Forum Replies Created
How many years are you looking to fix ?
What is the lvr and what is the loan size ?
Do you want any particular features with the new loan ?
Are you happy to take 50% variable and 50% fixed.
With this information certainly going to get a better answer.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
zehra rather just refinance for a lower rate i think i would be asking what you intend to do in the future with the property as locking in the rate can reduce your options.
Many a forum client has come to us having wanting one thing and then weeks later changed plans mid stream and decided on anoother course of action.
I think you need to be both flexible and able to change going forward and i can think of a couple of ways around this to achieve what you are after.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Mark
As Jamie mentioned if you are merely chasing the lowest rate then good luck becuase next week it willl change again and you can go thru the same process.
When your Bank manager tells you that he is offering you the best loan out there ask him will he be your Bank Manager for the term of the loan or will he take promotion and ditch your account if it is offered. I think i know the answer.
If you are looking too build a property portolfio then interest rate is not important as there are numerous other factors that investors should look for and a good independant mortgage broker should be able to help you with this.
If you have a single PPOR and intend to stay there forever and a day stick with CBA, tell them you are going to leave as you can get a better rate round the corner and they will probably match it.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Senajav
I will let someone like Ashley more qualified than me to comment on the mechanics safe to say have you considered the financing.
Unless you have equity in another property you wont get far with $50K in the development finance world.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Excellent news ttcb as i say you should be getting around 6.25% on a small deal like this so all sweet.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi John
Sorry cant help you with an Accountant in Melbourne as mine is in SE Qld and form clients travel 1000's of km's to see him.
What do you need a Financial Adviser for?
Remember if it is to do with lending or loan structuring they are not licensed to offer you that advise unless they hold a Credit License.
That iis the domain of the good old Mortgage Broker.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi ttcb
It is unlikely you would get a GR loan on such a small project but in saying that there are many other ways around it.
Look i hate to say this but CBA are one of the most conservative lenders when it comes to serviceability to doesnt suprise me that they come in short.
Without the actual numbers of course it is difficult to provide you with an accurate assessment of the situation safe to say that with that sort of LVR i believe it could be done with a couple of excellent lenders.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Liz
Yes i agree with that but cant see why you would use a LOC when an equity loan us cheaper.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Liam
Dont think you are fully understanding the transaction.
You as the original purchaser pay Stamp Duty based on your purchase price and then your purchaser pays his or her duty at their applicable rate based on the purchase price of the installment contract (they maybe entitled to FHB concessions / Grants etc.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sorry Matt that clearly isnt correct as you most certainly can construct in a SMSF. I have 1, 2 or more properties which i own in my SMSF apart from properties i own personally and i have constructed Strata Tilted, developed etc all of which is perfectly legal if the Trust Deed allows. What you cannot do is be seen to be running a business. Difference is you cannot borrow from a standard banking lender using a Security Trustee Deed however you can certainly do so under SISA thru a 3rd party arrangement. We do a deal a week at the moment for SMSF lending everything from 100k small resi loans to 2M Commercial lending and as a Financial Planner encourage most if our clients with SMSF to consider it. Unfortunately we do find many standard mortgage brokers do not fully understand the legal requirements if SISA hence i wrote an eBook on the subject. Cheers Yours in Finance
Richard Taylor | Australia's leading private lender
Agree Jac there are only 12 or 13 players in the SMSF market and most of them charge like they were processing a Commercial loan with the attached fees and charges.
I can think of maybe 3 lenders I would look at for a SMSF loan and would steer well clear of the rest and this covers the Big 4 Banks.
Course Jac you got special discounted rates and extra service as one of favored Vic clients.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
If you earn less than 48k then it probably isn’t that relative as you wouldn’t be borrowing much anyway.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Matt no doesn’t quite work like that.
If the property is held in Trust the Trust would want to distribute the profit otherwise it is Taxed at the highest marginal rate.
Certainly if it had non working beneficiaries the Trustees could consider making paying them a distribution however still not going to get around the $20,450 figure Terry mentioned.
Anything over this and you are Taxed. No point in paying the distribution to a Company as the Tax rate here is 30 cents in the dollar.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Rachela
Got your email and responded accordingly.
Have to say your Accountant is correct and would listen to him every time over your Bank,
The way forward is a split loan using the current property as security merely to fund a 20% deposit and sufficient to cover acquisition costs.The new loan on the new PPOR should be kept separate without using the security of the existing property at all.
There is much more to this than merely a quick cross consolidation with the same lender (although Bank West won’t agree with me) however if course is time of the essence then probably don’t have much choice.It is for this very reason I suggest to clients to be planning this before they go to Contract as getting it right takes time.
Oh and finally at 6% for that size loan your current lender isn’t doing you any favours.
It is about par for the course although as I mentioned in my email interest rate is merely 1 peace of the overall lending puzzle.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi bFree2live
Good for you on early retirement. I did the same thing at 40 thru rental income but have to say after 6 months had to go back to work as I was totally bored so started up my boutique mortgage brokerage.
If you want to shoot me an email I can send you an Ebook I wrote earlier in the year on SMSF’s.
I am in Canada on holiday but still have the PDF copy on my tablet so no problems.
You certainly don’t need 250k plus although with someone like CBA they may insist on this.
They certainly are not a lender I use in the SMSF borrowing sphere.Without some further hard data in your current income it is difficult to advise you much further in relation to borrowing capacity etc but safe to say it can be done. Lending location might be an issue all depends on the suburb / post code you intend to purchase in.
Sure we can find a way around it.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Soloman
Yes on holiday in Jasper, Canada,
Only have to breath on the IPad in the Mountain air and you end up posting a dozen times.That and of course I am trying to get my posts up lol.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Pleasure Miss Jay.
Nice part of the world Newcastle, my wife was born and bred in Merewether.
Regards
Yours in Finance
Richard Taylor | Australia's leading private lender
The second question is why would you pay cash for the property when you gear and depending on the amount concerned buy a couple of properties within the SMSF.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Sundance don’t worry CBA have told us they have a fully transactional offset coming soon. Trouble is they told us that 5 years ago.
No issue with what you are doing but boys it is complicated and old fashioned with CBA.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes Jamie like every Broker now who they are but you wouldn’t expect him to set them out in a public forum.
Like a magician showing you how he performs a card trick.
Safe to say they are big major lenders with a leaning towards investors.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
