Recent content by Greg Reid

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    Need to know more SMSF to buy a property

    In my view liquidity is one of the key issues that has been ignored by lenders in the past. Let alone the issue of a property being vacant for 3 months or longer and no rent coming in, have you allowed for unexpected capital expenses such as a new hot water system, or a capital call from the...
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    Changing lending climates - How will the brokers reinvent themselves?

    The main effect will be on multiple property investors where servicing will be far tighter than previously, so different strategies will be needed to build a property portfolio, unless an investor has very high income. We, as brokers, will start to use more non-banks who may not be subject to...
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    LVR Caps

    I do very little in the > 90% LVR space but I look at it more from a position, how on earth can they administer it? What stops an OO loan approval at 95% LVR once settled suddenly becoming an IP, the lender has no way to verify once settled. Will the ATO need to get further administrative...
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    Question about loans against equity

    Perhaps the question relates to secured or unsecured loans. Unsecured loans, mostly personal loans and credit cards are based on income and repayment capacity and as there is no security base, risk is perceived to be higher and so are the interest rates. Secured loans on which a security is...
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    Home Loan and LAND TAX with 1% ownership

    I won't comment on the NSW land tax as if it is similar to Vic, the way the SRO assesses land tax is somewhat heavily favoured to their benefit and not immediately logical. Lenders no longer accept service guarantees, so the parent may well need to go onto title, however not that many lenders...
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    CGT calculator

    Why would you want to sell it now? There may be good reasons but paying an additional $7k break fees (fixed rate loan?) does not seem to make much sense if you do not need to. Why not wait until out of fixed period? The tax is effectively paid when you submit your tax return for the year in...
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    Options for sale of property

    Minimise tax and maximise wealth. Debt free existing PPOR in Sydney turned into an IP, presume positive rent return to add to your existing income and resultant increased tax effect. The new Melbourne PPOR will have borrowed funds, non tax deductible debt. Neither are ideal to achieve the...
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    add sale to income

    It will get down to the definition of carrying on a business as compared to a hobby. If it is your only source of income and is repetitive, it leans one way, if your main source of income is a full time PAYG job then it may lean the other way and be treated as wylie suggests. To get away from...
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    Tax Variation

    I am sure someone had a view that why would they want the government to have their money any longer than necessary as they don't spend it so well. ITV is a very good mechanism to preserve cashflow and being somewhat conservative is better than being optimistic and over claiming. As melbgirl...
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    What research tool subscriptions do members have?

    realestateinvestar is a research tool worth considering. It has some very good search tools, mainly word search that can help narrow down areas and properties. It does have a free trial period I believe. Depending on membership, it has access to valuations, property analyser, portfolio tracker...
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    Can I buy 3 properties with 350k?

    The good thing is you have options, the bad thing is you have options. The difference is taking considered action or not acting at all. By all means research your options, do the numbers based on conservative assumptions but most of all, work out what your goals are. There are essentially...
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    Servicing before selling

    What Peter suggested is what can often be an underutilised solution to bridging. There are limited lenders who offer bridging and as Peter said, interest rates may not be that attractive for a period. However what can be an issue if you do not plan for it is having the deposit required for...
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    Would you consider, Reverse Mortgage today!!

    There is much negative publicity about the reverse mortgage product, as well as incorrect perceptions. Minimum age varies between lenders, youngest is 60 for one lender, 63 for another, 65 for a others and 70 for another. Most start at low LVR's of 15% but one will do 25% at 65. Maximum LVR...
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    Paying off Reverse Mortgage

    My understanding of Centrelink use of deeming rates is to take out the administrative burden of having to check (and perhaps ease for pensioners) actual rates from a wide variety of income sources, hence for most financial assets, they use deeming rates. Per the DHS site: The deeming rules...
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    Paying off Reverse Mortgage

    It is a conversation worth having. First you assumption that by the time your grandfather dies there will be no equity in the property is most likely inaccurate. What is the property worth now, what area is it in and expected long term suburb growth? Compounding interest on a loan is easy to...
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