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Richard Taylor
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February 7, 2015 - 8:41 pm
Wow 4.74% for a 900K loan assuming it is less than 80% lvr the Dragon did you no favours.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Richard Taylor
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February 7, 2015 - 8:39 pm
Hi Kellie
Agree with Corey absolute nonsense. Have done many a deal on this basis.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Richard Taylor
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February 4, 2015 - 9:43 pm
Yes agree with Don had one approved this afternoon for a forum member on a 980K purchase price and the security guarantee was provided by the employer.
Some are better than others.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 23, 2015 - 9:49 pm
Sorry Wilko that is not correct.
All the big 5 Banks will take a 2nd mortgage.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 20, 2015 - 9:44 am
Hi Mikko
Welcome to the forum and I hope you enjoy your time with us.
Often the case that once a lender holds the security property they won’t want to do a full valuation and work off a driveby, desptop or similar.
One solution is to get your broker to look to refinance the deal and instruct a full valuation.
Once the report is back your broker can work out the lvr available without even submitting a deal.
No idea who your current lender is but certainly refinancing would make sense at that rate.
With more information i can advise you further.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 17, 2015 - 11:22 pm
Hi Kellie
Hate to say is happening more and more with lenders these days.
One major lender has a credit policy that if you own 10+ properties (geared or not) they will not consider any loan.
Hard to believe I would not meet their credit policy merely on number of properties owned.
Half the trick is to structure your portfolio in such a manner that you use the least generous lenders first and then work thru those with more favourable credit policies.
Too many borrowers are merely driven by interest rates and believe the cheapest rate is the be all and end all. Regretfully they found out the hard way.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 17, 2015 - 8:37 am
Maree with Corey but in Tigs situation he has no non deductible debt and has a good rental cash flow from his other properties.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 16, 2015 - 5:14 pm
The principal reduction would be considered as enforced savings.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 16, 2015 - 5:06 pm
Hi Mark
Sorry that is not quite true.
There is very little difference in depreciation and capital allowance claims between buying a new property and one that is a year old.
In regards to you and your firms personal commitment do you want to give the forum members a quick snap shot of the properties you have personally purchased and own. Mine are clearly pointed out in the API articles I do regularly.
What capital gains have you observed on OTP properties during construction phase as I must say both my research and that done by Herron Todd White seems to indicate that is incorrect. In fact most valuations we get back are under valued on OTP properties.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 15, 2015 - 11:26 pm
Hi Mark
Great first post.
We are Buyers Agents based in Brisbane for the last 18 years and both myself and my fellow Director have multi million dollar properties throughout the City.
We have dozens of forum clients we act for but don’t recommend new properties.
Can you tell me and the forum why OTP in Brisbane would be the way to go ?
Also can you tell us how you get paid ? We are transparant and tell our clients how and what we charge them.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 15, 2015 - 11:15 pm
Hi Harv
It will all depend on the loan to valuation. At 80% the cash flow should be sufficient to meet your outgoings.
Personally i wouldn’t buy in Broadbeach but everyone to their own.
We try and match our BA clients to properties that suit their long term goals whether it be cash flow / capital gain or a combination of both.
In relation to a Qld Contract assuming the offer has been accepted and the Contract signed by the Seller and Deposit Holder you can terminate:
1) Within the 5 day cooling offer period. Vendor is entitled to retain 0.25% of the purchase price by way of penalty.
2) Within the Finance or Building Inspection period should either not be on terms acceptable to you. If you terminate using one of these clauses then you are entitled to receive a FULL refund of any deposit paid.
Your Broker should be educating you on these terms.
Cheers
Yours in Finance
- This reply was modified 9 years, 10 months ago by Richard Taylor.
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 15, 2015 - 5:24 am
Hi Harv
Wouldn’t have a problem with St Lucia in fact own a few properties there myself and only live around the corner.
Personally I wouldn’t buy on the Gold Coast (Still own a waterfront home where we lived in the 90’s) but that is not to say there are some good bargains at the moment.
Yes I think parts of NSW, VIC & QLD will see some form of price correction but I think Brisbane still has some catching up to do.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 14, 2015 - 10:20 am
Ok still would have thought with an 80k deposit and a P & I repayment the property would be cash flow positive at current rates of interest so not sure why the Title would be in your name.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 14, 2015 - 9:48 am
Ok all noted.
