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Richard Taylor
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January 25, 2010 - 3:40 am
This question has been asked and answered a dozen times since Xmas.
My serviceability is almost maxed out, it means that I would not get the benefits of having multiple trusts to buy multiple properties (getting this from Steve's new book.
Buying in Trust or Multiple Trust DOES not increase your serviceability.
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 25, 2010 - 3:13 am
The average Bank branch johnny wouldnt have a clue as to who their mortgage insurer was so probably not going to help you there.
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 25, 2010 - 2:13 am
Nope.
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 25, 2010 - 1:35 am
No GOM many business are sold leasehold especially cafe's and sold merely on the figures they generate, goodwill etc etc.
Lenders are great lovers of something that will diminish in value as time goes by.
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 25, 2010 - 1:34 am
Hi Brick
LMI is only an opportunity cost and therefore if prices are likely to rise whilst you have saved the addtional amount to make up 20% deposit i would buying now and incurring the expense.
Remember when you rent the property out the loan costs (including LMI) proportionally will become deductible so will mean less out of your own pocket.
Also might want to think about a 90% loan with LMI and place the balance of your deposit into an offset account to maximise you deductible interest down the track.
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 25, 2010 - 1:30 am
Hi Jo
You can but are you intending to rent or buy another PPOR.
If the later would you not just couple the offset account to the new PPOR loan.
Assume the current PPOR is interest only…
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 25, 2010 - 1:28 am
Paul
Of course the exception is if you purchase a Commercial property in the name of the SMSF and then lease it to your own Company to transact business from.
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 24, 2010 - 10:56 pm
Melbourne just to correct a couple of points:
Thomas Lee is 17 years of age and therefore unable to enter into a contract to purchase a property by law.
Even at 18 he will be restricted by serviceability. It is called the GFC and lenders have just about stopped lending unless you can clearly show you can service the loan.
In England the majority of people do not rent/lease. Coming from the old dart the Country has the highest propertion of owner occupation throughout Europe and with over 67% of home ownership.
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 24, 2010 - 10:50 pm
Hi Paul
You are unable to own a residential property and then rent it back to any related party of the fund so that idea is out.
Your Accountant can give you some idea as to the cost of the SMSF Trust Deed and the process involved but to be honest it is not difficult.
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 24, 2010 - 10:48 pm
One big difference will be the ease of finance.
Still get 95% on a standalone residential investment property (or 100% with additional security) whereas for a Commercial security such as a cafe would be lucky to get 60% if it is freehold and 0% if leasehold.
Even if it is showing suitable figures you wouldnt pay off your IP but put the funds into an offset account linked to your IP.
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 24, 2010 - 4:27 am
Remember Lowry because 1 lender said no doesnt mean you stop right there and give up.
I deal with clients all day long who say our Bank said we couldnt borrow any more and often there is a way around it as long as the loans are set up correctly.
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 24, 2010 - 2:30 am
Yes.
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 24, 2010 - 2:30 am
LVR = Loan to valuation.
DSR = Debt Servicing Ratio.
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 23, 2010 - 1:39 pm
Thomas yes simply you cant have the Title in your name and the loan in your parents.
Nothing to stop however your parents taking out a loan secured against their property and they in turn lend the funds to you.
You take out a loan yourself to secure the balance.
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 23, 2010 - 11:28 am
Wont be able to take out the loan in your parents name yet hold the asset in your name so that is out of the equasion.
If your parents take out a loan for the deposit and then gift this to you (even if you end up paying it back) you maybe able to obtain a loan in your name subject to serviceability.
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 23, 2010 - 11:25 am
Have a client with a property in New Lambton which has performed extremely well over the last few years.
Admitedly it is 4 bedroom and he is getting $360 / week in rent but the Bank valuation we have just had back made exciting reading given what he paid for it.
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 23, 2010 - 7:50 am
How old is the property ?
Have you claimed a proportion of the original loan costs and any mortgage preparation charged when you moved in ?
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 23, 2010 - 7:48 am
No unfortunately no Australian Banking lender will advance monies secured on a property overseas.
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 23, 2010 - 1:16 am
J Hall
You say it wil be negatively geared is that post Capital Allowance, Depreciation and loan set up costs claims.
Be suprised how many clients dont know they can claim all of these non cash deductions on their PPOR if all other qualifying criteria is met.
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 22, 2010 - 6:37 am
kiara
Normally sale price is more than 10% above asking price so this sounds good.
Interest rate isnt that bad.
I have a few ones of my own which we have done at a fixed rate of 7.6% however these were taken out some time ago.
Other than the deposit which i guess is an issue in relation to the timing doesnt sound bad.
Course you know the address and the market value but as long as special conditions allow you to register a caveat could be good.
Richard Taylor | Australia's leading private lender