Forum Replies Created
I am sure that Terry, Simon and I throw our hands up every single day of the week with stories like this.
They are all as bad as each other so dont worry.
Loan structuring is not rocket science but it is a unusual trade only practised by those with a degree of professionalism in the industry.
Bankers do not have this vision as they are solely focussed on security and dam the client at all expense.
There is always a better way of doing things so i would invite every member to think about contacting a specialist mortgage broker with a view to reviewing your portolfio.
This is NOT a push for business but a genuine offer for forum member to feel free to allow one of us (and i assume Terry / Simon have no problems with this) to have a look at your structure and see whether it will cause you problems in the future.
There is NO CHARGE WHATSOEVER for this advice.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New 100% Shared Equity scheme coming soon – Email us for details.Richard Taylor | Australia's leading private lender
Hi pman
Nice try but regretfully not.
The ATO will apply the “purpose test” of the funds and if this is used to purchase a PPOR then they will disallow the interest claim.
You could always consider selling the IP to a HDT with you as the Trustee and then use the funds that you raise less the amount of the existing IP loan as deposit.
Only downside is that stamp duty is still payable on the new transfer and possibly CGT dependant on the Transfer value. In saying this i have many clients doing this as the interest savings is considerable depending on how long you intend to live in the property and you current Tax Bracket.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New 100% Shared Equity scheme coming soon – Email us for details.Richard Taylor | Australia's leading private lender
They are mortgage managers and originators which mean most of their portfolio of loans are securitised.
Fine if that’s what you want but most property investor do not need to have every loan irrespective of the loan size mortgage insured.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New 100% Shared Equity scheme coming soon – Email us for details.Richard Taylor | Australia's leading private lender
I may have answered this question in another part of the forum but oh well it is another post on the board – lol.
You could capitalise the interest and try a lender that offers a lodoc / nodoc style of development loan.
Not the cheapest but we do them regularily.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New 100% Shared Equity scheme coming soon – Email us for details.Richard Taylor | Australia's leading private lender
Capitalise the interest and also go for a lodoc / nodoc commercial development loan.
A little higher rate but still very do able.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New 100% Shared Equity scheme coming soon – Email us for details.Richard Taylor | Australia's leading private lender
One way of avoiding CGT is to make the same amount of contribution into your SMSF as you made in the way of Gross Profit on the sale of the IP.
Anything upto $1Mil this year you are fine.
Have several clients who are refinancing unencumbered homes to place the funds into Superannuation and then buy property in the Super Fund.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New 100% Shared Equity scheme coming soon – Email us for details.Richard Taylor | Australia's leading private lender
Hi Cathy
There is no right or wrong answer. What might be what you are looking for in a home loan maybe totally different to what another clients requires.
Each loan product has certain features whether it be cost, interest rate, on going fees, features within the product, the variables go on and on.
All i would say any lender that is an origiantor or securitises their loan book such as the example given will be mortgage insuring their entire portfolio irrespective of the loan to value ratio. This could cause you problems down the track so beware.
List all the features you think you require and then get a mortgage broker to give you an idea of what is out there. Its a free service so you have nothing loose.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New 100% Shared Equity scheme coming soon – Email us for details.Richard Taylor | Australia's leading private lender
Luke
Based in Chapel Hill we have done more than our fair share of development in Brissie including the Nundah Bowls Club / Tenerife Fire Station etc etc.
Be happy to offer any tips i can.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New 100% Shared Equity scheme coming soon – Email us for details.Richard Taylor | Australia's leading private lender
We employ 2 full time staff to look after ours but dont suggest with a single wrap you go down that track.
Try –
Philip Valentine
Vendor Finance Homes Pty Ltd
PO Box 112, Essendon North VIC 3041
1-7 Caroline Springs Boulevard
Caroline Springs VIC 3023
T 03 9662 4440
F 03 8612 3661
M 0419 440 308Phil is a good operator and offers a monitoring service.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New 100% Shared Equity scheme coming soon – Email us for details.Richard Taylor | Australia's leading private lender
I would argue 70% lodoc at 7.40% with no LMI is a reasonable interest rate.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New 100% Shared Equity scheme coming soon – Email us for details.Richard Taylor | Australia's leading private lender
neo
BLT – Buy To Let and is very common in the UK.
