Forum Replies Created
One issue if they cant get finance these days.
Richard Taylor | Australia's leading private lender
Hi Snowy and welcome.
Easiest way to get some views is to post the questions you want answered and then wait for the replies.
Richard Taylor | Australia's leading private lender
Only a Quantity Surveyor can prepare a report for you and not your Accountant.
Try someone like "Depreciator" or Herron Todd White as they have a QS division.
Every time i have commissioned a report the QS has always visited the property.
Richard Taylor | Australia's leading private lender
Richard Taylor | Australia's leading private lender
Hi Lnh
You are right that the cost of a valuation x 2 isnt cheap especially if you dont proceed with the application.
You are also correct that the Bank normally will not release a copy to you the borrower.
If you use a mortgage broker there are a couple of lenders that allow your broker to instruct the valuation and if this is case then you maybe able to obtain a copy. In cases where i do this for my clients i will release a copy to them.
Richard Taylor | Australia's leading private lender
Hi Opportunity
Firstly welcome to the forum and I hope you enjoy your time with us.
I dont think you have to worry too much about the long term capital growth in the areas you have indicated. The development of Ipswich and the Goodna corridor is amazing and the upgrade of the Ipswich Motorway (only 10 years + overdue) will make travel to and from the area a lot easier.
I am in the Western suburbs of Brissie and have financed many clients buying in the areas you have mentioned.
Springfield Lakes is a newer suburb and the growth and demand is ever increasing. Anywhere around the Brookwater Golf Course areas is in great demand. Rental demand is also high and the yields are getting better.
Richard Taylor | Australia's leading private lender
You would have to say it is a Big John marketing gimic.
I can guarantee that if it is merely the lowest rate you are after then i assure you I can better what you have at the moment but the big difference is it really what you are after and does it suit your circumstances.
The lowest rated products usually have very little features and very little service.
Richard Taylor | Australia's leading private lender
A couple of things to bear in mind:
1) The assets & liabilities of all of the Trustees / Directors (If you use a Corporate Trustee) will need to be taken into account by the lender when assessing loan serviceability and whilst this may be ok now if any of the parties wanted to buy on their own they may find this affects the capacity to borrow.
Remember and natural person under the age of 18 is unable to sign a mortgage or hold an interest in land and therefore this should have some bearing on your way forward.
2) I am unsure why you would want to sell the property to yourself unless it is an uncumbered PPOR which you want to make into an IP and buy another PPOR. Merely to raise a little cash i can think 101 ways to go rather than the expense of selling to yourself.
All in all i think there are better ways to get to where you want to be but without more information it is difficult to comment.
Richard Taylor | Australia's leading private lender
If your husband is a PAYG employee then very little chance to lower his income as his employer will not allow him to contract to them. With regards to your other assets transferring them into a Trust structure will incur Stamp Duty and possibly Capital Gains Tax so will depend on what the asset involves.
If he has a substantial share portfolio then it maybe worth considering (subject to the CGT position) depending on your income and whether you have any dependants.
I would always be careful taking advice from work colleagues and would suggest you wait to see what your Accountant has to say before taking action.
Richard Taylor | Australia's leading private lender
Hi Barbara
Firstly welcome to the forum and I hope you enjoy your time both here in australia and i our property investing community.
Whilst the FIRB will determine your application bear in mind that you will be unable to borrow more than 80% of the purchase price or valuation as a non resident.
Your mortgage broker should be able to assist you in making a few recommendations as many lenders will not accept applications from NR's.
Richard Taylor | Australia's leading private lender
Guys just to clarify the position on studio units and financing these deals.
Anything over around 30 sq metres can be financed however some lenders are more picky than others.
Recently did a 95% Lvr on a 32 sq M owner occupied studio so it can be done.
Richard Taylor | Australia's leading private lender
Pwinne
All depends on whether you have personal or corporate Trustees but around $775.
If you want a Company sitting over the top then probably need to double this.
In saying this i have heard of advisers charging $3000 to do the same thing.
Richard Taylor | Australia's leading private lender
Certainly if the properties are neutral or posively geared i would considering a Discretionary Trust.
Many lenders offer lodoc or nodoc style loans depending on the zoing and post code and require evidence of income at all.
Richard Taylor | Australia's leading private lender
A simultaneous settlement is the same as a sale and the only difference if they are both on the same day means you will not have to pay interest on your financing.
You will have to pay normal stamp duty, legal for the buying and selling and agent fees (if the agent sells the property for you).
The fact that you are using the same solicitor as your potential buyer has no bearing on the deal.In your position you probably need to have your finance arranged even if you dont take it up as if your buyer defaults you are still liable to settle on your required settlement date.
In cases like this I normally buy using a Call Option which elminates the Stamp Duty in Qld however obviously this is upto the Buyer to accept such an agreement.
Richard Taylor | Australia's leading private lender
Mel
Personally i have done both. But i have to say a lot more property than business.
Richard Taylor | Australia's leading private lender
Hi Craig
When you say you are buying them as 1 parcel are they all on the same Title or are you just buying them all together.
If they are one 1 Title then you are unlikely to get more than 70-75% depending on the purchase price.
And Yes if one 1 Title the loan will need to be considered as a Commercial loan.
Richard Taylor | Australia's leading private lender
Hi JJ
No only the original $245K will be Tax deductible regretfully.
The figures are too close to think about selling into a Trust and borrowing the full 100% for investment.
Suggestion would be to make sure your mortgage broker structures the new loan in a manner that you can reduce the interest on the new PPOR and maximise the deductions on your IP.
ideally make sure they are not cross collaralised.
Richard Taylor | Australia's leading private lender
Without financials you have no chance of obtaining any finance.
If it is the gym i think it is then you have no chance of obtaining any finance anyway as the business is leasehold and the equipment is worth nothing to as Bank. Without equity in your current portfolio you will have little chance of funding it.
Richard Taylor | Australia's leading private lender
Personally I would look to do both however i would be careful how i structured it.
Unless your current PPOR is likely to be your home forever i certainly wouldnt be paying off the capital as quickly as possible and in fact would be switching the loan to interest only linking this to a 100% offset account.
Then careful planning the loan to ensure that your home and new IP are not cross collateralised.
The way in which you set the loan up will not only give you the same interest saving as a Principal & interest reduction but also provide flexibility in case down the track you decide to rent out the property and buy another PPOR.
Definately make sure your mortgage broker is au fait with investment structures.
Richard Taylor | Australia's leading private lender
mccoz
With 2 out of 3 unconditional contracts you could probably go to 66% of gross realisation for the entire project especially if you can show cash or equity to cover interest repayments and contingency if needed.
Will pay a little more for the higher lvr but gives you opportunity to go again.
Richard Taylor | Australia's leading private lender
