Forum Replies Created
Hi Peter
When i get they rest of the information back from you I will show you how you can finance numerous investment properties.
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
Fireblade there is no need to sell the house and then go and buy another IP you can do it on the original PPOR.
It is that difficult but need need consideration as Stamp Duty is triggered. In saying this the SD can be added to the Cost Base and in most cases clients find within 1-2 years depending on how old the property is they have recovered all of their costs and indeed paid cash for their new PPOR.
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 Riss
Funny you mention this as it would be the most asked question i get from clients.
The simple answer is Yes / No.
Yes you are able to borrow money secured against your IP in order to repay the mortgage secured against your PPOR.
Regretfully the interest charged on this new loan will not be tax deductible as under the purpose test the proceeds are to be used to repay a non tax deductible debt.There are a couple of ways to get around this but without more information it is difficult to make a vauled comment.
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
The process you have indicated looks about right however most contracts have a few trigger dates which inlude any of the Special conditions within the contract as well as Building & Pest Inpsection & finance.
If you have already signed the contract it is too late to change the name on the purchase contract to a Trust so i assume that you have already done this.
I also assume that you have ensured that the loan will not be corss collaralised by talking to your lender and therefore that is not an issue.
Unfortunately most lenders will not provide you with a cheque to cover the deposit prior to them receiving title to the property however you made have made alternative arrangements in this regard.
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 i must admit i am intigued why you would require a loan that you wouldnt want the Bank to value.
Guess i can think of a few reasons but nor necessarily in your best interest.
Many lenders will go to 95% without a valuation and take the contract price if certain conditions are met.
As Simon mentioned more information is required to give an 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
May differ from State to State but in good old Qld there is no Stamp Duty payable in the issue of the units.
With regards to the redemption of units I athink you mean the Trust repays the debt then it depends on the vlaue of the asset however this is easily overcome and there would be no CGT.
In your example the Trust cannot buy a property and then issue units as the property is owned by te Trust and the loan is taken out by the unit holders at the same 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
I am happy to attend a lot of small group or 1 on 1 meetings if people want. Often easier to organise.
Let me know if you need me there.
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
Pete
I know we are sorting out the next IP but don’t rush to start paying principal off your first one especially if you intend to purchase an PPOR down the track.
Set up a 100% offset account with your current lender linked to the first IP and that way you will pay less interest (effectively the Gross rate will be around 12.50% -not bad eh) but also be able to utilise the amount saved as deposit when it comes to the PPOR.
If you pay it of the loan when you re-draw or borrow against the equity the interest will not be tax deductible.
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 YBS
Congratulations on your first purchase which is often the hardest step to take.
Subject to serviceability and a little equity there is no reason why you cannot purchase an additional property right away.
There are certain lenders who specialise in 100% IP loans but in most cases you are required to come up with the costs of acquisition. If the property you have purchased has an element of equity within it then there is no reason why you cannot access this and proceed.
In saying this property can be one of the areas to invest in when you are starting out there is also margin lending and gearing into a small portfolio of quality stock which requires very little amounts of initial capital.
Either way do your home and due diligence and obtain advise from a good MB or Fin Planner preferably one with a balanced attitude on risk and is not purely trying to sell you the new super duper managed fund..
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 John
Lodoc / Nodoc loans come in all different guises.
You can always have a lodoc / nodoc line of credit which gives you flexibility to come and go when you want to. Ideal for accessing equity and then paying it back redrawing on it etc. As long as the amounts drawn out are always for Investment purposes then the interest is deductible.
If not you would be better off to split the accounts and have one for private use and one for investment / business use.
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 Peter
Yes would be happy to attend any meeting we hold in Brissie and offer ideas and advice to fellow members.
If you guys organise a day and a time I can be there. Preferably not a Monday night.
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 (dare to dream)
Many people get confused or simply do not understand what Loan Structuring involves. It is not a matter of running out any buying 4/5 properties and then realising that you have purchased them in the wrong name or wish that you had the loans set up correctly to be most Tax efficient and effective.
Each client i deal with has different goals and aspirations and therefore there is no blanket answer (feel free to contact away from the forum if you wish to divulge personal information).
All i would say is that as time progresses your objectives in wealth creation may change so if you establish they way in which you will purchase your properties correctly then your portfolio can change with you.
As an example a recent forum client contacted me to advise me that they had just paid off their mortgage securted against their PPOR and were over the moon. The only problem was that they had decided now to move to a bigger home although didn’t wish to sell the first property as they thought it would be an ideal rental.
When i explained to them that there was no problem in acquiring a new loan for their PPOR but the interest would not be tax deductible they were devasted and assumed that as the funds would be raised against what would be a IP this would be the case.
We have now managed to re-structure their finances in such a way that all of the interest is Tax deductible and they will end up paying cash for their new PPOR. In saying this there was some costs associated in doing this which could have been avoided.
A decent MB with loan structuring experience should be able to map out for you a long term plan and solution on how you can progress with each and every property.
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
Firstly sorry to hear about situation.
I can sort of understand as i have kinda been there and done that but thats a different story.
Couple of things:
1) A Pty Ltd has Directors / Shareholders not beneficiaries although the respective Family Trust could hold the shares.
You mention that you were a Trustee of one of the Trusts Did the Company buy out your shareholding ? If not and assuming the shares were equal you would still have certain rights.2) I assume that you are no longer a Bank signatory as “he who controls the money controls the Company”. If you do it would be worth writing to the Bank telling them there is a dispute and you require all withdrawals to be authorised by all of the signatories.
3) This spokesman. Is he an employee ? It is not often that an outsider can tell a company what to do and they do it.
There is alot more questions i could ask but got to run of to a lunch.
i think the first thing i would be doing is getting a good lawyer experienced in Company breakups on your side and acting for you.
12 months is a long time to go without doing anything.
Good luck and keep us all informed.
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 Heidi
Firstly welcome to the foum and congratulations on taking the first step into property investing.
I will sound like a broken record if you read any of my previous posts but of the things that is of prime importance when starting out is to ensure that you are structured correctly.
Too often i see clients who have gone out and purchased a property and then realise a couple of years later that they have purchased this in the wrong names or entity and that their loan has not been set correctly.
A small bit of time spent getting it right upfront will put you in good stead for the future especially come to Tax 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
Thanks so much Elka.
You know me I can’t stay away especially if it means helping people.
Kids are off to school and the wife is having her hair done ready for lunch so i figure i have about 4 hours left on the keyboard.
Thanks again.
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
Ty
Good luck with your future employment and am I sorry to hear about your redundancy.
Very remiss of me in my earlier post.
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 Picklesam (love the name by the way) have PMed 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
Peter
What are you wanting to find out about Strata Titling ?
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
Look i hate to contradict anyone on the forum but dont necessarily agree that without an ABN for 2 years you will not get finance.
If you have an ABN for 1 day you can qualify for finance to a level of 95% LVR and also many investment deals are done on lodoc basis.
I financed a $3M Comercial development last week with absolutely no income evidence at all. The Client has some equity and the project was strong.
Having had 20 years in the finance arena i think i have seen most deals come across my desk at some time or another.
I am not saying that every deal can be done but there are many many way sto skin a cat.
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
It all depends on the terms of the management agreement.
We just obtain 75% for a forum client on a Sydney apartment which was 37 square metres.
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
