Hi,

Emma is right , it needs to be “rent able” ; it doesn’t need to produce income it just needs to have a sign agreement with a agent to be rented ( paper proof) . i had a IP i was renovating for 4 month and during that 4 month the accountant advise i would not be able to claim the interest deduction even though the purpose was for IP however it was not “on the market to be rented” + not livable at that stage.

Regarding LVR:

General rule of thumb is under 70% for rural with property.
If it’s vacant then it be 60%

1. If it’s larger then 5hec then minus another 10% LVR
2. Population less then 5,000 mins another 15% ( but your biggest hurdle here would be valuation and comparative sales….might be better off going commercial)

Of course everything is also done case by case; i had ANZ accept a rural vacant property that was 12 Hec at a 70% LVR no problem…so it also depends on the client and the overall deal.

Regards
Michael

Plan to hold and rent or sell?

You may find community title may be hardier to sell due to finance issues for the potential buyer.
Go strata if you must..

Regards
Michael

Never heard of loan star- But there are thousands of Mortgage manger’s in Aus…. looking at their site i still can’t work out who the “lender is ; this would be on your loan contract when you first signed…who is the “lender/bank” …loan star is just the ” brand ” or provider….

If it’s coming up to 6 month in Oct then loan star should be able to do a re-value…unless it’s their policy not to ( as i said i dont deal with loan star , so won’t know).

What was unique about your credit situation? Low doc? self employed?

Regards
Michael

Catherine Cashmore from JPP

JPP Buyer Advocates
P 03 9523 1054 | M 0458 143 089| F 03 9523 1082
368 Hawthorn Road, Caulfield South 3162
[email protected]
http://www.jpp.com.au

If your unsure where you stand, its best to start from the basic;

1. Speak to any accountant about how a IP will suit your overall financial/tax return ie what is the expected tax advantage if any ( depending on your tax bracket etc…)
2. Have a chat with family and friends
3. Speak to a broker or banker to work out how much you can afford and what the best loan structure/ lender would be.
4. Do some home work and start shopping

Regards
Michael

You can buy properties under a SMFS, in term of the name on the title; it be under what we call the smfs’s “warrant” .

They also could be joint buyers with a 3rd party ( however i think there may be some condition regarding 3rd parties who are related, using the one arm rule…something a accountant can confirm) if it’s bought with a 3rd party, then yes the smfs can use their own cash as “deposit” towards the loan.

Regards
Michael

Most insurer will have a online building cal for sum insured …..ie http://www.comminsure.com.au/ —-> go to the bulding sum insured cal.

or speak to builders for a more accurate value.

Regards
Michael

A bit to general…in fact still can’t work out what sort of security it is….

Commercial is very different to resi; they look at the overall risk of the borrower, security, LVR and stability of tenants to determine a rate.

Bank west has some “low” commercial fix rates ( 2 years for 7.25% from memory ) ; but they do not service a large range of security + they only target low LVR loans and preferred not to be owners occupied. Also after the fix is over their rate jumps up quite a bit.

To be honest your best to contact a commercial broker ( plenty above that responded to your post) as they can work out and find the best overall deal… most of the time it’s not JUST about the delivery rate but also we look at set up cost, risk fee ( if any), break fee, on going + some commercial lenders only deal with whole sale funding + the broker market only.

Regards
Michael

It’s probably been answered already- but GIFT are not taxed, but any interest you occur when you place this gift into a savings account is…

Regarding the writing it’s a non refundable cash gift this is for the bank’s purpose of lending money to you for the purchase, they need to know if this is going to be a personal loan or not etc…But be aware NOT all lenders allow gift as deposits and if they do it be under a certain LVR 80-90%

Regards
Michael

Understand, it is a public forum…

Feel free to PM/email myself or the another active brokers on this forum- Richard Or Jamie.
It’s hard to give a recommendation on what to do next without knowing where the true problem lies? hence my questions.

Regards
Michael