Forum Replies Created
I hate to say it is very unlikely that your Financial planner will recommend property as normally there is minimal benefit to him or her in such an investment strategy.
Certainly listen to what they have to say but then look to map your own path.
Remember investing just for Tax effectiveness is a very poor long term strategy.
Richard Taylor | Australia's leading private lender
Gold Coast – Yes Brisbane – NO
Richard Taylor | Australia's leading private lender
The other thing to bear in mind is if the Rates are in arrears then it is likely that if the property has a mortgage on the property this will be in arrears also.
It is not merely a matter of paying the rates and ignoring the outstanding mortgage.
Richard Taylor | Australia's leading private lender
Hi Shaun
Welcome to the forum and our world of property investing.
Obviously limited data to make a structured comment but i think you biggest enemy maybe the lack of deposit.
Most lenders are not limiting their lvr's to 90% so this means you need to come up with around 10% deposit + costs and renovation expenses (Yes there are the odd lender doing 95% lvr's i admit). I assume you qualify for the First Home Owners Grant but there are qualifying criteria and would mean you would need to reside in the property for a period of 6 months within the first 12 months.
Also with almost every lender a saved deposit over a 3 month period is almost a necessitty.
As I say can be done but more work needed initially.
Richard Taylor | Australia's leading private lender
Your share in the property and the amount of equity are 2 totally separate figures.
As any loan will need to be in Joint names the percentage split does not matter as you are both jointly and severally liable for the entire debt irrespective of the percentage split.
Richard Taylor | Australia's leading private lender
Absolute pleasure Jimmy and promise I will be chasing up those loan documents in the morning …. sorry or should i say later today.
For Depreciation you could try someone like Washington Brown / Depreciator / Depro.
Richard Taylor | Australia's leading private lender
Duplicated
Richard Taylor | Australia's leading private lender
Hi Wannabe
Wow sounds like a real mess. More information is required to make a valued comment but i think a little unravelling is required.
Doesnt sound to me like it has been set up correctly in the first place.
Richard Taylor | Australia's leading private lender
Yes there are a couple but as I say a lot more informatiuon would be required in regards to the balance of the deal.
Richard Taylor | Australia's leading private lender
Sorry but AW is wrong and Terry is correct.
Nothing to stop you borrowing as much as you like irrespective how the security is held but the loan must be in Joint names.
Richard Taylor | Australia's leading private lender
Look sorry AW i dont want to appear arguementative but have to totally disagree with some of your comments.
1) The fastest way to wealth creation is to pay off your PPOR ASAP, therefore always P & I.
Have to disagree Interest only with a 100% offset account is the way to go as this gives you flexibility and this is the key.
2) I would rather invest in property shares some of which offer a guaranteed return eg Myers shares were offering 15% guarantee returns
Sorry but again this is clearly incorrect. Coles Ordinary Shares do not have form of guaranteed return. You are refering to Preference shares which carry a coupon note and whilst the return maybe guaranteed the value of the asset will rise and fall according to the fixed interest rate market. It sounds like you do not fully understand fixed interest markets so would careful offering such advice on a forum.
Richard Taylor | Australia's leading private lender
ddd,
Sorry to hear about your current position.
Think there are 101 questions which need to be raised prior to an answer.
In short what loan to valuation are we looking at ?
Can you show satisfactory income evidence to support the loan ?Is it a working farm and where it is located.
Richard Taylor | Australia's leading private lender
I think AW is getting slightly confused as you state you own 10% of the property with your mother so we would assume the property is held as Tenants in Common.
The loan however is a joint application and you both a jointly and severally liable for the entire debt.
Therefore subject to both parties agreeing to a new increased loan amount and satisfactory serviceability you would be able to access 80% of the current valuation less the existing debt.
What would happen is that you both would lend to you solely the amount raised and therefore the interest position jointly / income received is balanced and you can then personally claim the interest in your sole name (Probably would draw up a private loan agreement) .
Richard Taylor | Australia's leading private lender
Glennsa
Yes you are getting there.
Richard Taylor | Australia's leading private lender
Just to correct a few points above:
1) Have you thought about buying a PPOR and having your brother live with you and pay you rent? This way you would be eligible for the First home owners grant which you would not be entitled to if you bought an investment property.
A) Regretfully by renting out part of the home you would disqualify yourself in receiving the First Home Owners Grant as well as any Stamp Duty concession.
2) Redraw on this equity to buy other properties.
A) Regretfully interest charged on redrawn funds where the original purpose of theise funds was to purchase a PPOR is NOT a Tax deductible expense.
You need to have the loan correctly structured to enable you to move forward and most Banks and the average Mortgage Broker would have absolutely No idea.
Richard Taylor | Australia's leading private lender
Terry you are right my apologies.
At 5.28pm i hadnt even had a glass of wine so cant blaim the drink.
Richard Taylor | Australia's leading private lender
Ok Demitri thanks for the explanation.
Look dont want to be a a doom and gloomer but if the debt is owned as Joint Tenants then you actually liable for $120K 's worth in the eyes of any lender.
With investment loans capped at circa 90% lvr (Yes i understand there is the odd exception) then you are going to need savings over and above repayment of these external liabiliites.
Unless you have access to equity in the current climate it will be a very long road but formulate a budget and start to whittle away the debt as and when you can. try and consolidate to a cheaper rate of interest and this will give you more disposible income to pay down the amounts outstanding.
Good luck and keep us all informed on how you go.
Richard Taylor | Australia's leading private lender
I answered this when you placed it on another part of the forum.
Richard Taylor | Australia's leading private lender
Richard
Hate to say it is illegal in South Australia with the odd exception.
Needs to be done on a Rent to Buy or similar basis.
Richard Taylor | Australia's leading private lender
Hi Denis
Welcome to the forum and i hope you enjoy your time with us.
Also good to see a fellow Western suburbs boy on the forum.
One of the constraints in moving forward will be you access to deposit or available equity.
Most lenders will require a minimum of 10% of the purchase price to be offered as deposit plus the normal acqusition costs so for a cheap home at say $400,000 you would need to have saved around $50,000 to get into the deal.
There are a few way around this but this will at least give you a guideline.
Richard Taylor | Australia's leading private lender
