Forum Replies Created
No I totally agree with Stacey a few minutes spent with a Professional in regards to due diligence on a project is worth 10 times the cost of any computer program.
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Yours in Finance
Richard Taylor | Australia's leading private lender
As i have said before of course there are finance alternatives which can get around the ATO regulations however not necessary for every client depending on their own position.
I am in the UK and just don't have the latest paper on the subject but will write an article on it when i get back.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Marty
There are many US lenders who lend to non residents however depends on the State which the property is located / minimum loan amount / type of property etc etc etc.
The other issue is the amount of time spent on getting the deals over the line which is another reason we are not taking applications from Australian investors.
With our UK clients the requirements are less and the time / reward makes it worthwhile.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Mcp
There are no issues in you purchasing a property in the US as a non resident however funding it is a different matter.
Depending on the type of property you are going to be limited to 70% lvr and probably a minimum loan of between
$50K -$100K.
Rates are going to be similar to any other 2nd home purchase.
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Yours in Finance
Richard Taylor | Australia's leading private lender
As Terry has mentioned you cannot Borrow funds using the property as security to renovate an investment property owned under a SMSF.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Unless of course if you are classified as a fully time developer and then it is merely added to your trading profit as normal taxable income.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Dave
Maximising the interest deductible on your IP and minimising the interest deduction on your PPOR is exactly what you want to achieve. You also want to try and use equity rather than your own savings and look to revalue in order to access further equity.
There are a few other strategies i recommend in order to accelerate your equity position.
Why don't you join the Property Know How Club and subscribe to our free newsletters as i am sure you will find many other areas of interest.
Also see if you can come along to one of the Club meetings.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Blade with the equity position you are in i think there are a variety of options.
Certainly if the NRAS property is used to pay down the PPOR debt even quicker i don't have a problem with this and then look at a property with good capital growth to balance the portfolio.
As i say to clients so often structure is paramount here to maximise your equity position going forward.
Set up correctly you could certainly build an excellent portfolio over the coming years.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi David
I am sure you have your reasons for wanting to keep the lvr under 80% (must admit most of my client's try and maximise their available equity by taking the lvr to say 89.9% on the IP and reduce the exposure on their PPOR).
Anyway my suggestion would be to set up a sub loan against your PPOR and on drawdown have the funds paid back into the sub loan available for redraw when you require them.
Then obtain pre-approval from a separate lender for the IP.
When the time comes that you need to draw out the deposit draw it from the investment sub loan and have it paid directly to the Solicitors Trust A/c / Selling agent.
Interest will be charged only on the funds drawn.
On Settlement of the IP you will then be charged interest on the IP loan secured against the IP as well.
Reason we always try and set up a subloan for 80% of the PPOR valuation is that you can use the funds for multiple properties.
When the IP's increase in value we look to drawn back upto 90% of the increased value and use the additional funds to pay down the sub loan secured against the PPOR.
These funds can then be reused for the next property.
We use a couple of strategies used to pay down your PPOR debt as quickly as possible in order to create maximum equity for further investment but this is for a separate post.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Motherhen
Exactly what you are after is something we are starting to do at the Property Know How Club.
Why not log onto the website and join up and start educating yourself on a variety of areas.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi bigo
Must admit i personally wouldn't be using CBA either for such a deal but maybe your Broker has a reason.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Bigo
Congratulations on making the move into your own PPOR.
Given what you are wanting to achieve i am not sure i would suggest the NAB as a perfect fit.
I would be looking to go to 90% lvr and placing the balance of funds in an offset from day 1.
Also suggest you look at a lender who doesn't charge LMI but self insures as this in itself could save you more than few dolllars
Remember LMI or the equivalent is a loan cost and therefore a Tax deductible expense once the property becomes available for rent.
Assume the cost was $5000 and you settled on the 1st July 2013 and then made the property available for rent 2 years later you could claim $3000 over the remaining 3 years.
Getting it right upfront can save $000 in the long run and set you for your future investing.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Any expenses incurred as part of the investment will be deductible and these include power etc.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Jon
Depending on the term of the Agency Agreement the Vendor had with his Agent then possible he maybe entitled to claim a commission but as long as your offer has been accepted that is really not your issue and is a dispute between the Seller and the previous agent.
All you have to ensure is that none of the commission charges are being passed onto you and you are all sweet.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi PB sorry to hear that the property has become vacant especially this time of year.
No as long as the property is being advertised for rent you can still claim all of the expenses and these are only offset by the actual rent you receive. If this is nil during the period then nil it is.
Have you thought about getting a Property Manager to source a Tenant and then you managing it from there.
Do you lodge each year a PAYG Tax variation so that you get your Tax adjustment reflected in your fortnightly pay cycle.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Tom
Congratulations on taking the plunge into improving your overall wealth especially for one so young.
I have a few clients i have mentored whilst they were still at university and always good to see what they have gone onto do with their lives.
Nigel Kibel a long time forum member has started the Property Know How Club covering many areas of investment. Membership is free so you might want to sign up and start receiving regular newsletters and attending some of the meetings.
Look in the Help section and you will see Nigel's details.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
One of the policies which i believe sets us out from the others who offer VF in Australia is that we allow the purchaser to choose their own property.
We take applications from potential buys who go thru a process of making an formal credit application to us and we then issue a Conditional letter of offer giving them a maximum purchase price to go to.
We state that if you locate a property for XYZ we will buy it and sell it to them for XYZ + 20K (or whatever profit figure we want)When they find a property we negotiate with the vendor / agent and then issue them a new letter of offer depending on the actual purchase price.
The property might be listed for say $108K and we negotiate a purchase price of $100K.
We may have told them they would be paying $130K assuming $108K purchase price.
I assess the credit worthiness of all applications for First Home Owners Group as well as deals we do for investors etc.
Works well as they have a property they want to live in and are keen to keep up the repayments.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
PFranky
The end loan can always be restructured when you decide what you want to do with the property (that is not to say you sell one side of the duplex but then load the investment property which you retain).
In regards to the loan going forward it would normally be set up as a land loan initially and then a construction loan during the building stage. Both loans could be merged on completion.
Just structure it correctly and you will be good to go.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Heh Andrew you and i have met so you wont get any shocks lol
Have yourself a good Xmas.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Yes i heard that flood cover is expensive.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
