Forum Replies Created
I dont think you have thought about the consequences of your post.
Without going into great depth:
1) Where they are related parties or the OSR believes that it is not an arms length sale then the Stamp Duty is based on the valuation.
2) Why would you sell a unit to a Company for less than it was worth. Ok sure you could personally claim a capital loss but the company would be liable for a larger Capital Gain when the property was onsold and the interest deductions would be non existant. Dependant on the date the unit was purchased by you then CGT maybe neglible anyway.
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Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Stamp Duty charged on the Contract Price is added to the cost base for CGT purposes and is not deductible over the term of the loan.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Paul
Wrapping is the process of purchasing a property and then onselling it to someone else at a higher price and interest rate but my accepting repayment of the purchase price by way of a series of installments (often 300 – 25 year loan) on which an interest rate is charged.
EG.
You buy a house for $100K and borrow $80K from your Bank and get charged 7% on the interest.
You onsell the property for $130K and the purchaser pays you interest at say 9.25%.
As the rate of interest you are receiving is on a higher loan balance than the one you are paying then you receive the positive cash flow each month.Build up a few and the cash flow can be enormous.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Gerry never learns does he !!!1
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Draconis – The interest savings using an offset account or a LOC are identical so there is no benefit in using one over the other.
The LOC was set up for Dianne for a reason and was appropriate at the time given other reasons which have not been posted.
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Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi there
I am assuming that the equity is still to be realised through either a valuation or a sale?
Without the actual figures it is difficult to assess but a lender will certainly take the property in Sydney and the one in WA as security and lend.
If you are wanting a lender to lend against unrealised equity then the answer is probably – NO.
If you want to post actaul figures on or off the forum we should be able to assist.
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Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
When you consider the average loan last around 4.5 years i think they are covered.
What guarantee are they providing to keep the rate at that margin and for how long.
Dependant on the size of the loan you would probably get upto 0.9% discount with a Pro Pack with the right lender and have minimal set up fee.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Same as Terry. When we started wrapping we thought the pin would be pulled on 20 deals or so.
You would be suprised when the equity position looks good and the lender sees a good stream of income coming in they bend the rules and keep the loans coming.
+ cash flow enabled us to reach at our peak as a Company 176 wraps which is down to around 111 now. These are only with 2 lenders so don’t ever feel trapped.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi
I am assuming there must be more to the question than meets the eye.
I don’t know a lender that does not offer a 90% LVR so i am assuming that you mean on either lodoc, nodoc, LOC or something else.
If you want to post more information on what you are wanting i am sure that we can help you further.
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Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Bloss
Must admit before i first went to MM that was my impression but i guess sales speak for themselves and in percentage terms it has been as good as a development area as i have found.
Just wish i could still buy property at the same price as i could a year ago.
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Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi there
I have over a dozen houses in Mt Morgan and Bouldercombe and they have doubled in the 12 months since i started buying up.
Last August i bought a house for $32,000 (yes no mistake) and have just sold it for $102,000 (Did absolutely nothing other than keep the tenant in the for the period we owned it).
Land prices are starting to also rise in Mt Morgan and i have just completed a nice 4 lot sub division. in Dublin Lane.
The problem is Rockhampton has got so expensive for the average buyer that people are now accepting that the will have to drive to get an affordable property so the old Mt is becoming fashionable again.
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Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
A couple of reasons why the banks don’t lend to the same level on such apartments.
1) Rental Guarantee – most of these are given by $2 shelf companies and carry very little weight. If the Guarantor is unable to rent the property himself then there is little to stop them going in to bankrupcy and the Gurantee is a worthless piece of security.
2) On repossession there is minited demand in resale for such a property and therefore the Banks who are not collectors of real estate reduce the exposure level to which they lend.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Tim
Any customer that is not a US legal resident or US citizen is considered a non-US person by the US Internal Revenue Service (IRS) and is required to complete a form W-8 certifying their country of tax residence.
The W-8 form must be updated every three years unless a customer has applied for a US Tax Payer ID from the IRS and has specified the tax payer ID on the W-8, in which case the W-8 does not need to be updated. Generally, tax withholding treaty rates are negotiated between each country for withholding on dividends. However, for those clients that do not update their W-8, or provide no W-8, an added withholding penalty will apply.
On the finance front you will find financing in an LLC a lot harder and more expensive than purchasing in your sole name and then deeding the property to the LLC after closing.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Kim
You say that you managed to get a loan without holding an ABN for 2 years but correct me if i am wrong it was through Westpac?
This is not a case of the Bank accepting a lodoc deal on less than 2 years ABN but merely a matter that they don’t check.
You will not find a standard non securitised lender offer you 80% lodoc if you ABN is not > 2 years. Certainly a securitised lender offering nodoc or lodoc will do it.
If you are being encouraged to go down the path of a non standard lender and then refinance some months latter I would watch the early repayment penalties or DEF.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Heh great 1st up post Jason very informative.
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Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Alistair is right a loan of upto 80% is available but the rate of interest would depend on many things inclusing the size of the loan and the location of the security.
If you are looking at a fixed rate then there are many attractive commercial fixed rate deals around at the moment.
Further information would be required to give a valued recommendation.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
You might find getting more than 80% LVR on a serviced apartment difficult.
Without more information it is hard to provide a proper recommendation.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi Katie
Not trying to be nit picking but i think you might be confusing yourself.
What I am actually hoping to do is to buy my first home as an investment with my mum. So I will use the First home Buyers grant,
If you purchase the property jointly with your mother and she has aleady purchased a PPOR then you will not be entitled to receive the FHOG. If you purchase it as a investment you will not be entitled to receive the FHOG.
A Family Guarantee type loan is not quiet the same. This type of loan provides the lender with additional security by way of a limited guarantee usually on the parents PPOR and enables the borrower to borrow additional funds than maybe originally avaialble due to lack of deposit. From what you have stated deposit does not appear to be a problem.
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Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi Katie
Affording the repayments is one thing but remember owning a home also has other comittments like maintainance, rates insurance ete etc.
Whilst you might feel you can pay the loan back you will also need to convince a lender on your income you can service the debt. Each lender has its own way of calculating serviceability and the amount you can actually borrow will vary considerably.
As has been mentioned you could always look to buy an IP as your first home with a 95% interest only loan and then use your deposit down the track to put down on your PPOR. You will still qualify for the FHOG and Stamp Duty concessions in Qld.
Loan structure is important as getting it wrong can be an expensive exercise down the track.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
As GMH mentions It is illegal , but went on big time during the boom.
The penalties for the Trustees are severe and include crimal charges from the ATO so i don’t recommend it.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
