Forum Replies Created
Hi VirtualT,
It’s actually “advice”, not “advise”… now what’s that phrase.. something about glass houses and throwing stones?
Cheers
Rob
Wouldn’t Paul still be able to claim the full amount of redraw, as long it was used to purchase another investment property? Different story if he was to use it to buy his PPOR. He hasn’t said what he would be using the money for.
Hi Alistair,
Thanks for the info! definitely a lot to consider. Obviously with a higher valuation, there might not be as much difference as I'd thought with regards to how much cash/equity I'd need, even with the LVR being lower for a commercial loan (as the valuation would be higher)
I am basically trying to determine which path to take with regards to developing a particular property. I have the option of either demolishing the house and building 3 townhouses, or retaining the existing house and building at the rear. Both scenarios are profitable, but the 3 townhouse option is more lucrative. However I need to know how much cash or equity I'll need, which may determine which option I choose. Hence the purpose of this thread.
I might have to sit down with a broker and go over the numbers in order to reach a decision..
Cheers,
Rob
Hi Richard,
I did have that in the back of my mind, but just to clarify, if I initially purchased the property for $550K with a 90% lend, when it comes to knocking the house down, the bank would be asking for some money from me (or lend me less money for construction) to bring the LVR back to 90%? If we say the land value is $450K, they could potentially ask for $90K (or thereabouts)..
Not sure if I've got that right..
Cheers,
Rob
Hi Derek and Michael,
Thanks for the responses!
As Derek mentioned, I would be expecting the need for pre-sales to meet the lender's requirements. Just wasn't sure if I was able to get finance under a residential loan, although it sounds like i should be able to.
The finer details of the project would need to be looked at by a broker to give me a more accurate answer i guess, but i was really just looking for a general answer to a general question, so thank you! The other expenses you've mentioned have been allowed for in the project feasibility, but always good to be reminded of things to allow for!
Cheers guys
Rob
Thanks All,
James from House of Wealth was extremely helpful and was happy to chat over the phone!
Thanks again for the recommendation
Hi Terry,
You raise some good points. I actually hadn’t thought of contacting a lawyer to get this set up.
I just got off the phone with my solicitor, who has told me he doesn’t set up trusts…
I also just rang Mark from M.J. Unwin & Associates, and have been told they are not taking on any more clients at this stage!
Finding a good accountant is proving to be a lot harder than i thought!
Still waiting to hear back from House of Wealth..Can anyone else recommend a good accountant with structuring experience? or perhaps a lawyer as Terry has suggested? Or can anyone comment on what they may have paid to set up a trust, as well as a company to act as trustee? Kind of just want to find out if what i have been quoted is reasonable, as $2500 sounds a little expensive…?
Thanks Ian,
Have you used Mark Unwin before? And does anyone know how much a trust should cost to establish, along with a company to act as trustee?
Thanks Jamie,
I’ll give them a call.Cheers, Rob
Hi count1234mein,
I am in the exact same position as you, having recently purchased a property in Vic, signed “and or nominees”, and am currently looking at setting up a trust structure. Having spoken to an accountant last week about this, i understand that the company in which you wish to nominate as trustee must be in existence BEFORE you sign the contract. (This is my situation also).
The way around this, is that you can purchase a “generic” or “off the shelf” company, which WAS set up prior to the date in which you signed the contract. The only issue is that you would not get to choose the company name (although you can pay a fee of approx $300 to have it changed to whatever you like). I understand it is also slightly more expensive to do it this way.
I am definitely not an expert in this though, so you should confirm this with your solicitor.
