Search results

Hi All, For those who have reasonable cash (eg 20% - 30%) deposits but find it difficult to get sufficient borrow out of banks with new lending criteria what alternative financing strategies are a good idea? Eg have any people looked at using 20% equity, eg 50% traditional bank finance and...

The changes to lending criteria put forward by a lot of the banks, are all of the changes actually forced through by APRA or is it the banks trying to act as first movers before the regulators actually enforce further changes? Curious that although banks are making changes to lending criteria...

On a longer term loan from a company to a director or other party, I believe there's a regulated minimum rate that it needs to be provided at, for a simple unsecured loan, is it something like BBSW + 5% say 7% in total?

Thanks for the response. What's the definition of a back to back loan? To mitigate this issue I guess you would just need to ensure the minimum time period is met between repayment of one loan and issue of another loan.

Given that, there would seem nothing to stop a director regularly accessing short term loans from the company repaid back before the end of the financial year, then issued again in July in the next financial year. This would be a very effective way for the director to access capital as needed.

Thanks for your feedback. So you think the company can only loan to a person once, if they repay the loan the cnmpany couldn't loan to them again? Even if it was at commercial interest rates?

I'm sure there's a lot of different things to do, I just want to understand what rules are obligatory. Eg a short term loan from the company to a director that wouldn't incur interest rate would be a very effective means for the director to access capital.

I'm referring to a company loaning to a director, not a director loaning to a company. The director loan is an alternative to a dividend distribution. The query then relates to what are the terms and rules around such related party loans. Can a short term loan that is repaid in a short...

Hi All, If one has a pty ltd company for which they are sole director and sole shareholder, I understand you can provide a director loan but there is a government set interest rate based on commercial terms. I think its something like BBSW + 5% so something like 7% at the moment? If one...

Is there any reason you can't prepay a variable loan?

A few tax strategies I've seen towards the end of FY including paying interest in advance for a mortgage or for say a margin loan on shares. If this is paid late June it allows for a larger tax deduction offsetting tax payable in a few months. Has anyone looked at this or things similar and...

I wouldn't agree with this comment, Waterloo/Zetland are a short distance from Surry Hills which stays open late and around East Village in Zetland there's a new bar that's gone up and plenty more that will develop around Green Square in time. Has anyone noticed some of the strange price...

Just administratively is it simple to payback the variable loan and then get the new top up loan of a larger amount. Do banks do these sort of changes often and its administratively quick and simple?

Thanks very much for the explanation, really well explained. So you can pay back principal of a variable loan at any point in time can you, and the costs are minimal? Yours is a great point, you don't change the debt you just change the use of the debt, swapping use from PPOR to IP to achieve...

Thanks how does this work, PPOR debt is already reduced/offset through funds in offset account. Could you explain how the mechanics work?

A related question. I'm looking at borrowing against increased val for PPOR and a second loan to buy a new IP. I'll likely need to use some existing cash as well to meet 20% deposit. It would obviously be preferable to get a larger second loan rather than use existing cash because it would...

I'm interested in peoples thoughts on the principals of buying apartments in larger apartment blocks, eg 12 storeys plus. Do people think they generally have lower CG returns because they have less scarcity value, the apartment being the same as many other apartments in the block and perhaps...

Thanks for the feedback, this variance is presumably related to the higher value per metre of land in the northern beaches relative to say Blacktown? Northern beaches properties are obviously much more expensive which makes the capital requirements higher to buy something and benefit from the...

Thanks for the feedback. So you can provide a bank a development proposal, and rent forecast and they can give you a conditional valuation based upon that? Is there any particular reasons why banks give lowers vals that the cost of the granny flat, is it because a lot of property investors...

Looking at the potential value add of granny flats does anyone have some experience on valuation issues for granny flats. Eg lets say you buy a house for $400k that normally rents for $400 a week, you spend $100k to add a granny flat that rents for $200 a week. Your spend is $500k and your...