Forum Replies Created
Tony
It maybe that the sale price is insufficient to pay out the outstanding mortgage and therefore the Bank will not allow for the Title to be released.
Nothing uncommon there.
Richard Taylor | Australia's leading private lender
As Terry has mentioned the Stamp Duty exemption will vary from State to State (certainly wouldn't get it in Qld) but yes certainly worth looking at on the basis you are on the highest marginal Tax rate.
Remember not every lender will understand or even want to work with you on this deal so make sure you Mortgage Broker is au fait with such investment strategy.
Richard Taylor | Australia's leading private lender
Hi DS
Regretfully it doesnt work like that.
The ATO look at the "purpose test" when deciding whether the interest is deductible or not.
In your case the funds raised from the IP will be to reduce your PPOR loan and therefore would not qualify.If the property was sold into Trust then the entire amount of the interest charged on the new loan would qualify and this maybe an option.
On the downside stamp duty will be payable on the Transfer and additional land tax may also be charged depending on the land value.
Depending on your marginal Tax rate it is worth do the numbers depending on how long you intend to keep the IP for. The longer you retain the property the greater the benefit.
Richard Taylor | Australia's leading private lender
Hi Michelle
Regretfully not Does it mean that by restructuring this loan back up to the $389k as you suggest we can negatively gear the property?
This is only possible if the property is sold to another entity i.e Trust structure or similar.
Richard Taylor | Australia's leading private lender
Yes both SGB and ANZ will go to 95% for expats and the full range of product suite is available.
Richard Taylor | Australia's leading private lender
Hi Matt
Dont want to disagree with you but you certainly can claim the Grant and have done if for dozens of clients before.
Maybe someone just didnt understand your question but i assure you you would be elligble.
Richard Taylor | Australia's leading private lender
Loan – Sorry no only get 1 bite of the cherry.
Richard Taylor | Australia's leading private lender
Hi Mat
No an IP is not included as a residential property and you would qualify for the FHOG even if you had purchased an IP previously.
The key wording is people buying or building their first home.
Richard Taylor | Australia's leading private lender
Hi Harry
It is a strategy we have used for literally dozens of clients however in saying all of this it is not for everyone.
In essence the property is sold into a Trust structure with the loan being taken for the full current market value.
Stamp duty is payable on the Transfer price however is added to the loan amount.As the total amount of the loan is used for interestmest purposes the entire loan interest becomes a tax deductible expense.
You can then use the funds raised to purchase a new PPOR and potentially have no non deductible debt (dependant on the purchase price of course)The downsides include the additional stamp duty as mentioned and the fact that your original PPOR will be liable for CGT if sold down the track.
If however you intend to stay in the new property for a few years you will recoup these expenses several times over and have the start of a nice property portfolio.
In saying all of this with the pu
Richard Taylor | Australia's leading private lender
Pirate
I think that all depends on what the qualifications are:
If you asked me to fax to you a copy of my Degree in Economics Certificate it would probably take 2 weeks to find it around the house.
If you wanted to ensure i was licensed and a Member of the MFAA then you could have it in 5 minutes.
The responses you get from your Broker will enable you to ascertain whether he has any clue of what he is talking about.
Richard Taylor | Australia's leading private lender
Hi Amber
If you are prepared to extend your search out as far as the Northern tip of the Gold Coast then certainly can recommend a top Accountant.
Steve Hodgkinson is a partner at the Gold Business Group in Southport on 5532 2855 and has been my accountant for the last 12 years.
Other than being a top bloke he is an excellent property accountant which is hard to find.
Tell him i referred you as most good Accountants are not taking on new clients at the moment.
Richard Taylor | Australia's leading private lender
Paul
Yes similar to a few other lenders who have changed their policies over the last few weeks GST registration is compulsory if you intend to declare an income over $75,000.
Whilst you are not required to register for GST unless your Turnover is >75K many lenders insist on it.
Another lender Suncorp has today withdrawn its 1 day ABN product from the market immediately which again reduces the nodoc lenders out there.
Richard Taylor | Australia's leading private lender
Hieung is correct that the RAMS lodoc 90 product is competitive.
Whilst it is not the only lodoc 90 product in the market it is certainly priced attractively.
The service levels are not the greatest but if you are looking at refinancing this is probably not an issue.
I have done a few with them since the product was launched so let me know if you want a list of product features.
Richard Taylor | Australia's leading private lender
I am with V8 definately do not get kidded into dealing with someone who re-brands funding through someone like GE and tells you they will issue the loan statements and look after the account maintaince on their loan.
Whilst the apparant service appears appealing the loan will be funded through a securitised lender who themselves have suffered with their costs of funding in the current credit crunch.
With a franchise you are merely dealing with the individual who purchased the franchise who themselves may have very little knowledge or be fairly inexperienced in the industry.
Yes a mortgage broker can also be a licensed financial planner.
Ask your broker as many questions as you like.
I get emails from clients and potential clients all day long and not all of them take my advice and use our services.
Some merely want to bounce ideas or get a 2nd opinion which is fine.Just make sure your broker has a good knowledge of investing and is a property investor themselves.
Richard Taylor | Australia's leading private lender
Hi Ediot
Firstly welcome to the forum and congratulations on deciding to take that first step.
A couple of things to bear in mind:
1) Normally when using a family guarantee style loan this will assist in the shortfall in security but NOT increase your borrowing capacity as the guarantee is using limited to the amount secured against the parents home.
2) This will only be available to you if the home is unencumbered as most lenders offering such a facility require a first mortgage.There are a couple of ways around this which i think are preferable meaning you father could still take out a loan against his property for his own use and not have to wait until your LVR was at an acceptable level.
A good mortgage broker should be able to point you in the right direction.
Let me now if you need further information.
Richard Taylor | Australia's leading private lender
Hi Sav
Usually one of the first places to start would be to work our how much you can afford and get an idea of your borrowing capacity as this will influence the type of property you can look to purchase.
Whilst when you purchase an IP lenders will factor in the rent received from the investment your own expenses such as rent, credit card or other loan repayments will be considered a liability and will effect the amount available to you.
A good mortgage broker should be able to crunch the numbers and give you an early indication.
Richard Taylor | Australia's leading private lender
Mathew
Simplist way is to down load the FHOG application in your particular State and read throughly the declaration and how you qualify and you will see it is the case.
Your mortgage broker would normally lodge the FHOG for you anyway with the application so should be able to show you.
Richard Taylor | Australia's leading private lender
Many lenders will let you have upto 10 sub accounts with no extra charge.
My preference is certainly to go that route.
Richard Taylor | Australia's leading private lender
Hybrid, Which state is the property in ?
Richard Taylor | Australia's leading private lender
A good agent who nows the area well will be able to do this for you.
Remember there are some agents in Brissie that specialise in development sites, blocks of units etc and therefore have developers eating out fo their hands for stock.
We use a couple in the City who do a lot up at Redcliffe so shoot me an email if you wants some contact details.
Richard Taylor | Australia's leading private lender
