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Richard Taylor
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March 25, 2010 - 2:54 am
Gary as GOM has mentioned a true 100% offset account and loan redraw (which is what PMG is offering are not the same from a potential Tax perspective.
I agree that many of the 2nd tier lenders can be extremely competitive however with the companies who have named you are talking 4th tier.
I guess many of us on the forum here remember the likes of Mac Bank (Top tier) Sieza, Rams mark 1 etc etc.
Also bear in mind that most of these loans are mortgage insured irrespective of the lvr. (Doesnt mean you pay the premium)
That might suit you but for most investors they do not want to be limited down the track
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 25, 2010 - 12:58 am
ID H
Yes regretfully whilst the properties may be + cash flow lenders work off a serviceability rate which can be upto 2.25% higher than the actual standard variable rate and this tends to disort the true affordability.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 24, 2010 - 12:00 pm
Serviceability varies from lender these days and there is a massive difference between institutions.
Some lenders are increasing their serviceability rates although 2 lenders have reduced them to allow the client to borrow more.
Finding a lender fund 3 units on the same Title may not be that easy though especially if you are close to max serviceability.
Where there is a will there is always a way.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 24, 2010 - 10:57 am
When you say you can pay out the loan at any time does this mean you have the cash to do so or there are no exit penalties.
There is a big difference.
If it is the later i would query how you intend to finance the construction as i think you may have a wee problem here.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 24, 2010 - 10:53 am
For people selling and offer VF.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 24, 2010 - 10:50 am
Finance markets in the US are starting to open up again and we closed on 2 deals last week for clients albeit at a 60% lvr.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 24, 2010 - 10:49 am
Jobs over a $1000 will require a Licensed Tradesman In Qld so your tenant or the neighbour may not be the best placed to assist especially if you want to avoid the weight of the QBSA.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 24, 2010 - 10:43 am
mpjt
In the words of Laurel & Hardy "seems like a good old mess you got yourself into".
No regretfully not you cannot claim the interest on a LOC as the "purpose" is what defines the deductability and not the security.
The way you should have done it from day 1 was to have taken out a interest only loan with 100% offset account and then of course you could have claimed the interest on the original loan balance when the property becomes an IP.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 24, 2010 - 10:40 am
What rate did NAB quote you on the Line of Credit.
Must admit i think you could do better than Bank SA although i am not the biggest fan of the Dragon at the moment
Richard Taylor | Australia's leading private lender
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March 23, 2010 - 9:21 pm
YI has beaten me to the punch but a clean Interest only loan with 100% offset account would certainly be the way to go.
Direct all of your income, rent etc into the offset account and then have the monthly interest swept from the same account.
When you buy your new home in Qld split the loan so you borrow 80% of the purchase price on the security of the new property and the balance of the 20% can be secured against the existing IP. Might have to switch the offset account to the secondary split loan to make sure the right loan is having the interest offset against it especially if the new home is for owner occupation.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 22, 2010 - 11:40 am
Ring the local Council and get the extension approved simple as that.
If the work was done illegally then it is likely to be picked up on either a Building Inspection or an Council Seach carried out by the Buyers Solicitor and either way you may find yourself in more trouble if you let them notify the Council rather than you.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 22, 2010 - 11:37 am
No GST on the purchase but be careful if you renovate the property, strata the block and the look to onsell this is where you could trigger GST.
Richard Taylor | Australia's leading private lender
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March 22, 2010 - 7:39 am
No same here but 1 lender never actually went away lol
Richard Taylor | Australia's leading private lender
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March 22, 2010 - 5:13 am
Yes been quiet a few around doing 95% NGS for a while.
Richard Taylor | Australia's leading private lender
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March 20, 2010 - 1:38 am
Arvind if you place these funds in an 100% offset account then you wont have an issue.
Richard Taylor | Australia's leading private lender
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March 19, 2010 - 5:26 am
Veroniqui
Oh yes indeed.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 19, 2010 - 5:24 am
As i say i am only aware of 3 lenders who will consider this at the mo and their policy is extremely tough.
Richard Taylor | Australia's leading private lender
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March 19, 2010 - 2:06 am
Oh i think we can all figure out who it is if it is in Qld.
Richard Taylor | Australia's leading private lender
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March 19, 2010 - 12:45 am
Hi Michael
How many lenders do you know of that are still lending to PIT's.
I can think of 3 and their lending policy is horrid.
Richard Taylor | Australia's leading private lender
Richard Taylor
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March 19, 2010 - 12:44 am
Hi hotdog
Hate to say it doesnt work like that my friend.
Redrawn funds wont be Tax deductible.
Might be a couple of things you could do if the property is jointly owned.
Richard Taylor | Australia's leading private lender