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I think you could.
Terryw
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Just remember that there is not just one property market in Australia. There are many, each at different stages. Each city is different, and even within cities, there would be different stages for different areas.
Terryw
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You could increase the loan and use that to further your investing, but this is more risky (still low though) and it should speed up your acquisition of more property.
Terryw
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You should only put more cash into a deal if you haven’t got an existing home loan. If you have an existing home loan, it would be a lot better for you to place the money on the home loan.
Putting down more cash will also slow you down, as you will run out of deposits quicker.
Terryw
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Your at about 83% LVR now. If you bring the LVR up to 90% (based on $350,000), that would give you an extra $23,000, BUT you would have to pay LMI.
Selling the property only to rent it back would be very costly, and probably should only be considered as a last resort.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Well done Jason and Dazzling.
I suppose you culd offer an incentive to the agent as well. eg. Offer to pay a small bonus if the place is rented within X days. etc
Terryw
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Calvin
No, I haven’t done one of these, and have actually never seen one done. It is all theory so far – at this end.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Calvin
You could use any 3 of the methods you mentioned above. It all depends on your negotiating power and the vendor.
I would think vendor finance is fairly rare, and that you wouldn’t need any licence. It is just really a private loan agreement.
Terryw
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If you tell the SRO about issuing new cotnracts, they may make you pay the stamp duty twice. Talk to a solicitor before doing anything.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You can’t claim it as a main residence until you live in it. So during that time you will not get CGT exemption, so it is a good idea to live in it asap. No lenght of time is specified as the minimum, but generally 6 months is considered advisable.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Get some good advice before you do anything.
If you live in the property, you could class it as your main residence, and it will be CGT exempt for a period of up to 6 years if you do not class another proeprty as your main residence.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Talk to a solicitor before signing the contract. I don’t know if it works in WA, but in some states signing and/or nominee can work. In other states it only works if the trust is already set up.
You could also get the vendor to cancel the old contract and issue a new one in the relevant name.
Terryw
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Try to avoid discussing it with the tenant, they will give you reasons why they can’t afford it, and you may give in!
Just let your agent send them a letter saying the rent is going up to $XX per week.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
He would have to actually live in one before he could claim it as his PPOR. there is no place you actually register it, you just decide at tax time – the year the property is sold.
Terryw
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Yes. Lenders generally want 12 months to pass since the signing of a contract for them to lend on a higher value (rather than contract price). So if you could get a 12 month settlement, that would probably work. I say probably because banks are not always consistant. They allow some but not all, and their policies could change within the 12 months.
Terryw
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North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Sounds like a good strategy if you were confident about getting the finance. The trouble is, approvals are only vlaid for 3 months, and if interest rates rise, it may make it harder for you to service a loan. If you can’t pass the bank’s serviceability model, then you won’t qualify. Then you’d be in big trouble if you couldn’t get the loan.
If you can talk them into a one year settlement, banks will lend you on value if it is higher than contract.
What would it rent for as is?
Terryw
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Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
FFComm
St George do offer 100% finance on one security.
Tony, Why don’t you just use existing equity and go for a 95% loan as Steven suggests, you will get a lower interest rate and will save on LMI costs. You can withdraw equity by increasing your existing loan (LOC or a split) and then use this as deposit.
Felicity, The highest LVR low doc available is with First Mac and can be up to 95% at a rate of about 9.56%, but not available for ivnestments.
Terryw
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Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
This forum and http://www.rickotten.com for starters
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Up to 90% with LMI from Australia. Not sure about over there.
Terryw
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Mortgage Broker
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[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Usually Trust deeds are worded so the trustee is automatically a beneficiary, and any company to which a beneificary holds shares or directship etc is also automatically a beneficary.
Becareful with signing. Some states may allow a trust to be established after signing, but others (eg. QLD?) don’t. SO get professional advice.
Terryw
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Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
