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One of the downsides with long term deposit bonds is that you will require assets equitang to upto 6 x the deposit bond amount in order to qualify.
For many individuals this is not achievable.
As Terry said if you tie the cash for that period of time you are likely to miss out on a lot of other deals that come across the table.
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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
To be honest I wouldn’t be entering into a contract to purchase the land but rather a Call Option which will avoid the stamp duty issue (In most States).
The Option has the terms of the purchase contract contained within it although the purchasers name needs to be nominated.
This way you pay an Option Fee and when you ready to settle merely nominate the purchaser who could be the individual or entity to whom you have onsold the property to.
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
Must admit i deal regularly with Anz / The Dragon and have never had problems with either of them.
I think it is a lot to do with relationships and I am lucky that i have good mates who work for each.
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 Adam
Wow nothing like planning ahead and that is good.
If you intend to have your parents as a Director of the new Pty Ltd Company then their incomes will also be important as well as their current statement of position with regards to the assets and liabilities.
If you are doing it on your own then certainly your income will be important. To avoid lenders mortgage insurance you will require 20% deposit for each property that you buy unless you utilise some of your parents equity.
If you are thinking of doing it regularly most Banks will want to refer you upto their Commercial Development departments where the criteria is a lot stricter.
A good MB should be able to work with you in such a venture.
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
You MB must like pain and torture to be dealing with Colonial.
Some MB’s get an override commission from the CBA thats why they put their clients there but i think most MB’s on this forum would tell you to steer well clear especially if you wanted to have a smooth investing path when it comes to your future obrrowings.
The CBA love to X collaratlise tell you one thing yet do the other.
The service levels are non existent and dont have ask for something in a hurry.
You can do a lot better.
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 other posts have helped analyse the purchase costs in Qld but remember if the loan is not structured correctly then your loan costs could run in 4% of the purchase price if you include mortgage insurance.
Whilst loan costs are a deductible expense if you can avoid them or reduce them then that is certainly the way forward.
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
Regretfully it is too late change the structure yo have for the sale of your current business but with effect from 1/7/2006 there are a few concessions available to small business owners.
The varying definatitions are too complex to post here but in essence you could sell the business and find the amount entirely CGT exempt if:
1) You are disposing of an active asset for retirement purposes.
Although a lifetime limit appies to this exemption.
2) Dependant on your age at present. If you are <55 the capital
gain must be rolled over to a superanuation fund. Nothing to
stop you purchasing an IP in the Super Fund name.
If over 55 the capital gain can be taken as cash or rolled over to
super and is exempt.
3) The asset has been held for at least 12 months.Few other criteria but that will get you on the right track.
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
Exactly right Simon they charge and receive a commission.
I hope they can sleep at night.
As mentioned several lenders in Oz offer an interest free debit card which also helps you in the process.
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
What you have described is rather rambling and i think you are a little confused but I know what you are suggesting and it can be done if set up correctly.
Alternative would be to purchase as Tenants in Common with a 80/20 split in the interests held 80% – HDT 20% you personally.
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
Jebro
Sure feel free to shoot me an email if your MB exhausts his sources.
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
Sanjuv My question exactly.
With no security you have no chance and even with security most companies would want between 4-8% per month depending on the LVR.
I do a lot of secured loans from ym SMSF and would that sort of return.
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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 Jebro
Regretfully you wont find anything like that on a residential basis as any lender will want to assess the situation everytime there is an increase in the credit limit or a change in the securities held.
Certainly on a Commercial situation with a blanket loan then that is a different story.
With the portfolio loan products out there and even with portability of loans the lender will want to protect himself against fluctuating circumstances.
The other thing your MB will have all of his commissions clawed back everytime you sell a property usally within the first 12 months so he will not be too keen to be working for nothing for you.
There are a couple of halfway house products which probably get you almost to where you want which i am sure he will investigate.
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 have come across it when dealing with the US Banks for finance and needless to say it is a US expression.
It is a simplistic way of debt reduction using a line of credit and as Simon mentioned sold by Mortgage Brokers for $3K to give you the slick spiel and diagrams.
Using an interest free component on your home loan (A couple of Aussie lenders offer a 55 day interest free period on cash withdrawals) you draw this down and make a lump sum payment of the charged debt component.
You add income throw in a bit of time say the magic words and your loan term is cut in half.
Seriously a structured free plan from your local Mortgage Broker will do you just fine.
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 Will
You say you are buying with other family members so i would have assumed a Unit Trust structure may have been more appropriate depending on the reasons for buying and the type of property you are going to acquire i.e negative or positive geared.
In relation to the State in which the Trust is establish this makes no difference at all. When it comes to Land Tax this is calculated on the unimproved value of the property and charged by the State Govt in which the property is located and not where the Trustees are based.
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
Hopefully answered on other post.
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 Larson
Must admit got slightly confues along the way but think i certainly got the drift.
I am assuming that your Broker drew down the Line of Credit funds which gets him a trail commission. Unused Line of Credit dont earn you much other than respect from your clients.
I has a feeling he might be in it for a quid.
Dont get me wrong i think the Breakfree package which I assume you are on is an excellent facility and we do volume business with Anz. (Helps the Qld State manager is a good mate and golfing buddy so we get things done).
Would need to know a little more about the deal but I am sure there is a way around it.
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
Foundation – Think both Terry and I are well aware of the ATO cross referencing hence the recommendation to consider a Nodoc style loan where no income declaration is required whatsover.
Also now with many Lodoc declaration income is not required to be declared only confirmation that you can service the monthly repayments.
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
Are you saying the bank will give him an interest only loan with an offset account? = YES
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 Linda
Slightly changing the subject i am assuming that you parents are self funded retirees as the sale of any asset with profit may have considerable consequences if they are receipt of a pension.
In saying this you may have used a Trust structure to have some discretion over the profit split when it comes to it.
Is there a reason why you would not look to fund it with a nodoc / lodoc style loan. Dependant on the figures you could always roll the interest up until you were ready to subdivide to ease the interest burden.
Obviously capitalised interest is not tax deductible but may be easier on the hip pocket.
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 HT
This is the most commonly asked question we get from our clients and the simple answer is Yes / No.
It the normal course of events then then the answer is NO as the ATO definition of deductibility must pass the “Purpose Test” and the funds clearly are to be used to purchase a PPOR.
In saying this structured correctly and regretfully with a bit of stamp duty then the entire amount can become deductible.
Presently we have clients on a weekly basis who go through the same process so nothing is uncermountable but it just take a bit of consideration and few calculations.
Things we would need to know before we could could provide an accurate answer would include:
1) The names the current PPOR is in.
2) The original purchase price and date of purchase.
3) The State in which the property is in.Happy to help out if you can give us more 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
