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We are Licensed Financial Planners and Mortgage Brokers.
I have to say it never amazes me how many clients who have been to see FP's in the past for so called advice have had managed funds or direct property shoved down their throats usually as Jamie mentioned from mates of theirs who in turn pay them a nice fat commission.
The other issue i have is so many of these advisers have minimal net worth themselves.
They are advising clients to get into a property yet haven't paid off their own PPOR or purchased their first let alone 10th IP.
As far as advising someone not to take out a mortgage i hate to say this happens all too often.
Under NCCP if you do not feel the client can support the repayments or indeed the product is not suitable we say sorry we cannot help.
Sure they may end up going to another Broker but unlike a Financial Planner the advice we offer in this regard is total free.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Duck if Personal Trustees are involved then the Contract should read Mr & Mrs Smith ATF Smith SMSF Super Fund.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Maybe able to get around stamp duty depending on the State.
Yes hate to say i think LMI would be payable again as the risk is changing.
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Yours in Finance
Richard Taylor | Australia's leading private lender
No Colin i said 2 separate answers from 2 separate people not 6 separate answers from the same 2 people lol.
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Richard Taylor | Australia's leading private lender
What area are you in ?
Might be able to direct you accordingly.
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Richard Taylor | Australia's leading private lender
Pleasure Shawn.
Always best to get a Private Binding Ruling if you are any doubt.
Not cheap but worth it.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Whilst with most lenders you will need to not only to have saved a 10% deposit but also be able to cover your acquisition costs (In Qld these are not cheap) there are a couple of loan products which might suit especially if you are then looking to buy another property shortly after.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Sam, your story is a classic situation many self employed clients experience.
A decent Broker will be able to give you the options and alternatives as not all lenders requirements are the same.
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Richard Taylor | Australia's leading private lender
https://www.asic.gov.au/asic/ASIC.NSF/byHeadline/Credit%20licensing
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Yours in Finance
Richard Taylor | Australia's leading private lender
Alternatively you could look at taking an option on the property and then look to sell the option
Of course if they are distressed properties it is unlikely that you will be able to get the Vendor to agree to such a contract and also in some States Stamp Duty will be payable.
Becoming a fully compliant Buyers Agent might take more than a few months as Wilko mentioned but you might be able to work under someone else's licence initially .
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Richard Taylor | Australia's leading private lender
Employing someone won't get you out of being licensed as you are the one offering the credit terms.
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Richard Taylor | Australia's leading private lender
Are you licensed to offer such form of credit terms ?
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Richard Taylor | Australia's leading private lender
As Darryl mentioned many different Councils in Qld.
A few i can think of would allow it however others it would be a flat out No.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Makkdogg
Firstly welcome to the forum and i hope you enjoy your time with us.
It is a question i get asked by nearly every new client and one i normally answer with the same response. Why not purchase both !
Depending on your current savings and income there is no reason why you couldn't do this.
Structure the loans correctly so i you do decide to move then you will be able to maximise your interest and expense deductions.
$580 / week is a fair amount in rent and you may find that the interest repayments on an equivalent property would be cheaper but there are other financial consideration.
With 5 children your allocated living allowance in respect of serviceability is going to fairly high so you need to factor that into the equasion and ensure you use lenders that can accomadate this.
Anyway good luck in your decision making and to starting your portfolio.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Chardie
I have strata titled 43 blocks here in Brisbane over the last 16 years and still own 3 large blocks in my portfolio.
Regretfully the days of 4 units and under being treated as a residential loan is almost a thing of the past with only 3 lenders adopting this strategy.
In saying this if there are some good comparative sales then we can still do upto 10 units on 1 title as a residential loan.
I am currently financing a block of 8 units here in Brisbane for a forum member and we have done this at residential rates of interest albeit they only needed 65% lvr.
GST is only payable when you undertake "Substantial renovation" so if in doubt probably a good idea to obtain a PBR.
We have used this on a couple of the blocks in the past where were unsure.
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Richard Taylor | Australia's leading private lender
Would never do my own as mine are just too darn complicated.
My Accountant is a property expert and worth every single dollar.
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Richard Taylor | Australia's leading private lender
What is more scary is that you can speak to 2 different people at the ATO and get 2 separate answers.
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Richard Taylor | Australia's leading private lender
Sorry Ivan have to disagree there.
As SMSF Specialists we have assisted many a forum client to purchase a property for less than 200K.
Capital Growth is one element however you cannot retire on capital growth unless you realise the asset which could (depending on whether you are pension or accumalation phase) trigger a CGT event.
We focus on yields for our SMSF clients as certainly you can retire on income.
100% loans are available to SMSF's if done by way of a related party loan which can certainly be a cheaper all round way of financing the deal.
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Yours in Finance
Richard Taylor | Australia's leading private lender
All of my investment properties are in Brisbane with one on the Gold Coast and i must admit the vacancy level is nil and has been for the last 6 months.
Even when one or two of the units have become vacant due to their inner city location we have had a dozen applications for each unit.
Certainly at the moment every 6 months you can look to increase the rent.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi jary
Firstly welcome to the forum and i hope you enjoy your time with us.
A couple of the previous posts have set out the description of a positive cash flow property.
Remember there are many ways to compensate for a property that on the surface appears negatively geared.
When we work with clients we look to balance higher yielding properties with those the enjoy opportunity for capital growth.
We look to mix vendor finance and use the surplus monthly return to starting paying down either non deductible home loan debt or create an income from the investment itself.
As long as you have income on paper to initially support the level of borrowing and equity or cash to be able to cover the initial deposit and acquisition costs then there is no reason why you can't start too build a decent portfolio.
Good luck and cry out if you need anything.
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Yours in Finance
Richard Taylor | Australia's leading private lender
