Forum Replies Created
Hi Manola
Always use equity where you can as it gives you flexibility.
Establish a separate equity loan on your current property and use these funds as deposit on your new property.
Keep the loans separate and not cross collateralised.Place your current savings in an offset account linked to the current PPOR property.
When you move into Property # 2 delink the first offset account and set up a new one linked to this loan.
Get professional assistance to ensure the loans are structured correctly as getting it wrong maybe a expensive mistake in the long run.
Cheers
Yours in Finance
0-40 Properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
Yes in many a case this is correct.
We haven’t seen any great number of cash flow properties in the suburb.
Cheers
Yours in Finance
0-40 Properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
You mention you have it left so i am assuming you have done something else with the balance.
If you purchased a property and the loan was set up correctly i would look at placing the funds in the SMSF offset account.
$18,000 is too little to do anything with it at the moment unless you were thinking about making a non deductible contribution.
Cheers
Yours in Finance
0-40 properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
Hi CGP
We have had a few issues with valuations recently in Caboolture.
We are not putting our clients into the Northside at the moment.
Cheers
Yours in Finance
0-40 properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
David, unless they are NZ based you probably find they won’t hold appropriate licenses to deal with NZ lenders.
Similar to Australia NZ has its own Credit License regeme.
Cheers
Yours in Finance
0-40 Properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
And there was 4
ANZ today announced that it would lift rates for all Australian variable home and residential investment loans to partially offset rising regulatory capital requirements.
The standard variable rate for owner-occupier home loans (Home Loan Index) will increase by 0.18 per cenr to 5.56 per cent – still the lowest Standard Variable Rate of the major Australian banks.
ANZ’s residential investment property loan index will increase by 0.18 per cent to 5.83 per cent
The changes will be effective 20 November.
ANZ CEO Australia Mark Whelan said the decision reflects the significant additional cost of capital banks are now required to hold against home lending.
“Despite these additional costs, we are committed to working hard to keep lending rates as low as possible for customers and we’re pleased to have been able to maintain the lowest standard rate of the major banks for owner occupiers,” Mr Whelan said.
The 18 basis point increase will add $36 per month to the average home loan of $242,000.
Cheers
Yours in Finance
0-40 Properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
Sitemanager rather than look at Ipswich look at the Brisbane – Ipswich corridor.
We are finding some excellent properties for clients in these areas with some excellent drivers.
Cheers
Yours in Finance
0-40 Properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
Just to ensure they are not left out. NAB announce on a Friday. Surprised it is not a long weekend.
NAB – Homeplus variable rate increases by 0.17% p.a.
NAB Broker will be increasing the interest rate on all new and existing variable interest rate home loans by 0.17% p.a., effective Thursday 12 November.
This change responds to the market conditions and regulatory changes that require NAB along with the rest of the industry, to increase the amount of capital applied to residential lending
Cheers
Yours in Finance
0-40 Properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
Hi Taylor
Yes very exciting i must admit.
At the moment we get 1/2 enquiries a week from investors who have equity but maybe not enough to release and then if they can go to 90% and release it the LMI is ridiculous.
That thrown in with the fact of the new home buyer the enquiry level is already high.
Cheers
Yours in Finance
0-40 Properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
I am Licensed planner and Brisbane based property expert but i have to say you will be lucky to find many others meeting your requirements.
Most will want to charge an arm and a leg for their Statement of Advice and will then want to promote a brand new property where they receive a commission or kick back from the developer.
If you intend to source the property yourself I am questioning what sort of advice you need and whether it cannot be catered for under another area of advice.
A Statement of Advice is more than likely going to be a pre-formatted document which assesses your current financial situation in regards to your needs and requirements and then makes suitable recommendations. These of course are not going to be specific when it comes to an actual property as it is unlikely direct property will be permitted by the Licensee.
Feel free to give us a shout if you want any general advice in relation to property.
Cheers
Yours in Finance
0-40 Properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
Sam you would better off in going to 85% where a P/L wont be an issue.
We launch No Deposit Housing Pty Ltd here in Qld in the next few weeks which is Australia’s only true 100% blended loan and has now received credit approval by over 6 major lenders.
Will be available initially for O/O and eventually Investment.
