SK

I agree with the previous responses to you post however also beleive it is important to deal with a broker who has actually purchased a property or two himself.

Believe it or not i hear from clients that they spoke to a broker who may have known his range of product but was slightly unsure as to the proceedure as he had never purchased a PPOR or IP himself.

A broker deals with a range of lenders (normally around 30) and can shop around for you to provide the best deal for you.

Remember there is no charge for his services.

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.

Anne

I agree with Bridge i can see no problem in realising your cash and then assessing the market and renting for a while.

As a financial planner and investor I would not advocate investing all of your cash funds into IP’s but look at a spreading your risk into a variety of investments vehicles.

If you read my past posts you will realise that i am very property orientated and have a substantial portolio of cashflow properties but also believe that cash can always be your friend especially when you are looking for opportunities.

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.

Hi Carlin

The plan sounds ok on the surface. Couple of things:

1) Make sure the PPOR is also interest only as well rather than P & I – not all lenders offer this.
2) The current rate on the variable portion of our PPOR is 7.49%, but the offset account rate is 7.79% so it will be costing us a bit more – You have lost me here. The offset rate cannot be higher than the interest being charged on your PPOR.

Are you sure it is a 100% offset A/c and not a variation on a theme.

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.

As Bridge has pointed out an IP loan would normally be an interest only loan however the most important thing to do prior to deciding the loan type is the structure.

We spend a lot of time working with client ensuring their structure is correct prior to them getting anywhere near committing to a IP purchase.

A little bit of time checking over your existing loan and the entity you intend to use to purchase the property will save you 000’s in the long run.

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.

To clarify the ATO position

You are allowed to have two PPORs for 6 months section 118-140, if the old PPOR is not used as a rental for 12 months before it is sold. The 6 months back dates from the date of sale of the old PPOR.
If you want your new place to be totally exempt from CGT you will need to use your PPOR on it from the time you bought the land so one of them is probably going to have a CGT problem.
Section 118-150 allows you to exempt the land before you build as your PPOR as long as you move into the house as soon as practical on completion and you live there for at least 3 months. Note this back dating of your PPOR to before you built can only go as far back as 4 years.

Hope this clarifies the position.

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.

Spent the last 9 years acquiring + cash flow properties by the way of wraps in Qld.

Strategy worked well with my capital growth 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.

I agree with Bridge – Members Equity have nothng special and no person to structure our loans correctly.

Source are merely a mortgage manager who deal with a non bank lender. Would be the last place i would go for good advise.

Limited range of products single source of funding (not a Pun) and again non in house specialists.

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.

Nathan

Yes mate is a scam. Like a lot of these that appeared over Xmas and New Year they are all playing on the guilible.

You have been warned – Stay well away.

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.

$400 / week may sound like a of money but have you considered how much the interest on your loan of $600K would be.

Remember when you purchase your own PPOR not only is the interest not tax deductible but also you have the additional expenses of Rates, Body Corporate (if applic) and general upkeep.

With renting you pay your rent and that is it.

Imagine what ou could do with the extra cash when it comes to buying more IP’s

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.

Hi Celeste

Yes loan portability is common however there a lot of disadvantages.

In essence the two loan amounts will need to be the same and have simultanous settlements.

Not always easy when you are trying to buy, renovate and sell.

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.