Forum Replies Created
I am with Simon on this one.
In saying that it doesnt appear that you have any non deductible debt so maybe a combination of paying down some of the debt for neg geared IP (prefer to see the funds invested in an offset A/c in case you need them again) or maybe even a Tax effective forestry Investment which will reduce your Tax in the current year and may assist in defering it in a year when you income is not so high.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
adl
Why not take say 35% of your net monthly income and divide that figure by say $7.85 and that is roughly what the average lender will lend you.
Now whether you feel you can pay back more or less is upto you and the negitating power of your broker you engage.
Don’t forget lending terms and conditions vary considerably.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
10 days study and training wow that can be a whole 9 1/2 days more than some mortgage brokers i have come across.
Amazing all the so called experts in their 20’s have spent the last 5 years as a plumber and are now a mortgage broker all of a sudden.
Oh and by the way when this fails we shall be moving on again.
Yes you get good and bad in all Professions and i must admit i think the regulations in Qld for Mortgage Broking are a joke. At least in the UK the Financial Services Act 1986 regulated the whole industry and now 5 minutes attending a non confmers presentation is not sufficient to be accreditated with them.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Thanks for confirming what Terry and I had posted it is very re-assuring.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Must admit i am chuckling at your answer Stuart.
I can’t see that anyone who has answered this one has told Wealth there is a problem either.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Jenny
Regretfully if he turned over $100M it would not matter if he had only been in business for 18months.
A conventional lender will not be able to get mortgage insurance with less than 2 years S/E. Comes of having the market dominanted by 2 main insurers and 3/4 others.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Jenny
Hate to say if your nephew has only been self employed for 18 months he will struggle to obtain 100% finance.
Obviously he is purchasing with a mate (not recommended) and his mates income is sufficient to service the total loan then his self employment will not be a problem.
He would be better to put some of the cash he is making into a deposit and this together with the FHOG will help reduce his loan requirments. His only problem then is working on convincing LMI due to the high level lend.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Glenn
Yes if you are self employed for 2 years and have a current ABN you would be able to apply for a NODOC loan if the purchase was for a investment property.
The loan is MI but you won’t have to pay for the premium upto a given loan amount.
Rate of Interest depednds on the product but around 7-7.25%.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Cabo
On another note it is the date of Contract that is considered for the reduction in CGT (where held personally) which may not always be the date of ownership.
If you buy in a Super Fund and hold the property for 1 year and 1 day between contract dates the CGT is reduced to 10%.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Redspida
It is unfortunate that we seem this sort of thing happening every day of the week. Hard working Tax payers who will not qualify for a pension due to a variety of circumstances.
The Tax treatment and social security treatment of the disposal of assets is considered differently as is to complex to explian on the forum here.
Social Security benefits are assessed on both a Assets Test and Income Test although as a Homeowner Couple the Family home is considered an exempt Asset (there are exceptions especially on larger land holdings) and therefore would not effect them currently.
The question is how do they subdivide the property dispose of the assets and still qualify.
From what you have said if they sell off the property and invest the money then the Deeming rules will apply and they will miss out on both counts of income and assets. If they subdivide and then hand over a parcel of land to their children they will be caught in the Deprivation (Gifting) rules.
One consideration is to look a variety of non asset tested income streams.
Given the number of years to go to retirement i would strongly suggest that your parents sit down with a Financial Planner and work through their options.
Let us now how they go.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
On the basis that the block is less than 10 acres you may get 95% LVR dependant on the post code.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Peter
Yes it is however if you were my client i would try to save you the additional costs of refinancing down the track and look for a suitable product that suited both requirements.
Your brother is going to sell presumably and you retain the property and some of the loan.
100% funding is no problem given your existing equity position.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Hi Peter
Unless you have funds of your own to put into the project then i assume you will require 100% financing which given the equity position should not be a problem.
Obviously if the property is owned Jointly with your brother (I assume Joint Tenants) then you will both need to be a party to the new construction loan.
I am unsure as to the exact figures so don’t what the loan balance will be after you have completed the project and you brother has sold his property but suggest you try and make your loan flexible enough to allow lump sum payments and also an offset A/c.
If you want to post actual figures on or off the forum then I would be happy to offer further suggestions
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
If you want to PM me the name of the Brissie Developer i can give you an honest opinion. I have dealt with a lot over the last 10 years.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Storming
Just bear in mind that the normal way to structure an IP loan would be to borrow 80% against the security of the property and maybe bridge the 20% difference plus costs from your LOC secured against your PPOR or other security.
You may still incur mortgage establishment costs such as mortgage stamp duty. loan fees if any on the 80% portion.
Whilst you may have poor cash flow your resulting Net Profit maybe sufficient to service a loan.
If set up under a Professional plan some of your costs will be exempt.
Why not get a broker to run his eye over your position so that you now how to go forward. Bad advice early in the peace will incur greater cost down the track.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
100% + is available but you would need to be offering additional security by way of another property.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi Grevs
As Terry points out with less than 2 years Tax returns then you will struggle to get a standard loan without using the equity in your current property, your partners income and consent or a combination of both.
Lodoc / Nodoc loans are available with lodoc available to 90% LVR on Invt but at a higher interest rate.
I think you should consider maybe raising the 20% of the IP purchase price plus costs by way of a separate loan secured against the PPOR and then a Nodoc / Lodoc loan secured against the IP presumably in your name only.
Also i hope that $15,000 cash is not just sitting in a a Bank A/c ?
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
WW
If you are referrring to Terry i can assure you he is one of the most respected long standing members on the site and is only there to offer advice.
Terry certainly gets my vote in Sydney.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi there
No thats not quiet right. We did a block of 8 for a forumite last week and that was done at residential rates of interest.
Admitedly you may not get more than 80% LVR but you should certainly be paying residential rates of interest.
Would need a little more information to be able to provide you with a rate of interest and some terms.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Greg
As Simon has stated many of these types of loans have varying features and charges.
Some have a maximum “cash out” amount others have no limit.
Depending on the loan amount required LMI should not be payable and in most cases IO is available.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
