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They used to in the good old days now there are other reasons why you would set up multiple Trusts.
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Richard Taylor | Australia's leading private lender
There are too many variables to make an answer sensible and of course your risk profile and other financial objectives make for a totally separate topic of conversation.
In simple terms Units tend to have slightly higher expenses due to the body corporate element and tend to grow at a lesser level having a smaller land content. In saying this the lack of maintenance in a unit makes it an attractive proposition for investors.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Alex
Regretfully Nodoc loans are a thing of the past in Australia post NCCP.
If are buying in a Company name then the loan is considered non coded so there is less requirement for the lender to ask for the traditional income evidence however there is still something known as “responsible lending”.
Even as a Short Term Business lender we look at the reasonableness of the loan application and the likely exit strategy.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Alex
No with full or part time employment there is no need for 2 Year Tax Returns.
Only reason we would need these if we are trying to take non payg income into consideration.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Alexander
Firstly welcome to the forum and indeed the Country when you arrive.
Regretfully even with the income you currently have you wont be able to use this income in support of an application for finance with evidence of 2 Years Tax Returns.
Once you arrive and have full / part time employment this income and the potential rental income can be considered for servicing.
Enjoy the move.
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Richard Taylor | Australia's leading private lender
Regretfully ‘solely relying on information provided by the client’ is insufficient in the eyes of ASIC when it involves Mortgage Broking.
You cannot merely say oh the client never told me so I didn’t ask questions.
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Richard Taylor | Australia's leading private lender
I am with knightm there is a point in life where doing the right thing by the client is better than trying to make the maximum dollar out of every client.
In the 26 years i have been running businesses i have never formally advertised and like an earlier poster stated referral business in my opinion is the best form of business.
Back to the original post CharlieX made if you can’t see how lodging an application with false information is wrong then i don’t see you lasting more than 5 minutes in this industry.
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Richard Taylor | Australia's leading private lender
As Terry mentioned with bridging you can go circa 85% lvr of combined values so as long as you don’t have a large PPOR loan you shouldn’t have an issue.
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Richard Taylor | Australia's leading private lender
Suggested an Off The Plan property who would have ever guessed.
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Richard Taylor | Australia's leading private lender
Hi Charlie
Yes it is caused Mortgage Fraud and has nothing to do with nerves.
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Richard Taylor | Australia's leading private lender
Will vary from State but in the main it needs to existence prior to signing of the purchase contract.
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Richard Taylor | Australia's leading private lender
You wont get a personal loan for that sort of amount.
You have very little alternatives as it sounds like the loan was incorrectly set up in the first place.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Clarky this has to be the longest running thread in the 13 years I have been involved with this forum.
Setting up a new Trust / Company will NOT increase your borrowing capacity assuming the Directors are the same as you will personally guarantee each loan and would be required to declare that guarantee on future applications.
Not a matter of starting a new entity more a matter of structuring the lending with the right lender from start to finish.
You use the lenders with the least favourable serviceability model to start with and then work your way along.
We regular receive enquiries from forum members who have done it the wrong way round and we have to unravel their borrowings before they can expand.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Firstly welcome to the forum and I hope you enjoy your time with us.
In summary:
1) Yes you will have to reduce the loan to the acceptable percentage of land value. We see this all the time. Property might be purchased for $1M but land is only $700K. Clients may have borrowed 80% of $1M now need to reduce the loan by $140,000. No residential lender lends on end value.
2) Your will need to ensure your lender structures the loan correctly in order to maximise the interest deduction. If you are building 2 separate homes you wont be able to load the contract on one and reduce the other by the same amount so not a matter of being able to claim 200% on the IP and have an unencumbered PPOR.Nice in theory but wont pass the “purpose test”.
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Richard Taylor | Australia's leading private lender
Exactly as Kinnon says.
We have always charged a fixed fee irrespective of the purchase price.
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Richard Taylor | Australia's leading private lender
Are you sure you are wanting to go up there this week ?
Still a bit wet and the odd tree down.
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Richard Taylor | Australia's leading private lender
Hate to say Charlie that is proprietory information and something we charge a lot for.
We use in the Buyers Agency side of the business which my partner runs.
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Richard Taylor | Australia's leading private lender
Hate to say been broking for 26 years and still had to under the same exam / qualifications as someone who had been around for 2.6 weeks
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Richard Taylor | Australia's leading private lender
Hi fudge
Whilst Mark will spin you all the reasons why you should buy new also remember that any Capital Allowance claim made on property during your period of ownership reduces the Cost Base when you come to sell the property and increases the CGT payable accordingly.
For you purchased a property for $500,000, claiming an amount of $50,000 in Capital Allowance claims during the period of ownership the cost base when you sell the property will now be $450,000.
As Cory mentions Tax credits are a bonus and could be reduced or scrapped at any time by the Government.
When you read that the cost of negative gearing in this Country is $20 B / Annum it is almost inevitable that the May budget will bring with a raft of changes to property claims.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Helen
In such a direct way YES.
Normally courtesy is to offer a few months of forum contribution and help answer a few questions before giving yourself a plug.
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Richard Taylor | Australia's leading private lender
