Forum Replies Created
Yes as long as their existing lender offers such a product.
Richard Taylor | Australia's leading private lender
There are no Australian based Banks here than lend and have branches over there.
There are also a very limited number of US Banks that still ofer FN loans.
We deal with 2/3 depending on which State the security is in.
Richard Taylor | Australia's leading private lender
Sorry to but in on the ongoing post but 2 quick points:
1) Westpac would have seen the PL enquiry on your credit report.
2) It is an offence not to advise your principal lender that you intend to borrow the funds for deposit. This question in on all application forms and therefore would be deemd as an attempt to obtain a mortgage by fraudulent means.
No adviseable.
On a separate note not quiet sure why you would pay off a investment loan as quickly as possibly especially if the interest rate was only slightly higher than the principal mortgage rate.
Richard Taylor | Australia's leading private lender
Cant say i now anyone down that way but in saying that as most deals are done electronically these days the client and the broker dont have to be in the same town or City.
I have clients all over the Country and scattered around the world many of whom i have never actually spoken to but liaised by email with for years.
Most Banks require electronic lodgements when it comes to submission so a Broker in Brisbane could be looking after a client in Canberra and lodging it with a Bank who assesses the deal in Adelaide.
It really has come a long way since the old days.
Happy to answer any questions you may have if you want to post them.
Richard Taylor | Australia's leading private lender
Cant say i now anyone down that way but in saying that as most deals are done electronically these days the client and the broker dont have to be in the same town or City.
I have clients all over the Country and scattered around the world many of whom i have never actually spoken to but liaised by email with for years.
Most Banks require electronic lodgements when it comes to submission so a Broker in Brisbane could be looking after a client in Canberra and lodging it with a Bank who assesses the deal in Adelaide.
It really has come a long way since the old days.
Happy to answer any questions you may have if you want to post them.
Richard Taylor | Australia's leading private lender
Hi Nick
Sure come across wrap deals all the time and obviously are unable to do them all ourselves (although i must admit we do try) and therefore use investors.
One recent i had in Melbourne was a $90K purchase price where the client had a $5K deposit as well as the $17K First Home Owners Grant. So buy it for $90K resell it for $124,000 and pick up 22K upfront as well as 1.5% interest rate loading…. not bad for an afternoons work
Let us now what you are looking for and i can see if we can assist.
Richard Taylor | Australia's leading private lender
No Tax payable when you sell your PPOR.
Just need to watch her Pension benefits if she has gifted away 250K.
Richard Taylor | Australia's leading private lender
Hi PS
Couple of issues here.
1) No the house cannot be in her name and the loan in your name solely. She will need to qualify for the loan as other wise it is a 3rd party mortgage and lenders dont like these arrangements.
2) There will be stamp duty payable again on the Transfer Value if the title is transferred to her.
3) There will be mortgage discharge / transfer and registration fees payable and also a break cost if the loan is fixed rate of interest.
4) Any First Home Owners Grant or First Home Buyers Stamp Duty concession may need to be refunded if the terms have not been met.
Richard Taylor | Australia's leading private lender
Yes they can on the basis the lender can show they can service the whole debt.
My question in relation to this is does that mean no further borrowings at all? or lets say (hypothetically) they have 10,000 left on loan and 90,000 in equity, they nominate 10,000 equity as a guarantee to us but they can still borrow against the remainding 80,000 equity if needed?
Richard Taylor | Australia's leading private lender
Yes Qld does have a FHB concession on Stamp Duty.
Richard Taylor | Australia's leading private lender
Hi Danny
Do you now how much you guys charge when you want a plumber out at midnight to deal with a dripping tap lol
Having a Trade qualification is always useful (not that i have any ability in that field myself) as you can often do work yourself and save dollars.
Why not become fully licensed and at the same time read, research and ask questions so that you can improve your investing knowledge at the same time.
No one says because you are a plumber or a bricklayer or an electrician you cant buy property.
