Forum Replies Created
Post
Buying an IP using the Investor's Club will not get you equity quickly as most of the properties are undervalued due to the amount they charge the developer on each deal.
There has been many previous posts on the IC over the years so do a search and read a view other views.
Richard Taylor | Australia's leading private lender
Hi Dhillion
No Qld based but this day and age with email and the internet applications can be taken from anywhere.
I have clients throughout Australia and all over the world.
Feel free to drop us a line and I would be happy to point you in the right direction.
Richard Taylor | Australia's leading private lender
Hi Dhillion
No Qld based but this day and age with email and the internet applications can be taken from anywhere.
I have clients throughout Australia and all over the world.
Feel free to drop us a line and I would be happy to point you in the right direction.
Richard Taylor | Australia's leading private lender
Terry
Not sure about NSW but in Qld Finance has to be on Terms acceptable to the Purchaser.
This was introduced to stop Vendors saying they would offer finance on Terms such as an installment contract something which may not have been palatable to the Buyer.
Richard Taylor | Australia's leading private lender
As an owner of a decent sized Rent roll in Brisbane i have to disagree.
Yes we have certainly seen a healthy rise in rents over the last couple of years however this is based on a supply and demand and at the moment demand certainly outstrips supply.
In saying this i thing it is very much a suburb to suburb situation with many areas appearing overpriced.
Richard Taylor | Australia's leading private lender
Personally I would not consider a P & I loan but an interest only loan with 100% offset Account attached to it.
The loan could be split between Fixed and variable and the offset account attached to variable portion.
There are a few suitable products that would achieve what you are after.
Richard Taylor | Australia's leading private lender
Chris
No your 2 cents are more like a dollar of input.
99 % of MB's have no idea (By the way this does not refer to anyone else on this forum here) but the industry in general) about customer service or ways to structure a portfolio. They want round pegs to put in round holes and then go home at 5pm.
Let me tell you it doesnt work like that in the real world.
Richard Taylor | Australia's leading private lender
Hi Darren
Are you referring to a Company where you are a Director or your Company being your employer ?
Richard Taylor | Australia's leading private lender
hieung
Totally agree with you. Any MB claiming to be a Professional who has no TAFE dip or Degree really is a joke.
You can learn to be a MB by reading the back of a cornflakes package.
I have a friend here in Brisbane who sepnt 20 years as an electrician then decided a year ago he need a job change and decided to become a Mortgage Broker. 5 minutes of training and a quick read of a manual and he was out there on the unsuspecting public. He used to telephone me to ask me what a Trust was and how do i calculate negative gearing.
Within the first 12 months he has decided that this industry is not for him and gone back to being a tradie.
If we could halve the numbers of MB's out there through legislation or natural attricion then the standing of MB's in the industry would increase. In the UK a series of legislation has been passed to try and keep the industry levels more professional just a shame the Aus market doesnt go through the same shake up.
Richard Taylor | Australia's leading private lender
I agree with Alistair whilst it is very a horses for courses matter pre-sales are a confort level for both you and the lender.
If the LVR is appropriate then not all institutional lenders require pre-sales.
If the LVR is bound the norm then you will find that private lenders may still require Pre-sales to cover their risk or the interest rate will be adjusted accordingly.
Personally for any of our funding in Qld we want to see a healthy profit margin or a percentage of pre-sales to consider funding.
Richard Taylor | Australia's leading private lender
BJBJ
No unless the borrowing is in the Company name then only the borrowing entity can deduct the interest component.
Personally you will be unable to deduct anything.Holding the property in a Pty Ltd entity for a 3 year period with a view to then selling it is certainly not Tax effective as you will loose the Capital Gains Tax concession.
Not sure who gave you advice on how to purchase the property this way but i think i would be challenging their fee structure if they charged you anything.
Richard Taylor | Australia's leading private lender
Totally agree about incompetent brokers and if they do not own multiple properties then you probably want to move on to someone who does.
As brokers we also get approached by clients wishing to scheme, lie and act in their own interest similar to how franchesca mentioned she has found a couple of her brokers. Recent legislation has tried to limit this but it will still go on.
Clients who tell you this property is a long term buy and hold and you explain the commission structure and 11 months later they sell up and you have your commission clawed back.
Before i comitt to taking on any new client i want to make sure that they are genuine so as to avoid be caught on any potential fraud problems down the track.
One of the issues in the industry is that it is too easy to become a mortgage broker and hence the level of competance is extremely poor. How many times do you that a broker has been in the industry 3 years but previously used to sell second hand cars or be in adminstration.
I am not knocking wither of these professions just making a point that the majority of brokers would not have 10 years in the industry. Be amazed how they come and go.
Richard Taylor | Australia's leading private lender
106% LVR is only available within certain post code areas (which certainly dont include any smaller regional towns) and is charged at a higher interest rate through a securitised US lender.
The product has many flaws for investors inlcuding high early repayment fees.
100% LVR is available through standard australian Banks and is far preferable even if you arrange the costs as a personal loan or 2nd mortgage.
CHris which State are you referring to with the distressed sales.
Richard Taylor | Australia's leading private lender
Hi Emil
Glad we were able to assist.
Richard Taylor | Australia's leading private lender
Let us know how you go pirate as it will be interesting to hear what your Bank tell you about X Collateralising.
Richard Taylor | Australia's leading private lender
Hi Craig
No i dont like the lender for a variety of reasons but many lenders do similar.
Both Citibank and SGB allow the loan statement to come out in the individual partners name although they all guarantee the total loan. You therefore have 3 splits each in a single name.
Richard Taylor | Australia's leading private lender
If your name is on the title to the property then they will not qualify for the FHOG.
If it is purchased as an IP then they will still qualify for the FHOG when they purchase their own PPOR down the track .
Tenants in Common is the cheapest way to go.
Richard Taylor | Australia's leading private lender
If your name is on the title to the property then they will not qualify for the FHOG.
If it is purchased as an IP then they will still qualify for the FHOG when they purchase their own PPOR down the track .
Tenants in Common is the cheapest way to go.
Richard Taylor | Australia's leading private lender
Hi Pirate
The requirements for financing an IP will vary from client to client depending on numerous variable i.e client has a loan on their PPOR / interest rate sensitive / fixed or variable / offset or basic / fee sensitive / buying in Trust or personal names etc etc etc.
Without more information on your own circumstances it is difficult to provide you with a recommendation.
Certainly one think i would do is make sure that the loan is not cross collateralised with your other properties.
A good mortgage broker will take the information from you and then make a recommendation on something that will suit your circumstances and position.
Richard Taylor | Australia's leading private lender
Several options
1) Purchase the property as Tenant in Common and allocate the shares according to the deposit.
2) Purchase the property using a Unit Trust structure and allocate the Units according to the deposit.
3) Purchase the property using a Pty Ltd Company and allocate the shares in the Company as per above.Remember whichever way they go the Bank will have them all jointly and severally liable for the entire loan amount.
Richard Taylor | Australia's leading private lender
