Forum Replies Created
Gerry
Rather an expensive way of avoiding Cross collaterilising your loans.
Not only do you have the set up costs for the Trust and Pty Ltd Company but also possible Land Tax issues depending in which State you are in.
Lot easier and cost effective ways of avoiding maxing your serviceability.
Richard Taylor | Australia's leading private lender
Peggi
Not a bad virgin post. Why not pay for an ad next time.
Richard Taylor | Australia's leading private lender
Thought about how you would finance it.
Depending on the State and the Island would determine how much you could finance against.
Richard Taylor | Australia's leading private lender
Hi there
Yes most brokers including moi have a range of lenders who could accomadate your request and certainly in my situation we dont charge for anything for any of our residential services.
There are a variety of Family Guarantee loans all with a slightly different spin on the product details.
In a nutshell if your parent wish to sell down the track the loan will need to be reduced to either 80% of the current valuation of your property or incur mortgage insurance at the time if the LVR is > 80%.
Shoot me an email if you want some more details on loan options.
Richard Taylor | Australia's leading private lender
Hi there
AT an 92.5% LVR most lenders will either want to mortgage insure the loan or charge a risk fee to cover their exposure.
I am unaware of with whom the Credit Union are using for their MI cover but not every lender would have the same problems.
Checking the post code it appears acceptable with the right lender.Richard Taylor | Australia's leading private lender
You will not get a 100% nodoc or lodoc loan so that is not an issue anyway.
As Terry mentioned each lender has a slightly different interpretation of the income they use for serviceability.
Are you sure that it is the mortgage insurer who has placed this limit on your borrowing because if this is the case you will be immediately limited as to who you can use.
Why not email Terry the details and le t him cast his eye over the deal sure he can reommend someone who wil be able to help.
Richard Taylor | Australia's leading private lender
Scrooge
Not a good recommendation to make to use a non Bank securitised lender that mortgage insurs all of its loan irrespective of the LVR.
Might be fine initially but Wozza will suffer down the track if he looks to grow his portfolio.
Richard Taylor | Australia's leading private lender
Might want to also stay away from Mortgage Refunds.
Interesting story on the principal but here is not the place to post it.
Ask the average Bank if they deal with them and the answer will be no.
Richard Taylor | Australia's leading private lender
They appear to be a typical mortgage originator who fully securitise their loans.
Organisation such as these are dime a dozen.
Given the recent jitters in the US sub prime market you may well find that their costs of funding increase.
Also why would you use a fully insured lender if you didnt have to for your borrowing as this could severally limit your future investment plans.
I am suprised they commented on structures as they dont appear to hold Financial Services License.
Richard Taylor | Australia's leading private lender
Many lenders offer such a product so it just about comparing apples with apples.
Hard to give recommendations when you havent all the facts and figures.
Richard Taylor | Australia's leading private lender
Terry
Yes i saw that and also Gemworth introduced "cash out" limits.
Prime thankfully dont require either an ABN or GST registration.
Richard Taylor | Australia's leading private lender
Absolutely where you can.
Richard Taylor | Australia's leading private lender
Swift
Simple answer is a lot of mortgage brokers or bankers now no better.
They are not property investors and are merely looking at the total security cover.
Alternatively some organisations recommend X collateralising your loans with one blanket line of credit because on the surface the interest rates look good. In most cases they will however receive a bonus commission or overide payment for doing so which they may fail to advise you of.
Brokers who use the CBA under their line of credit will receive such a additional payment on volume business.
Richard Taylor | Australia's leading private lender
BMW
Regretfully couldnt tell you whether it is available direct as in Qld we have to deal with a MM.
Must admit their are twice as efficient and product range is excellent.
Richard Taylor | Australia's leading private lender
BMW
Regretfully couldnt tell you whether it is available direct as in Qld we have to deal with a MM.
Must admit their are twice as efficient and product range is excellent.
Richard Taylor | Australia's leading private lender
As one would expect the above comments made by Terry and Simon are bang on.
Certainly you need to weigh up the costs of selling the property into a Trust structure in relation to Stamp duty, potential land tax liability etc etc.
However if you take the interest charged at say 8% on say $465,000 being the potential sale price this amounts to just over $37,000 PA. If you leave things as is the entire amount needs to come from after tax dollars and is not deductible.
Assuming the interest becomes deductible at a marginal rate of say 30% it has to be better in your pocket than the ATO.
As Terry mentions it all depends on how long you would intend to retain the current PPOR as an IP.
Richard Taylor | Australia's leading private lender
Many suitable areas worth consideration but you need to decide whether you want to finance the deal out of the US or use your own cash or line of credit from Oz.
Have a look through some older posts and you will see many varying views.
Richard Taylor | Australia's leading private lender
As has been mentioned if you have been contracting for the last 10 years you have been treated as self empoyed since then irrespective of the structure and entity you operate under.
Lodoc loans are available upto 95% however you will start to pay for it when it comes to interest rate and LMI with anything over 90% LVR. Insured loans at this level are all post code restricted bu the mortgage insurer so acceptance will be determined on the area you are looking at purchasing in.
Anything in the City or larger regional areas will be fine.
Richard Taylor | Australia's leading private lender
Which part of the UK are they talullah ?
Richard Taylor | Australia's leading private lender
Terry
Totally agree. In most cases i have found that the flips I have done have been onsold to other developers who have gone on to develop the site or in some cases flip it again (Yes the Nundah Bowls Club which we flipped was subsequently onsold twice more before the end developer built 55 units on it) so the CGT concession has not been a consideration but you are totally correct for the mum and dad investor.
Richard Taylor | Australia's leading private lender
