Forum Replies Created
Certainly strategies 1 & 3 require a combination of indepth knowledge and a wee bit more than 300K so if you are happy to start in property then #2 seems to be the way to go.
In saying that I have to say i am not sure i would be rushing into buy in Perth at the moment as we are certainly at a market high. There are a lot better areas to dip your toe into for a buy and hold strategy.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Borrow 100% of the investment property value and keep the balance of funds in an offset account or look at getting 1.5-2% / month on your money and adding to the offset account as you go.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Mandy
Firstly welcome to the forum and i hope you enjoy your time with us.
Must admit there is insufficient data on your own circumstances or longer term goals to provide a structured answer however i would not suggest selling the IP unless you have catered for possible CGT and selling fees. This will reduce your net funds available for re-investment.
You mention that you own a factory which you rent from yourselves so you might want to think about selling this to you Self Manager Super Fund and paying the fund the market rent which will certainly reduce your personal Tax liability as well as increasing your net worth in a Tax sheltered environment.
Going forward you need to assess what are you seeking from your investment and whether property is the way forward.
Many of our clients use a mix of investments in order to maximise their returns and increase their net wealth as buy and hold property is not the sole strategy you should focus on.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Hifo
Firstly welcome to the forum and i hope you enjoy your time with us.
Be surprised how many investors we talk to say the same thing.
Certainly i advocate to all of my clients that the IP and PPOR are kept separate and not crossed collateralised but unless you are providing some cash input (which is not recommended whilst you still have a non deductible PPOR loan) you are going to have to raise some funds against your PPOR. It is how this is done that is important.
In regards to choosing an area to dip your toe in the water you have to ask yourself what are your objectives for investing.
Are you looking for cash flow, capital growth over time or a combination of both.
Looking thru the list of towns / cities i have to say i would not be putting any of our clients into such areas as i personally think you maybe seeing a market top in a few of these areas. Plenty of other areas that have plenty of life left in them.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Gerald
Firstly welcome to the forum and I hope you enjoy your time with us.
Must admit the question is rather confusing so i am not entirely sure i understand what you are asking.
If the question is can you restructure or borrow additional funds for a new purchase using the security of your current property then yes subject to equity and serviceability there is no time limit.
If i am miles off track please rephrase the question and we can provide a more structured answer.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Mitch
Firstly welcome to the forum and i hope you enjoy your time with us.
If you are looking at buy at an investment property you are better off to set up a separate sub loan and use these funds as deposit for your new IP.
Assume you had 25K to invest you would reduce the PPOR loan by 25K and then set up a separate 25K interest only loan.
In the meantime, you would probably set up a 100% offset account linked to the main loan.
Going forward the 25K probably isn't going to be enough to cover a deposit and the acquisition costs so you might want to look at a loan where the lender will fund your purchase costs . Your Broker should be able to advise you on this going forward.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Must admit i am soccer tragic and have spent 44 years following my home own team of Bournemouth who have made it to the Championship for the 2nd time in their history.
Knocking at the door of possible Premium League play off and trust me i will be there for these games if it happens.
Don't worry always take the laptop so will answering emails whilst i am in the UK.
Other than that travel. Still have around 84 countries i haven't been to but plan to knock them off over the next few years.
Mountain biking and golf are also pretty up there as well as fine dining. Got a little restaurant in Williamstown i love visiting every time i am down in Melbourne.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As Terry entity is second consideration and not something you can answer on the fly.
More important question is are you licensed to do so.
Without a Credit License there is no point in spending a small fortune on setting up a structure only to find you can't legally transact.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Had a forum client quote me 12.5% today so rates might be creeping up again.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Probably also a good idea to contact your State MFAA office as they are often aware of Brokers who want to Mentor a new Broker.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
If at all.
Spent 2 days last week in the Blue Mountains with the heads of Residential Mortgages for the top 6 Banks and the general opinion they may not use or report data to aid Positive Reporting due to the cost factor.
if the top 6 lenders aren't going to bother what hope have the smaller lenders got.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Kystal wow it sounds like your Bank have absolutely no idea on how to restructure your new loan which is a concern.
Depending on the lvr there are a few things you could look at doing to reduce the LMI etc and yet still free up extra equity for future investment or spending on your new PPOR.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
95% + reno loan in 1 go would have been possible so no idea why your broker didn't recommend that upfront.
No LMI charged on the reno loan so would have a lot cheaper than refinancing later.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
PHS not sure what bible you are reading from but my properties in the UK (South) are increasing in value by the day and i would be concerned putting my clients into areas where "house prices are falling'.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Sam
Regretfully the better aggregators are unlikely to take you on at this stage so wouldn't worry about that.
More a matter of finding someone you can work with.
You can always switch in a few years time.
Personally i work with FAST and have done for 11 years. For what i what they provide everything i need.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Ezz
Welcome to the forum and I hope you enjoy your time with us.
With Positive reporting upon us the fact that you had a loan pre-approved but then decided not to proceed with it is really not an issue.
Of course most lenders have not embrassed PR however as long as when your Broker submits the new loan submission this is explained it really shouldn't be an issue.
I would tell your Broker upfront the features you require and get him to come back with a suggestion as you really want to try and limit the applications that are lodged going forward.
Always easier to get it right first time.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes you are right The New Guy and this is the way it should be.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As a lender what they think.
Spent a long weekend in the Blue Mountains at a conference with the Head of Mortgages for the 6 largest lenders in Oz.
Talking to them about it they thought it was better than an interest rate rise.
Not sure who your Mentor but unless they have a vested interested I would say they are new in the game.
Certainly no added Tax Benefits to cross your loans.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Ben
As Jamie says.
Unfortunately with some loan planning at the start you could have done a reno loan at home loan rates from day 1 and this would have saved you the higher interest rate on the personal loan and also the LMI.
We do a fair of this type of loan where the client borrows say 90% of the purchase price and then a further amount to cater for potential reno or development costs etc all done at home loan rates from day 1.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Have to say if you are looking over the last 10 years you will get some distorted figures due to a variety of reasons.
Also have to say the past is no indication of the future.
Several areas in the town we are buying in now that we weren't 10 years ago.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
