Forum Replies Created
Rob
The loan is in the investors personal name and the Trust provides a guarantee (the guarantee provides the security).
This is also a good structure where two investors are purchasing a property together. The property is owned by the Trust and each investor gets a loan in their name for their share of the debt only. The Trust provides a guarantee (and the other investor must consent to this guarantee) for the security. This is a perfect structure because it doesn’t destroy the investors borrowing capacity because they are only liable for their share of the debt and not the whole debt. I have seen Westpac accept that structure.
I have client that has this arrangement with Heritage also.
Cheers
Stu
Liz, in my opinion, there are enough honest clients around not to waste my time with dishonest ones. Honesty and integrity is something that is of utmost importance to me.
Cheers
Stu
It’s happened to me also. If a client knowingly lies to me I will never deal with them again (and I probably won’t help them with the deal we’re working on). There are no excuses. I only want to deal with honest and ethical people. I am honest with every client so they should pay me the same respect.
Brahms, stand firm on this one. Too many people tolerate dodgy people.
Cheers
Stu
I have arranged this set up for a client just recently. I negotiated 1.10% off the standard variable rate (i.e. 5.97%) for her non-deductible debt and standard rates for her deductible debt (i.e. 6.57%) with a Big 4 bank. It’s a good arrangement. We were able to get these discounts because she was borrowing in excess of $1m.
No application fees or break fees so its a much better deal.
Cheers
Stu
Yes if loan > $250k ANZ will do 6.47% @ 60% LVR (but there are a few major lenders that will lend at 60% at standard rates).
Suncorp will do 80% (P&I) at 6.97%.
Watch the smaller lenders products… rate might look good but they can have high upfront fees and significant break fees. Make sure that you just don’t focus on rate but consider all fees.
Cheers
Stu
Trustee/s will have to provide a guarantee. However, if it’s a corporate trustee then the directors of the trust coy will have to provide the guarantee.
Some examples of good and bad lenders are:
1. ANZ will not lend to coys and trusts in its professional package. They only have one expensive product for coy/trust loans.
2. St George will do it but they will charge additional fees to prepare guarantees.
3. CBA and NAB are good. They will lend to coys/trusts and not charge any additional fees.Cheers
Stu
I have found Suncorp, St George and Big 4 better for regional locations.
Cheers
Stu
Welcome to the forum Terry.
I believe the forum rules do not permit advertising. Therefore, I have deleted your contact details.
You are still encouraged to help other forum members but perhaps you can do this by responding to specific questions rather than posting a “here I am” email. This would be more subtle.
Any problems… feel free to contact admin.
Cheers
Stu
I note other brokers comments about pre-approvals not being water tight. I agree. However, it is better than nothing!
Plus it would have picked up any serviceability issues and helped Luke.
They are still very worth while in my opinion.
Cheers
Stu
Wow, I wouldn’t stick up for the broker.
I have never told a client to go and purchase without a pre-approval. Especially when LMI is involved.
No, that’s a dumb broker in my opinion. If you take the risk and tell a client to purchase then you should wear the blame!
ALWAYS, get a pre-approval from the lenders. Then you have something in writing.
If LMI is involved then the broker should have used the MI calculator. It’s that simple. That is very unprofessional.
Cheers
Stu
Correct. No corresponding income or asset in the 03/04 year and therefore no deduction. At best you may argue that it’s an acquisition cost and therefore it’s added to the cost base. But I don’t think that’s the desired outcome.
Cheers
Stu
Dear Calron
I don’t think you can advertise on this websie for money partners. Please contact Admin if you disagree.
Sorry
Stu
Correct. Some lenders will allow capitalisation of interest (subject to the approved credit limit). Others will require minimum repayment of interest only.
Cheers
Stu
Okay, I worked out how to reduce the file size. It is now 0.5MB. It still takes about 2 minutes to download on a dial-up connection.
See http://www.prosolution.com.au/commercial.pdf
I think you may need Acrobat 6.0 to open.
See
http://www.adobe.com/products/acrobat/readstep2.htmlIf it still doesn’t work for you then email me and I’ll email you a copy.
Cheers
Stu
I wrote an article recently for API magazine.
See http://www.prosolution.com.au/ps_docs/prosolution_doc081903_180049.pdf. It’s about 1MB in size so it might take a while to download. Free free to email me your postal address and I would be happy to mail you a hard copy.
Cheers
Stuart
More than half of our business is placed with the NAB. Sure, I am missing out on a very significant amount of trail commission but they offer the best deals (often discount well above normal levels). I suspect they can do this because they don’t pay me a trail commission. In any case my ethics tell me to act in clients best interests or don’t act at all!
Cheers
Stu
I agree with Julian. Brokers should not be allowed to use the words “independent” and “unbiased”.
The existence of different commission rates impaires perceived and actual independence.
That’s not to say that some (lets hope most) brokers act in the clients best interest.
Cheers
Stu
You can not afford a company structure? It only costs $1,000!
The main issue, in my opinion, is tax beneifits, not litigation protection. How many businesses get sued when operating an investment business? Not many. It is not a business that requires insurance.
My suggestion is go for a company or trust structure.
Cheers
Stu
St George will do IO for a maximum of 15 years!
Cheers
Stu
Yes, interest only does give you more flexibility.
It wouldn’t improve your serviceability by repaying extra becuase you would still have access to these monies via redraw and the lender would consider this.
Cheers
Stu
