Forum Replies Created
Hi Peter
Whilst i agree with Michael that the criteia is a little stricter that your normal residential home loan it all depends on how small you are going to start.
If you are looking at a building a duplex or similar or buying a house, subdividing and building another on the subdivided block then all this is possible with little deposit funds.
If however you intend to kick off with a 12 x 3 townhouse project then you will need a lot more capital and probably 3/4 pre-sales just to start with.
It is not an easy question to answer without more information but is certainly doable so dont give up.
If you want to post more information either openly or through a PM then I can look at your position and advise accordingly.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
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Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
Good question
You will need to become PS146 compliant which involves passing 4 of the initial exams and then 4 additional subjects over a 2/3 year period.
You will also need to have a minimum of 5 years experience in the industry as passing the educational part is only one section of becoming licensed.
Due to the costs involved with compliance you will need to operate under someones Licence and most of the top Aggregator Groups insist of 5 years experience.
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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
Yes a few lenders will finance such a property dependant on:
1) Size of the property
2) The type of management agreement in place.i.e Does the property have to be placed in the management pool.
Dependant on the above information will determine what LVR you will get.
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
Yes it has its downsides however the Depreciation and Building Write off will be at a premium.
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 Bloach
Yes you certainly can purchase a property as a non resident and the attached website link may answer a few more questions:
http://www.firb.gov.au/content/faq.asp
If you are requiring financing for the purchase then you will be limited to 80% LVR.
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
A LOC can be taken to 90 – 95% LVR of the property value and would sit behind your other mortgage if you have one.
Your LOC can be used to used to fund several properties subject to the avaialble equity you have in the LOC.
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
Well if you are thinking about doing that you certainly would not borrow 80% you would borrow 95% and look to place the surplus funds in an offset account.
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
Ok Invest
Point taken but make sure it is structured correctly so that you can borrow again for an IP in the future.
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
Also why would you borrow only 80% of the purchase price unless you have no home loan. If you do retain the funds and borrow 100% on the IP.
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
The older unit will not have any Building Write off !!
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
Dave
A LOC will need to be secured against a property however the interest rate will vary but often around the same as a standard term loan.
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 Bruham
Without more information it is difficult to assess the product but what i would say is that Macquarie being a securitised lender has relatively hefty early repayment fees when you discharge the loan.
Mind you if you sell the property within a 12 month period your Mortgage Broker will have all of the commission you had clawed back so he might not be too happy either.
It all depends on what you are after, development finance at residential rates.
Sometime depending on the size of the project you are better of to pay the going rate of interest and avoid the fees and charges.
We do a fair amount of commercial work but as i say is difficult to assess with all of the facts.
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
Thanks Simon.
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 Paul
Yes it is a simple formula:
1) 2nd mortgage 20% then they take 40% of the sale profits.
2) 2nd mortgage 15% then they take 30% of the sale profits.
3) 2nd mortgage 10% then they take 20% of the sale profits.There is no time frame on when the equity is take.
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
Baldy
Must admit i havent read Steve’s book so can’t comment on the contents of Page 154.
What i would say is that i think they maybe both talking about different types of Trusts.
Dale refers to a HDT where the property is held in the name of the HDT and the unit holders borrow the funds to purchase units within the Trust.
There is much murmuring in the ATO over this type of structure and we have seen many ruling which have gone against the Unit holders as the Trust have not been establish correctly.
With a DT then the negative gearing benefits are held within the Trust and cannot be claimed by the Trustees where as the Unit holders in an HDT have the benefot of being able to claim the interest as a deduction.
Many lenders still have a problem with HDT’s however a good MB should find a way through the maze for you.
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
The answer to this qeustion depends largely on what the ise of the property will be for.
If it is a home for her personal use and will be a Principal place of residence then you would structure it differently that you would if it was an investment property.
For an IP you may use a Unit Trust which gives you flexibilty however you may run into stamp duty and CGT issues.
I would need more information before i could give you a valued answer.
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 Brian & Loretta
I am based in Chapel Hill but have many clients in Ipswich.
Be happy to catch up for a chat anytime. I rather an active property investor myself.
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
JT
He is sort of right.
Yes many lenders offer sudo offset accounts within the mortgage loan itself and Yes if used with an IP loan can cause all sorts of tax issues with regards to interest deductibilty.
There are other reason why you also use an offset account but make sure that the one you choose is totally separate and is 100% offset rather than a portion.
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
Dave
No you may have misread or i may have miss typed.
The 20% is not coming from your Super Fund but a large Industry Super Fund that is investing in 2nd mortgages.
You provide nothing other than the acquisition costs and this can come from your FHOG.
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
Dave
To avoid having the loans X collaralised you would normally set up a LOC to drawn down deposits and acquisition costs and then structure the IP loans as stand alone deals.
Many lenders will now lend 95-100% on an IP anyway which means you only need to come up with the acquisition and loan costs.
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
