Forum Replies Created
That sounds like a typical REIQ Contract, and probably the rest of the states as well. I personally change the contract by inserting the clause” re: condition 4.3 Property to remain at Sellers risk. Saves me having to obtain a cover note up until settlement day and means if it does burn down I’m not stuck going through with the deal should I decide not to.
Now to answer your question simple home/building insurance should suffice.
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Jamie I’m based on the Gold Coast and can stop by and see you or you can come to us. I’m happy to work with you to arrange a suitable time and help anyway I can.
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055I remember last time the short – medium term fixed rates went up and everyone paicked and fixed.
they (The RBA) then dropped the guts out of them and let it fall to about 4% mind you I’m talking about a few years ago…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Allens Chartered Accountants at Mt. Gravatt are used by an associate of mine who has both a business and I.P’s all in a family trust – which I’m pretty sure is a Hybrid to be exact. Only because his business Partner is a Beneficiary, but is limited by units etc, whilst still being able to ditribute the profits as they see fit…
Check them out, they may be able to assist.
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055I’m with Richard on that. Commercial can be hard depending on the funder. Some don’t like specific types of property etc; Valuers can be conservative too, which never helps when putting a deal together.
Happy to look if you’re in a jam though.
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055If you need to re-fi $1m on a security worth $1.8m that should be a rather simple transaction. With or without an ABN.
And the Approvals can be unconditional in 24hrs (dependant on valuers of course) all going well.
Be happy to discuss it away from the forum if you still need a hand…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055There is already a program which exists for precisely that reason. It also calculates how saving money and extra payments on loans will affect the term of the loan.
Program is known as misaver aka mortgage interest saver cost is $400.00 with six months monitoring from the company who wrote the program and then lasts the term of your loan. Also has a section in the expenses which calculates rent as income back into your cashflow so you get a 100% true picture on your finacial situation from month to month…
Works a treat. Ideally used in conjunction with LOC’s but can be adapted for standard P&I loans with offset etc…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Amanada last time I checked the CBA’s Wealth Package it was on a “relationship balance” of $150,000 or more and the Wealth Package Plus which was the superior by far product was on a “relationship balance of $250k.
.7% discount is great but it’s only off the standard variable rate which in most cases isn’t much better than you can have your broker negotiate for you without the annual fee…
I think perhaps brahms forgot to mention that part…
Shop around. If your bank won’t play walk…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Originally posted by Derek:Originally posted by Dave L:Would it be beneficial to borrow the full amount now (interest only payments of $896.00) place it in an offset PPOR account therefore all debt would be tax deductable
Hi Dave,
I like the way you think – however when banks lend for construction purposes they initially approve the loan based on their valuation of the plans – but hold onto the money.
The building contract stipulates when and how much is required through a series of progress payments. At each of these stages the builder will invoice you and/or the bank. The bank will then make the payment directly to the builder in accordance with the agreed process.
You are both right on this one. Derek, generally the banks manage the Draw Downs for construction lending, however, in so saying there are some lenders who will allow you to manage your own. It depends on the individual requirements.
The majority of lenders also charge a loading throughout the construction period to cover their “extra costs”.
If you can do that and use the funds to smash out some non deductible debt thats fine. I am not the ATO, but I would suggest as the funds are primarily intended for investment as will be evidenced by the construction of the property I would think the account you are holding them in in the meantime prior to drawing on them to pay your invoiced amounts is irrelevant.
Sounds like a good plan to me anyway…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055I believe GatherumGoss are Melbourne Based and Cata mentioned anotherMelbourne based Accounting Firm a few days back in one of his posts, but alas the name eludes me.
Congratulations, welcome to “the other side”. Many happy returns…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055You should be able to hire a floor sander from somewhere like coates hire for around $100 – $150/day. (I haven’t hired one for almost 10years now but I wouldn’t expect much more than that.) They also carry Wallpaper steamers, and Air Compressors and Painting equipment. I’m pretty sure they’ll teach you haw to use the stuff before letting you out into the wild world with it if you ask them too.
