Forum Replies Created
tyler, Yes i was there about 17 years ago and ended up buying all of my 43 properties in a series of Trusts.
To me the flexibility and Asset protection was more important than the ability to claim short term deductions thru Depreciation etc.
So glad I did as within 5 years the properties became very very positively geared and enabled me over 10 years to pay down $11M of debt to be where i am now.
Course some people need the deductions and i understand that but that is why everybody's strategy is slightly different.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Kate
Do you want to elaborate on what you are referring to.
I think i can take a guess from you last comment but not sure if we are on the same page.
You might be looking at a Call Option but it won't get you around the Stamp Dury in a couple of States
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Mick before you rush out and start looking for a new IP i would get your Broker to restructure the loan so that you have access to a sub loan too allow you to draw out the required deposit and also a pre-approval so you have confidence on what can be achieved.
Not every lender will consider your set of figures the same so you want to position yourself to enable forward progression.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
James in the interest of all of us why not post some actual numbers on some real deals.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Agreee with Ivan.
We have used ANZ NZ for all of our NZ deals and not had an issue.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Mick
Welcome to the forum and I hope you enjoy your time with us.
Making a few assumptions and running some quick numbers on what you would likely buy i think you certainly would be able to restructure your existing borrowing to allow you to release equity and purchase at least 1 IP (maybe more).
Course would need actual figures and breakup but certainly have done harder deals.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Alex
Yes subject to serviceability 95% + LMI maybe possible.
Hate to say although i am a Financial Planner if i didn't also hold a Credit License i couldn't provide you with credit information.
A Financial Planner alone is not licenced to provide such an assessment.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Alexandra
Firstly welcome to the forum and i hope you enjoy your time with us.
Ok if you have 20K in cash which you intended to use as an deposit on a new investment property I would paying it off your current PPOR loan and then looking to take a separate loan for the same amount by way of a sub loan.
This way the interest charged on the 20K becomes a Tax deductible expense whereas using your own cash reduces the amount you can claim is reduced.
In saying this remember you cannot borrow more than 95% of the purchase price on a standalone investment property so would need to come up with both 5% deposit as well as your acquisition costs.
Stamp duty in certain states tend to be more expensive for an investment purchase and this would need to be either borrowed using your own PPOR as security by way of a sub loan or from external sources.
Buying a property in Trust will not increase your borrowing capacity as you will still need to provide a Guarantee for the loan.
If you believe there is any chance you may one rent out your current PPOR then certainly you might want to consider switching it to an interest only loan although many lenders will not allow this on a PPOR.
Initially i think you challenge is going to be a lack of access a sufficient deposit.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
As mattsta mentioned both names is favourable.
Course couple of other entity arrangements might be worth considering
You won't find any lender allow the property to be in joint names and only your friends name on the loan application.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Linda
Wow wow right there. Did you say 39 in the complex? if so i would be running a mile.
I own 3 blocks of units in Brisbane and the 1 that is strata titled control the body corporate myself.
I would never buy into a block of 39 as you loose total control. Those BC levies are only going 1 way and that is upwards.
If there are a few for sale doesn't that tell you something.
I am not sure of your budget or the sale price but if you are after a combination of growth and yield i guarantee you could do better by looking elsewhere.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
God when i was growing up they weren't even using brick …….
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes the answer is it will be considered but the same policy in regards to living allowance expenses apply.
In essence if you can't show you can afford it won't approved.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I guess is all boils down to the amount you have to invest.
To me i personally wouldn't buy in either for my own portfolio or on behalf of a client but there aren't too many suburbs in Brisbane where you can get into a property for the sort of price you are talking about.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
H Cel
For NSW we always recommend East Coast Convenancing http://www.eastcoastconveyancing.com.au.
They have a number of offices but we use Justin at Charlestown for all of our clients.
In regards to a local Accountant can't help you there but of course your Accountant does not need to be based on your door step.
Many of my forum clients use a firm here in Qld who i recommend and have personally been my Accountants for the last 17 years.
Top guys who really now their stuff and very property oriented.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Roxy
Where are you based?
We run a number of SMSF workshops throughout Australia so maybe we can get you along.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Roxy
I think you definitely need to seek Professional advice before going down the SMSF path.
When you purchase a property inside a SMSF all of the rental income is quarantined within the fund itself and can only be used to repay the SMSF loan itself. It cannot withdrawn for personal purposes or to pay off your PPOR.
Depending on your level of employer / personal contribution and the likely rent you will receive I would suggest you went with an 80% lend and then place the balance of your SMSF in a linked offset account. This gives you flexibility and choice going forward.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Good stuff Ranki
Yes we bought a cracker of a property for a client only this week in Annerley on the 'right' side of Ipswich Road.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
We use Depreciator for all of our clients and their service is second to none.
Never had a complaint from any client and Accountants love the amount they can claim when preparing Tax Returns.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi APWPG
You keep mentioning this wonderful Mentor who found you your property.
Why not post his name as if he so successful in negotiating and coming up with such deals other members may wish to use his services.
I am yet to see a positive cash flow property in Brisbane in the last few months and i look at a lot of property for clients.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Opinder
You have asked whether you can extend your current fixed loan to which the answer is NO but that does not mean you cannot access equity and borrow again even though the existing loan is on a fixed rate basis.
What is it you are trying to achieve ?
If you are merely looking to go again with another purchase then subject to a couple of factors this could well be possible.
Let us know what you need to do and we can comment further.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
