Without some actual figures and personal information it is difficult to assess any application.

Most lenders use a variety of different serviceability calculators to assess an applicants borrowing capacity and with the likely of interest rates increasing on Wednesday this may reduce your capacity.

However as mentioned without some further information it is impossible to comment.

Cheers

Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
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Ph: 07-3720 1888

DD

My answer to Jae question was correct.

He asked ” Im hoping anyone can help me. Is it possible to use my super fund as collateral or deposit to get a loan from a bank” I answered – NO.

The alternative arrangment by investing in a Unit Trust and purchasing a geared property has transitional dates and cannot exceed 1 July 2009.

Again unfortunately this Statement is not entirely correct – “15% ongoing”. This is only where the Super Fund is a complying fund and it is 45% for non complying funds.

Where the Assets was held for a minimum of 366 days and is subsequently sold and a capital gain made then the Tax is reduced to 10%.

Again with correction – “Each year you can contribute $3k to your spouses superannuation and it reduces your personal income tax by that amount.”

A Tax offset is receiving by the contributing spouse which is 18% of the lesser of:
$3000 reduced by $1 for every $1 that the spouse’s assessable income plus reportable fringe benefits exceeds $10,800 or
The total of the eligible spouse contributions made in relation to the spouse by the contributing spouse in that year.

Maximum Tax offset for 2005 / 2006 = $540 or 18% of $3000

Again moral of the story is consult an Advanced Financial Planner and not someone who has passed PS 146 which they hand out with cornflakes packets.

Cheers

Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
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Ph: 07-3720 1888

Under normal circumstances you are unable to withdraw from your Superanuation funds prior to age 55 unless in the event of severe hardship.

Therefore in most cases Tax is not an issue because you are unable to make the withdrawal.

Cheers

Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
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Ph: 07-3720 1888

The rights of recovery for a 2nd mortagee are the same as the prime mortgage holder.

In the event of default the 2nd mortgagee can take appropriate steps to recoup his money by making application to the Court for possession.

In reality you would normally need to notify the 1st mortgage as they have prior claim on any sale proceeds. You may also find that they wish to pay you out and take over control of the sale.

Cheers

Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
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Ph: 07-3720 1888

James

I am not convinced you will find a repudable Aggregator take you on without 2 Years experience or MIAA accreditation.

I introduce direct with a few lenders and have quiet a few brokers in the same position as yourself you i Aggregate for if that is of any use.

Cheers

Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
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Ph: 07-3720 1888

We have completed over 200 wraps in 9 years and still have over 130 properties under a wrap contract as at 30th June.

At times it can be more than a full time job so back in 2002 we employed 2 full time staff to run the day to day enquiries etc and deal with the payment processing.

All lenders have a slightly different take on how they treat instalment business finance so feel free to email me any questions you may have.

Cheers

Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
Email us to be added to our mailing list.
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Ph: 07-3720 1888

I am with Terry.

I have come so close in loosing both residential and commercial deals with the Big “C” over the last 12 months it is not funny.

These are usually existing clients of their’s where you try and do the right thing and keep the new loan with the existing lender to save refinancing and it has back fired on almost every deal where the goal posts change half way through the deal.

I have actually sent them back my Commercial Accreditation this morning and asked it to be cancelled as i will not do another deal through them.

Cheers

Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
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Ph: 07-3720 1888

Hi there

Firstly i will assume that the loan you are paying off in the not too distant future is your current PPOR and is likely to be for the next 5 years or so so has no current tax benefit attached to it.

Remember if you do rent it out and move into the new property you will have NO interest to be deucted so it before you repay it might be an idea to consider re-structuring it to cater for your future decisions.

It also sounds to me like you havent decided yet what the property will actually be used for and therefore probably need to link the restructuring of the first loan into the 2nd loan application at the same time to ensure your loans are working for you and not the ATO.

Now what name is an interesting one as we havent any details of Tax rates i will just make an assumption or two.

If you buy the property in the highest tax payers name then you will be able to claim any deductions at this marginal rate. However if you sell the property and make a capital gain then the CGT will be calculated using the applicable Tax rate in the year that the Contract is signed. (Ignoring the 50% CGT rate for properties kept for 1 Year and 1 day between the respective Contract dates).

If you buy the property in the lowest tax payers name then you may benefit in CGT when you come to sell the property but initially loose out.

If you buy the property in Trust then you maybe able to distribute the income to the beneficiares at the end of the end of each year giving you flexibility as well as giving you Asset protection along the way.

You do not mention whether either of you are self employed or open to any potential litigation action so giving a full answer is difficult without more information.

Cheers

Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
Email us to be added to our mailing list.
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Ph: 07-3720 1888

Guys not only Westpac.

Had clients last week who had been with Bank of Q for years and were buying in a Pty Ltd ATF XYZ Trust and they wanted to do the same. Also CBA told another client they would be unable to assist as the Trust did not have 2 years Tax Returns.

I must admit i love the lack of education in these Banks they make life so much easier.

Cheers

Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
Email us to be added to our mailing list.
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Ph: 07-3720 1888

Assuming you are referring to the Contract Duty payable on the purchase price regretfully this cannot be claimed on a IP.

The amount paid is added to the purchase price and increases your Cost Base for CGT when you eventually sell the property.

Cheers

Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
Email us to be added to our mailing list.
[email protected]
Ph: 07-3720 1888