Forum Replies Created
Hi Andy
Email a mate of mine Richard Young at [email protected]
He is a FInancial Planner but will have a good broker not too far away. Tell him dogsbreath sent you but dont ask why.
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 Grreg
There are a couple of lenders that offer 90% Lodoc loans for the self employed and rates vary.
For a 95% LVR you are looking at circa 8.99% reducing after a 3 year period.
Application / Valuation / Legal Fee – $1250
Lender Mortgage Insurance – 3.45% of the loan amount + GST + State stamp duty
If interest only then add 10 points to the LMI for each year interest only i.e for 1 year 3.55% +
Deferred Establishment Fee – Year 1 – 2.5%
Year 2 & 3 – 2%
Year 4 & 5 – 1.5%Certainly not cheap but serves a purpose and a stepping stone to build up equity.
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
When you start your venture into property investment one of the most important consideration in my opinion is to ensure that you structure you loans and property correctly.
This would involve both consideration inb respect of the Tax effectiveness of the investment as well as the manner in which the property is held. Consider the use of a Trust structure to reduce liability.
In any investment there is risk it is just a matter of managing that risk and setting in place certain things to mitigate such liability.
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 basil
Certainly investing in a + cash flow property is a consideration and has benefits when it comes to reducing your own non tax deductible debt.
What i would say is make sure that the properties are not X collarilised and i also have a preference of keeping the PPOR loan and the IP loan with separate lenders to reduce any liability issues.
The other important consideration is the entity in which you purchase the IP property should probably not be you as an individual.
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
Which part of the UK are you living in.
I have a good mate who is SW England and regularly travells to London for business.If the georgraphy is right i can put you in touch with him.
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 CP
Simple answer there isn’t one.
The whole reason that you take an option on the property is that the holder of the Option has the rights but not the obligation to purchase the property at a given time and at a given price.You merely assign the Option for a fee and the purchaser to whom the Option is assigned has this right.
In any dealings transparancy is important and therefore you should consider ways to make the deal attractive to your buyer rather than hide the true purchase price from him.
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 maddy
The Standard Private Loan Agreement would vary from State to State. In Qld we use the Clayton Utz Consumer Credit Code (Qld) Loan Contract as amended by the 1998 Act.
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 BS
On a separate matter it appears from your post that this will be you first purchase and therefore i assume you will be looking to make an application to receive the FHOG.
Just be careful to ensure you comply with the requirements of occupation for the FHOG if you are going to be away from the Country from August onwards.
If you are purchasing the property as an investment make sure that you structure the property correctly by purchasing the property in the right entity and your loan is set up to suit you and not your lender.
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
Howie
You havent mentioned how you purchased the property whether as Joint Tenants or Tenants in Common and if so what % each.
As GSJ mentiones don’t consider salary packaging your investment interest but for future purchases think of alternatives structures to purchase in. Purchasing in your personal names is not a good idea for many reasons.
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 Results
If the property purchased in a Company / Trust name was an investment property then YES you would still be entitled to receive the FHOG if you later purchased a PPOR in your own name.
Check out the OSR in your State for further information.
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
Confidential
Yes similarly is a limited offer until 16th April and has an annual fee of $300.
Not available if i am right in saying for Companies or Trusts.
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 feel free to email me and i will give you contact details.
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
Lawrence has hit the nail on the head.
Whatever form your IP investing takes on structure & funding are the most important issues. It can be extremely costly to have to unwrap a maze of X collaterised loans that your average Bank has set up for you.
Purchasing property or undergoing +cash flow techniques such as wrapping, flipping or LTO can be eroded if you purchasing in the wrong structure or have the loan set up incorrectly.
Equity used correctly can be your lifeline and will enable you to enhance you portfolio. If you are looking to pay down debt (and sometimes this can be a pre-requisite for wrapping) then ensure the loan works for you and not your Banker.
Remember most Bankers are not big property investors and have limited scope outside their own field.
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 Tammy
Have posted a reponse under “Help Needed” so wont repeat it here.
For muckins benefit Tammy lives with her partner so even if she had not purchased a property before would not qulaify for the FHOG due to her defacto relationship and the amounts you quote for the FHOG are incorrect.
The FHOG is a Federal Government Grant which is adminstered by the individual States. Certain States have decided to further subsidise the Grant however this is not a Federal matter and therefore the benefit Tammy would receive will vary according to the State she purchased in.
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 Tammy and welcome to the forum.
I guess as you currently reside with your partner the question of whether the property would be a PPOR or an IP is irrelevant and these days the only real difference in cost is the initial stamp duty which of course varies dependant on the State you end up buying in.
If you don’t wish to utilise any of your partners equity you will be seeking a 100% loan which is availble for investment but bear in mind that you will need to cover the costs of acquisition and some of the lenders fees.
I also assume that you will be purchasing the property in your sole name although if this is not the case consideration should be given to a Trust structure set up.
In purchasing the property remember at one stage in our lves we have probably all rented a home so try and make the place as appealing for your tenants as possible. Whilst buying an old home and doing it up may sound attractive it can become costly and you will not be receiving any rent in the meantime.
Initially i would suggest corresponding with a mortgage broker who can analyse your position and ensure that the loan product you select is right for you both now and in the future. Refinancing away from a higher interest rate loan can be expensive and uneccesary especially if set up properly in the first place.
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
I think i am right in saying that there is Stamp Duty on an Option Contract in WA.
Check with the OSR in WA but i think it is one of the States that bought it in.
By doing a Transfer by Direction the end purchaser will still now what you paid for the 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
Happy to give you details if you want to shoot me an email.
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 Louise
I think i would be talking to a broker and telling your Bank to take a hike.
Why would they won’t the properties X Collaterised ?
I now the answer but you don’t want that for your portfolio.The other consideration is the LMI rate. If your loan with your current lender is over $300,000 then the MI rate maybe higher than it would be by using 2 separate lenders and having the total loans under the threshold.
A new rate also kicks in again at $500K + so it is important to get your broker to shop around and advise you who has the most competitive LMI rate as well as the other features you require in an IP loan.
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
Adam
Nice try but regretfully not.
Wish we could have used the first valuation on a lot of our developments over the past 10 years
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 Dianne
I hear this every day from investors all around regional Qld but i guess it is the case when prices have accelerated and rents havent yet caught up.
I have financed many properties in Gladstone and the market appears to be holding well and values certainly not falling.
To me if the property is in your opinion is a sound investment with good growth opportunities and a stready rental are why worry that at this moment in time it fails the 11 sec rule.
Esnure that you structure the purchase correctly with your financing and maybe review your existing finances to ensure that you are getting the best deal for you. Saving a 0.5% here and there can go along way to putting funds back into your pocket rather than your banks.
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
