Forum Replies Created
Hi lalor
Firstly welcome to the forum and I hope you enjoy your time with us.
My question is can I withdraw funds from a LOC structure on the IP loans and place some/all of this cash into my PPOR loan to reduce my non tax deductable interest? does this require a certian structure/strategy so as to comply with the tax department?
Regretfully not as it is the purpose of the funds that determines the deductability of the interest. In this case the actual purpose would be to pay down a non deductible loan so therefore fails the "purpose test".
Personally would try and gear each loan to the maximum secured solely against the individual property itself (Whether you go to 90% and pay LMI is a personal decision and will depend on your overall position) then set up the investment LOC on your PPOR to draw for each new IP.
Debt cycling over the years to ensure that eventually the full purchase price plus acqusition costs of each IP is secured against that IP only.
Your Broker should be able to help you with a full finance makeover (Sounds like a gardening show).
Richard Taylor | Australia's leading private lender
Hi j900
Couple of points.
1) The Trust Deed will need to be formed and dated prior to the date of the purchase contract so it needs to be established prior to signing.
2) Signing as "And or Nominees" can attract double Stamp Duty in certain States so should be avoid.
3) Your financier will require the Trust Deed up front to assess the suitability for lending so strongly recommend you give it to your Broker as early as possible.Remember the loan will be in the name of you as Trustees on behalf of the Trust so will need the name for the loan application.
Richard Taylor | Australia's leading private lender
Yes Paul beat me to it.
Thankfully having never used GE to do a loan i can only imagine what the DEF will be be but given that there are a couple of loan products out there at circa 6.5% you will be saving yourself 1.5% per annum straight off the bat.
Certainly do the exercise as lenders such as this need to be taught a lesson.
Richard Taylor | Australia's leading private lender
Yes in sunny Qld Stamp Duty is payable 30 days after you go unconditional subject to this being paid prior to Settlement
Richard Taylor | Australia's leading private lender
Wasnt thinking so much of this type of deal more the out of the box deal.
Richard Taylor | Australia's leading private lender
Sounds like we should be referring all our deals down to Banker at CBA and charging a fee for the deal.
Richard Taylor | Australia's leading private lender
Sorry cant access suburb profile.
if you want an individual report please email me as i dont have time to check old posts.
Richard Taylor | Australia's leading private lender
If you wish to email the property address i can run you off a Residex report and email it back to you for nothing.
Richard Taylor | Australia's leading private lender
Same old story as Banker said not much time left.
You have to get your current lender to redo the loan and accompanying documentation to reflect a 1 Year interest in advance loan.
It is not a matter of just drawing down from your LOC and paying 12 months upfront on a standard loan.
Richard Taylor | Australia's leading private lender
Yes they would certainly require sight of the Contract and would be no Privacy Issue as you are the Seller.
They would also require to see that a 10% deposit has been paid if they have requested pre-sales.
In saying all of this i have never heard of pre-sales on a 3 unit block development these are done as resi deals from the start with many lenders.
Richard Taylor | Australia's leading private lender
Richteddy
Also remember that LMI is a Loan Cost and therefore a deductible expense if the funds were used for investment.
LMI is deductible over 5 years or the term of the loan whichever is shorter (being adjusted for the number of days from settlement to June 30 in Year 1).
Normal Max is $1.5M cover per Company although QBE PMI will go higher if the deal is very strong.
Richard Taylor | Australia's leading private lender
No jacqui that is not the case servicing with most lenders is not better on an IO loan as most still sensitise the rate and calculate serviceability on a p & I basis. Odd exception of course.
Yes you can reduce the principal balance with most IO loans as long as the loan is not on a fixed rate whereby there maybe some restrictions.
Richard Taylor | Australia's leading private lender
lol very true Terry or will your Bank tell you the truth.
Richard Taylor | Australia's leading private lender
I think if you like cross collateralising your securities to the hilt and can convince yourself that St George is the best lender going around using a global line of credit product then maybe Destiny is for you until you run out of borrowiing capacity or the structure gets too hard for the person at the franchise and then they drop you like a stone.
If you want someone with experience in a variety of investor situations and good independant advice then dont use Destiny.
Richard Taylor | Australia's leading private lender
Why they are merely a franchise and you get as good a service and advice as the person who works for or who owns the franchise.
In many cases these Broker have nil or next to nil in the way of experience and hence have to join and organisation such as mentioned merely to forge relationships and to try and get some business from the master franchise marketing.
Richard Taylor | Australia's leading private lender
Hi Jacqi
Yes subject to a clients equity position an 80% standalone Interest only secured against the investment property and the balance from either a LOC or interest only loan secured against the PPOR or other property.
Richard Taylor | Australia's leading private lender
Jacqui do a previous search on Destiny and i think you will find what others have to say about the organisation.
Richard Taylor | Australia's leading private lender
There are a couple of lenders that still do lodoc for PAYG and it is aimed at clients with unusual or short term and irregular income.
Certainly dont declare an income that is incorrect as this is clearly fraud however using a lender that merely asks you to declare your income and does require evidence of that income makes sense.
Strange that you have to find the right manager of the CBA to get the deal done as surely if lending to an applicant with 1 months casual employment is Bank policy you should be ok anywhere you go.
Richard Taylor | Australia's leading private lender
Hate to say 1 month casual employment even if it is a line of work you have been in previously is going to difficult.
More chance of a lodoc style loan if you held an ABN.
Richard Taylor | Australia's leading private lender
Yes and who indirectly owns Wizard now ? er ………………………………..
Richard Taylor | Australia's leading private lender
