Forum Replies Created
Couple of answers
There are a couple of things I am stumped on straight away:
– Can I use the sale price of $350k to calculate stamp duty?
No your buyer will be signing a purchse contract for $290K with the balance payable to you for the Option contract unless you actually settle on the property and then onsell it to him.– Can the buyer use the amount of $350k to borrow against?
If you have a Contract with your Buyer (based on the fact you have settled on the property) for $350K and the lender values the property at this price then Yes in theory. In practise the valuer will be aware of the lower valuation figure and the lender will lender against purchase price or valuation whichever is the lower.
– What costs would I incur as the option holder? All depends on what you negotiate with the original seller and whether you settle or now.
– Is this possible under otpion?? Anything is possible as long as the original seller agrees to sign a Put & Call Option contract. His Solicitor may advise him to the Contrary.Richard Taylor | Australia's leading private lender
Hi Bradley
Wow too many questions in one.
Would depend on 101 answers i.e LVR income levels, where is the security based and who is the current lender to name a few.
Anything is possible but additional information would be needed.Richard Taylor | Australia's leading private lender
No email received but i replied to your private message.
Richard Taylor | Australia's leading private lender
Guess it depends if you are employed by them or not. !!!!
Oh Richard you are getting synical in your old age.
Richard Taylor | Australia's leading private lender
Thankfully Raymond there is still another lender for those Brokers who deal with 100% loans so doors not totally closed.
Richard Taylor | Australia's leading private lender
No problems mate.
Feel free to drop me an email if you need anything else.
Often find a lot of Brokers even if they are small investors themselves have no idea about structuring or indeed are not licensed to offer financial advice.
Richard Taylor | Australia's leading private lender
GOM
No many lenders have already cut their maximum loan from 95% – 90% already and therefore maybe just a matter of time before most others follow suit.
Richard Taylor | Australia's leading private lender
Hi Dolphin Girl
Sorry no i didnt receive it. received a dozen more but nothing from you.
Richard Taylor | Australia's leading private lender
crj definition is quiet correct however i think you wil find the practical issues of making application for the FHOG are different.
Richard Taylor | Australia's leading private lender
Or altenatively buy your local agent a beer and get him to give you the information from RP Data.
Richard Taylor | Australia's leading private lender
Hi Lmitation
Firstly welcome to the forum and I hope you enjoy your time with us.
Your problem is not uncommon and something we hear from clients on a regular basis.
Loan structuring is probably one of the most important issues as getting in wrong can be extremely expensive and you dont realise until come June 30.
You need to tread careful to not only maximise your deductions but also ensure that your loans are standaloan and the securities are not cross collateralised.
Ideally I would recommend you engage the services of a investment orientated mortgage broker who can work through the potential issues and look at ways to correctly structure your loan to enable you to carry on acquiring investment assets.
Richard Taylor | Australia's leading private lender
No quiet just give it a week and it will be over and done.
Next will be max 90% LVR nail in the coffin.
Richard Taylor | Australia's leading private lender
When you consolidate you will cut up or reduce the limit on your credit card to next to nothing.
As long as you disciplined there is no reason why rolling everything into one and using the positive cash flow from the new IP to reduce your debt with the correct loan structure wont be extremely beneficial.
Richard Taylor | Australia's leading private lender
Hi J
Firstly welcome to the forum and i hope you enjoy your time with us.
I hate to say the information your Bank have given you is incorrect unless there is something we are not aware of.
It is of course difficult to comment on a situation without having all of the facts but i am certain that there is room to move and from the information you have provided feel sure we could assist further than your current lender.
By all means drop me an email with some extra information and I would be happy to come back to you with some further advices.
Richard Taylor | Australia's leading private lender
Hi J
Firstly welcome to the forum and i hope you enjoy your time with us.
I hate to say the information your Bank have given you is incorrect unless there is something we are not aware of.
It is of course difficult to comment on a situation without having all of the facts but i am certain that there is room to move and from the information you have provided feel sure we could assist further than your current lender.
By all means drop me an email with some extra information and I would be happy to come back to you with some further advices.
Richard Taylor | Australia's leading private lender
Ok Adrian wouldnt necessarily need an ABN then however if you purchase the properties in Trust you might wish to make appication for an ABN.
Richard Taylor | Australia's leading private lender
David
He wouldnt have a clue. A concern isnt it.
Richard Taylor | Australia's leading private lender
Hi David
Yes that is one of the beauties of offset accounts is that the primary loan does not become contaminated as the 2 accounts sit separate to each other. When you withdraw the $25,000 you can claim interest on $100K again.
To clarify this it will depend on the lender so assuming your lender offers a totally separate 100% transactional offset account you will be fine.
Interest will be charged and hence claimed as a deduction based on the net monthly balance.
Richard Taylor | Australia's leading private lender
Standard variable rate currently is around 5.75% + so is cheaper not more expensive.
Richard Taylor | Australia's leading private lender
Yes exit and entry fees would not differ.
That rate would represent a professional package rate so normally an Annual Fee of say $350-$375 but would cover application, valuation (and at $1.5M + that could be a couple of thousand dollar savings on its own) bank legals, rate discount and fee free 100% offset.
Richard Taylor | Australia's leading private lender
