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Must admit never heard of them.
Didnt have a lot on Google so assume they are a small brokerage or a mortgage manager.
Either way restrictive choice I am sure you can do better.
What are wanting out of them?
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
It can be funded in several different ways but would need more information to give you a justified answer.
Feel free to drop me an email or post more information and we can answer mroe specifically for you.
I do a fair amount of this type of funding at the moment and it is fairly straight forward once all the skittles are in place.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
I think many of you have misunderstood the market place this product is aimed at.
Take for example one application i have on my desk at the moment from clients both of whom are professional qualified (One is a surgeon) and they have a fair deposit.
Running the serviceability calculator of all lenders they can borrow upto $1.8M however in Noosa Waters that gets you a nice block of land. Using EFM they can borrow around $2.3 and for that they can get into a property upon the water.
For them the additional $500K of borrowing means that the growth they will get on a more expensive property is worth sacrificing 40% of any capital gain rather than wait a few years until their salaries go up again or they have more equity.
Nodoc / lodoc loans have been around in the UK since the early 80’s and in Oz for the last 10 years or so. The EFM is a full doc application and only if you can show serviceability will you qualify.
The sub prime market cannot be compared as their are many other reasons why the like of New Capital are on the verge of bankrupcy.
How many first time buyers cannot get on the bandwagon to find their own home. EFM is a consideration.
I have had so many enquiries from clients who want to refinance to EFM and then use the extra monthly income to invest in IP’s.
Certainly not a product for everyone but definately serves a very useful purpose in the market place.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
Hi Scott
Firstly welcome to the site and i hope you enjoy your time.
First up i am concerned as to why you are making P & I repayments off a investment loan – i dont think youhave been well advised there.
Secondly there is a 100% loan and a 100% loan and they differ.
If you mean borrowing the full amount with costs and using your other property as security bu X collaterilising the loan then i wouldnt recommend this. if however with correct structuring you mean borrowing the full amount and keep the properties separate then that is fine.
Many lenders offer 100% + loans on IP without other security so as long as you have good serviceability that maybe an option. Obviously the interest rate is slightly higher.
Options galore but structure needs to be correct first.
A good MB should be able to advise you.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
Their name has cropped in a couple of previous posts across a variety of foumrs unfortunately mainly for the wrong reasons.
They appear to offer an overpriced finance service which is no different to any good MB.
Any broker that charges for his service on standard residential home loans needs questioning these days.
Very much Caveat Emptor.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
Hi there
The Big C i have to be honest we refuse to deal with them. There post sales service is non existant and they promise the world yet deliver absolutely nothing.
The Branch staff have nil or little knowledge and have one thing in mind on every deal and that is to protect the Bank at all costs irrespective of the customers needs.
We would be happy to assist if you want to shoot me an email.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
Guys
No unfortunately not at this moment can the product be used for investment but i expect that to be with us within 6 months.
However in saying that you can refinance you existing PPOR loan and free up serviceability to enable you to buy more tax deductible IP’s.
Calls to date seem to think this and the fact you can now afford an area where originally you didnt think you afford are the way to go.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
Hi there
No disrespect to Anita but she is not Licensed or qualified and whilst may have done quiet well to have paid off her loan many of us have done that without writing a book.
You certainly would not take out a loan of P & I nature if you still had a debt outstanding on your PPOR. My preference for clients is to structure an interest only loan secured against the PPOR linked to an offset account and then sit a LOC behind this.
The function of the LOC is to draw down deposits and acquisition costs for your invetsment properties. These are then standalone without the need to cross collateralise.
Once the balance in the Offset account is equal to the balance of the PPOR you could transfer this over and pay out the debt but again why would you.
Unfortunately loan structuring is a boutique finance area which not many standard mortgage brokers understand let alone the general public.
Done properly it will save you $$$ over the term of the loan but set up wrongly from day 1 will have the opposite effect. The cost will be both financial as well as the lost opportunity to move quick enough when good deals arrive.
The loan structure is one thing but also the entity in which you purchase the property in is another.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
Hi Baz
Depends on the way you want to go.
Lodoc upto 95% is available although the interest rates are slighly higher than normal. Lodoc 90% can be done at the same interest rate as the standard variable rate is you can pay the LMI.
Depending on actual loan amount you might need to be GST registered.
On a $200K purchase price you would need $20K plus costs for a 90% LVR or a little less at 95% LVR.
Let me know if you need further information.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
In Qld it is 30 days after you go unconditional so in a wrap that is pretty early in the piece.
And I think i answered the other question off line for you Andrew.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
Tom
In answer to the following question
I would like to know how Adelaide Bank or Rismark profit from this?
From their point of view they give you say $50,000 and then have to cop all the interest on top of that.
I could buy a property and sell it 50 years later. The loan will sit idly on their books for all that time.A) The maximum length of the loan is 30 years for the Adelaide Bank. Remember the first loan is a P & I loan so they collect from you interest for the 25 years so just like any other standard loan.
