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The other thing to bear in mind is that the Accountant may go and suggest a structure or two and as Terry mentioned charge you by the hour to set them up only to find that your Mortgage broker tells you the financing will be more expensive using that structure or even worse cannot be financed at all.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Songrad Are you employed or Self employed ?
If the property is negatively geared and you are PAYG i would be looking to get the Depreciation schedule done ASAP and then lodging a Tax variation.
Don't wait until the end of the year to get any potential refund as it will be a lot more powerful in your pay packet each fortnight.
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Yours in Finance
Richard Taylor | Australia's leading private lender
If you intend to on sell them once complete i would personally thing the returns are far too low as you havent considered any of your sale costs, GST, Tax etc
Can't comment on the cash flow as you havent given us the likely gross rent.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Geeta firstly welcome to the forum and I hope you enjoy your time with us.
What sort of budget do you have in mind ?
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Yours in Finance
Richard Taylor | Australia's leading private lender
Mick
Each to their own but i would avoid them like the plague.
What looks like a nice place to buy or invest in when you are sunnying it on the beach can look at bit different when the level of occupancy / weekly rent falls out of holiday season.
Other potential is financing the deal as lenders wont take in the norm holiday income into consideration and this could affect your serviceability.
Old old story buy with you head and not your heart.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Couldn't agree with you more Jamie.
Must admit for a new client without a track record i politely tell them i can assist at 95% lvr.
The number of grey hairs is just not worth it.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Bruno
In fact if you want to flick me an email i will send you a copy of a SMSF Ebook i put together a year ago.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Bruno
If you have equity in any of your properties you could always look to lend the 20% from your own funds to the SMSF and borrow the balance from a traditional lender.
Not necessarily a recommended stategy give the level of borrowing but you do have the fall back that you have the funds available to come retirement.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Well then it is going to be hard to convince a valuer why he should put a figure > than the purchase price on the property then.
Still be going upto 90% lvr and not using cash.
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Yours in Finance
Richard Taylor | Australia's leading private lender
I have a couple of clients in the same boat and as Terry has mentioned it is a Defined benefits scheme and not a lot you an do about it.
In 2004, the Federal Government passed their Superannuation Legislation Amendment (Choice of Superannuation Funds) Act but regretfully it did not apply to everyone and Public Servants, members of the Armed Forces etc were excluded.
Some members of the Police Force are able to roll over their Super into a SMSF but in the main you are restricted whilst you are employed by certain organisations. On resigning or moving employment you can start your own SMSF but cannot roll over the prior fund balance.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Nice number of maiden posts promoting a company offerings.
Do your own due diligence and take note of the regular contributors in the overseas forum section.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Why not speak with Emma from the forum as from memory she is based in LV.
She will be able to give you some pointers.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Goatus
Yes you could but you would put it down as equity rather use a sub loan otherwise the loans will be cross collateralised.
Sounds like you need a little nuturing on this one going forward to make sure you structure it correctly.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Songrad
Welcome to the forum and i hope you enjoy your time with us.
I hate to say as has been mentioned the loans have not been set up correctly and this has lead to the issue you are currently having. No you don't need a 20% deposit to fund the next deal but it sounds to me that the Broker has sold you the deal solely on interest rate rather than looking at the big picture and asking you what your immediate and long term goals are.
Further information of course would be needed to provide a more accurate assessment.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Jamie what is the difference in the weather between the two?
Don't tell me in NSW they down need umbrella's ?
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Yours in Finance
Richard Taylor | Australia's leading private lender
Oh Jac is far too generous in my opinion.
I am with Tom and Terry (Not Jerry) might extend their lease by another 6 months without a rent increase if they are well behaved.
Of course my wife would give them 3 months free rent but that's why i look after the properties.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Smart,
Tom has answer a couple of your questions but hate to say without full information it is difficult for anyone to give you a recommendation as to which lender is going to suit your circumstances.
I can think of more than 1 lender i would avoid and a couple i would certainly recommend.
In relation to the lvr you might find getting 95% harder than you think unless you have a good asset base or other factors going in your favour but as i say almost impossible to commend further as we don't have all of the relevant information.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Rocket. the Title could be in the wife's name and the loan in joint names.
I have a deal we have been referred here in Qld from a Solicitor and that exactly what is happening.
Trouble here there is Stamp Duty payable.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Ok these properties are already owned?
Assuming the properties are mortgaged have both of your lenders given consent to the transaction ?
All of our wrapped properties are in Qld so i can speak with experience there but not for NSW.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Alexia
Just see who owns them or how long they have been around doing business. .
Be suprised how many household names own subsiduary companies in all walks off business.
Westpac owning St George Bank and Bank SA.
Coles owning liquor land
Honan Insurance Group – Established in 1964.
Have a look at their Financial Services Guide and that will tell you who they have relationships with.
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Yours in Finance
Richard Taylor | Australia's leading private lender
