Forum Replies Created
JMS, you will require the Banks consent to subdivide the property anyway and unless the front block has bags of equity and values up post subdivision you may find that they either want cash to reduce the initial loan or other equity from the back block anyway.
In saying that many lenders do not accept multiple securities on the same Title so you may have to refinance or reduce the lvr anyway.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I think it would be a good thing.
If anyone parked on your verge the Tenants would have far to go to get the car moved.
Only downside i can think of is the flashing blue's and twos keep you awake at night.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Aosv
You say you do not have to buy the property thru your SMSF.
Are you sure that is the case. What is the purchase price and what do you have in the Fund.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Not sure Terry is a Financial adviser yet although of course i stand to be corrected.
Last time i hear he was chalking up the exams but certainly for a lawyer in Sydney you cant go wrong.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Personally i wouldn't buy a unit if i was thinking of eventually renting it out as capital growth is going to be limited and cost are going to be higher.
Yes i do buy units but only when i buy the whole block.
What are going to do if there is no Capital Growth ?
I am great believer of buying for yield as that is tangible and can be banked each month.
Capital Growth relies on too many factors of which you have little control unless you manipulate yourself.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Kenny
There are no death duties in Australia. However, tax may be payable on certain income or capital transactions that occur as a consequence of a person's death.
This is a fairly complex area of Tax planning so rather than post a snap shot on a public forum i would strongly suggest you obtain Professional advice from a Tax Lawyer.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Ben
Sorry can i ask why you are looking for a Investment Club.
What are you wanting to achieve ?
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I have to say studying Finance at Uni will do you absolutely no good if you think that is the answer to deciding on which lender suits your needs.
Criteria changes by the day and unless you are working in the field have a Uni degree is just another piece of paper.
I did Economics at Uni in the UK many years ago and have never used it to this day.
In my opinion nothing better than a working education in the property industry and getting some hands on experience.
Beats the theory any day of the week.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Smarty, I hope you got my reply email to you question you sent me.
There are plenty of deals out there you just need to engage the right company to source them out for you without paying a fortune for the advice.
Course to point you in the right direction need to know more of what you are after.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Well done mate although really lets face it was Mrs Moore who did all the hard work.
As i said to you my 19 year old daughter is also Charlotte and they are very special.
Hope we see you back on the forum soon.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi K
Firstly welcome to the forum and i hope you enjoy your time with us.
Must admit i am not sure whether i would be buying in Brisbane if you are looking for longer term growth and cash flow in the meantime.
All of 40 properties are here in SE Qld and whilst activity from forum clients is at an unpresedented level talking to valuers all day long activity does not neccesarily result in opportunity.
You have already identified a few points in regards to your relocation overseas and your reduction in your income level so i would be focusing on yield first and the property not costing you a fortune to hold whilst you are away.
In my opinion i would not buy a single Townhouse due to the body corporate expenses and i can think of hundred and one areas where you money could be leveraged more effectively.
There is nothing to stop you using a variety of cash flow generating techniques to build your portfolio and these could involved combining a buy and hold strategy with a Vendor finance or development model where one can be used to generate income to pay down the other.
Of course getting the right property is paramount here.
I would using a lender that specialises in Non resident lending so they are used to such anamolies.
You may even decide to combine a fixed rate with an offset account (Yes some lenders offer such a product) so that you can get the best of both worlds especially when you are not here to monitor the market on a daily or weekly basis.
I had a forum client only this morning who Skyped from the UK who we manage their mail, Council rates payments etc who asked us to recommend someone to source a property for them and we are using their existing equity on their Australian property to buy a couple more.
With the right team behind you this is possible wherever in the world you are working and living.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Joey
Firstly welcome to the forum and i hope you enjoy your time with us.
I see it every day of the week with clients that they over analyse when really they should probably let the emotion be taken out of the equasion by engaging a professional.
Property investment is a business and as such needs professionals on your side.
Certainly on the lending side if you have already paid the LMI and your existing Bank are happy to set up a sub equity loan (do not let them use redraw) then why wouldn't you let them proceed this way. As far as the new loan and going forward unless serviceability is an issue i would probably cop some LMI and take a 90% lvr and use the balance of funds for the next IP purchase.
If deposit funds are limited there are a couple of products that might suit with in view to maximising your cash funds going forward.
This way you could probably buy one in the Illawarra area and another interstate spreading your risk.
In regards to where to buy there are few excellent property sourcing members on the forum who can probably advise you better than i can although as I mentioned tread carefully and ensure your structure is set up right from day 1.
No need to spend months debating on whether it is a good idea or not, take the bull by the horns and access the services of appropriate professionals.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Wendy
What Southern heathens we have answering the thread and apologies for theie lack of Brisbane geographical knowledge.
Moorooka is about 7 km's south of Brisbane and home to Toohey Forest Park and the magic mile car yards.
Certainly a good suburb for development activity and i have done many a deal in both Moorooka and Annerley alike.
Now back to the question.
As well as the points Terry has highlighted the question is more how you will fund it.
Certainly you will hopefully have an element of equity in the deal having purchased it in 2006 but the number of units in the development will put it outside of traditional residential funding.
Also got to bear in mind you will need to show serviceability not only on the development whilst it is being constructed (assuming you cannot capitalise the interest) as well as at the end once the units are complete and you intend to retain them.
I would be getting the structure sorted out first before you develop as otherwise the Transfer costs down the track will be a lot more expensive.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Shahin no neither and the Motel is not producing very much.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Darryn
As we discussed in an email earlier in the day i think you will struggle on this particular property with the limited information to hand.
Crest who is a regular post is an expert on Motel's and maybe be worth shooting a PM and seeking his opinion on the property.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Kong no correct structure needed.
I use Interactive Brokers and have the Account in the name of my SMSF with the nominated currency in AUD.
Works very well and their service and brokerage costs are second to none.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Eduard
Sent
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi viks
Is there a reason why you want to buy with others and not on your own.
As long as serviceability is sufficient then there are a couple of products that might get you over the line in relation to the funds to complete.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
No not at all but remember the Govt Guarantee has been wound back so make sure you don't have more than the threshold in any one institution.
Course then you have to ask yourself do you have any loan on a PPOR / IP and whether you are better depositing the funds in an offset account.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Most policies JMS don't include suicide or faking your death by hiding in the attic.
With many policies however your Financial Planner can dial back the premium for you by reducing his commission reflecting in a cheaper monthly premium without having to switch insurers.
We now do this on every new policy we write for clients or any policy we take over where they have an existing policy in place.
Many clients merely get us to manage the policy to reduce their monthly premium costs
If we can help a client save a few dollars then all well and good.
Realistically you wouldn't believe how many people are so under insured it is not funny.
Every time you take out a new loan or have a change in family circumstances you should really review your policy cover.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
