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Sorry i was not suggesting that you would not get the FHOG merely pointing out the potential issues.
From the FHOG Addendum:
Is the purchase price for the home less than the market value of the home? Yes / No
If you have answered Yes
to any of the questions or if there is an arrangement which has the sole or main purpose to obtain the grant rather than acquire a home, you are required to submit your completed application to the Office of State Revenue together with full details and an explanation of the circumstances relating to the eligible transaction*. You may be required to produce further information to assist with determining your application.
Richard Taylor | Australia's leading private lender
Hi NY
Firstly welcome to the forum and i hope you enjoy your time with us.
Whilst i dont want to put a dampner on your investing ideas I would strongly suggest that you think very carefull about investing with friends or relatives as often what seems like a good idea now isnt necessarily everyones cup of tea down the track.
If you invest with other like minded people then you also have financing issues as each indiividual will have different circumstances and as each party will normally be jointly and severally liable for the entire loan.; This in its own right is not necessarily ideal.
Advertising for syndicate members will mean that in most cases you need to comply with the terms of the Managed Investment Act so check thorougly as there are severe penalties for beaching this.
If however you still decide to proceed the probably a Unit Trust structure would work well with a Management Agreement on how and who to the Units can be sold down the track. Again this causes financing issues as the lender may not accept the new Unit holder.
I go back to my original comment about treading carefully.
I have financed a number of small syndicates and havent yet had one which didnt have issues amongst the Unit holders.
Why not start out alone slowly and build from there.
Richard Taylor | Australia's leading private lender
Hi Mike
Couple of issues i can see here.
Not sure which State you are in but most of the Grant applications have a question which goes something along the lines of
"Are you purchasing the property at a reduced price or below market value from a relative "Secondly if the Title remains in her name then you are unable to borrow against it.
Subject to her income and equity why would you not just look to finance the construction in her name with the interest rolled up into the loan which could then be repaid ince the property is sold.
Alternatively you would purchase the property in your name at market price and make application for the FHOG.
Richard Taylor | Australia's leading private lender
Totally agree with you Terry.
How the landscape has changed over the last 6 months. Imagine what the next 6 will look like.
Bit like when i first started out in the 80's with the risk V rate prefice.
Richard Taylor | Australia's leading private lender
Irrespective of whether you save money or not and in my opinion that is debatable one consideration is how you would finance the deal.
Lenders these days are over enamoured with Owner Builders so you would need to ensure you have a decent deposit or plenty of equity.
Richard Taylor | Australia's leading private lender
SS
The approved credit card under the package is $5000 however you can change once the loan has settled.
The annual fee is $340 but when you consider the normal application / valuation / bank legal fees are $600 you almost get 2 years worth saving immediately. In addition, when you add the monthly fee you are paying under Money Saver and the upto 0.7% interest rate discount your savings is greater than $340 per annum.
Also the normal Anz one offset account comes with a $10 / month fee which is of course waived.
Richard Taylor | Australia's leading private lender
Helen you are correct the Post is fairly self explantory however the purpose of the forum is not to merely jump on board and sell you wares to all and sundry but to provide a platform of information sharing and eductaion to like minded property investors.
If you and your fellow posters wish to merely promote your own website or property sales then i suggest you join the telemarketing brigade.
Richard Taylor | Australia's leading private lender
SS
The Anz Money Saver is a discountinued product and has been replaced by the Simplicity loan which certain has a place in the market.
If you looked at the Breakfree package and took the variable rate loan then you would receive a discount dependant on the loan size of upto 0.7% and you could link the offset account to this. Your next PPOR purchase would then be exempt from application / valuation fees and you could switch the offset account accordingly.
If you pay down the current Money Saver IP loan then when you redraw the funds the interest will not be deductible but more importantly the loan will now be contaminated due to the mixed use.
Your loan re-organisation is fairly simple matter and your mortgage broker should be able to handle the changes for you.
Hope this helps.
Richard Taylor | Australia's leading private lender
Firstly you wont get a lender provide that and secondly the answer is NO.
Richard Taylor | Australia's leading private lender
Hi again
No i would switch theP & I loan to an interest only loan with a 100% offset account and pay as much as you can into the offset account.
Once you buy the new PPOR and rent the place out switch the offset account to the new loan as the interest will not be Tax deductible.
Also if you redraw the available funds in the loan the interest will not be deductible and your accountant will have a nightmare trying to work out the proportion which is deductible and that which is not.
Not an idea situation so i think careful nuturing of the structuring is probably required. Get you Broker to outline the plan of attack for you and impliment it now rather than in 3 years time.
Richard Taylor | Australia's leading private lender
I am with V8.
If your current employment is not subject to a probation period there is no reason why you are unable to obtain a 95% LVR on the purchase.
Might have to prove the assets that you have but should be all ok.
The 95% Lodoc style loan went up in smoke about a year ago.
Now anything over 80% will cost you an arm and a leg.
Richard Taylor | Australia's leading private lender
Terry may not now anyone but i can recommend my Accountant who is Steve Hodgkinson a partner with the Gold Business Group at Southport.
Steve is an expert on property structures and can be contacted on 5532 2855.
I have referred him to literally dozens of forum members over the years and they have always been extremely impressed with his service and level of knowledge.
Tell him i referred you as most good accountants are not taking on new clients.
Richard Taylor | Australia's leading private lender
Christian
I own 1 or 2 properties in the Brisbane and SE area so feel free to drop me an email anytime and hopefully can point you in the right direction.
Richard Taylor | Australia's leading private lender
As long as the property is not your principal place of residence and is treated as an investment property (and all other FHOG criteria have been met) you should still be able to still qualify for the Grant when you purchase your PPOR.
Richard Taylor | Australia's leading private lender
As long as the property is not your principal place of residence and is treated as an investment property (and all other FHOG criteria have been met) you should still be able to still qualify for the Grant when you purchase your PPOR.
Richard Taylor | Australia's leading private lender
This is a difficult question to answer without knowing all the facts and what you are trying to achieve in the long term.
Unfortunately the cost of raising capital for organisations such as RHG is higher and therefore unlikely they will ever be that competitive in the near term.
Also the answer will vary depending on what you want the funds for i.e investment or personal.
All in all you should be able to currently get around 7.65-7.7% if the deal is right.
Richard Taylor | Australia's leading private lender
GOM
This will vary from State to State.
Yes they are expensive to establish and maintain and thats why the likes of C & N like them.
As i mentioned before a good property accountant can do the same thing but for half the cost.
Most good ones dont have the need to attend the Property Expo as they have too many clients as it is.
Richard Taylor | Australia's leading private lender
Cool Sam..,. I like to consider myself a Finance Professional.
Richard Taylor | Australia's leading private lender
Yes but only in the proportion of how the Units are held.
Richard Taylor | Australia's leading private lender
Terry has hit the nail on the head.
Whilst the PIT marketed by C & N as a special Trust in essence any Accountant can establish the same thing for you at half the price. The recent ATO changes have made the entity less appearling and the cost of a Unit Trust and acceptance by financiers have meant that most investors are looking to go down this route rather than the HDT option.
Stamp Duty will be payable on the Transfer Value in Qld although in most cases and subject to additional security can be added to the loan borrowings. Of course if you can justify the Transfer price this may vary from the Bank valuation.
Richard Taylor | Australia's leading private lender
