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Viewing 20 posts - 5,121 through 5,140 (of 11,968 total)
  • Hate to say both structures are flawed:

    1) Your should take out an interest only or P & I loan on your own home with a 100% offset account against it.
    Pay the surplus funds into the offset account and not the loan itself.

    2) Take out an interest only loan secured against your investment loan.

    Richard Taylor | Australia's leading private lender

    d.one

    Regretfully buying 1 home in your name and the 2nd in your partners name will not work as your partner will not qualify for the FHOG.

    Richard Taylor | Australia's leading private lender

    Hi Kat

    Must admit i havent read Steve's lates book but i can see why he would say that equity is not the way to go as a deposit for the first IP. Personally i would never recommend to a client that you use Cash especially where you have a non deductible home loan debt.

    In and around Brisbane you are very unlikely to find anything that is cash flow positive but depends where you are wanting to look.

    Financed a deal in Moranbah for a client this week which was $460k and rented at $920 / week for the next 2 years.

    In saying this of course with $50K equity (and i wonder if you mean $50K equity or $50K useable equity as there is a big difference) you will need most of that to get put down a deposit cover your acqusition costs and LMI.

    If you cant find something in Brisbane have a look further a field as there are many gems to be had.

    Richard Taylor | Australia's leading private lender

    Daniel

    Regretfully at the mo with Wesuck there isnt one as they clearly dont want new business and have priced themselves well out of the market.

    Depending on if it is a one off deal or not the usual Pro package comes with bells and whistles but something like the Rocket Repay might be the way to go. Dont like application fee though.

    If it doesnt have to be Wesuck then there are better priced options.

    Richard Taylor | Australia's leading private lender

    Must admit never found Trusts slowed up my financing for properties and i have my entire portfolio in 5 separate Trusts with the exception of my PPOR which is in my wife's name.

    I am with Terry if you have gone the PIT route good luck on both finding a lender in the future and also surviving an audit..

    Richard Taylor | Australia's leading private lender

    Hi Starbud

    Dont want to put a dampner on the deal (especially being my 7000 post and all that) but even if you lived in the property and claimed the FHOG and Stamp Duty Concession (assuming you were both elligible to receive these) you would need more than $20K deposit.

    On a $300K house even if you managed to get a 5% deposit that is $15,000 and from this many lenders will deduct the mortgage insurance premium which will be a lot more than $5000.

    Whilst some lenders advertise they will do 95% + LMI in reality unless you have some form of previous relationship it is unlikely the loan would be approved as at that level of lending most loans are credit scored so personal contact with the branch teller means very little.

    Yes you could claim the FHOG the second time round when you purchase your own PPOR however in saying this the Investment Stamp Duty in Qld is fairly hefty and you wouldnt then get the concessionary rate when you purchased your own place.

    All in all i would either save a little more or decide to claim the first home as your PPOR, move in and satisfy the relevant conditions and then look to rent the place out and buy another PPOR when you have more deposit or equity.

    Richard Taylor | Australia's leading private lender

    Hi Ernie

    Firstly welcome to the forum and I hope you enjoy your time with us.

    You have to ask yourself how did they pick me to telephone in the first place and when you realise they probably rang everyone on the phone page that day you realise you are no one special.

    You have to understand these companies prey on the vunerability of potential investors who get caught up in the hype of a couple of investment sessions and are taken in by the sales pitch. All of the properties these Marketing organisation sell are new and this is simply so you have nothing to compare the purchase price to and dont realise that you are probably paying well over the true purchase price with the extra going to the marketing firm by way of a commission.

    They will tell you the reason why the properties they sell are new is because of the added Tax benefits however if you can reduce the purchase by by through an Agent you can save yourself 000's of $$$.

    Also being new you will have to wait until the property is completed before you see anything in the way of rent however in the meantime you have to fund the interest repayments on the construction loan in stages as the building progresses.

    If it is your first property personally i would not rush in and sign up but look around the area and see what the average second hand (anything over 12 months) property is being sold for preferably through a Real Estate Agent and gauge the values. Also see what potential rent you can get for such a property as often you realise that the promised rent the Marketing Firm assures you is way off the mark when you talk to a local property manager.

    You may even find a property that is already tenanted and this means you can enjoy the rent from day 1 rather than waiting for the building to have been finished.

    Whilst i have nothing against building i do have an issue with these Marketing Firms as everything is wrapped up into a package and they try and provide you with everything from a Solicitor to a Mortgage Broker to someone who does your Depreciation report for you.

    Everything can be done at a cost and in these cases it is you that is paying for everything normally thru the nose.

    Start small, read and learn ask questions on the forum and learn from other investors.

