Forum Replies Created
If the property is sold (whether it is owned personally or in Trust) and a contribution is made into Superanuation then the Contribution (Subject to not exceeding the maximum contributions per year) can be offset against any Capital Gain.
I.e You make a Capital Gain of $50K and $50K is Contributed into a SMSF that year.
The Contribution into your SMSF is Taxed at 15% on the amount contributed.
Only when you are in Pension phase and the funds are withdrawn by way of an Annuity is the cash out Tax free.
Any Capital Gain made with a SMSF is Taxed at 15% although the concessionary rate is only 10% (where the Asset has been held for more than 365 days) which makes it attractive.
Richard Taylor | Australia's leading private lender
Unless you have $30 in cash you will not be able to fund it.
Richard Taylor | Australia's leading private lender
Walk away and start again.
If the property has that many building issues any potential buyer will come back with the same problems highlighted when they undergo their Building Inspection.
Sounds too me like there are too many issues to be fixed overnight and very unikely that the Vendor will have any interest in repairing the work other than on the cheap.
Richard Taylor | Australia's leading private lender
Hi Vidy
This is not the case my friend
If you plan to invest in multiple IP then it would be wise to go for IO since it can give you more borrowing capacity.
as lenders work out your serviceability based on a P & I repayment using their assessment rate rather than the actual interest rate being charged.
Richard Taylor | Australia's leading private lender
Robert
Yes it is probably correct and likely to be leased to a mining company, employee or similar.
What you need to do is to see if and when the lease expires what is the likely rent you could expect to receive in the open market. If demand is high in the area then there is no reason why you couldnt get that much again.
Just make sure that the purchase price isnt inflated as it has been calcuated on a yield basis rather than a comparative sales basis.
Richard Taylor | Australia's leading private lender
Hi Margaret
No an offset account is a on call savings account linked to the mortgage (albeit separate) where the investor or home owner can deposit funds as per a normal bank account.
The difference being is that instead of receiving interest on the funds and having to pay Tax on the amount the Gross interest that would have been paid (on the basis that the interest received is the same as the interest being charged on the mortgage) is deducted from the interest actually charged on the home loan.
Assume $100,000 loan amount with an offset account that had $10,000 sitting in it for the month.
Interest would now only be charged on the difference being $90,000.
Interest is charged and paid on a daily basis on the balance outstanding.
Richard Taylor | Australia's leading private lender
Hi IceC
Yes like to think i now what i am talking about.
I am based in Brisbane but most of my business these days for forum members is done by email.
Drop me an email to tell me what you are trying to achieve and i would be happy to assist.Richard Taylor | Australia's leading private lender
Jaffa might want to recheck those posts.
It was 27 posts as at this morning without a single post of constructive advice or debate.
Richard Taylor | Australia's leading private lender
Heh Wayne
You are allowed to contribute to the forum as well.
27 posts and 24 of them telling the forum how imformative you found the post followed by a 7 line profile tage is not in the spirit of the forum.
Richard Taylor | Australia's leading private lender
Ben
I agree the establisment costs vary considerably but i do a fair amount with NAB and the they do this product through their Commecial lending dept hence the attractive rate.
Westpac & SGB are way over the top and you are right up in the high 9's which make it totally unattractive.
Richard Taylor | Australia's leading private lender
nhb – A 100% offset account gives mitchell the same benefit but also preserves the tax deductability.
Making principal reductions looses the Tax benefit forever.
Richard Taylor | Australia's leading private lender
Wayne
Without being funny.
Is it really necessary to have every single link page of your website as part of your signature profile.
I am sure the company name @ dot au you would be sufficient for people on the forum to find you if they want to.Richard Taylor | Australia's leading private lender
I am with Terry.
An interest only loan with 100% offset account gives you both choice and flexibility.
If you still feel the same way in 5 years time and personal circumstances have not changed whereby you now have some non deductible debt you can always pay off a lump sum from the offset account.
Richard Taylor | Australia's leading private lender
Try Steve Hodgkinson who is a senior partner at the Gold Business Group on the Gold Coast.
Steve has been my Accountant for over 12 years and I have referred literally dozens of forum clients to him.
He specialises in Property Structures and I have never had anyone say anything but how excellent his advice was and how reasonable his fees are.His contact number is 07 5532 2855 but the office will probably be closed until after New Year.
Tell him i referred you as most good Accountants are not taking on new clients.
Richard Taylor | Australia's leading private lender
Jill
Are you sure it is a Lease Option Contract you are after not a Installment Contract ?
Richard Taylor | Australia's leading private lender
Jsawtell
I think the present time is a wonderful time in the market to get back into wrapping.
I have run a Vendor Finance Company here in Qld since 1996 which is the largest provider or Vendor Finance in Qld.
The lending market has changed dramatically with many lenders tightenight their criteria so the type of client you attract now is totally different to the those looking for finance some 4-6 years ago.
I would keep your investing entity and your work entity separate for a variety of reasons.
One issue i can see is that you will not get 100% Wrap loan in the present climate.
Richard Taylor | Australia's leading private lender
I think you could do a lot better for the price.
GG specialise at the high end of the market and their hourly fees eflect this.
I cant recommend anyone in Melbourne but remember you dont need to have your Accountant on your doorstep these with the advanced electronic age and even the telephone.
Richard Taylor | Australia's leading private lender
Hi Ice
Sounds to me like a total mess your Broker has got you into.
Remember if you rent your current PPOR then you are only able to claim the interest on the balance and not the amount post redraw or refinance. The interest paid will only be deductible at the highest marginal rate that you pay tax according to the way in which the property is currently held i.e Joint Tenants etc.
Sounds to me like you would be better of getting a Broker to crunch the number correctly for you and weighing up your options as what seems like a good idea to rent out your PPOR initially may not be such down the track. Why not use the equity in the property and go an invest in additional IP's.
Richard Taylor | Australia's leading private lender
Anthony or if you prefer to keep in the open forum post some rough numbers and we can provide you with a borrowing capacity after assessing all lenders not just one.
Richard Taylor | Australia's leading private lender
Carlin
Wrapping is illegal but not Lease Options.
Anyway dont have to wrap in your own State as the FHOG payment and timing is different in each State and Territory.
Richard Taylor | Australia's leading private lender
