Forum Replies Created
Hi Philip
Yes makes sense.
One big downside with the Dragon Pro Pack is that the loan have to be cross collateralised.
They will not change this…..and Yes i have asked and tried for clients.Richard Taylor | Australia's leading private lender
shel
Firstly welcome to Brissie and I hope the City has treated you well sinc you have been here.
Many of the uni student apartments are small in size and overpriced in nature and funding a relatively high LVR will be an issue.
With regards to purchase costs this will vary depending on the purchase price you end up paying but in essence in Qld we have all the normal costs and charges still i.e Transfer and Mortgage Stamp Duty (dont you love the Sunshine state) Mortgage Registration, Transfer & possible discharge, Solicitors costs and searches.
With a unit obviously Body Corporate fees (a couple of extra searches).
Many of the units just outside the City will offer better value for money and still achieve a good yield.
Let me know if you want the name and phone of a couple of good Real Estate agents i work with who can source a unit for you and also have a decent sized rent roll so can take care of the management.
Richard Taylor | Australia's leading private lender
Tell us what you are using and we can add to them.
Richard Taylor | Australia's leading private lender
Not that i am aware of off the top of my head.
Richard Taylor | Australia's leading private lender
I am with Terry no point in having the funds in an Investment Offset A/c with Anz whilst you are paying non deductible interest with the Dragon.
Under a SGB Pro pack you should be able to switch all or some of the Portfolio loan to an IO with nil or next to nil cost.
Set up the offset here and plonk the funds in.
Richard Taylor | Australia's leading private lender
M
May i ask where you are getting funding these days at 7.5% irrespective of the LVR.
ARB Cash rate is 7.25%
Richard Taylor | Australia's leading private lender
Chris
If one of the properties could be your PPOR and the other an IP it is imperitive that they be separate and that the loan structure be correct now and not then.
Yes your lender will want them crossed and will explain to you all the plus points (wont take them too long) of why they should be however remember they are trying to protect their interest and not yours.
It is certainly a condition with some lenders that the loans be crossed but the simple solution is get your mortgage broker to use an alternative lender.
Richard Taylor | Australia's leading private lender
I think new they were around $2300.
How much did you wish to pay for it.
Richard Taylor | Australia's leading private lender
Hi Collie
We hear of clients each and every day having their loans declined on serviceability as lenders toughen up their criteria.
In saying this remember there are so many serviceability models that the difference in what you can borrow between lenders varies considerably.
To give you an indication of your borrowing capacity i would need more information in relation to your break up of income's rent and liabilities. Ovbviously this maybe sensitive information that you do not wish to post online.
Also remember that any interest charged on a property that is used to generate an investment income is normally tax deductible irrespective of which security you raise the funds upon.
Richard Taylor | Australia's leading private lender
Totally agree Terry.
Even with the major Banks the lodoc rates and products vary so much especially when buying in a Trust or Company structure.
Perhaps thats why the number of enquiries in this sector has increased.
Richard Taylor | Australia's leading private lender
MM
Which part of Chapel Hill is the property ?
I have lived in CH for the last 8 years so now most of the streets fairly well.
What do you think the current valuation for the land would be.
Richard Taylor | Australia's leading private lender
Mark
Does this mean that the deductions could be used by me on my Personal Tax Return and if so does that mean that all other costs contribute to the negative gearing??
Yes
Richard Taylor | Australia's leading private lender
Hi Andrea
Yes it is normal practise to borrow 100% of the purchase price plus sufficient to cover the acquisition costs of the property.
Most people merely throw in the security of their own home and their Bank cross collateralises the 2 securities.
This is where they go wrong and is not until the 2nd 3rd or 4th property realise they have structured the loan incorrectly and it ends up costing them potentially 000's in costs to untie the properties.
Make sure your Mortgage Broker is experienced is investment structures as most wouldn't a clue.
Remember done properly you will still borrow 100% + but have the freedom that each property has its own stand alone loan and no 1 property is supporting the other.
Richard Taylor | Australia's leading private lender
Yes It essence that is correct.
Richard Taylor | Australia's leading private lender
What will be the valuation:
1) As LVR against land purchase price and construction costs.
2) Gross Realisation.
Will the loan be done on a full status on lodoc basis.
Richard Taylor | Australia's leading private lender
Cam
No it doesnt work like that.
Costs will be apportioned between the 2 properties and Tax will be payable on the profit (difference between the end sale price less costs of construction etc of that unit).
All that will happen is that by staggering the sales you can control when the CGT is payable i.e into the new Tax year by signing a contract 1st July instead of 30th June.
Richard Taylor | Australia's leading private lender
One benefit i see with taking out insurance from Super accounts is that you pay ur premiums before tax.
This is a very big benefit being able to claim the premium as a Tax deduction.
Richard Taylor | Australia's leading private lender
You will be unable to avoid CGT and possibly GST.
I assume that you were careful in choosing the name in which you undertook the project i.e Discretionary Family Trust or in the name of the lower marginal tax rate payer.
All you can do is defer the tax payable by staggering the contract dates but will not avoid paying it.
Richard Taylor | Australia's leading private lender
PM me and i maybe able to help you.
Richard Taylor | Australia's leading private lender
Tony
All the lender will want is for the loan to be repaid and will not care whether it be from the sale proceeds, the borrowers back pocket or a combination of both.
If you have entered into a purchase contract and the vendor cannot settle because of this then your rights to sue for Specific Performance are the same as the Vendors in the case of you being unable to complete.
Richard Taylor | Australia's leading private lender
