Forum Replies Created
ME are a funny organisation to deal with.
Excellent on the mum and dad home loan but anything out of the box is just not for them.
It might not be a matter of a higher interest rate and fees it might just merely be a NO we wont do anything.
Richard Taylor | Australia's leading private lender
Hi Tim
You are limited to what you can do as part of the loan is fixed however i believe if you were prepared to break the fixed rate or it is close to expiry then you could structure things a lot better.
If the property is being rented out then you are able to claim the interest as a deduction and all of the other expenses such as rates etc. The fact that you have not paid additional Stamp Duty is not an issue with the ATO merely the relevant State Duties office.
Richard Taylor | Australia's leading private lender
Just to correct an earlier post.
You are required to be GST registered if you turnover more than $75,000 Per Annum not if you earn more than 75K.
As has been stated you are required to register for an ABN if you are in business.
Richard Taylor | Australia's leading private lender
I dont think it is a matter of the Landlord using the rental increase as an excuse on his increased land tax however with the current rental climate being what it is a landlord can increase the rent without any excuse and long as this is considered a fair increase the tenant has 2 choices.
Richard Taylor | Australia's leading private lender
Peach
Land tax is charged on all property holdings subject to certain thresholds.
These may include the occupancy i.e whether you hold it as a principal place of residence, investment etc, the name or entity in which the property is held. the State in which the property is held and the number of properties held in your portfolio.
In a nutshell it will vary from owner to owner.
Richard Taylor | Australia's leading private lender
Kylie
Hopefully this is a general statement.
As for financial planners- no disrespect to them, but most have no idea, and only push shares, mgt funds and things they get commission on, and only do 1 subject in their course for a few hours on property. Most would earn less than you and have less savings than you more likely.
Must admit i havent done too badly out of property helped me retire from full time work at 39 years of age.
Richard Taylor | Australia's leading private lender
Lucky
One issue you will have with the strategy you are looking at is that the interest charged on the new loan will not non tax deductible as the purpose of the loan is to contruct a dwelling for you to reside in.
If you are wanting to retain the property as an IP once the other property is completed you may wish to consider selling your current IP into a Trust structure borrowing 100% of the value and using the entire net funds to buy the land and build your home.
This way you transfer the debt from non deductible to deductible interest.
Unfortunately you will have to pay stamp duty on the Transfer value however if you intend to stay in the new property for a while this will be clawed back through the negative geared benefits.
All costs can be borrowed and structured correctly you will have a good start to your investment portfolio.
A good mortgage broker should be able to advise exactly the way to establish the facility.
Richard Taylor | Australia's leading private lender
Hi Paul
No certainly couldnt suggest that you switch either loan to a LOC.
If you are suggesting that you look to take out a LOC on the existing securities (I have a feeling they will be cross collateralised then) then this is an idea and the funds could be used as deposit and acquisition costs for the new IP. Then look to take out a standalone loan secured against your new IP.
In saying all of this serviceability will be a little tight but without further information it is difficult to assess accurately.
Richard Taylor | Australia's leading private lender
Firstly as Terry has mentioned:
1) In Qld if you purchase an IP and then a PPOR later you are still entitled to receive the FHOG as long as you havent occupied the property.
It sounds to me like you may wish to buy a PPOR at a later stage and therefore I would be careful structuring your loan for an IP so that you can actually have your cake and eat it.
An interest only loan linked to an offset account will mean that you will save interest each month as well as having the funds on call should you decide to later purchase for yourself to live in.
A good mortgage broker should be able to advise you accordingly of your options.
In todays climate 8.25% Tax free is a sounds investment in your future.
Richard Taylor | Australia's leading private lender
Lucky
Do you want to retain the current PPOR as well as any investment or will you be looking to sell this to buy the new property ?
Richard Taylor | Australia's leading private lender
Lucky
Do you want to retain the current PPOR as well as any investment or will you be looking to sell this to buy the new property ?
Richard Taylor | Australia's leading private lender
I think as you are in Melbourne and Cameron has answered your post and is also in City i know who i would be calling.
Richard Taylor | Australia's leading private lender
Linda
if you are happy to go to the Northern part of the Gold Coast i can certainly recommend the best property Accountant going around.
His name is Steve Hodgkinson and he is a partner at the Gold Business Group in Southport.
He has been my Accountant for the last 12 or so years and is a wonder at Tax time.He can be contacted on 5532 2855.
Tell him i referred you asmost good Accountants are not taking on new clients.
Richard Taylor | Australia's leading private lender
Unfortunately you would not get 100% lodoc however subject to being self employed and GST registered (if required) would get 90% LVR.
Richard Taylor | Australia's leading private lender
Post
In most cases it is a fee free account.
In regard sto the comment about paying own the PPOR loan circumstances change and the home of your dreams today could be an investment property in years to come.
An IO loan gives you flexibility of choice as your circumstances change and costs you no more.
The additional savings can be used to invest further.
Richard Taylor | Australia's leading private lender
Unless your loan is over $1M they will not budge.
Bigger loan bigger negotiation power.
Richard Taylor | Australia's leading private lender
Thanks Dr great advertising post.
By the way do you also treat arthritis
Richard Taylor | Australia's leading private lender
Fraid to say the telephone chicks at the ATO are notorious for poor information.
Richard Taylor | Australia's leading private lender
mixedup
Hate to be the bringer of bad news but i have to say i think it would fail the ATO test on the "Original Purpose".
A redraw is not an acceptable purpose as the original loan was for non deductible purposes and your loan statement will
show "Redraw amount".Richard Taylor | Australia's leading private lender
Oscar
As Terry has mentioned you may wish to look at selling the property into a Trust structure.
Whilst this will trigger additional stamp duty the OSR merely require a letterhead valuation from a local agent in regards to the valuation base. Sure you can find a couple of local friendly agents.
Richard Taylor | Australia's leading private lender
