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Personally I would be looking to set up a flexible investment line of credit now over your existing securities and then as Terry has mentioned you would be able to get upto 80% lvr with a 1 Day ABN.
Couple of things to bear in mind.
1) Dont name your Company / Trust "XYZ Property Renovators Pty Ltd" or " The Smith Property Developer Trust" or have any mention of the word property in it as lenders just love to decline loans for clients trying to get residential long term finance for really what is short term development.
2) If you havent already done so register your ABN now as the longer you hold it the easier and more options you have for financing.
Richard Taylor | Australia's leading private lender
All depends on the lvr and the available equity you have in other properties.
Richard Taylor | Australia's leading private lender
Hi Newby
Sorry wasnt having a go at you at all had just answered the same question about a dozen times so thought it was easier for you read some past comments.
Income is important but deposit and equity are equally so.
On the income side you will also receive rent when you purchase an investment property so this helps increase your borrowing capacity.
Loans are assessed these days with a combination of credit scoring and then DSR or income suplus testing.
There are many ways to get started with a deposit and the rest is just a matter of structuring correctly and maximising your equity as you go along.
Richard Taylor | Australia's leading private lender
Hi Rae
I think the crux of your question is can you finance the deal within your Trust without evidence of Tax returns and P & L Accounts.
Simple answer is still YES subject to a few conditions.
Some lenders / mortgage insurers require evidence of your last 2 Business Activity Statements and 6 months Bank trading statements others require merely a self declaration of income.
Certainly can be funded with 20% deposit plus costs.
Richard Taylor | Australia's leading private lender
Hi newby
Wow Steve new book must have been popular this Xmas as this has been the most asked question on the forum over the last 8 weeks.
Simple answer is NO forming a new Trust does not increase your serviceability one bit.
Do a search on the subject and you will see the various comments.
Richard Taylor | Australia's leading private lender
Certain lenders i agree Wealth.
See my comment the previous day about RAMS big brother.
Richard Taylor | Australia's leading private lender
Rosemary might want to do seach on this topic as it was discussed some months ago.
Richard Taylor | Australia's leading private lender
One in the same YI now.
Richard Taylor | Australia's leading private lender
Remember the interest on the new loan will not be Tax deductible in the main (with the exception of anything you can claim for running your own business from part of the house and then you may not want to) so the interest on the entire loan will need to come from after tax dollars.
Have you crunched the numbers to see whether it is viable to sell your Tassie property into Trust and borrowing 100% of the current value and using the raised funds as deposit on your new PPOR.
This would convert a lot of the interest from non deductible to deductible. Maybe a bit of stamp duty and consideration of Land Tax but could work very well for you given the potential purchase price.
Richard Taylor | Australia's leading private lender
Just remember you need to make sure you have funds put aside to cover the GCT when it becomes payable.
Richard Taylor | Australia's leading private lender
I dont think you can switch to IO with ING during a fixed rate period.
Richard Taylor | Australia's leading private lender
Used to know one of their guys called Peter Ludke who was a great fellow.
Not sure if he is still there.
Richard Taylor | Australia's leading private lender
I cant see an issue with Frankston and wonder why QBE said NO.
Richard Taylor | Australia's leading private lender
Financed many fairly new homes there for clients and many of them less than 10 years old.
Actually got one in Della Ricca Place only this week.
Richard Taylor | Australia's leading private lender
Be suprised how many older houses have had internal fixtures and fittings upgraded which help with the Capital Allowance claim.
Richard Taylor | Australia's leading private lender
Brad
1. What responsibilities do I have, if any, in terms of disclosure to MY lender when providing vendor finance to a third party?
This day and age if you disclose it then no lender will consider the deal. We have done 101 of these ourselves and all were disclosed but the lender was aware of what we were doing. I think if you are starting out now you would only be able to do it as a investment property.
2. If the wrap virtually constitutes a sale contract for a premium price, can I access that increase in equity?
Regretfully not. Your purchaser has the right to register a caveat against the property to stop you doing this.
Lenders will only lend against valuation or purchase price whichever is the lowerRichard Taylor | Australia's leading private lender
You dont have to buy brand new to be able to claim both Depreciation and Capital Allowances.
Anything post 87 will be good however obviously the newer the property the more left to claim.
Something 2nd hand within the last 10 years would probably be better value depending on where you are looking at.
Richard Taylor | Australia's leading private lender
A written valuation or 2 letters from local estate agents giving their market opinion should be sufficient.
We have done hundres of these for clients and never had an issue when using an agents letter.
The Conveyancer will do the Transfer up for you on this figure and your new loan can be this plus Stamp Duty and any other costs.
As cjr mentioned there maybe some CGT to consider.
Richard Taylor | Australia's leading private lender
As i put on Sommersoft in answer to the same question Bank West, Suncorp, Adelaide Bank to name a couple.
In saying Gemworth are harder to deal with at the moment.
You would be better of with a lender that self insures.
Dependant on where the property is i can think of one or two.
Richard Taylor | Australia's leading private lender
Darren
Hate to say even if he is a Private lender in the UK he needs to hold a credit license under FSA.
Richard Taylor | Australia's leading private lender