Rismark manage the Superanuation Funds and there profit is 40% of any capital increase. If the market stays flat for say 3 years and the value is the same as it was when you purchased the property then you have nothing to pay and you treat it as an interest / repayment free loan.Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
Mac Bank / First Mac / Citibank are 3 that quickly come to mind.
Suncorp i think only requires confirmation of affordability and a couple of others.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
Nicko
Just remember a Trust cannot borrow on its own.
The assets / liabilities / income / expenditure of the Trustees is considered when making an application for borrowing.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
Sorry dacium but you are incorrect.
Statement For example lets say it make $60,000 in 3 years. In this time you would have paid rates 3 times, about $6,000. Money lost each year (making up the difference between rent and interest) totalling about $13,000
Answer This is inaccurate as rates and annual interest are claimed on an annual basis and not reduced from the capital gain made on the sale.
The reduced cost base of a CGT asset includes:
1) money or property given for the asset
2) incidental costs of the CGT event or of acquiring the CGT asset
balancing adjustment amount –i.e Such as Stamp Duty
3) capital costs to increase or preserve the value of the asset or to install or move it.
4) capital costs of preserving or defending your title or rights to the asset.Once the Reduced cost base has been calculated then the Capital Gain can be worked out. You may use the Discount method which often works out better for the owner of the asset if the asset has been held for more than 12 months. This allows you to discount your capital gain (by 50% for individuals and trusts, and 33 1/3% for complying superannuation funds.
Assume a capital gain was $60K then applying the Discount Method then $30K would be added to the individuals Tax Return.
Apply a marginal rate of 30% then 30K x 30% would be the CGT payable.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
Hi BMW
Hate to say Adelaide Bank do have a great lodoc product (one of the few that take PAYG lodoc’s) although they will not to Lodoc fixed rates which can be a pain.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
Hi there
Firstly welcome to the forum.
To answer some of your questions:
1) Some Interest only loans can be evergreen which means they are a revolving interest only facility. Other range from 5 -25 years.
2) Wow dont take any advice from fellow students it could be very expensive.
CGT can be calculated a couple of ways but to make life easier it is 50% of your marginal tax rate based on the net profit after expenses. You can add to your original cost base the cost of the stamp duty but need to also adjust it for any depreciation claimed.
Remember you will get the 50% of marginal tax rate concession on the basis that you hold the asset for 366 days from the date of the original contract.
This assumes you have purchased the property in your personal name.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
The scheme is officially being launched by Adelaide Bank and Rismark International tomorrow but we were of the 6 Australia Brokers given the opportunity to trail the product prior to the official launch.
Might have seen my post earlier this evening
“Hi All
Many of you may have seen this evenings Today Tonight program on the exciting new Shared Equity Mortagge.
Clients of mine and fellow Property Investing .com members have been the first people anywhere in Australia to have had their loan approved today under this scheme.
Hopefully TT will do a follow up story later in the week about the couple and our Company.
Congratulations to Steve & Sarah and good luck in your new home.”
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
I dont feel that Adelaide Bank have a more strigent lending criteria at all. If anything they are easier to deal with than the majors.
Do agree they have an excellent suite of products.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
Comes of pushing the reply button too quickly
Sorry Nico
Yes you are correct with your acronym.
Bare with me and I will try to explain succinctly and simply the difference between the Trusts… There are four possible ways to own investments:
• one name
• joint names
• company
• trustThe first two are problematic for a couple of reasons. They provide no asset protection and no flexibility. As time goes by and your circumstances change, we will rely on that flexibility to ensure that you are always in a strong position to achieve your goals. The company is not good because there is a potential for asset sales to be taxed twice…. A trust provides
• asset protection
• tax benefits
• flexibilityIt is also a structure that the wealthy people use to own assets that produce wealth. Hence, if we wish to achieve the same results that the wealthy people achieve we really should do the same things that they do…and this is to use trusts to own the assets. When we look at trusts, there are really only three types of trust:
• a family or discretionary trust
• a unit trust
• A hybrid trust, which is a cross between the first two.A family trust works well when we buy businesses or cashflow positive assets. It is not good when the assets are negatively geared as the losses are trapped within the trust and carried forward to absorb future profits. In this way, the individuals do not gain any tax benefits from negative gearing.
A unit trust works well when two (or more) unrelated parties buy assets together. There is no real advantage in using a unit trust within a single family unit as we lose the discretionary features or benefits that are available to help reduce the family tax.
A hybrid trust is best when the one family wants to buy assets that may be negatively geared as it enables the assets to be owned by the trust, but the individual to benefit from negative gearing against their other income such as salary.
Therefore, based on these simple rules…we would normally recommend a hybrid trust for property ownership when your intention is to build a decent portfolio of assets.
Certain consideration need to be looked at with regards to the ATO interest rulings but if established correctly this shouldnt prove to be a problem.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
Hi Ni
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
Rismark manage the Superanuation Funds and there profit is 40% of any capital increase. If the market stays flat for say 3 years and the value is the same as it was when you purchased the property then you have nothing to pay and you treat it as an interest / repayment free loan.