    Richard Taylor | Australia's leading private lender

    More information would be need to advise you further but many lenders out there at the mo doing Nil application, val or legal costs and no ongoing monthly or annual fees.

    Interest rates very competitive.

    Drop me a note if you need anything else.

    Richard Taylor | Australia's leading private lender

    Why not look at refinancing your IP and switching to a lender with no fees or charges and taking the LOC out on here.

    Last thing you want to do if you can help it is take out the loan on your PPOR.

    Just most people starting out dont have a choice and to buy their first IP use the equity in the IP.

    There are some good investor loans out there at the moment with no application fees etc.
    Come with fairly basic features but you dont need that on an IP especially when you have an existing non deductible PPOR.

    Richard Taylor | Australia's leading private lender

    GOM

    You would suprised how many client from the forum all over OZ i have referred to him who actually fly up once a year to sit down and work thru their portfolio.

    Given that it could be Tax deductible i guess coming to the Gold Coast is not a bad place to come to after all.

    Richard Taylor | Australia's leading private lender

    Yes both from mortgage broking, financial planning and 14 years of doing my own developments.

    Richard Taylor | Australia's leading private lender

    Brother

    Welcome to the forum and I hope you enjoy your time with us.

    I assure you there is plenty of money out there for investment just all boils down to the level of risk v return.

    Professsional developers are paying anywhere upto 20% for private funds to complete their projects and they do it for a living so you would need to offering something showing either an excellent return or with reduced risk to attract the right investor.

    Then of course you come to funding the seed debt.

    Depending on the size of the project most lenders are going to want a combination of experience, pre-sales and good asset base.

    If you can combine all 3 then trust me there are plenty of investors out there.

    I have literally dozens of investors on my books who we put into projects either we do ourselves or into other projects that show good returns and have experienced developers.

    Dont need to tell you being a CPA but make sure you comply with the Managed Investment Act when you prepare your prospectus or Memo of Understanding and I am sure that if the project is right their will be investors there to back it.

    Richard Taylor | Australia's leading private lender

    Hi Ben

    Having been in the industry for over 20 years and a substantial property portfolio myself i find that working with clients is not a matter of just trying to get them the cheapest interest as no 1 lender will be able to guarantee this.

    Most clients are more interested in structuring their loans to ensure their securities are not cross collateralised and that they are not limited by 1 lender as to whether they can keep moving forward with their portfolio.

    Currently brokers process around 35% of the total loans in this Country but this figure increases every month and would not suprise me if we follow the UK model where over 65% of loans are processed through Brokers.

    Remember walking into the Bank itself and putting forward your details will do you absolutely no good at all as most Branch managers have NO credit discretion these days and everything is forwarded to a central office Credit Dept based in Sydney, Melbourne etc .

    The days of lenders working off 35% Gross income and you providing them with your expenses have been and gone as lenders now combine a combination of Credit scroing, DSR and use a standard Living Allowance scale normally taken from the Henderson Poverty Index or similar.

    Most Brokers can deal with every lender out there so opens up a lot more avenues for a client these days especially given how tight finance can be.

    GOM – Yes Steve has clients all over Australia

    Richard Taylor | Australia's leading private lender

    95% lvr is available for both.

    In saying this you would probably need to have other assets or a PPOR with some equity in it to get a 95% LVR on an IP.

    Richard Taylor | Australia's leading private lender

    Hi Ben

    Sure http://www.gold-group.com.au/

    We are based in Brissie but have clients all over Australia.

    Richard Taylor | Australia's leading private lender

    Dont worry Ben Steve is a great guy and more than knows his stuff.

    Many a forum client here over the last 10 years have been pleased they have had dealings with him.

    Richard Taylor | Australia's leading private lender

    Ben

    Or if you would prefer someone based on the Coast and a forum member try my Accountant

    Steve Hodgkinson – Gold Business Group

    Phone: (07) 5532 2855
    Fax: (07) 5532 4563
    Email: enquiries@gold-group.com.au

    Steve is an expert on property structures and has advised many of my forum clients.

    Tell him i sent you and he will look after you.

    Richard Taylor | Australia's leading private lender

    Yes nothing like being backward about coming forward.

    Sure we expect everyone to rise but CBA announced it 4 minutes after the RBA.

    Richard Taylor | Australia's leading private lender

    Spiro dont worry i have got Jaffa onto it.

    Richard Taylor | Australia's leading private lender

    Or you can drop me an email and I will send you one for anywhere in Australia as i have for forum clients for the last 2 years.

    Richard Taylor | Australia's leading private lender

Viewing 20 posts - 5,121 through 5,140 (of 11,968 total)