Forum Replies Created
GOM has beaten me to it but have to ask why is interest rate so important.
The lowest rate today will certainly not be the lowest rate tomorrow and definately is not the sole criteria for buying a house or investment property. There are many other features and facilities you should be looking for.
Richard Taylor | Australia's leading private lender
My point exactly Terry.
Dont know a lender who will knowingly accept a 5% VF deposit these days.
Richard Taylor | Australia's leading private lender
Sherri
Where is the block of units located ?
Richard Taylor | Australia's leading private lender
Hi Jason
It all depends on the State and the regulation within that State.
For example in Qld up until recently you need 1st mortgagee consent to register a 2nd mortgage but those days have now gone and no consent is required.No other way as 2nd mortgagee is going to want some security.
I assume you cant borrow it from your current lender ?
Richard Taylor | Australia's leading private lender
Maybe heis not with us anymore.
Some of these guys come and go quicker than it takes to make a cup of tea.
Richard Taylor | Australia's leading private lender
Hi barry
Welcome aboard and i hope you enjoy your time with us.
Richard Taylor | Australia's leading private lender
They can but will they is the question.
NAB thru their 4 star brokers will but normally want P & I over 90% lvr
Rock & Bank W will but try and get a deal approved.Westpac insist you have other accounts or credit card with them and then they will look at.
I think you need max patience to deal with Suncorp.
Richard Taylor | Australia's leading private lender
Heh CJ
From the figures you have given i think you are almost there now.
Richard Taylor | Australia's leading private lender
Emerald mum,
Have you looked at selling your share of the current PPOR property to your husband ?
He is the one on the higher Tax rate and would be able to claim your share if he bought you out under the "natural love and affection" clause in Qld.
Richard Taylor | Australia's leading private lender
Yes exactly as Terry mentioned 3 free valuations a year under breakfree.
If it client does not proceed the Bank wear the cost.
Under Homeside it is the same for 4 star Brokers.
Richard Taylor | Australia's leading private lender
There is a big difference.
What's the difference between using an offset account & a LOC?
LOC are normally charged at a slightly higher rate albeit marginal but the biggest difference is the preservation of the interest deductibility. If you utilise an LOC everytime you redraw funds this is looked by the ATO as a new loan. If the redrawn funds are not for investment purposes then the interest could not be claimed. With an offset account the net interest effect is exactly the same the difference being if you ever decided to move out and rent the property you would merely uncouple the offset account and the interest on the entire debt becomes deductible.
Flexibility is key as what starts off as your PPOR may not be forever.
Richard Taylor | Australia's leading private lender
No agreed just couldnt name the last time i ever did one.
Guess if you came up on the Corporate Credit Search and you hadnt ever provided a PG for the Company loan then no reason to disclose it as you wouldn't be personally responsible.
Done it with some Unit Trust Commercial lending but not with a Pty Ltd.
Richard Taylor | Australia's leading private lender
I think yours does under the Statement of Position question.
Richard Taylor | Australia's leading private lender
CJ
Assuming you wanted to utilise the entire $40K you would pay down $40K from your PPOR mortgage and then look to take a LOC back upto 90% of the current market valuation.
Of course if 80% is sufficient and it means avoiding LMI then you would reduce the loanaccordingly.
Once you had the valuation back you would have an idea as to the available Line of Credit and could see what LVR you would need on your new IP.
Richard Taylor | Australia's leading private lender
YI i agree it is the responsibility of the banker to do the proper checks and ask the right questions.
However it is also the responsibility of the applicant to answer the application form truthfully and correctly.
As Terry and i discussed last week we couldnt find a lender who didnt ask the question "Do you guarantee any other loans in the capacity as a Director / Trustee".
Richard Taylor | Australia's leading private lender
A change to IO with Anz will mean a new application and may incur additional or new LMI costs depdning on the current market value.
One of the pluses with Anz is that your Mortgage Broker can order the valuation for you upfront to see how viable it is prior to submitting the deal to the Bank.
Richard Taylor | Australia's leading private lender
Hi Jacko
Welcome to the forum and i hope you enjoy your time with us.
Firstly why are you looking to pay down your mortgage is it to obtain equity for investing ?
If so then certainly I would not use a LOC for you initial loan but look at either an Interest only or P & I loan with 100% offset account. By all means a investment LOC can sit behind this to be used to fund IP deposits.
Now with regards to whether you should buy land and construct upon it you should bear in mind the frame between land acqusition and completion of the building when you will either receive some rent or equity by way of capital growth.
Secondly you have to decide what your long term strategy is to be. Are you wanting quick capital or long term income.
Capital Gains Tax would be payable on such a quick turn around and this would erode away your capital gain.
It is certainly horses for course but my personal option is to build capital and income for the long term therefore prefer to hold rather than sell.
Structuring your loans correctly will enable you to buy consistantly and not be at the beck and call of your lender.
Try and avoid cross collateralising the securities and life will be a lot easier and smoother.Richard Taylor | Australia's leading private lender
Errrrr Nah actually erodes your borrowing capacity over time.
In saying this certainly has a place as is important entity structure for buying properties.
Richard Taylor | Australia's leading private lender
Hi grunter
Cant recommend anyone on the Sunshine Coast but can on the GC.
At the end of the day i guess most business can be done over the phone and email.
Half of my clients are inter or intra state and most loan applications are lodged electronically.
Anyway his details are:
Steve Hodgkinson and he is a partner at the Gold Business Group down at Southport.
http://www.gold-group.com.au/Phone: 07- 5532 2855
Been my Accountant for 15 years and acts for literally dozens of forum members here.
Tell him sent you and I am sure he will look after you.
Richard Taylor | Australia's leading private lender
No the interest will be deductible however only on the $70K amount.
What you should have done was take an interest only loan with 100% offset account and then interest on the full $290K would have been deductible and you would have still had the $220K in a savings account with oncall access.
Richard Taylor | Australia's leading private lender
