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Depending on who the Guarantor was.
Reason i say this i have just done a deal with one of the Big 4 where the girlfriends income although disability pension was taken (And certainly could never show serviceability on her own) although her boyfriend was a Gurantor and not on either the loan or title (other than in his capacity of Guarantor).
Simple reason was that B/f didnt want to be shown on the loan documents (we won’t go into the reasons why) but she couldnt service alone.
There are always reasons why a deal can be done as long as their is some financial benefit to the Guarantor.
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Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
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Nats – Can you give us more information on the figures and we might be able to assist you through the Dragon.
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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
vyaw – Regretfully both CGT (Assuming you sell the property to the Trust at a profit) and stamp duty will be payable.
Maybe for IP3.
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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
Call me synical but me thinks we have a couple of US forumites working in tandem.
If you are that keen on Charrissa Cawley please have alook at her website http://www.reiconferences.com although in saying that you would already know this.
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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
Must admit with the N Bank we never have a problem however having said that many clients have said as Terry mentioned it is policy to ensure that the clients cannot leave them.
As they don’t pay brokers trail commission many use other options but it is like anything in this world there is good and bad. My experience from our own Branch Manager where we place out clients deals has always been good.
He knows if he tries to X Collateralise the clients then we take the business elsewhere.
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 buying a property in a Discretionary Trust then you would purchase the property in Mr & Mrs J Smith ATF for the Smith Family Trust. The loan would be in the name of the Trustees Mr & Mrs Smith.
However in saying this are you sure you will be buying in a DT ?
If you were purchasing in an HDT then the property would be in the name of the Trust and the loan in the name of Mr & Mrs Smith.
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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
Hi Frogwal
It is suprising how many times a day i hear this from a client and with these banks nothing suprises me.
There are a couple of considerations to make to which I would need more information to answer accurately but in essence there is no reason whatsoever why your PPOR needs to be used as security for any of your loans including your mortgage of $70K which i assume was used to purchase the PPOR.
As well as discussing how you intend to structure these loans you should also consider what entity you would use to purchase future properties in i.e Individual, Pty Ltd or Trust.
As mentioned with a little more information we should be able to find a way to structure them to your satisfaction.
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
Paul
Yes your interpretation is correct.
Normally they would both be interest only loans.
If structured correctly then you would not have an increase in fees and charges depending on the lender with whom the loan is placed.
Someone like CBA would probably charge you at every turn and then still X colaratilise the loans but as Terry mentioned there is an easy solution – AVOID CBA
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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
OMG i has spoken to him a couple of times as he only lived less than 20 minutes from me.
What a waste of a life at such a young age.
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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
Barbara
Yes good money if you can get it.
As both Terry and I have stated there are reasons why you would use a LOC but certainly not where you intend to use for a n IP and have your salary and rent paid directly into as it imediately negattes the Tax deduction you would get on the interest.
There are many lenders that are doing deals at the moment and that includes giving you a rebate back on application fees etc so refinancing isnt that expensive after all especially if it your loan is established correctly and you do not have the problems going forward.
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
Simon
You make a very good point but it is suprising how many clients still think that a low interest rate is the main think to look for when choosing a loan product.
I have to be honest whilst i would not touch them with a barge pole i can name another half dozen institutions in the same position – low rate but offer absolutely nothing in return.
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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
Sorry don’t want to be picky but:
1) Yes you will find a lender finance a 39 Sq M unit albeit a a lower LVR and maybe higher rate but can certainly be financed.
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Richard Taylor
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Jambv
HDT = Hybrid Discretionary Trust
Assume that you purchase a property for $100,000 and need to borrow say $110,000 inclusive of costs you would probably offer your existing security to the bank and they would lend you the entire funds taking both properties as security.
In effect they cross the securities meaning that one property is supporting the other with regards to total loan amount.
No real problems until you either get to your maximum borrowing with that particular lender and want to access your equity and go with another lender or alternatively you wish to sell one of the securities (including your PPOR) and the Bank will dictate where the disbrusement of funds goes.
Many of my clients before we have re-structured their borrowing have had their loans X Collaterilised (Remember most Banks will want to do this). I have seen cases where the PPOR was uneccumbered but providing a X collaralised guarantee for other properties.
The clients went to sell the PPOR and wanted to upgrade their house withe profits and the Bank have taken all of the net funds to cover the other loans.
