normally do a Title Search on the property to make sure the Vendors names etc are correct and have the property descriptions to hand.
With regards to marketing the property thru multiple agents i am not sure this is a preferred method as I am not convinced an agent will put in the same amount of effort as they would do if they were to receive 100% of the sale commission.
Certainly talk to a couple of agents to get an indication of their anticipated market value and also on how you get on with the selling agent him / her self. This i believe is just as important as you need to feel comfortable that the agent will work for you.
Good luck and hope you re-join the investing community again soon.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Oh also forgot to ask do you have to pay the commission back if you refinance the loan or pay it out within the first 18 months when you realise you are paying too much and another lender offers you a cheaper rate.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
And some lenders go to 90% and the LMI still wouldn't be that high..
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Organisations and sites like this have been around for years and there is nothing new.
Doesn't worry me in the world and i am sure most other Brokers would be in the same position.
Do they tell you how to structure your loan or where to go to reduce your LMI cost etc. Course they don't.
You can buy a book and do your own conveyancing and that saves you a few dollars but how many purchasers would be foolish
to do so.
Professional investors understand that interest rate is fairly immaterial over the term of the loan and most clients are looking for more than the lowest rate.
If this is the case then you would not use websites like this as some lenders that do not pay commission offer lower rates than the high street Banks already.
You have to ask yourself why did CBA / Anz etc divest themselves of their online lending models.
Maybe it was because they just didn't work.
Exactly the same reason why all Banks closed every Branch in every small town at the start of the decade and now are
re-opening them all back up again.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Alex
Are you going to find many Australian Investors purchase for cash properties in the US for $250 – $2M bracket that they then are happy to on sell via Vendor Finance.
They can do the same thing in Australia without the issues of currency movement and gear to 80% with the lenders consent.
At the lower end of the market they could see capital gain by way of an increased end sale price which i could appreciate.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Brian sorry don't want to appear to be negative but if you have 13 VF properties and they are only returning $400 / month i think i would be holding off there.
My VF Company (First Home Owners Group) at out peak had 178 properties we owned and had sold by way of Instalment Contract and each one of them was returning $400 / month +.
Might be a case of redoing the maths.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
