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http://www.revenue.act.gov.au/ might be a step in the right direction and i am sure they can answer questions you may have.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi Mark
Happy New Year to you.
As someone with an interest in US i thank you for posting it for us.
Too much information is never enoughRichard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi there
I think you will find it is a little more than just that.
What about the insurance and public liability for the building.
If you live in a house you pay buildings insurance.What about the administration of the admin and sinking the managment of the owners the responsibility and the mainaintaince of the common areas. Would you mow your neighbours grass probably not so he has to pay to get it cut. Same with a BC.
Don’t get me wrong i don’t hold an interest in a BC Company just pointing out in Qld the average BC company charges around $120 / unit per year. I wouldnt do it.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Unless he has sound asset base and good monthly suplus he is unlikely to get a unsecured loan of that sort of amount.
One consideration would be to look at rolling over his credit card to a Nil interest on balance card for say 6/9 months which are available.
He would have to a really good brother for me to want to apply for a loan against my credit rating and then use the funds to repay his debts. Remember other than the risk of not making payments and you be liable for the loan the loan will also effect your future borrowings and adverse conduct will have a long term effect for you.
He should concentrate repay the higher interest card or loan and seeing if he can extend the term on the lower one to allow him to divert as much of his income to the higher rated debt before attacking the lower.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
In Qld within 30 days from that date of the Contract going uncondition unless exemption applies as a FTB under threshold but other wise you pay it on the $340K.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
As Simon states the amount of deposit is merely one of the Contract items that you state you are prepared to put down when making an offer against the property.
Other matters for negotiation include the price, settlement dates and general terms and conditions.
With lenders now offering 100% IP loans many clients are putting down limited amount into the deal and therefore looking to offer as little as possible as their deposit.
It is all about negoitation and how keen you are to buy and the vendor is to sell.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Mick
Not sure who you are talking with but 70% of current value is certainly not the norm.
Most lenders i deal with work on end value. Sounds to me like you might be barking up the wrong finance tree.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Pyramid
Paul beat me to it pointing the Stamp Duty error.
Don’t now which State you are in but a lot of our deals in Qld have No Deposit let alone little deposit.
Flexibility is another one whereby you can tailor the product to suit i.e Instalment contract or License to Occupy. If LTO purchaser may still be entitled to rental assistance.
I disagree that it is always more expensive than traditional finance. have a look at what HLP, Bluestone, Liberty etc are charging on a 95/100% deal with defaults or past Bankrupcy. Assuming they will go that high anyway even with secondary mez private finance.
If you are looking at wrapping in Qld i am happy to let you have a copy of our Q & A we send out to all of our Vendor Finance enquiries we receive.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Derek is right in regards to financing such a property.
If it is a condition of the contract that the unit be placed in the Hotel Letting Pool then this will certainly limit your choice of lenders who want to lend against such proposition.
In saying that i have recently financed a couple of units in a complex up at Harvey Bay for a client and they appeared to show quite profitable returns
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Dazzling is our resident Commercial expert so i am sure he will no doubt answer the post for you.
My limit is to financing them.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi
A couple of lenders offer 106% loans at a slightly higher interest rate although this might get you to your goal even quicker.
Most of these loans are post code restricted so if you have any area in mind I would be happy to check for you.
On the question of the smaller units <50 Sq M yes you can obtain finance on these but anything over 95% will be harder.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
You might like to contact Mic at AussieHousehunters or Westan / Alvin from the forum both who have exclusive arrangements with Genesis.
Just bear in mind financing in NY is not easy.
Do a search and you will find a lot of information concerning the USA on the forum.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi Collette
Feel free to shoot me an email and i can put you in touch with a couple of guys in Oz that specialise in US property.
Some of the deals i have seen they have at the moment are well under market valuation.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Brett
I would concur with their thoughts. Rent is dead money mind you so is interest but at least owning your PPOR gives you choice and it can be a greats vehicle to leverage off.
The $7000 (+ in certain States) FHOG and other First Home Oner benefits will not be around for ever.
Structure your PPOR loan correctly so that when it comes to releasing equity it can be done without too much fuss and expense.
Avoid where possible cross collarising the 2 loans.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Furnz
Simon is the best broker i now in Newcastle and a regular contributor to the forum.
He is even a Moderator but i understand that you don’t have to call him “Sir” when he comes to see you.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
As Simon says what is the security you are offering presumably not the units themselves.
What is the problem with increasing the loan against the value of the units. 80% of purchase price or 70% of enf value is readily available so that should cover most cases.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
noysee
Yes as Alistair mentions it is common practise and from my days in the UK we used to finance many clients into similar.
All i would say from my US Banking contacts in Miami the construction market is getting saturated and clients are finding that they cannot off loan the properties when it comes to completion.
Why not consider buying something a below market value and holding it for cash flow and appreciation rather than making a quick turn by flipping.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Glenn
The interest charged on your own PPOR is non tax deductible so you are always better off paying this down as quick as you can.
In saying this dependant on the purchase price of any PPOR you maybe able to structure the loan in such a manner that enable you to access equity for a IP at the same time.
Alternatively many lender will lend 100% of the purchase price for investment properties on a stand a loan deal and without other security so subject to income there is nothing to stop you having the best of both worlds.
Loan structuring in the first place is prbably the most important thing to get right.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Hi there
If you are consider operating in Qld i can probably assist you in the wrapping side of things.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
If you purchased the property as Tenants in Common then Yes you could sell a percentage of your shares to a 3rd party but remember that brings with it a ray of complications some of which would include:
CGT on the shares sold.
You or they can’t mortgage the property without all parties consenting and agree to the loan (not ideal unless it is a cash purchases for both parties).
Decisions are made according to the share ownership which would include sale.If you are finding the property hard to sell in the current market why not look at alternatives such as wrapping the property. You would still achieve you aim of increased cash flow.
Where the is a problem there is always a solution it is just a matter of looking a little deeper.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
