Forum Replies Created
D
No as long as the securities are not X Collaterailised where you may have to offer additional security by way of cash or property and the sale price will clear the loan the lender will have no say in what you sell the property for.
Richard Taylor | Australia's leading private lender
Thanks Maria for your useful first post contribution but just to let you now most mortgage brokers provide free advice this is not limited to Lawfund.
Richard Taylor | Australia's leading private lender
Jon
As i say i disagree. We run a small sized development company (maybe do 40 units a year) and have never had a project overun to that extent.
At $205,000 for say 120 sq M that $1700 / Sq M and take off say a Builders / Developers margin you are down to $1380.
Add on Council contributions, other soft and hard and land acquisition and you must be selling at record pricing.
At the moment we develop ever project we do so never take on external work but I guarantee no one is paying $2000 / Sq M for 2 a storey Townhouse.
Can think of a dozen project we did last year and they never costs us anything like that.
Richard Taylor | Australia's leading private lender
In Qld you certainly would be up for additional stamp duty for the transfer so hope you are away from the Sunshine State.
Richard Taylor | Australia's leading private lender
If it is any help prices in Brissie are certainly not going backwards.
Must admit I can't comment about the rest of the Country but there is still plenty of demand up here.
Richard Taylor | Australia's leading private lender
Jon
Have to disgree $2000 / Sq M never.
We work on around $850 / Sq M for a 2 storey Townhouses admitedly that is at Builders retail pricing.
Certainly with all the extras you maybe upto $1800 but certainly not construction costs.
Richard Taylor | Australia's leading private lender
Hi Andrew
Might want to try and do a search on previous posts as has come up many times before.
I think Steve has posted a correction to the interpretation many had got from his previous statement.
Richard Taylor | Australia's leading private lender
Very old wives and certainly not fact.
Richard Taylor | Australia's leading private lender
Hi Tugger
IO = Interest only. Some lenders will offer the loan over a given period of time others for the life of the loan.
Regretfully you wont read about tricks of the trade in a book or website.
Simple solution would be to contact someone like Terry and get him to structure your loans for you and learn as you go.
If you want to learn something you need to find a good teacher.
Richard Taylor | Australia's leading private lender
Bootstraps
Are you looking at wrapping the deal or have someone else who is looking at doing it instead.
If you are are looking at buying the and wrapping the property then finance for your client is not relevant.
You would purchase the property in your name / entity and then onsell the property using an installment contract to your client.
Terry point on wrapping is very relevant. The Company I own here in Qld holds a 170+ properties so makes the monthly cash flow an income in its own right however to do less than say 10 could be more day to day trouble than it is worth.
Richard Taylor | Australia's leading private lender
Why not work on say $110 / – $120 Sq M so if you build a 85 Square Metre Townhouse then expect to pay around $93,500 $100,000.
This does not include driverways, fencing, landscaping etc.
I am lucky enough to have a builder as a Business partner in one of our Companies so cant make any real recommendations in Brissie..
To knock a house down and prepare the land for construction will depend on the material used in the construction. If it is a Qld you may find someone will remove it for nothing however if it is a 2 storey brick home then you are probably looking at circa $20,000.
Richard Taylor | Australia's leading private lender
Terry beat me to it.
Didnt get back from walking my dog and dropping the kids to school in time.
A loan in your name or a Guarantee in the capacity as a Director or Trustee is still treated as the same liability.
Only concern I would have is trying to claim the interest expense in the Company when the loan is in your personal name but your Accountant should get you around that.
Richard Taylor | Australia's leading private lender
Hi Erica
Admitedly my experience in dealing with divorce / separation in not from personal perspective but from a advisory point of view.
I assume that you have both come to an arrangment as to how much he requires to receive to be removed from the Title deed.
As long as this has been achieved then the rest is fairly straight forward.
A new loan will be taken out with a condition that on settlement the property be Transferred into your sole name.
Depending on the State in which you are in stamp duty maybe payable on the Transfer.
Once the loan has settled your repayments will be paid to the new lender and all is well.
Just make sure you dont agree to pay out a percentage where you feel your will struggle with the end repayments.
Richard Taylor | Australia's leading private lender
Dave
No perfectly good question and one many borrowers ask.
One of my prefered structures is to establish the loan as follows:
1) Interest only or Principal & interest only loan for the non deductible portion of the home loan usually secured against the PPOR with the loan linked to a 100% Offset account.
2) Line of credit or similar sitting behind the main loan from which you draw down the deposits and acqusition costs for the IP's.
3) Separate interest only loan secured solely against the IP which can be with a separate lender. If this is a long term buy and hold then certainly consider a fixed rate of interest.
If you start with a nice clean slate without X collaterilising the securities you will avoide problems later on in your investing life.
Hope this clarifies the position.
Richard Taylor | Australia's leading private lender
Hi Chris
If you can help i would not even X collateralise 2 properties.
You will need to extract the deposit and acquisition costs of any new IP from your current securities which maybe a problem hence the reason we suggest where possible all loans are kept separate.
Depending on the type of Trust you establish Suncorp may have a problem as it certainly not their forte.
If you keep the loans separate from Day 1 you eliminate problems in the future.
Richard Taylor | Australia's leading private lender
I think i would be taking the 80% LVR.
Richard Taylor | Australia's leading private lender
You will not qualify for a 106% Investment loan if you are an overseas resident.
Are you an Australian living in NZ or a local ?
Richard Taylor | Australia's leading private lender
All depends on the age of the block.
For example in Brisbane if the block is pre 1973 it is of right and requires no modication.
Post 73 the property must comply with the current Building regulations i.e firerating, etc
Richard Taylor | Australia's leading private lender
Swampy
Your in Bournemouth ! I was born and bred in the town.
Are you over there full time or for a couple of years.Will be back in Nov for 6 weeks to watch some good old football at Fitness First Stad.
Richard Taylor | Australia's leading private lender
They will not be alone.
I have it on very good authority that the majors will all be increasing their rates before Xmas irrespective of whether the RBA move again.
The other product which will be withdrawn or amended is the Pro packages as at 0.7- 0.9% below SVR there is no money to be made.
Richard Taylor | Australia's leading private lender
