Forum Replies Created
Hi Joe
Yes bang on and we know what happened to Refund Home Loans.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Derek has outlined the process better than many Brokers i know.
Exactly as Derek has mentioned and although limited to an 80% lvr we have used this many a time for clients who want to eventually move into their new property.
Doesn't work like an offset account but you do maximise the interest deductions whilst the property is being rented out.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Joe
Yes Alistair means 80% lvr.
No not harder to get a Commercial loan but different choice of lenders.
Look forward to talking to you 2013.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi EW
Must admit undoubtedly the lack of a correct loan structure is the biggest single problem i come across for new investors who have been poorly advised by their Bank / Broker and this causes them issues long term when they want to buy another property for their own occupation.
When you start you ideally want to ensure that the structure you put in place in order to maximise your interest deductions as well as keeping your own cash funds as liquid as possible.
Putting all of you funds down as deposit will not achieve this is and is something i can going to start running presentations on in Melbourne and Sydney in early 2013.
Get it wrong and it will be costly, get it right and it will help you grow your ongoing portfolio.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
You can certainly be a full developer and run a business / be employed trust me i do it.
I have written a feature in next months API magazine about a strata title development I completed earlier in the year.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
You can certainly be a full developer and run a business / be employed trust me i do it.
I have written a feature in next months API magazine about a strata title development I completed earlier in the year.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
If the property is to initially be an investment property and then a PPOR i would suggest a 100% loan using your cash funds as collateral security by way of Term Deposit.
This way you maximise the deductible interest whilst the property is an investment property yet when you want to move into the property you can release the Term Deposit, pay down the loan and set up a sub loan to use the equity for further investment.
Let me know if you need the recommendation of a good Qld Solicitor.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
JPS always good to hear lawyers giving advice on property investment especially when most of them have no idea.
Be like me giving tips on avoiding grey hair.
With NRAS make sure the property valuation comes upto the purchase price and as long as your due your due diligence on the rest of the deal you wont go far wrong.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Joe
To get the best interest rate, set up rates etc you would ideally want to keep the lvr to 70% for an interest only loan or 75% for principal & interest loans.
Probably get 20 / 25 year term with the right lender and no annual review.
Hope this helps.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
HI Maverick
You are a very lucky lad living in Canada as I had a month there mid year and loved every moment of it.
Just can't wait to go back.
Would you like to expand a little more on what are you wanting as Jamie mentioned most Brokers should have some knowledge of buying an investment property and in most cases some of us even own one two IP'S.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Have to say whilst i enjoy Margaret Lomas Sky Business Property program i have to say i totally disagree with her financing methods Destiny FS promote.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Nathan what is the rental market like in Mount Isa at the moment ?
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Yours in Finance
Richard Taylor | Australia's leading private lender
Think we all agree there Moxi but still doesn't change the legal obligations if you rent the property out.
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Yours in Finance
Richard Taylor | Australia's leading private lender
I am still at a loss to see the issue …..sorry maybe i am a bit slow (comes of being in the UK in the cold and wet).
Any normal lender wouldn't have a problem and it just seems to me like the lender is making up these issues.
If the loan is only conditionally approved then you still need to have the formal letter of offer and mortgage documents prepared and sent out and you will have to execute them get them back and then have your Solicitor book the settlement.
It just isn't going to happen in time.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes it possibly would it will depend on the type of security.
Just settled one for a forum client on a retail shop which had a decent lease in place.
Course if it had been a vacant industrial unit you might had been looking at 65-65% lvr.
What type of security ?
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Yours in Finance
Richard Taylor | Australia's leading private lender
Use a company that offers Vendor Finance where you choose the property.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Thankfully my family all live in the UK so not problems there.
My wife critises all the time but normally about all the jobs around the house she says i haven't yet got around to.
Must admit no criticism aimed at the monthly amount i give her to spend on shoes etc.
When i arrived in Australia in 1993/94 i was constantly critised by locals as being a pomme although funny now with my portfolio the same sort of people who critises then are more than happy to come round and work for me now.
Listen learn and then make up your decision making in conjunction with your team of professional advisers.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Jessica the boys have given you some excellent advice in relation to the structure.
Borrowing in Trust will in the main not increase your borrowing capacity these days (albeit a lot of spruikers will tell you otherwise) but you will be surprised as to the variance in lending products available.
Some lenders still offer their rate and establishment discounts and some allow offset accounts with a Corporate Trustee.
Actually got a deal approved today for a forum member who was given a quote by his own Bank buying in a DFT with Pty Lld Trustee and we managed to do it with a separate lender and get the application fees waived and save him 0.8% on the rate.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
A SNM mentioned no requirement at all if it is your PPOR or an IP but might find some Tenants have a concern about it.
That is assuming they even realise it is asbestos.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Michael, i think if Carole tells us who the lender is we can figure out whether she has any chance of getting there in time.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
