Forum Replies Created
Karlm
Remember in addition to the cash deductions such as interest, rates and body corporate fees etc there are also non cash items you can claim which include Depreciation and Building Write off.
Have you arranged for a QS report to be done on the property ?
Is your current loan an interest only loan or a Principal & Interest loan ?
Are you claiming the shortfall anually in your Tax return or through your Pay coding by a variation to your salary.All of these things need to be review to ensure that your IP is costing you as little as possible.
Richard Taylor | Australia's leading private lender
EDM
You might have opened the proverbial can of worms.
I think you will many many forumites have purchased through Big Kev and not all will have happy stories to tell.
I can tell you a few from the TIC early days but these have been posted before.
Do a quick search and you will see what others have said over the years.
Richard Taylor | Australia's leading private lender
Pdv
Yes an increase would be considered as a new loan and for all intense and purposes the lender would start again.
One of the biggest differences is the fact that most lenders are very cautious these days as to what you want the "Cash Out" funds for.
Your mortgage broker however should be able to guide you around the maze.
Richard Taylor | Australia's leading private lender
Hi Angela
Yes as i type they are still just about available.
I have to say at the moment our biggest number of enquiries we are receiving is refinancing of lodoc loans.
Shoot us an email with some details and I would be happy to try and assist you further.Richard Taylor | Australia's leading private lender
Hi Pos
Yes it can be a good idea however couple of things to consider:
1) In most States you will pay a higher rate of Transfer Stamp Duty if the property is considered an IP from day 1.
2) In some States you will incur Land Tax which again maybe higher if the property is held in Trust.
Without knowing all of the details it maybe more beneficial to take out a nice high LVR interest only loan and purchase the property in your personal name.
Richard Taylor | Australia's leading private lender
Jeepster
Firstly welcome to the Sunshine State or this afternoon should i say the rather overcast and cloudy State.
The answer to your question is a simple one. Contact the QBSA website at http://www.bsa.qld.gov.au/Home/Default.htm
and it will tell you everything you need to now.
Just be careful as they just love owner builders at the moment.
Richard Taylor | Australia's leading private lender
The Grant is a Federally Approved Grant which is adminstered by the States.
The legislation is quiet clear
Are you eligible to receive the grant?
To be eligible to receive the grant, the following criteria must be satisfied:
- You, your spouse/partner or any party to the Title must not have received a grant in any State or Territory of Australia.
- You, your spouse/partner or any party to the Title must not have owned residential property, either jointly, separately or with some other person prior to 1 July 2000, in ANY State or Territory of Australia
- You, your spouse/partner or any party to the Title must not have occupied for a continuous period of at least 6 months, a residential property in which either of you acquired a relevant interest on or after 1 July 2000 in any State or Territory of Australia.
- You must be a natural person (not a company) and at least 18 years of age at the time of settlement or completion of construction
The legislation then goes on:
Who is required to be an applicant?
All persons who are or will be owners of the home being purchased or built are required to be applicants. An owner of a home is a person who holds or will hold a relevant interest in the land on which the home is situated or being built.
Most commonly, you will hold a relevant interest in a property if you are registered on title as the owner or hold an interest as purchaser under a terms contract. It does not include the interest of either a trustee or a beneficiary under a trust (apart from a beneficiary under a legal disability).
Furthermore a call to the OSR this afternoon has clarified the position and it the answer is a big fat NO.
So Shanza before you offer your free advice my suggestion is try and obtain accurate information as unfortunately where misleading and accurate information is offered some people tend to get hurt.
CD has of course made a very valid point.
Richard Taylor | Australia's leading private lender
Dont want to disagree with this comment but it is clearly incorrect.
Actually you can purchase a property with someone else and apply for the FHOG. What you need is proof that you are going to subdivide the land and keep the existing house yourself. You will have to wait until the plans for the subdivision are lodged with council before you apply for the FHOG.
Irrespective of when you lodge the FHOG application the Title will have still been in Joint names and you will fail the qualifying test for the Federal Grant.
Richard Taylor | Australia's leading private lender
Hi Bruce
I think most of the older investors on the site agree with you but before your 3rd Post any chance you can take the CAPS off as it is very annoying to read a post like that.
Richard Taylor | Australia's leading private lender
I was back in London about 8 months ago which was the first time for a couple of years and the prices still alarmed me.
I guess it all depends on where you believe your long term future will lie.
Personally if i thought i would return to Australia one day then i would be looking over her to invest due to the lower prices and better yield and security.
There are a couple of Aussie Banks that will go to 95% for an expat loan at normal interest rates so assuming your pound / dollar earnings are sufficient to show serviceability then no reason why you would qualify.
Rents certainly in SE Qld havent slowed at all so yields are holding with prices coming back a little.
Other important long term difference is in Australia you can claim the building write off and depreciation on the property when you are back in the Country which you are unable to do in the UK.
Also as long as you have never purchased a owner occupied property in Oz before you will still qualify for the First Home Owners Grant when you do purchase your own residence here.
Hope this helps. Any other questions ask away.
Fingers crossed the English summer isnt too bad this year and go the Blues come Aug.
Richard Taylor | Australia's leading private lender
Kenzel
The interest on the balance as at the time you make the property a IP is deductible however you are unable to refinance and redraw the funds or take out any advance payments and still get the same deduction.
The 100% offset account gives you the same benefit and the net savings is identical. Difference being when you move out and make the property an IP you can withdraw the cash funds in the offset A/c and the full interest on the loan balance becomes deductible.
Sorry if it sounds confusing it really isnt at heart.
Richard Taylor | Australia's leading private lender
Milt
FYI CGT is a Federal Tax and does not vary from State to State.
Richard Taylor | Australia's leading private lender
Mick
We dont have an physical exhacnge of contracts here in Qld.
Richard Taylor | Australia's leading private lender
Tanjaa
Are you sure your borrowing capacity is only $130K.
In todays market borrowing capacity varies considerably from one lender to another.
If you were able to build on the block you may find that the rent and tax deductions would make the loan more affordable and you could keep the property until such time as you could sell it on your own terms.
Would need some details on income / expenditure other assets and liabiities to give you a quick guide.
Richard Taylor | Australia's leading private lender
I can give you the name and contact numbers of a couple of people we use for flips feel free to drop me an email.
Richard Taylor | Australia's leading private lender
Also, no 50% capital gains tax discount with a corporate trustee… If your current Accountant is telling you this I would be changing Accountants.
Richard Taylor | Australia's leading private lender
Hi Post
Hope you made sense of my response.
Drop us an email again if you need anything else.Richard Taylor | Australia's leading private lender
Wow $350 i would have inisted they waive that also.
If the properties are positvely geared and you are also working might be time to be switching to a Corporate Trustee rather than a Personal Trustee.
Richard Taylor | Australia's leading private lender
Your Broker is correct the Bank and the MI will have a max number of units in any 1 block they will insure.
Guess question would be why are you looking at going through Bank West whilst their special offer appears attractive on the surface from my experience you will have issues down the track.
Some of the other lenders have an auto approval policy when it comes to LMI which avoid this issue.
Would need to know more about what you are after to comment further.
Richard Taylor | Australia's leading private lender
Your Broker is correct the Bank and the MI will have a max number of units in any 1 block they will insure.
Guess question would be why are you looking at going through Bank West whilst their special offer appears attractive on the surface from my experience you will have issues down the track.
Some of the other lenders have an auto approval policy when it comes to LMI which avoid this issue.
Would need to know more about what you are after to comment further.
Richard Taylor | Australia's leading private lender
