Yes, we do deal with overseas mortgage.

However if you fall into any of the below points;

1. If this is your first purchase ie dont own any another property at all
2. Your combine asset after everything is sold is less then $200k

In all honesty it be impossible for you too get the overseas mortgage.

Drop me an email at [email protected] and give us a bit more information about your income, where you work and what another property you own, then ill see if i could help or not.

Regards
Michael

I dont have any myself …but i have helped finance a few of them; one currently in place for a block of 26 units near USYD.

The most common transaction are investors and builders buying warehouses that are mixed zoned uses, converting the warehouse with high ceiling to boarding houses, student accommodation, units, age care , child care etc…
It does make money, depending on location most of them gross rental return of 11%-17%, from my experiences this is what i find;

1. Most are charged at commercial rate; 9-10%…so this eats into the rental return quite a bit
2. The building must have the right zoning and council approved for the right uses; cost of $10-15k
3. expect to spend a bit on professional services to make the place “livable”
4. older buildings are not design for multiple residency – so massive structural and design change in term of fire proofing etc..

Def not someting for the newbies.

Regards
Michael

Hi Jon,

Dont pump more into the PPOR directly but rather keep it in the offset ( if you have one) , having cash is more beneficial then equity, also as you mentioned this PPOR will become your new IP …if that’s the case pumping cash into it wont help your cause.

Rough Cal on how much equity you could access at 80% , avoiding the LMI:
Loan : 275k
Current Value- $400

At 80% – you have $45k to play with.

So the question is, how much cash + redraw do you have??? once you add this 45k into your savings do you have enough for a 20% deposit + stamp duty etc.

Note: 85% LVR with no LMI are available, but not for Refin…just new purchases.

Regards
Michael

There are a few; but you will need to confirm with your accountant which one is suitable for your needs.

The way it works is, since your goign to be gaining $xxx,xxxx amount from the sales; you would want to reduce the income you get THAT year…and no im not taking about making a lost or retiring for one year ahah ( i wish) ….it’s about “shifting” the lost and gain over.

I list the 3 most common that my clients execute:
1. Do an interest in advance on another property; so your paying off 12 month worth of interest on another IP to offset the gain ( interest in advance can be achieved with ANY investment, not just a property)
2. If you have some stocks that are making a lost- good time to off load those as well.
3. Delay settlement till July 1st ( the new financial year)- this give you 1 full year to work around “making” this lost…ie renovations?, upgrade, interest in advance, another investments , great time to do the massive renovations on another IP ( no rent for a period of time etc…)

End of the day, speak to your accountant and see what she/he thinks

Regards
Michael

Hi Raz,

Sorry to say, your loan has been set up wrongly for your purpose anyway.

1. Any amount you live off in the redraw is technically not tax deductible in the ATO point of view…i mean if you redraw $100 there and $200 there …i guess it should be much of a concern because the amount are low…but once you start redrawing $1000+ etc…then they would like to see some proof of the funds purpose in order to claim the tax deductions. .

2. Redaw- in the customers point of view it’s YOUR money because it’s extra you have placed into the bank…but really in affect once you have given it to the bank ..it’s their’s and your really “borrowing” this fund again. Hence why your loan amount and repayments goes up

3. Offset on the another hand is different. There is no purpose test + the money is YOURS…no need to ask the bank.

4. since you have an wealth package- your entitled to a free offset account…CBA calls it a MISA account…to be honest it’s stupid ( excuse the french) in my eye’s it’;s not a real true 100% offset account…as you have to manual transfer the funds over…

5. Your interest would be lower with a WP

6. Your getting ripped off from CBA, if they are only giving you a 0.7% discount…the standard CBA discount these days is 0.8% +

Sorry for the bad news, but it’s best you hear it now and act on it..rather then later.
IMHO consider a diff bank OR re-negotiate a better deal with CBA + apply for the offset account ( free)

Regards
Michael

Welcome to the forum Darcy.

Regards
Michael

Commercial lending is very similar to residential lending, with only a few pitt falls to avoid + a few tricks to execute.
In fact, a few lenders uses the SAME form or similar form for the commercial and residential lending.

Main differences: Points the lender will look at;

1. Rate is higher – starts around 8.5% variable ( not intro)
2. Rental income is accepted at a certain % and it’s case by case …depending on the business your buying.
– example-
– Rental income from a shop front ( currently a bakery) – will take around 70% of rental
– Rental income from a Office ( currently rented to a accountant) located in CBD – wil take up to 90% of rental
– Empty shop front- will take 30% of potential rental

The trick here is HOW you PRESENT the loan, very important.

3. The security on offer; if your willing to use a residential property as 2nd security then rate would drop close to residential rate ( 7.15-7.8%)

4. Lease term- How many more years are left on the lease and what sort of lease is it.

5. Zoning – what uses does this property have?? can it be a car-workshop etc…
Normally Mixed zones are the simplest to approve.

6. Experiences. Depending how big the loan and deal is…the bank may only lend if your have experience or some sort of banking ( strong financial) for commercial deals. – But in your case, since the loan is under $500k this is not going to be a problem.

In term of deposit; LVR must be under 80%, preferred to be under 65% LVR ….UNLESS you have another security for the lender to fall back on; can even be a 2nd mortgage ( ie no need to refinance to them)

Regards
Michael

Conservative is no good for a accountant

Regards
Michael

Hi bella84,

It’s good that your thinking and planning for each buy…i see alot of people these days; especially young couples who just buy a whole bunch of IP in a short period of time and get stuck with a massive debt and when the wife gets pregnant instead of celebrating, they are grieving.

My suggestion;
Release some equity to buy your IP, as a safe buffer try to release enough so you do NOT have to use your own “cash”, so it should pay for the 10- 20% deposit + stamp duty etc…(IMPORTANT- if you do a Equity release, it must be done as a split loan, so the IP part can be tax deducible).

Keep your hard earned “already tax” cash in your PPOR offset account, try to minise the use of your own cash for this IP purchase.
This strategy allows you to have a “cash” buffer in case you lose your job, the IP becomes vacant or need the money for emergencies etc…
Also the new IP, set it up as an I/o for the first 5 years.

So in summary:
1. You gain the IP you want
2. Still have a cash buffer
3. All loans are set up with the right structure for the tax part.
4. Better cash flow

Where you buy, or what you buy is a different story, for a different day

Lastly the above loan structure is general advice only, so without knowing your situation and financial numbers, it may not be right for you.

Regards
Michael

Hi,

Im not to sure i understand your question.
So is it the insurance company or the Bank that’s paying you out for the flooding??

In regards to the credit part. Like every company; employees follow a set guild-lines and are responsible for each clients dealing….so if the situation is too complex the credit guys JUST won’t go there…unless there is a good reason too and the reason is good enough to migrate the risk.

Even though the office might be in a different state. Most people knows what happening in the floods, especially if your in an industry that deals with flood victims on a daily basis.

Going to the omsbudsman will take some time, from your post it looks like there is a mis-communication somewhere along the pipeline…try to set it out in a more basic term.

Regards
Michael