The only problem is if you are not a resident or expat you may find getting a loan quiet difficult. The same goes for here in Australia if you are an overseas resident you are limited to 80% Max LVR and certain Government restructions through the FRIB legislation.
Try a couple of the bigger mortgage brokers someone like John Charcoal springs to mind as if anyone can get it through they can.
Lucky i still have my European Passport up my sleeve.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New 100% Shared Equity scheme coming soon – Email us for details.Richard Taylor | Australia's leading private lender
Tap
I agree selling your PPOR (and i would do it if my wife would ever agree) may release some equity for you but using the equity in it and investing is exactly the same.
If you sold every time you need to free up capital then you would never get anywhere. Hence the Tax payable in the way of CGT is paid on the realised gain and not the unrealised portion.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New 100% Shared Equity scheme coming soon – Email us for details.Richard Taylor | Australia's leading private lender
I only do it secured so it is easier to manage either as a Bridging loan or secured P/L.
Unsecured is too high risk as Terry mentioned.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New 100% Shared Equity scheme coming soon – Email us for details.Richard Taylor | Australia's leading private lender
Heh Chad
Did you get my email ?
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New 100% Shared Equity scheme coming soon – Email us for details.Richard Taylor | Australia's leading private lender
I agree with Terry but think his figures maybe a little generous.
You could go to 95% on a refinance so only have 5% equity left in the property. If you sell the property you will loose that 5% in agents fees, advertising, legal fees etc etc.
Also make sure that your IP loan is not X collaralised with your PPOR as otherwise income maybe an issue on increasing your debt level.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
Hi Will
Armed with the additional information that it will be a PPOR then if you buy it in Trust and she occupies the property then she will loose the First Home Owners Stamp duty concession.
Why not lend her 20% deposit and let her do it as a lodoc / nodoc loan and keep the property in her name only or alternatively get her to look at the shared equity scheme whereby she will only be required to make repayment on 80% of the purchase price.
20% of the purchase price will have no interest charged or repayments required until such time as she sells the property and then all she will need to do is repay a portion of the profit.
OMHO
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
See Dennis even Terry agrees with me that SGB might be the way to go although some LMI will be payable.
Adelaide Bank will go to 80% with no LMI payable and 76% with no LMI at all.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
Try Steve Hodgkinson who is a pertner at the Gold Business Group in Southport on 5532 2855.
Steve is an expert in property and an active investor himself. He has been my accountant for over 12 years and acted for many of my clients from the forum.
Tell him i referred you so you can get past the receiptionist. Moost good Accountants are not taking on new clients.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
Devo
Duckster is correct unless you are licenced you are unable to provide advice to such a question.
Thankfully i am licenced and although cannot admit to meet the “know my client rule” from such a post will attempt to provide a broad general and non specific answer.
It would appear that you are wishing to move into the new IP in a few years time at which time your interest on this property will become non tax deductible. In saying that at the same time the interest on your current home will become deductible.
Not an ideal situation.
My initial suggestion would be to esure that the loans are structured correctly and both interest only with the prime loan attached to a 100% offset account. This can be changed when you move into the other property.
At the time you may want to consider selling your current PPOR to your Trust and borrow 100% of the market value. Whilst stamp duty will become payable the entire loan will be deductible and the funds raised can be used to reduce the debt on the new non tax deductible loan.
Other consideration will be that your current home can be exempt from CGT for a period of 6 years even if you move out.
Please note this a broad statement answer and specific advice could be given at a later time.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
Two suggestions:
1) Look at the new shared equity scheme. Borrow 100% although only make repayments on 80% of the loan.
Fees considerably reduced. You could utilise the FHOG and your savings to borrow 90% instead of 80% and enjoy more of the equity growth/
2) Take out a 100% loan with a lender who does not charge mortgage insurance.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
