Forum Replies Created
Hi Tracey
Firstly welcome to the forum and glad you came out of the closet so to speak.
Yes your Accountant is correct that there is Annual Land Tax costs to consider however this is only one thing in a much broader arguement.
You need to look at the bigger picture and your goals and aims both in the immediate and long term future.
Asset protection and the ability to pay Trust income to the Company once positive so to cap the Tax rate are other considerations.Certainly there are costs associated with a Corporate Structure but again you would never buy a single property if you were concerned with the costs i.e Stamp Duty, Annual Rates, maintaince and repairs.
Richard Taylor | Australia's leading private lender
Dean had you thought about taking one or two away to someone else.
Not every valuer is the same.
Have a couple of deals on my desk at the mo where one lender has valued the property at purchase price – XYZ so we took the deal to another lender inisting on another valuer and they have come back bang on the purchase price.
As YI said not every valuer is the same and they are not always right.
Thankfully my LVR is extremely low across my portfolio but i would never be afraid to look at moving a property away to another lender if i thought the low valuation from my current lender would hinder me going forward.
Richard Taylor | Australia's leading private lender
Have to check but if it metro ish or large regional then would be fine.
I am the good looking on in the pic lol
Seriously i havent looked at my website for 5 years dont even know what it says these days.
Richard Taylor | Australia's leading private lender
Depending on the amount of discount you intend to offer them (which i assume would be fairly substantial) wouldnt you be better off to get them to lend you sufficient funds and take a 2nd mortgage.
Even if you capitalised a years interest upfront you would have to better off especially if you feel this is a short term problem.
Richard Taylor | Australia's leading private lender
Terry is right about the interest on the Stamp Duty cost but the Stamp Duty itself is a Capital cost and adjusted to the purchase price when selling the property.
Other loan related costs i.e application fees, Solicitor costs for mortgage preparation etc etc are deducted over 5 years or the term of the loan whichever is the lesser.
Richard Taylor | Australia's leading private lender
Certainly would want to have a decent deposit these days as these babies are small and financiers just love em !!!!!
Richard Taylor | Australia's leading private lender
Certainly would want to have a decent deposit these days as these babies are small and financiers just love em !!!!!
Richard Taylor | Australia's leading private lender
Andrew
Of course other option would to take out a shared equity loan and only make repayments on 70% of the purchase price of the PPOR.
If you have 10% deposit (and you do of course) lender would provide interest free on 20% (STC) and take their return by way of 40% of the capital increase.
Just frees up more funds month to month to fund IP and deposits.
Richard Taylor | Australia's leading private lender
Rishi
Give it a month and you can but them a wee bit cheaper.
Richard Taylor | Australia's leading private lender
Hi Jared
Welcome to the forum.
Without being funny your Accountant will have very little idea on what is out there in the lending market.
Certainly he can advise you on Tax effective structures and look at ways to reduce you cash flow but as to how to structure a home loan he will be a fish out of water.
There is no point in paying out significant $$$ in advice fees or set up costs for expensive structures if you can finance the deal correctly.
Richard Taylor | Australia's leading private lender
There are still shared equity loans available for PPOR loan albeit they have to be in right post code.
As long as you can come up with 10% deposit you can reduce your monthly to free up more income for investment loans.
Your P & I repayments are based on 70% of the purchase price and the 20% is interest free (subject to payment history being satisfactory) with the lender taking 40% of the eventual increase in value.
Richard Taylor | Australia's leading private lender
Depends on how complicated the structure is.
Simple personal Trustee probably look at a draft deed and do it yourself but if you where in doubt get your Accountant to do it.
As Terry mentioned lending policy much the same but only difference would be the application costs and the interest rate.
Most but not all lenders wont discount their interest rates with a Corporate Trustee.
Richard Taylor | Australia's leading private lender
Not all my comments are sensible gary lol.
Richard Taylor | Australia's leading private lender
Gary you are getting closer.
Might be a family friend this mortgage broker of yours but why not drop Terry a line.
He is in NSW but would cover Melbourne.
Remember this day and age most deals can be done by email / interest / phone or fax.
Most applications are lodged electonically when it comes to assessment.Might as well go with someone who has excellent experience in dealing with investors and investment structures.
Richard Taylor | Australia's leading private lender
Oh Sarahs back what happened to jackk or whatever his name was.
Richard Taylor | Australia's leading private lender
Thanks for wrap Pete.
To be honest life is easy with such a good client like yourself.
Richard Taylor | Australia's leading private lender
I dont know the area very well but have just financed a deal in Hobart for an investor client.
If you want a Residex search done on the property shoot me an email with the security address and I will whip one up for you.
Richard Taylor | Australia's leading private lender
Seems a bit dramatic to change the ownership just to enable their son to do some renovations.
Why would you not get them to tell you what they want done and you merely project manage it from here organising trades, architects etc etc.
That way they dont incur Stamp Duty and possible CGT is it is not the principal place of residence or their is no prior exmption in place.
Richard Taylor | Australia's leading private lender
Yes that would probably get you over the line with certain lenders i can think of.
Richard Taylor | Australia's leading private lender
Hi Matthew
Hate to say it wont be in the NAB's interest not to cross collateralise the securities for you and they certainly wont want to tell you how to do it.
If you have a mortgage broker on board he can show ways around it as the NAB line of credit or similar is not attractively priced.
A Deposit Bond is normally provided by an Insurance Company and is basically treated like a new loan application.
They will want to see a formal approval from the lender before they release it but this is normal.The NAB may have just offered you a secured od facility or similar unsure without all the details.
Either way i would be avoiding the X collateralising like the plague especially with the equity you have.
Richard Taylor | Australia's leading private lender
