Forum Replies Created
Would I have to disclose to the end purchaser what my original contract price was?
YES YOU WOULD HAVE TO.
Richard Taylor | Australia's leading private lender
I have done enough of them and their is 1 simple answer and that is NO.
Richard Taylor | Australia's leading private lender
Please note it is NOT the period of time that you have owned the property but the actual Contract dates which are considered for any CGT.
You could have signed the Purchase Contract on the 1st January and settled on the 30th June resold the property with a contract date of 2nd January in the following year and settled 30th January and still receive the CGT exemption of the property was considered an investment for Tax purposes.
Richard Taylor | Australia's leading private lender
Try Deposit Access / Deposit Power or Gemworth through their company Deposit Saver.
Your MB should be able to make this happen for you.
Richard Taylor | Australia's leading private lender
No all of our wraps are and will always be in Qld.
Richard Taylor | Australia's leading private lender
Nathan
Without going into too much depth it is paid on the "Emerging Profits" rule.
If you have got your PBR then check out the ATO website.
Richard Taylor | Australia's leading private lender
Carl
I cant really see the issue.
Presumably your settlement date will be after the 13th July on the house you are buying so there will be no issue with settlement as you will settle with cash and no a family guarantee style loan.
As long as you convince your Bank that you have sufficient funds to settle then you should be fine.
You should still be able to obtain a Deposit Bond to cover the deposit (Assuming the Vendor accepts this) once the finance is unconditional.
On a separate note i cant comment personally on Hervey Bay but have several clients who have purchased IP's up there in the last few months which i have financed and all appears well with their investments.
Richard Taylor | Australia's leading private lender
Also remember with a non strata block if you substantially renovate them you will also incur GST on the end sale price and whilst you maybe able to claim the input credits on the materials will end up paying GST on the margin.
This will certainly effect your bottom line also.
Richard Taylor | Australia's leading private lender
Transfer Stamp Duty is added to the Cost Base when calculating CGT on the sale.
Mortgage Stamp Duty is a loan cost and hence deducted over 5 years or the term of the loan is shorter.
Conveyancing costs in relation to the preparation of the mortgage documents are also considered a loan cost as as above.
Richard Taylor | Australia's leading private lender
No must confess i am not a member of a Superanuation fund as I run my own SMSF. (I Assume that comment wasnt aimed at me).
In answer to DCN question remember a Financial Planner (And yes i am one of them) is not always a licensed mortgage broker so whilst most of them can tell you which Managed Fund to place your savings in and watch them go South they cannot comment about Loan Structuring, set up or borrowing capacity. This is the domain of the MB hence i am both so i can assist my clients in all aspects.
Feel free to shoot me an email and I would be happy to make some comments on your current situation and the forward. (And NO i dont charge for it).
Richard Taylor | Australia's leading private lender
When you right click on his profile name and view the shortcut, his user name is actually Brad Smith.
That is also the name of the Owner of Signature Financial Solutions according to the receptionist.Thanks Don mystery solved.
Richard Taylor | Australia's leading private lender
Hi EH
Yes the calculation when it comes to the interest saving is exactly the same.
This of course assumes that your offset account is 100% offset and the interest is calculated daily and charged monthly.Take my word for it not all lenders are the same………………..
Richard Taylor | Australia's leading private lender
What actual service from a FP are you after ?
Richard Taylor | Australia's leading private lender
Fed
You are required to occupy the property for 6 continous months in the first 12 months after settlement to satisfy the Qld FHOG requirements but 12 months to obtain the first owner occupied discount in the Stamp Duty.
If you occupy the property you are unable to make a 100% claim on the property.
Richard Taylor | Australia's leading private lender
seank and i bet they have the same ISP address.
Richard Taylor | Australia's leading private lender
How many times do you have to be told you are in the wrong continent my friend.
You need the paid advertising forum next door.
Richard Taylor | Australia's leading private lender
Non at all keep it as interest only.
Richard Taylor | Australia's leading private lender
Sorry but i hate to disagree with Yarpos but my preferred structure is an interest only loan with a 100% offset account for a PPOR loan.
A combination of a reduction in non deductible interest as well as flexibility should the property ever be rented out again has to be the way forward.
Remember you cannot claim the interest on a debt where it is redrawn after a principal deduction has taken place.
Richard Taylor | Australia's leading private lender
Katie
On the date of settlement the purchaser would settle giving you 60% of the agreed purchase price and you would carry a 2nd mortgage for the 40%. You in turn would charge them interest at 10% PA on the 40% of the purchase price.
After 2 years they would agree to discharge your loan in full either by refinancing or selling the property.
Couple of downsides:
1) What happens if he never makes a repayment. You have to instigate proceedings and although you have a mortgage security will end up costing you time and money.
2) If he is unable to refinance or sell in 2 years time you need to be able to carry the loan for a longer period.
3) I assume 60% of the purchase price would be enough to repay your current mortgage secured against the property otherwise you will have an issue.Personally i would try and push them to 80% and 20% so at least you get more of your required funds upfront.
Done properly it can be an effective strategy to move property in a stagnant market.
Richard Taylor | Australia's leading private lender
Hi Nenal
If the 3 parties purchase the property you would not be able to rent it out to 1 of the 3 of you but in saying that the open market rent maybe higher anyway.
Initial issue is that if you are self employed and have only been runing the business for 3 months (Assuming it was a fresh start up business) you will not find any lender consider your income until you have had at least 12 months in business and can evidence your income by your Tax return (I appreciate some lenders take BAS as evidence of income but rates tend to be higher).
Secondly will you be putting in a deposit or using some of the equity in the frist house as security ? If so this brings with it a minefield of security issues as the names will be different and the Banks dont like Cross Guarantees.
If the 3 of you purchase you would probably do it as Tenants in Common and then you can split the percentages accordingly.
Sorry to be so vague but more information is required to provide a better more succinct answer.
Richard Taylor | Australia's leading private lender