As mentioned a little bit of time spent now will avoid all of this down the track.
On a separate note if you offer an amount of $280K on Contract to the Agent he has to by Qld law present that Contract to the Vendor even if he doesnt agree with the offer and feels he can obtain more for the Vendor.
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Richard Taylor
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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
Hi there
Ah with CBA oh well good luck firstly because they are notorious at this and don’t seem to listen. they promise the world and then years later try and deny they said that.
With a normal lender it is all about how the loan is structured. Ensure that one property is not used to support the loan on another and then keep within the LVR guidelines.
Assume you have a house worth $200,000 and want to buy another for the same amount.
You would take out a standalone loan on the purchase property for $160,000 and then a separate loan secured against the other property for the $40,000 and costs.
In some cases the equity position does not always allow the figures to be this neat but your mortgage broker should be able to map out a plan of attack for you.
Don’t forget the CBA are not great lovers of HDT’s so it may take you a month or two to find someone in the organsation who understands them.
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 Jambv
Good for you to take the initive and do your through due diligence.
Both are expaning areas of Brisbane and as you are probably aware the non cash deduction items such as Building write off and Depreciation can make a big difference.
In saying this make sure that you structure your new IP loans correctly and that the entity you end up buying the properties in is appropriate for your circumstances now and in the future.
An HDT would be a prefered entity give that the both appear to be negatively geared and my preference is to ensure that your lender does not X colaterilise your loans as is their wish and desire.
In saying this make sure the HDT is dated prior to the execution date on your purchase contract as otherwise you may run into a few ATO issues.
Your Mortgage Broker should ensure that this does not happen however i have seen many cases where the MB or the Bank direct did not even understand loan structuring and a few minutes spent getting it right now will benefit you in the long run.
With regards to your offer most agents would want to you to put this in writing using a standard REIQ purchase contract however a simple fax outling the important points is a good starting point until the agent has the contract drawn up. (Just bear in mind my comment on your Trust date if you go that way as this can take 48 hours to be set up).
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 Hera
It is funny often i hear that clients went to see their mortgage broker and because they were self employed or buying in a Company or Trust name the easy answer is go lodoc or nodoc.
This is usually becuase the MB has little or no experience in Trust Structuring or interpreting self employed accounts.
Most lodoc / nodoc loans are mortgage insured sometimes irrespective of the loan to value ratio so you will often be limited to your eventual loan exposure and this will slow down your wealth acquisition path.
Just because your husband shows a lower taxable income in paper than his gross income (which is normal for self employed clients as they have to deduct their expenses) their is no reason why he would not qualify for a normal fully verified loan.
To ensure the loan is structured correctly and the appropriate advice is give both now and in the future a lot more information would be required but remember there is always a solution to any problem.
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
Let us try and simplify it for all.
Assume as a developer you purchase a property which you demolish and the land ends up costing $400,000 on which you intend to construct 4 Townhouses. Cost base for each block would be $100,000
These Townhouses cost $100,000 to build and their is a further $50,000 in other expenses of which $30,000 have GST applied to them.
As the developer goes along each quarter he can lodge a claim to receive back the GST he has paid along the way. Eventually he will have lodged claims to receive back GST on $130,000 which is equivalent to a Tax credit of $11,800.
With a total cost of $250,000 the developer looks to sell the Townhouses at $350,000. When the sale occurs (ignoring any agents fees etc where there will be a GST credit) the GST payable will be $400,000 – less the original cost base of $100,000 meaning that CST is payable on the margin of $250,000.
The GST payable will be $300,000 / 11 = $27272
As he has received a credit along the way of $11,800 the total GST paid on margin = $27,272 – $11,800.
Hope this clarifies the matter.
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
Don’t you love this virgin posters.
Funnt how they appear on all of the forums at the same time.
Must be sale month.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
105% is available for an investment property loan however the interest rate is slightly higher.
Lodoc is certainly available for both PAYG and Self employed but would usually be used as a last option. Where possible try and always go with a fully verified loan until you can no longer satisfy the lenders requirements.
Then either dependant on your cirumstances a nodoc or lodoc loan is always available.
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 using equity in another property and borrowing 100% + costs would be better than using you own cash which can be used to better effect.
In saying this ensure that you structure your loans correctly to avoid your lender X collaraterilsing the loans as this could certainly slow you down from moving forward 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
