Forum Replies Created
Hi bernstar
They sound confused as to what they want and what they are trying to achieve so i guess this may not be the best time to jump in and do what i assume is their first development.
You mention that your fiancee has been trading previously so assume that her other ABN is > than 3 months old.
If her business associate is wishing to offer his property as security then a LOC would be possible and you could fund 100% of the required amount however if the security is the land and then the ongoing construction an interest only construction loan will be the only choice until the project has been completed.
Another consideration is the LMI – GE will not allow two dwellings to be constructed together on a lodoc / nodoc loan, PMI will do so and will allow PAYG lodoc although you are lmited there with the choice of lenders.
Haven’t used RAMS recently but they never used to allow construction although this may have changed but i doubt it. If this is the case you will be limited to 80% LVR at a sensible rate of interest. As i mentioned earlier in the reply if your fiancee’s business associate intends to offer his property as part security this will change.
All in all more information would be required to give an accurate assessment however in saying that there are many nodoc / lodoc loans than can be approved very quickly to meet the relevant finance clause.
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 LMI is also a Tax deductible expense if the purpose of the funds is for investment.
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
Why not set up a Line of Credit to 95% of the valuation and utilise the equity this way.
Sure you will end up paying a bit more LMI but that is just a cost of investing.
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
Yifto
Regretfully I believe the strategy breeches the SISA.
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
Think you would get more than 60% LVR (we recently did one at 75%) but i agree with MrM.
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
CGT is calculated from the contract dates as Trajik points out.
If you sell a property before 12mths you pay 50% more in capital gains tax. This is only applicable if you purchase the property in your personal names. Purchase it is Super and the rate is 15% before 1 year and 10% thereafter.
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
NAB would have to be one of the most uncompetitive lenders going around and trying to squeeze an interest discount is like getting blood from a stone.
SGB have a good range of products although charge at every street corner. They charge a full application fee on their LOC even under their Pro Pack although a discount of upto 0.8% is available.
Why not look at setting up a LOC sitting behind your home loan to access your 20% deposits and then look at taking the new 80% interest only loan on a standalone basis on each property.
Ensure that the loans aren’t X collaralised.
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
Flipping is not as easy as it sounds but done properly can be a very successful and profitable strategy.
I have done several decent sized flips here in SE Qld where thankfully we dont have stamp duty on a Call Option which is unlike many other States.
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
Ask them outright how much do they earn from a sale.
All marketing companies get paid and they are required by law to disclose how much.
Just because they can produce a bank valuation does not mean the property is worth that amount.
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
Simon
Foxtel is an essential tool for investing tell your good lady wife.
The 27 sports channels are incidential and not compulsory viewing 24 hours a day.
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
Bronny
If they are in Qld i might be able to assist.
Why not email me what you are after to start with and I will happilly reply.
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
Having been born and bred there and still with a few UK properties i can certainly confirm that Capital Growth and Yields have been very strong in certain parts of the Country.
In saying that there are parts of the North of England i would not touch like certain streets in Oldham where you can buy a house for 26000 GDP and yet will never get a tenant and where it makes the gettoes of the USA look like mansions.
If you stick to the established towns then you cant go too far wrong with the right DD. Borrowing as Australia citizen is difficult and similar to Overseas Residents purchasing over here 80% max lend with most lenders.
Council Tax is the countries equivalent of our Council Rates and is charged on a sliding scale with a variety of considerations. Unlike land tax which is based purely on the unimproved value of the land.
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
There is nothing to stop you doing it but whether it would be worthwhile and feasible is a different matter.
Bear in mind that the person leasing the land from you will be unable to gear to borrow using the land as security and thus will mean they will need cash or other security to be able to construct such a dwelling.
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
Rob
It is not required in all buildings to Strata title them but yes we have done on many ocassions when strata titling timber units.
It is not difficult and your builder should be able to provide you with a quote for installing fire resistant gyprock.
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
http://www.shanghaivision.com.au
might help
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 with Terry not a great lover of 1 big LOC covering all of your properties.
By all mean utilise a LOC for accessing equity but structure it so that you have secured by 1 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
Difficult to decide whether you want to retire at 36 or 65 when you only have 6 years to go prior to retirement.
Sometimes i think fellow posters should actually read the entire post before answering the question with a vague statement.
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
FP Advice involves a Statement of Advice having first completed a Know your Client form.
Whilst i would not be prepared to offer just advice without completing the required process I am happy to answer a few email question you may have.
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
Dependant on your income needs may certainly be a classic case of pumping money into Super through Salary sacrifice
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
Couple of immediate things jump to mind.
Ok the property is new so i assume it is an old Qlder converted and renovated as you would not build something new for that price.
Rent guarantees are also a worry – depending on the area usually means that the property is overpriced and the vendor is factoring the guarantee into the purchase price.
I own a couple of brick multi units in Brissie and these can be a great investment especially if you can strata title them and add value but I would be dubious over what you have described.
I am aware of a couple of developers who are selling such properties and if it is them i would give them a wide berth.
Feel free to PM the vendors details and I can give you a frank opinion.
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
