Forum Replies Created
Angela
Not wrong i totally agree.
Richard Taylor | Australia's leading private lender
Hi Etty
One of the disadvantages of being classified as a active investor or developer is that you will loose the halving of CGT when you sell the asset as it will be considered trading stock and therefore tax will be paid at your normal marginal rate if an individual or at the Company rate of owned by a Company (A Company owned asset does not qualify for the concessional CGT Tax anyway).
Whilst certainly you maybe able to make a few claims in regards to expenses you really need to consider carefully before you decide to become a full time developer / trader.
Richard Taylor | Australia's leading private lender
I have to agree with Tim it is a clear cut YES and in fact is one of the qualifying questions on most of the FHOG application forms.
The Grant is a Federal scheme administered by the individual States.
It is not a grey area unless you are buying under Vendor terms and then this varies from State. (Here even though you are not getting Title to the property until the final installment is paid you are still entitled to receive the Grant just the date of payment will vary from Possession date to 12 months later etc )
Richard Taylor | Australia's leading private lender
Sam
Have to disagree with you.
I only buy + cash flow properties and have certainly found them in Brisbane.
Admitedly you have to look and look but you also have to now how to add value or create the + cash flow with alternative financing strategies such wrapping, LTO, subdividing or flipping.
Dig deep i promise they are out there.
Richard Taylor | Australia's leading private lender
Sam
Have to disagree with you.
I only buy + cash flow properties and have certainly found them in Brisbane.
Admitedly you have to look and look but you also have to now how to add value or create the + cash flow with alternative financing strategies such wrapping, LTO, subdividing or flipping.
Dig deep i promise they are out there.
Richard Taylor | Australia's leading private lender
21 Sq Metres you would get financed but i think what Terry means is that the available options are less.
If you ever come to sell the property you dont want to find that the market has changed and that now there is even less choice for any prospective purchaser.
Richard Taylor | Australia's leading private lender
Hi Evan
If you are prepared to go as far as the North part of the Gold Coast I can certainly recommend an excellent property accountant.
Steve Hodgkinson who is a partner at the Gold Business Group in Southport has been my Accountant for just over 12 years and is an expert on property.
He can be contacted on 5532 2855.
Tell him i referred you as most good accountants are not taking on new clients.
Richard Taylor | Australia's leading private lender
Tim
You are correct in your summary of the product and I agree that one of the downsides is the P & I component.
We have completed about 8 of these to date including the first one settled in Oz being Flash from the forum.
Whilst i agree that funding has been tight I recently attended a breakfast with Christopher Joye and he was asked about the issue of funding to which he assured the table that this was secure for the time being.
There are a few similar private schemes in operation here in Qld so i think it will make interesting competition to the main players over the next 6-12 months.
Certainly the number of enquiries has risen considerably over the last few months.
Richard Taylor | Australia's leading private lender
Hi AH
Firstly welcome to the forum and i hope you enjoy your time with us.
You have taken the first step by buying your own home and an intial IP so congratulations.
To enable you to go forward with undue problems in financing the deals make sure that your loans are structured correctly from day 1. To often most lenders require the loans to be cross collateralised and bundled together and whilst that may be all well and good initially it will only lead to heartache down the track.
Whilst you still have a non deductible loan on your principal place you want to ensure that your loans are set up so they are acting in your best interest and not the Banks. A little bit of tweaking can save you 000$ in dollars over the life of the loan.
A few initial weeks getting things done correctly will set you up for the rest of your life.
Richard Taylor | Australia's leading private lender
All depends on your price range and what you are after.
Richard Taylor | Australia's leading private lender
IP
You will have to keep the top up loan with the same lender with whom you have the current fixed rate as they will not accept a
2nd mortgage.Richard Taylor | Australia's leading private lender
Well Nicki
Dont get talked into buying an IP just get a tax break.
What happens if the property is vacant or Government legislation with regards to the negative gearing laws change.
I would only buy an IP if it made financial sense and created long term wealth not for a short term tax break.
I also would be suprised given the current interest rates if any new property was cash flow neutral irrespective of the Depreciation and Building Write off allowances.
I go back to reiterating my first post. Dont get persuaded to buy a property your Financial Adviser recommends as i guarantee you he is likely to be receiving a commission from the sale. Certainly buy an IP but make sure you carry out your own DD.
Richard Taylor | Australia's leading private lender
Short Selling is a popular formula in the US especially at the moment where from what i have seen the lenders are taking as little as 15 cents in the dollar.
I assure you that Australian Banks are legally obliged to offer the property for sale and will not take private offers by negotiations with external parties without either taking the property to Auction, tender or merely for sale.Richard Taylor | Australia's leading private lender
Hi Manyana
You are about the 3rd forumite i think who has asked the same question in the last week so it is getting to be a popular topic and obviously so relevant in todays climate.
If you would rather shoot me an email than post personal information on the forum in public i can crunch the numbers for you and give you some options. Hopefully the other forums members who contacted me at the end of last week were quiet happy with the options available to them.
Richard Taylor | Australia's leading private lender
HI IS
Yes you can easily do a top up loan through Westpac on a variable rate loan even though the PPOR loan is fixed.
Personally the idea would probably be to then do the separate loan with an alternative lender.Shoot me an email if you need starting the ball rolling with the top through Westpac as wi ould be happy to help.
Richard Taylor | Australia's leading private lender
HI IS
Yes you can easily do a top up loan through Westpac on a variable rate loan even though the PPOR loan is fixed.
Personally the idea would probably be to then do the separate loan with an alternative lender.Shoot me an email if you need starting the ball rolling with the top through Westpac as wi ould be happy to help.
Richard Taylor | Australia's leading private lender
Hi Steve
I knew you would have your hand up to give the product a plug being the first person in OZ to have settled on a deal.
(By the way hope the family are all doing well).Be suprised how many purchase and refinance enquiries i have had for the product over the last few months.
Donald Yes you are correct it has to be a PPOR in your personal names.
Talking with Rismark the brakes have been put on the release of the IP product for the time being.
Richard Taylor | Australia's leading private lender
Hi IS
Remember accessing the available equity does not mean you have to loose the fixed rate you have.
All you would do is take out a top up loan or a LOC on the property sitting behind the current PPOR loan.
This would not effect your fixed rate loan at all.Depending on what you can access would determine whether i would utilise any of the Cash savings as deposit or acquisition costs.
Yes depending on the property something under $300k sounds like a good starting point.
Richard Taylor | Australia's leading private lender
The rural zoning is not the issue the problem lies with the security being a business and not true residential.
Richard Taylor | Australia's leading private lender
I am with Matt yes the Big 4 have a lot to answer for when it comes to discharges.
Usual process after they have mislaid the documentation once or twice is get the retention department to ring you offering you the world (funny they couldn't do that when you were a plain old existing customer but all of a sudden when you are about to leave ……oh well world is your oyster) and then when you stamp your foot down and tell them you are leaving full stop they say "oh we only do refinances on a Thursday and require a minimum of 21 days notice".
It wont be your Broker who is holding it up he is probably pushing each and every day to get this over the line for you.
Richard Taylor | Australia's leading private lender
