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I have a small portfolio of 45 properties and have been buying in Brisbane since i arrived in 1993.
I am so glad that i didnt hesitate back some 16 years ago because in SE Qld prices were flat and interest rates where high.
There was no such thing as the First Home Owners Grant.16 years later with a LVR now of 13% i can pay the annual rates and land tax bill from a month's rent.
But as has been said before in an earlier post unlike the stock market it is Time in the market and not timing in the market.
This is not to say that you rush out and buy a property in an area where prices have been declining steadily but do your DD and accept that over the time of ownership market conditions will change.Richard Taylor | Australia's leading private lender
Pssss Anyone wanna buy a cheap unit in Bulgaria.
Richard Taylor | Australia's leading private lender
No on a completed home your pay duty on the Transfer Price.
Richard Taylor | Australia's leading private lender
Vic,
For all intense and purposes Nodoc and the majority of Lodoc refinances are a thing of the past now so if you are living off equity you have a problem.Richard Taylor | Australia's leading private lender
Thnaks Nancy
Does that include the airfares from Australia as well.
God i wish you people would learn a little about the website you are posting on before you post.
Richard Taylor | Australia's leading private lender
Most of our IO loans with 100% offset are being done at around 5.10% variable so not sure there.
Richard Taylor | Australia's leading private lender
Will vary from lender to lender and will depend on your equity position and ability to service the new debt.
Richard Taylor | Australia's leading private lender
Howard cirumstances change and your loans need to be flexible to work with you.
Imagine you live in your own PPOR for 5 years pay down the debt and then decide to buy another PPOR but want to keep the old place as an IP.
You would need to borrow again to fund the new PPOR and of course all of the interest is now Tax deductible. Whats more the rent you now receive on your old PPOR is now taxable.
With a little loan planning you could have made the PPOR Interest only with an Offset account from day 1 and still have the same interest saving and then when you move out the entire amount of interest on the loan would be tax deductible.
Remember once you have paid the debt down you can not redraw the funds for personal use and expect to get a Tax break.
Even your PPOR should be IO IMHO.
Richard Taylor | Australia's leading private lender
And at the moment ask again tomorrow and it will have changed let alone by the time you settle.
Richard Taylor | Australia's leading private lender
If the property is valued at $440K you will be lucky to get 90% of that meaning $396,000 less your existing debt of $375,000.
Of course if the lender deducts LMI from this figure it will be less.
Richard Taylor | Australia's leading private lender
You will not get 100% IP loan as you do not have 20% equity in your PPOR so will be limited to 95% plus LMI.
If the new property is $400K then 5% will be $20,000 deposit plus acquisition costs.
Depending on the State you are buying in this could be another $20K.
If you look at raising some deposit out of the PPOR you will be additional LMI but if you can convince your existing lender that the house is worth $430000 then it still maybe worth it.
Take the funds raised and look at a separate lender for the new IP.
Richard Taylor | Australia's leading private lender
Hi Grant
Wont give you a lecturer on the wisdom of renting to friends but make sure you do it properly with a lease agreement and market rent. Personally if you are going down that path I would employ the services of a property manager as for a small monthly amount you dont have to be the one to chase your friend if payments fall behind.
Secondly make sure your mortgage broker structures your loan correctly as you need to make sure you maximise your deductions as well as preserve the flexibility of the loan to enable you to move forward. Where possible make sure the loans are not cross collateralised.
Richard Taylor | Australia's leading private lender
Hi Terri
Regretfully irrepective of the name change you are still a living person and the same one who purchased the property back all those years ago. This would disqualify you from receiving the Grant.
As you are his Spouse he would be disqualify from obtaining the Grant also.
Couple of ways to boost your borrowing capacity if you dont want to go on Title but i really can see why you would not.
Richard Taylor | Australia's leading private lender
Fergs
Serviceability is calculated in so many different ways with each and every lender but in essence the difference between your income and expenditure is the amount you have available repay a new investment loan.
The catch is the what is considered as income and expenditure and this is the bit that varies considerably.
Richard Taylor | Australia's leading private lender
Hi Oz
Ok thought it might have been amicable …..
Problem even with Vendor Finance is that as you wont qualify for the FHOG most investors (I now i would for sure) would want a decent deposit to wrap a property to you.
Then of course you have the stamp duty and other acqusition costs.
Richard Taylor | Australia's leading private lender
Cant recommend a Buyers Agent but Lee Doyle at LJ Hooker Caboolture has always looked after clients of mine well.
Might be worth a call as he knows the area well.
Richard Taylor | Australia's leading private lender
Invest
Sorry to be the bearer of bad news but on a total gross income of $32000 you will not be able to show serviceability to the level of $270,000.
Might be a way around it but would need some creative financing.
Richard Taylor | Australia's leading private lender
Ken
Both are non bank lenders who will securitise their loans.
Each loan will mortgage insured even if the loan is less than 80% LVR and they will end up managing your loan on behalf of someone else.
Guess if all you want is a no frills lender without the bells and whistle then fine but in the fragile climate we are in most clients look for some form of security from their lender.
Whilst a pre-approval may not mean a great deal at least it is a reassurance that you can move forward.
Unlikely with the above lenders the mortgage insurer will have seen the deal at pre-approval stage.
Richard Taylor | Australia's leading private lender
David
i am unsure why your sister needs to have her name removed from the Title.
It is not that she will benefit from the FHOG or stamp duty concession ?
The rent or assumed rent may even increase her borrowing capacity.
If she want to remove her name then she will be required to pay CGT and you tell her that she is to cover your SD.
In saying all of this i go back to my original question why does she need to do it ?
Richard Taylor | Australia's leading private lender
No its ok you will still receive the FHOG even if you buy the property on Vendor Finance.
Only thing you are likely to pay probably another 20% mark up over and above the purchase price and 1-5 – 2% more than the standard variable rate of interest.
If you now the sort of purchase price you are looking for I can give you some indication on the repayments.
Richard Taylor | Australia's leading private lender