Good luck on your journey.
Richard Taylor | Australia's leading private lender
Hi Hsingh
Firstly welcome to the forum and I hope you enjoy your time with us.
Remember equity and the amount you can borrow against this are 2 different figures.
Lenders will generally only go to 80% without incurring mortgage insurance and 90% possibly 95% with the payment of an insurance premium.Firstly you to determine how to structure these new loans.
With regards to the amount of $80000 gift you are likely to use do not use this as deposit on an investment loan where you still have non tax deductible borrowings on your principal place of residence.
There are a couple of structures you can use to maximise the interest savings and tax advantages when these monies are received.
With regards to what you should buy i guess this depends on your serviceability and whether you are after cash flow or capital growth or a combination of both.
My suggestion would be to approach an mortgage broker firstly to review your current situation and then look to put into place a structure to enable you to move forward when the time comes.
Flexibility is the key issue here so ensure that the person you approach is qualified to offer such advice and is a like minded investor himself.
Richard Taylor | Australia's leading private lender
Hi John
Yes your figures sound about right.
Still not a bad yield is it.
Richard Taylor | Australia's leading private lender
Terry has hit the nail on the head.
Dont pay off the loan as the interest on redrawn amount will not be Tax deductible.
Richard Taylor | Australia's leading private lender
Interest charged on a principal place of residence cannot be offset against your taxable income so is considered non deductible.
Interest charged on an investment property can be offset against your taxable income.
Assume that you earn $50,000 Gross per annum and the rent received on the IP is $15,000 but the interest charged on the same property is $20,000.
You would add the $15,000 rent onto your Gross income and then deduct the $20,000 of interest charged and your taxable income would be amended accordingly. of course then you have the non cash items you can also claim such as Depreciation and Building Write off.
If you do not have a PPOR I would recommend still borrowing maybe 90% of the purchase price, paying some LMI and retain the 10% odd in an offset account. The net interest effect will be the same but the flexibility being that you can access the savings account and use this as deposit for a PPOR yet still claim the full loan balnce on the IP.
A further alternative would be to buy the property and classify it as your PPOR, claim the increased Grant (will take you a long time to save up a mnimum of $14,000) and then after the qualifying period rent the property out.
Hence my suggestion about structuring the loan correctly as you need flexibility in your loan as circumstances change.
Richard Taylor | Australia's leading private lender
Is it a single dwelling home or multi unit dwelling ?
Richard Taylor | Australia's leading private lender
Hi there
All depends on the rest of the dal but probably No.
Remember if you have a current non deductible loan on your PPOR you dont want to be putting 10-20% down on an IP as the IP interest is deductible whilst the home loan interest is not.
Would be better of structuring the loan properly and borrowing 100% plus costs.
Richard Taylor | Australia's leading private lender
I didnt realise you were in Vic.
Remember until 30 June 2009 the increased Grant is available and also the further subsidy from the State Govt.
You dont have to use the Grant as deposit and could always retain this in cash funds to cover your interest for the next 6-12 months.
As i say if you structure your loan correctly when you move out of the property you could convert it back to an IP and the shortfall would be covered by rent and negative gearing.
Richard Taylor | Australia's leading private lender
I have referred Steve to many clients from the forum from interstate as well as those just in Qld.
If you are happy to have your advice on the phone / email and to send him your Tax information once a year give him a call.
To me it is worth going the extra distance to get the right advice.
Richard Taylor | Australia's leading private lender
If you want a top Property A/c in SE Qld you can go past Steve Hodgkinson who is a partner at the Gold Business Group in Southport.
Steve has been my A/c for nearly 12 years and is a top bloke and expert in Property both Aus & NZ as well as Trust structures.
I have introduced him to many forum members all of whom have sung his praises.
He can be contacted on 55322855.
Tell him i sent you as most good Accountants are not taking on new clients especially this time of year.
Richard Taylor | Australia's leading private lender
