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Dan
This is all well and good however you wont be able to obtain finance with most remaining lodoc lenders as the GST registration is less thank 2 years old and is the main purpose of the post.
Richard Taylor | Australia's leading private lender
Vic,
You can lodge a Nil return for as many quarters / periods as you like.
If the ATO believe the ABN is inactive they may look to cancel it however you would merely state that the business is pending and you need to retain it.
Richard Taylor | Australia's leading private lender
But the question is do you have the 15 working days or so to spare whilst Anz have a look at your application.
Personally wouldnt touch either lender at the moment as the customer service levels (and they are not alone) are absolutely shocking.
Richard Taylor | Australia's leading private lender
process of forming multipule trusts and going garantor against each new trust. Essentially this is a way legally tricking the bank into lending you much more than it wants to. Apparently business banking lenders are much more flexable ?
Just to re-iterate it does not work !!!!!!
Richard Taylor | Australia's leading private lender
Dont think they will pushing that barrow much longer.
Richard Taylor | Australia's leading private lender
Pro pack discounts vary depending on whether the deal is full doc or lodoc.
Normally for borrowings over 250K it is 0.7% discount so around 6.15 – 6.25%.
Richard Taylor | Australia's leading private lender
Vic I think it is virtually over as far as a strategy.
Richard Taylor | Australia's leading private lender
DWG
Yes perfectly legal and a strategy we put place for client all of the time.
Especially works well if the property had been your PPOR at one stage in the last 6 years as their is no GST liability.
Sure there is some Stamp Duty to pay and this needs to be weighed up but depending on the difference in marginal tax rates and the actual size of the loan it can be well well worth it.
Richard Taylor | Australia's leading private lender
Hi San
Yes i have done it very successfully with a business partner who was a Builder but that is a different story.
One of the issues will be financing unless you have a good equity base as lenders do not like lending to property developers unless they can demonstrate a good track record. You wont get normal residential rates and terms if you are running it as a business and will be required to put in between 20-30% each deal.
Also I am assuming you are licensed tradeperson. if so you might want to check out the BSA requirements in your State as you may find that you will need to be a Director of the Company or have sufficient cash assets in the Company to cover any issues in the even that the Company cannot meet it debt requirements. Certainly this is the case in Qld and has put out of business a lot of smaller Builders who just didnt have the capital requirements.
Richard Taylor | Australia's leading private lender
Hi Harls
Yes not easy to fully understand i agree.
Structuring the loan to avoid cross collaterlising the 2 securities is probably a good idea however you dont want to use your own cash on a deductible loan when you still have a mortgage on your ppor (the interest on this is non deductible).
Your mortgage broker should be able to assist you with this.
On the question of Capital Gains Tax remember this is only applicable if an when you actually sell the property.
The Tax is based on the difference between the net sale price and the net purchase price (plus any Building Write Off already claimed). There is a 50% concession where the asset is held for more than 365 days.
Richard Taylor | Australia's leading private lender
Allan do you havd a home loan yourself ?
Richard Taylor | Australia's leading private lender
Settled on 14 blocks of land in Western Qld at $9000 a block Dec 2007.
Sold them all and settled Nov 2008 at $38500 each.
10% CGT you have to love it.
Richard Taylor | Australia's leading private lender
Hany
Wouldn't touch it. Now too much about First Mac.
Richard Taylor | Australia's leading private lender
Just heard from our Westpac BDM that their 3 Year Fixed rate at 4.99% is likely to be withdrawn by close of business tomorrow.
May have just been a ploy to get clients to pay the lock in fee but i somehow think not.
Richard Taylor | Australia's leading private lender
The current 2 year interest with Anz is less than your existing fixed rate so there will be a break cost.
You can do a lot better these days than mecu so if you were going to refinance I can think of several better lenders however have to agree with Fud to save a dollar here and a dollar there and find it costs you more than the 2 added together hardly seems worth it.
When the 2 Year fixed rate expires and from the top of my head i think it has around 1 year to go renogitate the loan to a new fixed rate.
Richard Taylor | Australia's leading private lender
I agree Terry but good to see a little bit of competition starting to appear.
Richard Taylor | Australia's leading private lender
mj88
As Terry has mentioned you will not need to get the Trust restamped.
Richard Taylor | Australia's leading private lender
Hi Bozena
I am based in Brisbane but am not here merely to tout for your business.
From what you have mentioned it sounds like your existing loans have been done on a lodoc basis.
Your Broker is correct that 80% LVR is probably the maximum you can get on lodoc these days (although the choices there are disppearing by the day) . Unfortunately not all mortgage brokers are property investors and therefore do not fully understand a clients needs or requirements.
You can always bounce some figures off me if you wish. I do have one or two happy forum clients on board as a reference.
Richard Taylor | Australia's leading private lender
Hi GCQld
As Terry has mentioned Stamp Duty has been done away even in Qld.
Depending on your requirements you probably could still do better than the CBA Colonial Wealth Package.
Richard Taylor | Australia's leading private lender
Hard to believe that 0.5% discount is standard and the extra 0.2% requires credit approval.
Richard Taylor | Australia's leading private lender
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