Forum Replies Created
Yes Anz do allow Brokers to order valuations prior to submitting the deal.
Richard Taylor | Australia's leading private lender
Whereabouts in Everton Park?
$350K is about right for a decent 2 bedroom although 75 Sq M isnt that big.
Richard Taylor | Australia's leading private lender
PC Sorry old mate but there are a few inaccuracies in your last post:
1) All IP Properties are in one of our names.
Simplifies Loans and Tax Time. Not at all as it is the Title which dictates the deductibility. Title could be in 1 name and loan in Joint or 2nd applicant as Guarantor.
Person that earns the most has it in their name.
As an IP. If you ever sold it, it would incur CGT. CGT is payable if the property is sold or there is a change in the Title.
In the event we decided to sell an IP. We could move the property into the others name This would trigger CGT.
Spouse to Spouse Transfer of IP is Stamp Duty exempt (In VIC anyway) This is incorrect. PPOR only.
Therein we could transfer it, live in it for a few months and sell as PPOR to avoid CGT. This is incorrect..2) We put ALL extra money into the house we live in, and only leave enough money in savings to cover the Mortgage payments and general living. It saves us a heap in non tax deductible interest. in 2008 we had our money in savings and term deposits. The trouble is that the interest gained acts as income, so you end up paying more tax. Putting all money into mortgage is dollar wise more advantageous. You are better off to take out an interest only loan with 100% offset account attached to it and deposit all of your funds into this account rather than pay down the debt unless you intend the PPOR to be your residence for some time to come or never intend to rent the property out.
Richard Taylor | Australia's leading private lender
And Hans you dont think the non bank lenders / mortgage managers wont be increasing their rates ?
Richard Taylor | Australia's leading private lender
Nigel i think you are right although regretfully Brokers holding Authorised Representative Status will no longer be able to use the US lenders for their Australian Clients.
Richard Taylor | Australia's leading private lender
Hi David
Firstly welcome to the forum and I hope you enjoy your time with us.
Have to say initially you dont get much in Brissie these days for $400K as prices seem to be forever increasing howevver
(Wonderful when you already own property in SE Q.) that is not say you cant stop looking.Lenders look at a combination of factors in assessing the risk with equity (obviously not a problem in your case) and serviceability being just a couple. Structuring the loan is also certainly important and a good investment orientated mortgage broker can assist you here.
Now as far as suburbs are concerned i guess it all depends on what you are after. I personally live in the Western Suburbs and have nearly of my IP's within 15 kms from where i live (odd exception).
With regards to the negative cash flow remember you add to your Taxable income the Gross rents you receive and then reduce your income by all of the expenses (both cash and non cash expenses). You then pay Tax on the adjusted balance.
As long as you are PAYG you can have your Tax coding adjusted so that you receive the additional Tax each pay period rather than having to wait until Year End when you lodge your Tax Return. Also remember when you purchase an IP depending on the age of the property you maybe able to claim non Tax expenses such as Depreciation and Capital Allowances.
A Quantity Surveyor can certainly give you a report on each property and is well worth the charge.
Feel free to drop me a line of you want a Residex report ran off for any particular property.
Richard Taylor | Australia's leading private lender
The introduction of the National Consumer Credit Protection laws which came into effect for most on the 1st July 2010 have already had the affect of reducing the amount of funds borrowers can borrow thru a Bank or Broker.
All we will need is further tightening of lenders / mortgage insurers own policy and that will hurt even further.
Richard Taylor | Australia's leading private lender
And Alan (http://www.propertunity.com.au) is as good as they get by way of a Buyer Agent.
Richard Taylor | Australia's leading private lender
I cannot believe anyone is advocating doing the deal and not discloing the wrap to the financier as this is clearly a case of fraud.
In all of the 181 deals we have done over the last 13 years we have disclosed the fact that the property is being onsold.
Initially this had to go to a National Credit Level in Melbourne of one of the Big 4 but with the support of the Qld State Manager they agreed.Times have changed a little now and unless you are running it as a business you will certainly struggle to find a lender accept the deal but there are still lenders who do.
The fact that the wrappee registers a caveat against the property will not mean that their interest is protected in any form or shape as the registered mortgagee will still have first right of call. All this does is prevent the wrapper from refinancing, increasing his loan or indeed selling the property without the wrappees consent. Of course there are many ways around this.
Richard Taylor | Australia's leading private lender
V8ghia
If you make comment about the number of grey hairs when you see the article i wont talk to you again !!!!!!
Richard Taylor | Australia's leading private lender
Oh what a lovely hornets nest we have stiring here.
I am with number 8 and again charge no fees for any the financial planning advice i give my clients.
I do recommend property (as i own one or two of them myself) and only started my mortgage broking business to help others get some real genuine independant free advice.Yes i admit we get paid a commission (in most cases) for the loans we place but honestly it is not that i do it for the money but more to build a business for my children to take over in the next couple of years.
I also pay my Accountant a significant amount each year but find him worth every dollar.
Sometime i get rather frustrated when you see people on this site selling there wares of wealth when really they have no more than the shirt they are wearing.
Like number 8 i retired at 40 living off my property income and if in doubt you can read about it in this months API Magazine.
Richard Taylor | Australia's leading private lender
Earnings are in Singapore Dollars
Richard Taylor | Australia's leading private lender
Just had one approved today for 95% + LMI on an investment loan and the clients certainly didnt Bank with the lender.
Richard Taylor | Australia's leading private lender
And from what i read it is something that a mortgage broker could have done for you for nothing.
Richard Taylor | Australia's leading private lender
Paul agreed we went that route also at First Home Owners Group Pty Ltd.
Not a matter of being safe rather than sorry more a matter of being compliant or being prosecuted.
Richard Taylor | Australia's leading private lender
Paul
What has your Company down with NCCP.
I assume you went the Credit License route rather than ACR.
Richard Taylor | Australia's leading private lender
Answer is Yes.
In saying this remember loan costs are deductible over 5 years or the term of the loan whichever is the shorter so not deductible in 1 go.
They would proportionalised for the loan term but you would be able to claim the balance of the term once the property is available for rent.
Stamp Duty and not related loan costs are added to the Capital Base and offset against future capital gains tax.
Richard Taylor | Australia's leading private lender
Yes in essence the calculation is correct.
Of course gross rent needs to be added to the PAYG income and interest deducted but the figures will be the same.
Richard Taylor | Australia's leading private lender
I am suprised your Broker can find a solution to such an issue.
You Transfer the property into his name and then go as Guarantor for the new loan.
Richard Taylor | Australia's leading private lender
Terry is almost right
Maximum 5 loans under Anz Bank Breakfree but nothing to stop you having more than 1 Breakfree package.
I have several clients including myself with this.Richard Taylor | Australia's leading private lender
