Forum Replies Created
Hi Chris
In answer:
1) Yes equity is certainly an acceptable form of deposit so would not prohibit you from purchasing an investment property.
2) Yes FHOG can be used for any purpose. If you want to pay it straight off your loan then nothing to stop you doing so.
Issue maybe that most lenders now only go to a maximum of 90% lvr so will need a little more equity than normally expected.
Obviously easier to use a lender that does a 95% lvr especially when it comes to buying the IP.
Richard Taylor | Australia's leading private lender
Hi Ben
Certainly possible but couple of issues:
1) You will have to assume that the 20% – 30% vendor finance is not more than the mortgage owing on the property.
2) You will need to find a lender in the current climate that will allow you to borrow the deposit.
As long as the vendor will also fund your legal fees, stamp duty etc you will be fine.
Richard Taylor | Australia's leading private lender
You could try Residex their statistical information is very good..
Richard Taylor | Australia's leading private lender
Hi Shane
Yes it is not a simple calculation for each lender.
It is a sliding scale payment based on loan amount (Over $300K and then over $500K increments) the lvr who the mortgage insurer the lender is using (Gemworth have just announced a 20% increase in their mortgage insurance rates) and in some case whether the loan is interest only or P & I.
Be suprised how much you can save on an over 80% LVR by shopping the deal.
Richard Taylor | Australia's leading private lender
Hi Ben
Regretfully not. If an when you sell the PPOR and it is held in a Trust entity it becomes a Taxable asset for CGT purposes.
Richard Taylor | Australia's leading private lender
Duplicated
Richard Taylor | Australia's leading private lender
Hi Shane
Firstly you wont get more than 90% these days on a refinance so would need to pick the property / ies that has the most equity.
LMI is a cost of investing and I dont see any problem in paying it if it means getting ahead with my investments.
Fortunately i have very low gearing on my portoflio so am able to access equity with the need of LMI however i would always keep the loans as standalone and never cross collateralise as releasing equity will become harder if the properties are Xed.
Richard Taylor | Australia's leading private lender
Tony great ambition mate and it can be done.
I was lucky enough to retire for the first time at 39 and live of my property income (After nearly a year off decided i couldnt do nothing all day and now run a boutique mortgage brokerage and financial planning firm) from a mixture of wrap and rent income so it can be done but in the current climate you need to think of ways to increase the cash flow faster to enable you to keep moving.
Read up on selling properties thru instalment contracts as whilst it is not for everyone we made a business of it and can be very very profitable especially outside Qld where the payment of the First Home Owners Grant deters cash flow.
Good luck you have started on the right track.
Richard Taylor | Australia's leading private lender
Wazz
Not Brissie but try Steve Hodgkinson who is a partner at the Gold Business Group at Southport.
Steve has been my Accountant for 12 years.
He acts for dozens of forum members also and really understands property and Trust structures.
Contact details are 07 5532 2855.
Tell him i sent you as most good Accountants are not taking on new clients
Richard Taylor | Australia's leading private lender
Hi Carl
Terry has beaten me to it in doing the numbers.
60% would be an available option but perhaps not so palatable for you both in tying up equity.
Richard Taylor | Australia's leading private lender
I am with Terry why would you go with the Base rate loan when you can go Interest only with the offset account.
It is ot that the interest rate is that good.
Wouldnt be making any extra loan repayments off the principal unless you intend to live in the property for ever and a day as redrawn funds may cause you a problem if the property ever becomes an investment property and the funds were for personal purposes.
Richard Taylor | Australia's leading private lender
I wont work in Oz.
Richard Taylor | Australia's leading private lender
From my experience to get the default set aside you need more than an excuse of just forgetting to make payment.
If the notice was sent to the incorrect address or other genuine reasons you may have an arguement.
Firms that offer the service charge around $1500 – $2000 per default so ot cheap.
Richard Taylor | Australia's leading private lender
Yes in fact Westpac will even go to 97% if you are an existing customer.
Richard Taylor | Australia's leading private lender
Hi Jane
Firstly welcome to the forum and I hope you enjoy your time with us.
Can i get you me to shoot me your email address so i can send you the report as i am unable to attach it to a private message.
Richard Taylor | Australia's leading private lender
Hi Honam
To correct a couple of misunderstandings:
1) You could access 90% of the current property value fairly easily subject to the payment of mortgage insurance.
2) If you intend to purchase a new PPOR next year then you do not want to pay down the current loan and I woul dbe switching it to an interest only loan with 100% offset account linked to it now.
Now to answer Steve's post question.
Subject to the post code of the property you may stil get 90-95% LVR as long as the land has a habitable dwelling upon it. You wont however get a 90% lodoc loan upon the property so will need to have satisfactory income evidence.
Richard Taylor | Australia's leading private lender
Glynn
You are correct appears to tick all the boxes.
Lender i have in mind will ask for copies of everything but at the end of the day great product at the right rate of interest etc.
Let me now if you are interested.Richard Taylor | Australia's leading private lender
Dont necessarily agree.
I could guarantee Suncorp would not do the deal but if everything else is satisfactory then i believe 90% lvr would be acheiveable (95% not out of the question but will depend on a few factors).
Richard Taylor | Australia's leading private lender
Also NAB Terry for their 4 Star Brokers.
Richard Taylor | Australia's leading private lender
Another consideration is of course financing the deal.
It is all well and good having an Accountant establish a wonderful structure for you but in this current climate many lenders do not offer the same interest rate or application fees discounts (or even do not accept applications full stop in certain cases) for certain structures.
A good read albeit slightly out of date would be Trust Magic. Shoot me an email if you want a PDF copy.
Richard Taylor | Australia's leading private lender
