Forum Replies Created
jshooo
Will this purchase be an owner occupied property or investment ?
Richard Taylor | Australia's leading private lender
jshooo
Will this purchase be an owner occupied property or investment ?
Richard Taylor | Australia's leading private lender
Wont be any issue with the 95% lend however the issue could come down the track when you have 3 properties on the single title.
Many a lender has reduced its policy on multiple dwellings over the last couple of weeks.
Richard Taylor | Australia's leading private lender
Call me old fashioned but i must admit i cant see why you would get finance for this deal.
Ok admit i might be a little awkward to put together but if it was straight forward we would all be Mortgage Brokers.
All you need is $711,000 plus sufficient to repay your existing loan or have i missed the thread.
Richard Taylor | Australia's leading private lender
You also have to pay CGT on the apartment if you positively geared it when you sell it.
You have to pay CGT tax on the apartment if u are negatively geared it when u sell it
Richard Taylor | Australia's leading private lender
PGB yes hate to say you will.
In saying this again the Company only takes 24 hours to set up and be registered.
Richard Taylor | Australia's leading private lender
Merely increases the Tax deductions available in the current financial year which can certainly help with Tax planning if you believe the following Financial year your Marginal Tax rate or personal circumstances will have changed and your income effected.
Assume property was owned as Joint Tenants and wife was giving up work for 9 months to stay home with the new born.
If the property was negatively geared she would have next to no income to offset the claimable deductions.
This year of course could be totally different.
Richard Taylor | Australia's leading private lender
Hi Kylee
Welcome to the forum and i hope you enjoy your time with us.
Couple of things I would be doing to almost straight away to avoid further issues down the track.
1) You mention that you would like to maybe buy another PPOR down the track and rent out the current property.
If this is the case you certainly dont want to be increasing your loan repayments or paying the rent into the loan.My suggestion would be to switch this loan to an interest only loan with 100% offset account and pay your rent and salary and
every form of income into the offset savings account.This will preserve the Tax status of the interest on the loan as well as minimise the interest being charged.
2) Might be an idea to get the Bank to revalue the property and put a line of credit in place so that you have something to draw down on when you want to buy again.
Issue in the current climate is that lenders can change policy on the run so often best to take what you can even when you dont need it as when you do it may not be available.
3) Presume you have arrange to have a Quantity Surveyor undertake a Depreciation report on the property in readiness.
Dont forget your 221DAny questions ask away.
Hope this makes
Richard Taylor | Australia's leading private lender
Hi Janine
Will come back with some answer to the Vendor finance questions later in the day but there are other lenders who will approve the loan upto 95% lvr even though the purchase may have NO evidence of savings.
Might be an idea to go that route initially and that use the VF option as a fall back position.
Richard Taylor | Australia's leading private lender
Hi PGB no regetfully you cannot.
A Trust would normally only take 24 hours to be set up.
Richard Taylor | Australia's leading private lender
I think you will find that the Qld Premier stamped it on the head yesterday.
Richard Taylor | Australia's leading private lender
As crj has mentioned in the good old days (pre 2008) many lenders did not require documentary evidence of a when a guarantee was given however this is certainly not the case now.
Richard Taylor | Australia's leading private lender
Hi Dylan
Understand you might have already answered your own question but all the new lender will do is payout the remaining loan amount outstanding and as advised by the outgoing lender.
Of course if you Mortgage Broker has added a new line of credit to the new application then this will be in place on settlement.
Just need to be a wee bit careful when utilising a redraw especially if you are looking to claim a Tax deduction on the interest.
Richard Taylor | Australia's leading private lender
Hi Shaun
Welcome to the forum mate and I hope you enjoy your time with us.
Your question we get asked by clients all the time.
Couple of points worth mentioning.
1) On the basis your income is sufficient to support a higher loan you would be able to borrowing upto 95% of the purchase price but would be required to evidence your income through Taxation returns.
2) If Tax returns are not available then a Limited document option maybe the way to go whereby the normal maximum loan would be 80% of the purchase price but you are normally required to show satisfacory savings of the deposit.
85% is also an option but the interest rates start to rise.
I can only assume the lvr of 60% you have been given is that a lodoc amount without a requirement for mortgage insurance.
Let me know if this is of help to you.
Richard Taylor | Australia's leading private lender
Are you saying that you simply need to disclose the vendor loan to the bank and they count it as a personal loan (if it is not secured against the property), or they count it as a second mortgage if they the loan is secured with the property YES.
Most wont like as there is no saved deposit even if LMI is not involved.
I haven't yet applied for any vendor finance loans.
Sorry your opening post stated you just had agreed $5000 paid to the Vendor over 3 years.
Richard Taylor | Australia's leading private lender
Yeh but Terry you are talking the good old days of around Oct 2009 that was donkeys days ago.
Richard Taylor | Australia's leading private lender
Just to clarify Ryans last comment.
Banks and Mortgage Insurers DO lend and provide cover on towns of under 10,000 population where the lvr is 80% +.
Misconception put around that is not true.
In certain post coded areas the mortgage insurers may wish to limit their exposure but population alone is not the sole criteria.
Richard Taylor | Australia's leading private lender
Yes 90% or 95% should still be available although i was reading earlier that the mortgage QBE is starting to get a little nervous these days in a lot of the post codes areas.
Richard Taylor | Australia's leading private lender
My dentist in the UK was called Ryan and i must admit he wasnt a very nice fella.
Think pain was his middle name.
Richard Taylor | Australia's leading private lender
Not unless you have equity in another residential security or similar.
I will assume the Vendor doesnt wish to finance it to you ?
Richard Taylor | Australia's leading private lender
