Forum Replies Created
John
Firstly the problem is that with a lodoc loan > than 80% there is a limited market place of lenders.
85% is available at standard housing rates but when you get to 90 / 95% the choice is limited and the interest rate and charges start to climb.
Are you sure that you are unable to show sufficient serviceability to qualify for a full documentated 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 Julie
Duly emailed.
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 Daryl / Julie (Thats a lot better)
Couple of things to clarify:
1) No lender (sorry there is one but you would use them for this) will advance purchase price + costs (circa 106%) without additional security so thats where it is important to structure correctly.
2) Yes any Bank will tell you down the track they will release your security for a small fee but the problem comes if their LVR ratios are no as they want at the time.
Assume your portfolio has not rised in value as you would have expected then certainly irrespective of what they tell you now they will not release your PPOR without LMI or indeed asking for a cash deposit to reduce your over liability.
The other issue of course comes with your borrowing capacity especially being self employed. As all lenders use different servcieability models you could easily find that you have reached your ceiling with one lender and want the flexibility of going elsewhere.
That may not be possible without much undue stress,aggrevation and cost.
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
If you are dropping back to 2 units you should be able to go to 80% LVR quiet easily and the rates will be a lot lower.
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 JFisher (Sorry i dont know you real name)
I think that is a niave attitude and not entirely legally correct.
Yes i would advocate borrowing the entire loan amount plus costs but the important factor is the way the loan is structured.
Imagin you have your own home and 4 IPS and through everything in together and then wish to sell your home and take out some of the profit you may well find that your Bank say NO we require some or all of these surplus funds to cover security on the other loans.
Alternatively imagine one of your IP’s is in arrears due to a poor tenant not making the rent payments and the Bank after taking legal action decide to sell your PPOR which is a waterfront home to re-cover their debt on a cross collaralised security.
What happens when you have available equity of $1M but the bank you have all these loans with tell you that you dont fit on their servicing scale. You are unable to utilise the equity and go elsewhere as they have all the securities tied together.
Each of the above examples happens every day of the week and the Banks are protected by the way their mortgages are secured.
Sensible structuring can avoid a lot of future issues and a good MB can sort out such problems.
I maybe slightly biased but i guess feedback from clients each and every day on the way that their loans have been put together by their own bank makes me very sinicle.
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 both
The point you have raised is a very good question.
A Bank will give you an perspective on what they can offer in the way of product with little or no regards as to loan structure, type or any other financial plan or risk analysis.
This is usually because they lack knowledge of such areas and are more interested in securing the loan to build their figures and to ensure the Banks security is maintained.
A MB can sit on your side of the fence and hear what you are after and the goals and aspiration you set for you wealth creation and then devise a plan to move forward.
This could include suggestions on how you structure the loans, the entity in which you purchase them in and then ways to maximise your borrowings without X collaralising the loans.
In addition a financial planner can suggest ways you should protect your investment by looking at risk type products such as Term Life and Income Protection to name a couple.
I know both with Terry and I our services are entirely free as we are remunerated by the Bank or lender with whom we place the application.
With regards to the financial planning aspect I provide my risk services free of charge however do charge for the preparation of a complete financial plan where a client is looking for investment or superanuation advice.
I hope this helps a little but feel free to ask any further questions.
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
As Terry said the high costs of holding the Asset is one thing but also you are unable to claim the interest as a deduction unless you have an intention to build and generate an income from the property.
Unless you develop the land you would need considerable capital growth to make this strategy worthwhile.
Funny isnt it that some Financial Advisers are not prepared to tell you how he / she has made their wealth todate( if any).
I have nothing to hide from my 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
Yes i have used them in Qld on numerous deals and with great effect everything from a $400,000 property to a development for over $5 M.
No real tricks to writing up a Call Option especially in the Sunshine State where there is no Stamp Duty charge don the Option Premium unlike in other States where this comes into effect.
Hardest battle in getting the Vendor / Real Estate agent to accept the Option Agreement.
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
Must admit i dont see a lot of my clients as referalls come from everywhere and with the electronic age deals can be put together by email.
I come upto the Sunshine Coast every 2 weeks as i have many Coast clients and I like to go to the beach so would be happy to assist.
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
For a top Accountant who is excellent in property try Steve Hodgkinson who is a partner at Gold Business Group on the Gold Coast.
Steve can be contacted on 5532 2855.
Tell him i referred you otherwise you will not get past the receptionist as most good property 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
Easiest way is to talk to a local Town Planner or the City Council as each Council has different requirements on what you can do and what it will cost.
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
Easiest way is to talk to a local Town Planner or the City Council as each Council has different requirements on what you can do and what it will cost.
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 certainly with most lenders you are able to renegotiate the term or the payments.
Switch from P & I to Int only or even have a payment holiday.
Depending on with whom the loan is with will determine whether there is a charge for doing so.
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 think Karm is referring to the Trust Deed required to establish a SMSF when he refers to Trusts and Super in the same sentence.
Also i think you will find the prime reason people invest money into Superanuation is to provide an income in their retirement rather than just for a quick tax reduction.
Although i have come across Financial Planners who sell it on the basis of this and this alone.
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 think with that additional information you will find that your options are wider than you may have first believed.
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
On the limited information I do not believe that serviceability is an issue at all what is probably more important in your position is to ensure that the loans are correctly structured given that you are on the highest marginal tax rate.
It may be too late to do much about the existing IP although in saying that with some careful planning might be able to get some of that debt working for you harder.
Rather than post your serviceability calculation on the forum I am happy to take this offline for you (feel free to shoot me an email) as you might want to keep somethings private.
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
To be honest NAB are probably one of the worst lenders when it comes to exceeding LVR’s on Commercial deals especially development deals with no pre-sales.
They will not lend against GR and are very picky on the clients serviceability and experience levels.
Definately a No Go area if the deal is tight.
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 Johnny
I have sent you a reply email which i hope you have received.
Come back to me and we can get things moving.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
Be happy to recommend you to a good Convenyancer / Solicitor in Brissie if you are after someone.
Have used them for 12 years and have done many a transaction through them. If you deal with right person you can get a premier service without having to pay a fortune.
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
What a load of rubbish
Sorry BE i get so annoyed when uneducated mortgage managers try and steer clients into unsuitable products for them.
If you have a Line of credit with a limit of $100K and have only drawn down $92,000 on the basis that the entire loan is for business / investment purposes the interest charged becomes fully deductible.
If however you have an interest only loan of $100K and have $8000 sitting in an offset account you only owe $92,000 and hence are charged interest accordingly. The interest receives exactly the same Tax treatment as the LOC.
Funds can be withdrawn from the offset account at call and interest is recalculated (with most lenders) on a daily basis.
The mathmatical equasion is exactly the same except as your mortgage manager has pointed out in certain cases there are more fees, charges and the interest rate can often be higher.
If he insists on steering you this route switch lenders as the information you are getting is inaccurate.
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
