Forum Replies Created
Hi Matt
Regretfully the Stamp Duty concession is not available if you purchase in Trust or Company structure only if you purchase in your own personal name and the purchase price is < 500K.
Secondly probably realised that the FHOG ended in Qld on the 11th October and was replaced by the FHOGC which is on new homes only.
In regards to using your parents property as collateral most lenders will trying and encourage you to use the family guarantee style loan however i would personally suggest this is not the way to go for either you or your parents.
There is an alternative which is more flexible whilst still maintaining the tax benefits of future investment.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Be interested to know which lender lends on vacant land to a SMSF.
Even more interested to hear how you can construct a property inside a SMSF with standard financing.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Yes exactly Frackle and love the Loonie story.
Being a Pom can't comment about Kiwi's. Although i couldn't eat a whole one……………
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Yours in Finance
Richard Taylor | Australia's leading private lender
How is your Broker in the process of establishing finance if you haven't decided what structure to use ?
Seems a wee bit arse about face to me.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Oh Matt Matt Matt this get worse by the day.
I would be terminating the Contract first thing Monday morning and then getting a Broker to review your current position and set up the new loan so that a minimum amount of equity on your PPOR is being used to support any new investment property.
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Yours in Finance
Richard Taylor | Australia's leading private lender
You are unable to live in a property or rent it to a related party where the property is owned by a SMSF.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Heh Jac, whilst you don't have to meet your Broker i hope you are looking forward to doing so lol
PS. get my SMSF email.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Yes Kat not wanting to knock a fellow broker but doesn't sound like your Broker is too au fait with investment loan structuring.
Sticking the funds in your offset account will be a nice red flag to the ATO.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Just make sure the new lender doesn't use the same mortgage insurer as even if the Bank approve under DUA the Insurer might still scupper the deal at the last minute.
You Broker should be aware of which insurer the lender uses.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Away from the issues that Terry has mentioned have you considered how you will finance the development.
Not a standard residential deal for most lenders so will take a little more massaging through.
Almost going to require a higher deposit lower lvr and potentially going to have to show you can service the entire debt without taking into consideration the potential rental income.
If you can keep it to 3 units on single title going to be a lot easier to finance..
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
To avoid the issues Mystery suffered from his sale in Adelaide i would be putting a condition in the Contract saying that when the purchaser enters the property to start work etc they also accept the property in an As Is condition to avoid any pre-settlement issues.
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Yours in Finance
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Richard Taylor | Australia's leading private lender
Vancouver is ranked as the 2nd most expensive city in the wold which tells you something.
You can buy a nice unit in the middle of downtown for $1.5M CAD.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Ryan, also don't forget any borrowing costs such as lenders application, valuation fees, mortgage insurance are all deductible expenses.
Normally deductible over 5 years or the term of the loan whichever is the shorter.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
And what gets me Terry Matt didn't find out how much he was borrowing from his Broker until he received the mortgage documents…….
So much for sending the client a copy of the Faxed Approval…
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Yours in Finance
Richard Taylor | Australia's leading private lender
Which lender did you choose for the SMSF Pre-approval ?
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Mat
Firstly welcome to the forum and I hope you enjoy your time with us.
Without having any details on your income / expenditure it is difficult to ascertain how you would go with serviceability but all being equal at 360K – 400K purchase price you probably would be able to go to 90% lvr + LMI so would need between 36-40K plus your acqusition costs i.e stamp duty etc.
Coming from Brisbane i can't comment with much conviction about the area but have to say that sounds fairly expensive for a Unit entry price. Are you sure you want to commit that much of your savings to a single purchase especially being your first IP.
Personally i would look to buy something a little cheaper that you can give a lick of paint to and maybe update some fixture / fittings and increase the yield as well as improve the cash flow. We are starting to source properties for investors and look to improve the cash flow for them by adding value.
Certainly in SE Qld you could buy a decent unit for a lot less than $350K and look to spread your investment.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi delbs
Just emailed it to you from my gmail address as i am at home.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Yes i am with you Terry must be a Fixed rate.
Hopefully will expire in the not too distant future.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Matt
If the Contract was subject to finance and the valuation did not come in at purchase price then i would be terminating the deal and running a mile.
Your Broker should be able to provide you with a copy of the valuation and if for some reason he can't he should defiinately be finding out the exact valuation figure for you so you can decide whether it is a deal you wish too proceed with.
If he doesn't change brokers.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Spent a month in Canada in June / July and absolutely loved it.
Some lovely properties in Whistler and with Mountain biking as popular in the Summer as skiing is in the Winter you get 365 days of holiday rental.
Fairly difficult to fund Foreign Nationals though.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
