Forum Replies Created
Its very hard to get finance for a business. If you have equity, then the easiest option is to simply get a LOC for ‘future investment purposes’, then buy your business with this.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
The only way to keep buying is to keep coming up with deposits. This can be done by saving madly, and/or capital growth, increasing value, buying and selling (at a profit!), wrapping, etc etc.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Tell them you could do it, but would have to charge them an extra $X pw in rent and see what they say.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Offices can have a higher yield, but the vacancies tend to last longer than residential houses.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
I love studying and spent a lot of time at uni, and a bit of money. These days the courses are so much more expensive, that I am not sure of the value. If I could go back, I would ditch Uni, start working asap, retire quicker and then go back to study for fun.
Studying Physiotherapy is probably going to cost you a forturne in HECS (its in the most expensive category I think). By the time you finish, you may have a $40,000 + HECS debt.
But, then again this is not so bad as you may never have to pay it off – if you set up your structure correctly -hard if you are PAYE, easy if self employed. You probably are interested in this area, and it is not somehting you can learn on your own.
You just have to weigh up the pros and cons.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Mar 17 is still 3 weeks away. You have plently of equity in IP1, why can’t you use this, but are able to get a stand alone loan? They must be looking at a different lender to your existing ones, so cannot refinance in time? It takes an average of 24 days for the refinance to go thru.
Other otpions are
1) to stay at the existing lender, and cross collateralise.
2) increase loan size on IP1 and withdraw cash to use as deposit with loan from new lender
or
3) change to a new lender that allows quick refinances
4) get a 95% LVR loan with LMI added so you use less of your cash.Re option 3): there are a few lenders out that that can now refinance within approx 5 days. They can do this by using some sort of title insurance which enables them to settle without having otained the title deeds firstly from the existing lender. Once it settles, the old loan is paid out and title deeds are obtained.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
The point of a LOC is so you can deposit as much as you can as quick as you can and still have access. However, this doesn’t work to well on investments if you want to withdraw money for personal items later on.
Each deposit is considered by the ATO as a repayment. Each withdrawal is new borrowings. So if you put money in, you should not take it out again, unless for investment purposes such as repairs, paying rates, insurance etc.
It is probably best to just pay the interest each month, and put everything extra off your home loan (if you have one) or better still, in your offset account attached to your home loan,
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Do a search on this site. There is heaps of info – everything you need to know!
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Tony
Goodluck with Nationwide, but beware that somelenders will still pull out despite such letters, so cover youself. This happened to me with a smaller lender whose name begins with a ‘H’!
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Most investors have IO on investment loans – it is standard practice, especially if you still have non-deductible loans.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
one can learn the same principles from a website like this.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
it is not a good idead to buy in a company name. Go for your own name or a trust. Companies do not get the 50% CGT reduction and your shares are at risk if you are ever sued.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Just wondering, why do you think you have made a mistake?
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
You certainly would not be able to get 95% loans for student accomodation. This is sepcialised security, and you would probably be limited to 70%.
However, if it was just put up as a standard residential deal, it may get thru. It may depend on how it looks to the valuer.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Guarrantors are generally frowned upon these days – unless the guarrantor is benefitting from the loan. Spouses are often an exception. But not being married, my make it difficult so you may have to go on title to guarrantee his loan.
Whether you can use your existing property as additional security for his loan will depend on how much equity you have.
So what did you buy it for (or what is it worth?) and what is your current loan?
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Sell to your own trust. You would still have similar costs though, except agents fees – and you still get to ‘keep’ the house.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Hi
I hadn’t heard of Olly before, so did a google search and found this review:
http://www.landlords.co.nz/article1127.htmlIt sounds like an interesting book by an experienced NZ property investor.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
There are only a few lenders that will take tax deductibility of interest into account. From memory one is Macquarie Bank. The last time I looked at Westpac, I don’t think they did.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Do some thorough research before you do anything. Have a read of Peter Spann’s book(s). The recent one on property is probably the best available. Do develop a plan and follow it (ie don’t get side tracked).
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
You could try GE and Liberty. Both are non conforming and can go to 90% lvr with low docs without mortgage insurance. Rates will be high if low doc – maybe 10% plus.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