I don’t see the issue with what you want to achieve assuming you understand the higher rate on the P/L.
Cheers
Yours in Finance
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This reply was modified 9 years, 2 months ago by
Richard Taylor.
Richard Taylor | Australia's leading private lender
Hi Coalfinger
Sorry that is incorrect.
By taking out a Margin Loan and not using the funds to purchase more shares will certainly NOT mean the interest is Tax deductible.
It all boils down to the “purpose of the funds”. If the funds are to be used for “investment” the interest will be deductible.
Cheers
Yours in Finance
0-40 Properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
Hi John
Yes very true i have just come back from 4 months in the UK and still own property down in Bournemouth on the South Coast.
Hate to say if you are an expat and are paid in non GBP there is now NO lender who will lend to you even if you are a UK / Irish Passport Holder.
I was over there this time on a combination of business / holiday buying property for some forum clients.
Only way to fund it is thru vendor finance.
Cheers
Yours in Finance
0-40 Properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
Hi Dan
Welcome to the forum and I hope you enjoy your time with us.
Certainly not in a bad position to start your investing career but personally don’t put all of you money down on the first deal.
I would try and put down the minimum (which is probably going to be 10%) and keep the balance of your funds in an offset account so they are accessible to you when you need them.
Start out slowly and keep your powder dry as there are many an organisation who will try and take your money off you when you are starting out. Build up a good team around i.e mortgage broker, solicitor etc and leverage off their advice.
Whilst my partner Jacqui is Melbourne based I am personally not sure of the state of the Victorian market and tend to invest here in Qld where i believe you can get better value for money.
Good luck and don’t forget to ask as that is what we are here for.
Cheers
Yours in Finance
0-40 Properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
Not at all and no reason to look overseas.
Had a non conforming loan approved yesterday for another forum member with adverse credit and have another in today in a SMSF so you are not alone.
Like anything full disclosure goes a long way in getting the deal over the line.
Cheers
Yours in Finance
0-40 Properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
Hi mddedf
Yes with 3 months Casual employment your choices will be limited but that is not to say you can’t keep the loans with the same lender and structure them correctly.
Benny has set out a quick step answer in regards to this.
Lenders love to cross collateralise especially in the current climate so make sure your Broker reads every document to ensure that is set up right from start to finish.
Had a forum client contact me yesterday who had been told that his loans were separate by his Banker.
He went back to the original letter of offer to see that the refinance and equity loan he did was indeed separate however when he purchased his IP the Bank had slipped in both properties as security and he didn’t notice. This has only come to light some years later now he is selling the IP and the Bank have asked for him to make a lump sum payment to his home loan from the net sale proceeds. Not nice…..
Cheers
Yours in Finance
0-40 Properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
Hi Gourav
Having lived in SE Qld for the last 20 years and have been a Buyers Agent for 13 years I would be very wary of investing in Coomera.
Small block (although that in its own is not an issue) and I bet you will find the property is more than likely being sold by a property marketing firm hence it is brand new !!!!.
Coomera has been marketed as the next big thing for over a decade or so and has gone no-where.
Rents have stagnated and the prospects of capital growth are limited.
Personally I can think of a number of areas where you can dip your toe in without having to go that far South.
Cheers
Yours in Finance
0-40 Properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
Hi ZC
Yes most certainly there are many ways to make your application more attractive to a lender in terms of serviceability but it all boils down to loan structure and the right balance.
It sounds to me like you have a good balance of properties so subject to a few details there is no reason why you wouldn’t be able to borrow that your current lender is saying.
I have dozens of forum clients who have multiple property portfolios we have established over time where their initial lender had told them couldn’t afford to borrow again.
Cheers
Yours in Finance
0-40 properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
mddef no i hate to say you have been badly advised.
All of your income & liabilities will be taken into consideration when applying for any loan.
If in doubt get a second opinion.
Cheers
Yours in Finance
0-40 properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
Hi Christine
Firstly hope you are enjoying Oz.
One consideration would be to look at some form of Vendor Finance.
All forms of income including VA will be considered.
Cheers
Yours in Finance
0-40 Properties in a decade. Ask me how.Richard Taylor | Australia's leading private lender
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This reply was modified 9 years, 2 months ago by