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Originally posted by Terryw:Stuart, think you meant appointor rather than settlor. Settlor is the person who gives the initial money to be held on trust (usually $10), appointor is the one (or more) who controls the trustee.
Aah Yes that’s the one. I could never get those two right. Not to worry at least they both end in “OR” !!
And it would probably be a workable concept although there could potentially as Terry mentioned be Taxation issues and for this reason you would need to speak with an Accountant to find out more. They shoule also be able to assist you with the Trust concerns too.
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055This is a question best answered in conjunction with an accountant. In short depending on how oyu structure the initial investment, and subsequently how you then sell it and where the wealth is distributed will decide how it is viewed. You can always pose your question to the ATO and they will process it and come back with a ruling.
Lenders are fickle and constantly change their lending policies. Sometimes for better and sometimes for worse. You shouldn’t have too many issues obtaining future funding though and yes some will accept that you are a professional investor and accept what you do and the profits as income. It gets more complex than that when compiling the information, but a decent Broker should be able to steer you in the right path.
Best of luck with your future career..
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055That marketing budget looks awfully small to me.
I have a planned development for 18 3br units in a 3storey walk up with planned/budgeted marketing budget of $250,000.
$50,000 doesn’t buy much advertising anymore. Apart from that I couldn’t see anything that made me cringe. Is there a contingency fund? If so how much? Is this forecast prior to return so it’s a bonus if all goes well without delays or unexpected price increases on services?
What is the exit strategy? Does the developer have one? Who iscarrying the can if the Developer bails and doesn’t complete?
I agree with cbellesini though good homework and plenty of it will potentially save you a bundle later on down the track…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Convince him to transfer the property into a Discretionary Family Trust with him as the Trustee, and not a named beneficiary. Then have the Settlor sack him as the Trustee and install a Corporate Trustee of which you and your partner are the directors, re-finance the property pay him out his share and move along purchasing the next property in your newly acquired trusts name as well.
Of course if you don’t want to start a massive Family Rift and destroy your relationship with your father, you could always explain that you are trying to build a legacy for your children so that they don’t have to work and that he is holding you back from creating enough wealth to achieve this goal. I don’t know him, but it sounds like he doesn’t fully understand the difference between Good and Bad debt and views it all as bad?
You also have the option of 100% finance through a few lenders even for I.P.s so that may be worth investigating too if he is still inflexible after explaining your goals to him regarding your property portfolio.
Ps: I don’t personally recommend option 1 it was thrown in for humour although some won’t see it that way no doubt…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055I have a real one I am happy to scan and email you so you can flick through it and try to get an idea of hwo comprehensive they can be if you like? Some are better than others though. I would recommend always use a licenced builder for your report as some of the inspectors aren’t.
If something goes wrong I guess you may have cause to comeback on the builder, but if it’s something like a pipe bursts inside a wall and destroys half the house there’s not a lot you could do there apart from claim on your insurance and move along. Most reports only cover the areas they are able to access and are a visual inspection only. I would suggest checking with your solicitor on that one.
Then again why would you use someone you didn’t trust to do the job properly? If you don’t think they have or will do a complete and thorough job get a second opinion. You do have the right to do that as the consumer…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055I know of a lender who will give you 90 days to find your next security property and will foat the loan unsecured for this time, which means you can look for your next property while yours is on the market and when you sell you take your loan with you and never have to pay it out. It’s portability with a huge difference – If you haven’t found your next you then have 3 months to come up with the goods before your loan expires and you get the fees. Now you gotta be happy about that…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Originally posted by ralf:Plenty of projects planned & hoped for in the region as listed below.
An extract from the Townsville Bulletin website, April 12
Townsville Building boom
MAJOR projects committed or on the drawing board:* Stockland’s Waterway Gardens $1bn
* Tabcorp/Consolidated Properties Breakwater Quays $950m
* QNI Yabulu extension $630m
* Honeycombe’s Central (rail yards) project $260m
* Honeycombe’s Itara (Riverway) apartments $140m
* Jupiters Radical Bay resort $70m
* Ross River dam upgrade $115m
* AGL gas power station $350m
* TCC carbon neutral water recycling plant $100m
* Gordon Property’s Blue on Blue resort $120m
* Sunland’s Bushland Beach estate $75m
* Glen Alpine’s Riverside Ridge estate $100m
* Gordon Property’s Nautica apartments $75m
* PJ Group/Matrix Gateway on Palmer $75m
* Fortia Fund’s Dalgety project $65m
* Crackers Corporation’s Watermark $75m
* Cruise ship terminal $50m
* Hedley’s T1 towers $50m
* Reed Property’s Ramada Encore $50m
* Tennessee’s Ban Thai and Waterstone projects $40m
* Glen Alpine’s Solarus project $80m
* Castletown Shoppingworld upgrade $34m
* Thuringowa Riverway project $40m
* Hedley’s Rosslea unit project $30m
* Australian Technical College NQ $9m
* Sun Metals extension $650m
* Chalco alumina refinery $1.3b
* JCU residential project $250m
* JCU commercial project $40m
* Jezzine Barracks apartments n/a
* Riverway project hotel $40m
* V8 supercar project $8m
* JCU secondary college $20m
* Dive ship project $15mYou managed to miss the Federal Governments De-Salination Plant which will be commenced at the completion of the Yabulu Upgrades and the Power Station. John Howard announced it at a business luncheon and it slipped through the medias radars or was chosen to be ignored due to the Labor Scare Tactics and campaign against the A.W.R. Legislation at the time. He basically said if Peter Beattie won’t do what is neccessary for both the farmers and everyone else and ensure a water supply the Federal Govt will…
All Politics aside though it is a great thing for North Queensland and particularly Townsville as it means the neccessary infrastructure will be in place to ensure long term viability for industry. They are also increasing the amount of Military Personnel posted to the region and rumour is rife the Americans are setting up a base at Rollingstone, which will be home to 10,000 to 20,000 of their Military Personnel. That means massive new infrastructure and housing requirements if it proves to be correct. With the influx of Southern Workers moving north for the better climate and the work opportunities in the mining and industrial sectors i.e; Yabulu upgrades etc; the housing market is already in under supply in the region so the return for the astute investor can be as high as 7% Why would you not wish to invest in the region? Add the return to deprecition and constantly increasing Rents and you may have a positive Cashflow….
General advice only, intended for entertainment purposes only not financial or investment advice. Much of this information is Rumour and Conjecture and persons ahould do their own due diligence and investigations into the truthfulness of the information in this post.
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Hi there Didi, I know of a heap of lenders including one major bank who will lend you the money. Don’t believe everything they say. this major finacial intitution lends to discharged bakrupts they just don’t advertise it in the windows. Your defaults are easily explained away, and wouldn’t be too much of an issue to circumvent. It isn’t like you Deliberately ignored the bills.
To be honest your situation is a common one as a couple of the other guys have mentioned, and not hard to get the money for and yes the rates at the Loan to Value Ratio you’re talking about will be pretty close to bank rates, if not through a bank.
If you get stuck there’s always someone who can assist you. And I would advise ignoring those who tell you that you will have to cop 10 or 11% because thats just not true.
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Redwing – Just because on lender knocked you back doesn’t mean they all will. this is where brokers come in. As Lenders all take into account your ability to service the loan in a different equation and it CAN VARY BY UP TO 25% the services of a broker in obtaining that extra property can be invaluable.
In so saying we can’t always get you there and I personally would walk on the low/no doc if I thought it was destinde to leave you in financial hardship. Some business is better left not done.
By the same token your credit report shouldn’t play too much of a role in influencing the lenders I mean I have well over the average number of enquiries on mine and would think most of us on here would due to the amount of buying and refinancing we all do for various property additions etc; It just goes with the territory and the lenders take that into account. Well some do anyway.
Help is always available. If you do a lot of refinancing then have you considered fixing a portion of your loan and having one part fixed and one variable? This may give you the security you are looking for.
Cheers,
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055