Why wouldn’t you buy the IP in your wife’s name or in Trust given that you intend to pay down the loan as quickly as possible ?
An IP with 80K used as deposit is likely to positively geared from day 1 so income v expenditure will only increase over time as the debt gets smaller.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 14, 2015 - 9:24 am
Hi crazyjoe
Look at the prime goals and in order they would be pay off PPOR whilst at the same time increase your net wealth thru IP acquisition.
Down the track increase IP portfolio and create a healthy rental stream.
Feel free to drop you an email and i will send you my API interview on how i built my property portfolio and enjoy a more than health rental income.
I can’t see any reason why you would look at accessing the equity in your PPOR when you can access the IP equity.
The correct loan structure and a sensible selection when it comes to the right loan product should see you achieve your objectives.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 14, 2015 - 9:16 am
Hi tig
On the basis you are fully aware of the pros and cons of not crossing it all boils down to comfort level.
Not sure why you would use the 80K gift to put down as deposit on an IP in your sole name but guess you have your reasons.
Why would you not use the funds to pay down the PPOR by 80k and then borrow the 80K using your existing IP’s as security meaning that you would end up borrowing 100% + of the new purchase price /s.
If you intend too pay down the principal rapidly why would you not put the Title in the name of your wife with 2 of you on the loan.
You could look at a fixed rate loan with 100% offset account. A few lenders offer such options.
Away from this it will merely boil down to your personal opinion.
I paid off the principal of all of our IP loans and for the last 11 years have enjoyed a very healthy rental income but most people understand that you would not pay off the principal of an IP when you still have non deductible PPOR debt.
LMI is an opportunity cost which is Tax deductible so if you feel the fact of borrowing a higher lvr percentage and paying a premium for it gives you peace of mind that your other properties are not being used as security why not go to 88.9% lvr and look at buying multiple securities.
Sensible structuring and the right choice of lender should see you achieve your end goals.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 14, 2015 - 3:41 am
Hi Harv
Welcome to the forum and I hope you enjoy your time with us.
I have lived in Brisbane for 20 years and have most of my properties here.
You don’t mention what the problem is and why the delay in settling. In most cases your Mortgage Broker should have a bit if clout in regards to escalating the approval or loan documents.
As long as the property is in the right suburb I can’t see any issue in tenanting the property.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 13, 2015 - 10:31 am
In Qld having numerous Trust will not get you around the Land Tax threshold as your hold in will be aggregated where the Trustees are related.
We hold all of our Brisbane properties via 5 Separate Discretionary Trusts however this has nothing to go with trying to reduce the Land Tax liability.
Agree with most if your other conclusions however certainly not so easy to change the loc splits especially if the anticipated credit changes which APRA are considering come to fruition. Careful selection of lender will be required.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 13, 2015 - 5:31 am
Hi Asela
If it is the CLUB i am thinking of avoid them like the plague.
When i was full time developing in Brisbane they used to sell a lot of our properties.
We used to tell them the price we wanted and also showed them a copy of a valuation. In most cases they used to sell them way above the valuation in order to increase their commission payment.
My business partner Jacqui (JACM from the forum) runs the Buyers Agency side of our business and we never buy OTP properties for our Forum members. You have to think when you start your portfolio you want a low risk investment with reliable cash flow and good prospects of capital growth.
Building up a portfolio can take a few years but if you do the right thing to start with the foundations will set you up well in the future.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Richard Taylor
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January 13, 2015 - 5:20 am
Hi Barry
Your Accountant would need to be Licensed to provide Credit advice and most are not.
A Mortgage Broker is required to hold such qualifications.
A 3 unit block is not necessarily the sort of deal you would do as a newbie and many lender will not lend on multi unit dwellings.
Of course still many out there that will do 3 units as a residential deal.
If you intend to retain the property we could also factor in potential rental income with some lenders so that might aid your serviceability.
A good broker will ensure that the lender who does the initial loan will also do multiple units when you come to construct or develop.
Sounds obvious but you will be amazed how many lenders/ brokers will not even think of it. I have just restructured a forum members loan where the Bank told the client they would not do multiple properties on a single Title after the borrower told the lender from day one what his intention was for the property was.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender