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Wow i agree.
My SMSF fee is about the same but then mine is fairly complicated.
Many properties a swag of UK / US / Australia shares / a number of Vendor Finance deals / some secured finance and a bit more.
My 5 DFT's own 40 properties between them and we don't pay much more than you are being charged.
Take Terry up and get a referral to an alternative Accountant.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Agree with Terry.
I own numerous properties within my SMSF and don't have any intensions of selling any of them.
During the accumalation phase an asset sold within the fund pays Capital Gain Tax at 10% on the basis the concessional rate applies and if not 15%.
When financing a deal inside a SMSF a lender does not look at your own personal assets & liabilities so we are getting more and more enquiries from clients who on paper appear to have reached their maximum borrowing.
Few tricks for younger players when working out serviceability but certainly if the fund is established you can purchase multiple properties at an 80% gearing.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Again don't want to picky but if you haven't purchased the properties yet the money can't be in an offset account.
Still concerned when you mention the words Master Facility as it still seems to me like a Portfolio style Mac Bank or Dragon style loan.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Rob
This is a question we get asked regularly and Steve himself has updated his earlier statement made in his book.
Providing a guarantee in your capacity as a Director regretfully will treated as your own liability and will need to be declared in all future lending applications.
There are certainly lenders out there who look more favourably when it comes to applications in Trust and who do not charge higher fees or interest rates however this does not get you around the borrowing issue.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Mosai
Sounds like a possible Spousal Transfer opportunity.
Be surprised how many of these we are doing in Qld at the moment.
Course going to depend on a few factors but that way you could possibly claim the interest on the full value of the current property whilst using the new proceeds as deposit on your new PPOR.
If you are unsure of which property you intend to reside in long term might be a matter of using a TD as security and keep the borrowing fully drawn.
Careful loan structuring needed to maximise your deductions.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As Shahin has mentioned your good local broker should be able to sort this out for you.
Assume that the Casual position has been going a while as some lenders like to see 12 months employment.
Sure you Broker will be aware but make sure your lender allows revaluation and "cash out" to at least 90% as many don't.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Dloy
Would need to now about the rest of the application but initially a 90% lvr maybe possible on a 485 visa.
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Yours in Finance
Richard Taylor | Australia's leading private lender
When you say master facility i hope you are not referring to a line of credit.
Not aware off the top of my head any lender that calls its offset account a Master facility.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Yes we are doing loans to 90% for 457 Visa holders on a fairly regular basis from our UK Client bank.
Did a loan for a UK forum member only last week.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Just to clarify Sharin's earlier post.
The cost of a Buyer's Agent is actually Tax deductible as it is added to the cost price of the property when calculating CGT in the event of a sale.
LMI is also Tax deductible over a 5 year period or the term of the loan whichever is lesser and proporitonal in the first year.
Subject to serviceability i wouldn't have a problem in taking the first loan to a 90% lvr. Course alternative would be to go to 100% and use a TD as collateral security.
No point in doing so though if you income can't support further acqusitions and if this is the case you might as well have dropped the lvr to 80%. Remember not ever lender charges LMI at 90% and whilst the majority do the premiums can vary considerably from lender to lender and insurer to insurer.
Definitely shop around for the best quote.
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Yours in Finance
Richard Taylor | Australia's leading private lender
James at 370K that must have been the highest recorded sale in Ipswich for years.
I am not surprised the valuation came in short.
We do a fair volume of investor lending all over Australia and as long as you avoid the Gold Coast haven't had too many issues with down valuations.
I like both Toowoomba & Rockhampton and i am looking at a few deals myself in both areas to add to our portfolio.
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Yours in Finance
Richard Taylor | Australia's leading private lender
James at 370K that must have been the highest recorded sale in Ipswich for years.
I am not surprised the valuation came in short.
We do a fair volume of investor lending all over Australia and as long as you avoid the Gold Coast haven't had too many issues with down valuations.
I like both Toowoomba & Rockhampton and i am looking at a few deals myself in both areas to add to our portfolio.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Sure Ella feel free to shoot me an email with the numbers break up to start with and we can explore the options.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Bugeye
Your strategy is one we work with for forum clients all day long so is nothing new.
Structuring your current loan to ensure you create a sub loan is important as you want to separate the 2 loans and definitely don't want to cross collaterise the loans.
Other issue will depend on the lvr on your future Ip's.
Whilst the lender may allow re-valuations and equity access if the loan is mortgage insured the insurer may place restrictions on the extra funds.
Finally of course persuading the valuer the property has increased in value is a separate issue.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Sam
Yes definitely you want to go IO especially if you have non deductible PPOR debt.
Issue of course would be the CBA serviceability model is a shocker and you will struggle to get CBA to agree to go to a 90% lvr without a defined purpose. 'Future investment' wont wash with CBA these days.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Owen
There are only 2 BTL lenders left who will consider non resident loans (Trust me i am in the same boat as you being a UK Passport holder who has lived here in 16 years) and you are looking at 35-40% deposit.
Minimum £100K loan rates not that friendly for the UK circa 4.5% fixed.
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Yours in Finance
Richard Taylor | Australia's leading private lender
No you are correct Anz would have absolutely no idea on the why's and wherefore's of uncrossing your loans and probably can't understand why you would want to do it in the first place.
They adopt the attitude if it is less security for the Bank why would you want do it and certainly if you do we would not want to encourage it.
You need to go back to square 1 and start untangling 1 at a time something we seem to spend out life doing for forum clients who have their loans so poorly structured by their Bank or Bankers. As i say to many of my clients it is never a problem until you want to do something and then of course it becomes an issue.
The other 2 reasons for crossing would be:
1) If the valuation had dropped and you still wanted to access equity the existing lender may run off their existing figure where the last valuation was < 12 months ago.
2) Where you want to go > 90% lvr and the lender and the mortgage insurer agreed if they felt they had extra security.
Can't remember the last deal i did where we crossed a clients loan but if it is right for the client then would recommend it.
Hate to say wouldn't be the case here with multiple securities.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Ella
As Terry has mentioned a Spousal Transfer could certainly be worth considering especially at the level of value you are talking about. I assume the current PPOR is your individual names?
Not sure which one of the Big 4 your loans are with however need to probably be careful when untangling to make sure you don't end up in the same mess.
Funnily enough one of the 3 reasons I would ever cross collateralise a loan for a client would be in a Spousal transfer situation to maximise the deductible borrowing however unlikely your Bank or Banker will have any idea at all.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Noise and inconvenience are one thing but there are many other considerations.
Are you buying for your own occupation or as investment property.
Have you considered the high body corporate contributions.
Looking thru the link i notice that a few of the Sellers were overseas which leads me to think they were probably sold over priced properties by marketing firms originally and with Developers doing incentive deals all over the City want to get out quick before they cant get anything like the listed price because of the competition.
I can think of a few financing issues in the CBD but they are for another post.
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Yours in Finance
Richard Taylor | Australia's leading private lender
The guys have seemed to covered all of your question so I wont repeat what has been posted already.
Only consideration would be on the finance side under NCCP the letter of offer from your potential lender would have expired after 90 days and therefore the deal may need to be re-assessed. If you had a change in circumstances or the lender has a change in credit policy (I have one on my desk in a similar situation) you may find that finance wasn't approved second time around yet you still have to settle.
You need to be aware of this.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
