Forum Replies Created

Viewing 20 posts - 5,921 through 5,940 (of 11,968 total)
  • Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    I must admit i have never seen any lenders application that didnt ask whether there was anything else you felt you should disclose or were you acting in a guarantee capacity or had other loans that you didnt want to admit too.

    Most applications state that the information it true and correct.

    Put simply as Terry mentions when your borrowing capacity is up it makes no difference what entity you make the application in as swithcing entities or Trust does not increase your serviceability. 

    However in saying this of course each lender works out its serviceability calculations differently so your limit on what lender may lend may not be the limit of another.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    No both standalone deals and NO cross collateralising of securities.

    95% standalone less LMI.

    As i say we specialise in Expat loans.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Apologies Terry yes the wording was not the best.

    Been a long day.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Phil it already has its own forum it is called Overseas Deals.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Interest on redrawn funds on a PPOR is not deductible because the original use of the funds was not for investment.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    GOM my sentiments exactly.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    aaabbbccc also check out lawcentral.com.au and cleardocs.com.au

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Hi William

    I have a lender who will do 95% for expats and we specialise in this area but my 80% comment was directed to  a non resident non citizen.
     
    Settled 2 95% Loans only this week for an expat client working overseas in Dubai with a good Australian property asset base.

    Personally I would not take vendor finance from someone who was selling the property as in our experience the property tends to be overpriced hence the favourable terms to get you in.

    If you let us some extra details Camel be happy to advise you further.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Shell shouldnt your financial adviser, mortgage broker and accountant be advising you on this action as a strategy.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Hi Nathopoly

    Certainly not a stupid question and one we field regularly.

    I noticed doing some number crunching the other day that theoretically if I borrowed 80% from a bank or other standard lender and borrowed the other 20% from elsewhere (for example the Vendor) that the property would still be positively geared*.

    My question is in regard to borrowing that additional 20%. Now I obviously want to avoid LMI so need to seek out the other 20% from another source rather than the 1st lender.

    CAN YOU ACTUALLY LEGALLY BORROW THE ADDITIONAL 20% ELSEWERE IE NO MONEY DOWN? Yes you certainly can and nothing illegal about it. Vendor provided finance is a growing market place and something like Steve i have been involved in for nearly 13 years.

    I ASSUME THE PRIMARY LENDER HOLDS THE TITLE, SO WHAT HAPPENS TO THE 2ND LENDER ON A DEFAULT (IE WHAT IS THEIR POSITION OR SECURITY

    The 2nd mortgagee holds very little security and is unable to enforce the first mortgagee to sell the property merely because of arrears or default on the 2nd mortgage. In practical terms and assuming the first mortgage was upto date the 2nd mortgagee would commence its own legal action and if judgement was passed would more than likely pay out the first mortgage and take possession of the property. Under his power of possession he could then sell the property and discharge the loan balance.

    Ugly and faily expensive.

    Biggest issue these days is finding a first mortgage lender that will knowingly allow the deposit funds to be borrowed.
    I accept a lender may get kidded into the deal by not telling him and show funds from elsewhere but normally there is a condition in the sale Contract and lenders are not stupid.

    All in all very hard to do so unless you are doing it by way of a business and have higher credit authority approval.

     

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Hi Henrik

    We finance a fair bit in Florida so if he is any good and you want to email his contact details to me I will try and give him a plug to my clients purchasing in the US. 

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Hate to say definately not free.

    Normally would expect to pay somewhere in the region of $400-$500 and if the property has been built in the last say 20 years or has some renovated fixtures / fittings probably well worth it. The cost of the report is also deductible.

    Your Broker should be able to give you a few Qs firms on the northside.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Hi Tambam

    It is all a personal opinion. Never is a long time and too late once you have paid the loan down only to realise you wouldnt mind renting it out after all.

    Why not keep things as they are and buy another IP.

    You can place all of your funds in the offset account always pay down the debt through an internet banking transfer if you really wanted to see the balance reduce. Just remember not to use a redraw on the loan for investment.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Hi Andrew

    Hate to say i couldnt disagree with Philip more.

    Springfield / S Lakes is at the end of the Western freeway and the Delphin development was voted the best masterplanned development in 2007. Prices since the start of the development have continued to climb and whilst i dont hold any property in that part of town have financed 101 properties for both investors and owner occupiers alike.

    Regretfully idoubt you will get in for the sort of money you are referring to but therefore Forest Lake maybe an alternative.
    Financed a deal today in FL and wasnt much different to what you are looking to spend.

    Remember if you are looking for it as an investment you may have totally different criteria to if you were intending to reside in the property long term as your own residence.

    Personally i would avoid Redbank although Darra has performed extremely well. Again like any suburb there is less desirable areas.

    Make sure you structure your loan correctly as you are only going to live in the property short term and then it will become a rental. Is there a reason for this ?

    if you have any particular properties in mind i can run off  Residex report for you and email to yoi which wil provide some interesting statistical information.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Mel amongst other things I would be switching the current loan on your PPOR to Interest only and structuring it in a manner that 1 property does not support both loans.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Mel amongst other things I would be switching the current loan on your PPOR to Interest only and structuring it in a manner that 1 property does not support both loans.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Certainly like the Northside there Morayfield, Narangba, Mango Hill etc.

    Havent got anything there myself but financed a lot there recently.

    Same with the southside but prefer Eagleby to Woodridge.

    Shoot us an email if you have any particular property address you want searched and I can email you a Residex report on it.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Hi Mel

    Firstly welcome to the forum and I hope you enjoy your time with us.

    Forest Lake is a suburb that has performed extremely well over the last 7-8 years so there is no reason not to buy in a suburb you know well as long as everything else about the property ticks all the boxes.

    You mention that you are looking long term to buy your future PPOR in Kenmore / Indroopilly (great area by the way i am Chapel Hill)  and that would want to keep you existing homes for investment. You really need to make sure that your loans are structured correctly as otherwise if you have off the Forest Lake property you will have rent which is then added to your assessible income yet the interest you will be charged on any new PPOR loan will not be Tax deductible.

    Really this is the wrong way around doing things.

    Very little you can do at this stage without incurring some form of cost in transferring the current property into Joint names however just need to work the numbers on the next IP as to see what names to buy the property in.

    Also renting to your mother can be great as you will have a reliable tenant and will avoid the necessity of incurring property management fees however just need to make sure that you keep the rent at market rent as the property should still be an investment.

    With Depreciation and Building Write off remember that even if the property is a few years old you will still be able to claim however would suggest you base your investing decision merely on the Tax deductions that are available.

    The property should stack up on its own feet in all respects with the Tax deductions an added bonus.

    Shoot me an email if you want a Residex report done on the Forest Lake property or any other property you are looking at. 

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Pleasure mate.

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Hi jac

    Just to correct a couple of points made above:

    1) YOU CANNOT rent a residential property from your Self Managed Super Fund as it is a clear breach of the SISA.

    Realistically you would get 70% LVR but cant borrow in the name of the SMSF. The borrowing has to be done in a separate Installment Trust as a Super Fund cannot borrow in its own right.

    Richard Taylor | Australia's leading private lender

Viewing 20 posts - 5,921 through 5,940 (of 11,968 total)