Forum Replies Created
Treser
Might want to do a search first on the top and see what has been said previously !!!
There is no magic on what is recommended in fact as someone who is very Anti Cross Collateralising Securities I am one of the biggest critics of adopting such a strategy.
Richard Taylor | Australia's leading private lender
Also remember any Building Write Off which has been claimed during the period of ownership needs to be taken off the Cost Base.
Richard Taylor | Australia's leading private lender
Terry is of course correct. Comes of typing before properly reading the post.
The Trust name usually only appears on the Contract and L Docs.
Richard Taylor | Australia's leading private lender
Andy
Normally "Mr & Mrs John Smith ATF Smith Family Trust".
Richard Taylor | Australia's leading private lender
DS
Slightly confused as to what you are trying to achieve but wouldnt you better off to sell your current PPOR to either your partner or a Trust structure and use the entire net proceeds to pay for your new PPOR.
Richard Taylor | Australia's leading private lender
Linar
Many lenders do not take HDT applications even on a full doc basis simply because they dont understand the mechanics however in saying this there are few lender who have no problems with structure both lodoc / full doc.
Richard Taylor | Australia's leading private lender
Jonas
Nothing to stop you buying your wifes interest in the property or alternatively selling the property into Trust and borrowing 100% of the market valuation.
You would pay out the existing loan secured against the property and the surplus could be used as deposit for your new PPOR.
All of the interest used to purchase the IP would tax deductible.
One downside is that additional Stamp Duty would be payable although depending on the numbers could still be a viable option.
I have numerous clients in the Clayfield / Ascot area and this strategy is a standard wealth creation tool where you are trying to transfer the non deductible debt to a deductible expense.
Richard Taylor | Australia's leading private lender
Never say No to anything.
Normally No but if you sold your IP to a Trust and borrowed a 100% of the current valuation then the funds raised can be used to pay down the PPOR loan.
Downside is you would incur Stamp Duty and possibly CGT.
All depends on the numbers involved as to whether it is worth it.
Richard Taylor | Australia's leading private lender
AB
Sorry to be sarcastic but of course your Bank Manager has tried to persuade you to keep the properties cross collateralised as it will benefit the Bank and possible even her own pocket.
Many lenders offer incentives for their branch staff to X collateralise your securities so listen not.
My suggestion would be to go ahead as you mentioned and ask them to value the IP and set up the line of credit behind the current fixed rate loan. If the loan was under a Pro package it wouldnt normally cost you anything to revalue and split the securities so tell her is this an option.
Make sure they separate the 2 securities and then have your rent and income going into the offset account linked to your PPOR loan to maximise your interest savings.
Drop us an email if you need any more information.
Richard Taylor | Australia's leading private lender
Hi Lisa
I have a number of properties on the northside and use Mayfair who are excellent.
Give Keith Clarke (the principal) a call on 0411 516 259 and say i said g'day.
There service is 2nd to non and very friendly and professional.
Richard Taylor | Australia's leading private lender
Tim
Not overlooked that fact at all. Just i have a little more information than is posted.
Richard Taylor | Australia's leading private lender
I agree with Tim there are variety of options available however i cannot see why you would not want to utilise conventional lenders finance.
I operate a separate Company called First Home Owners Group Pty Ltd (FHOG Pty Ltd) which is Qld largest provider of wrap finance and we have always used standard financing. Currently we have over 100+ properties under finance (at one stage this number was upto 180) and have only ever used 2 main lenders.
My suggestion would be to operate with conventional lines of finance until these sources dry up and then look for alternatives.
Richard Taylor | Australia's leading private lender
GOM….No been and gone and packed their bags some months ago.
Richard Taylor | Australia's leading private lender
Such a capital expenditure would have had to come from the Sinking Fund of the Body Corporate and would have required a motion at the AGM or an EGM where all of the unit holders would have the opportunity to vote on.
If this has not happened I would ring the Body Corporate and find out under whose instructions are they acting.
If it was not authorised by the majority of the voting members you would have the right to have it changed back to its original state. Liability would lie with the BCM.
Richard Taylor | Australia's leading private lender
This is one of the issues with lodoc lending it is aimed at clients who do not have the relevant paperwork to evidence their income and not for clients to write down any income to obtain the loan and then lodge tax returns showing a lower income to reduce tax liabilities.
You could always look at a nodoc loan admitedly the interest rate will be a lot higher or a commercial lodoc loan where your accountant confirms the ability to make repayments.
Richard Taylor | Australia's leading private lender
Terry is correct that the Dragon still lends to Trusts however with one of their no deposit products if the property is for investment they require evidence of external assets such as property, cash etc.
Richard Taylor | Australia's leading private lender
Which State are you located in.
Drop me a line and i may be able to recommend someone to you.
Richard Taylor | Australia's leading private lender
There is NO State sponsored scheme in Qld other than the Adelaide Bank scheme.
Richard Taylor | Australia's leading private lender
I think you may find that the whole of WA has been removed.
Richard Taylor | Australia's leading private lender
Richard
The vendor loan will be considered as a 2nd mortgage and i guess the lender will want to secure this against the property.
The property sounds like it could be a specialised security so 70% would probably be the maximum LVR available.
A 5 Year Principal & Interest loan would be common practice in cases like this.
The number of lenders who will allow for the deposit to be borrowed will be limited.
Richard Taylor | Australia's leading private lender
