NAB can do max 70% at the moment thats for residential.
Without personal guarantees?
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NAB can do max 70% at the moment thats for residential.
Hi, this is a little off topic but can one do this instead of the complicated bare trusts etc?
Borrow through equity in whatever property available. Let's say in my case, I've maxed the resi IPs but can borrow off commercial properties @ 9%
Then having the funds in the offset account, contribute to the SMSF @ $50000 per financial year thereby saving a minimum $7500 per year. Do it in June & July, that's $15000 that calendar year.
In the SMSF, $100000 earns 4% daily rated interest - that's $4000 at least.
In the offset account, $100000 earns $5190 [5.19%]
In total for year 1, the savings = $16690 + $7500 [2nd financial year]
My funding costs = $18000 interest + establishment fees
In the next calendar year, I place $50000 in July
It will take 18 months to have $150000 in the SMSF
My funding costs are very high because I've maxed out my resi borrowings. Someone with equity in PPOR can borrow @4.99%
Is there a real need to use all the complicated techniques of unit warrants & etc?
K
I hope you aren't expecting to deduct interest on money borrowed to make a personal contribution ?
Cheers,
Rob
Hi, this is a little off topic but can one do this instead of the complicated bare trusts etc?
Borrow through equity in whatever property available. Let's say in my case, I've maxed the resi IPs but can borrow off commercial properties @ 9%
Then having the funds in the offset account, contribute to the SMSF @ $50000 per financial year thereby saving a minimum $7500 per year. Do it in June & July, that's $15000 that calendar year.
In the SMSF, $100000 earns 4% daily rated interest - that's $4000 at least.
In the offset account, $100000 earns $5190 [5.19%]
In total for year 1, the savings = $16690 + $7500 [2nd financial year]
My funding costs = $18000 interest + establishment fees
In the next calendar year, I place $50000 in July
It will take 18 months to have $150000 in the SMSF
My funding costs are very high because I've maxed out my resi borrowings. Someone with equity in PPOR can borrow @4.99%
Is there a real need to use all the complicated techniques of unit warrants & etc?
K
In my opinion St George have the best SMSF loans now and they don't require personal guarantees.
As soon as you see how much higher their interest rate is in comparison to NAB for example you will change your mind.
Personal guarantees should not be feared because they don't put the property in any danger.
My personal accountant and his auditing accountant don't have a problem with a personal guarantee and I did my own research and I don't have a problem with it either.
Don't agree with you on this one BV. I'm sure your accountant and auditor wouldn't be willing to give personal guarantees themselves if they have half a brain so why would you ?
With the nab loan they are asking that you put in 35%. If you can somehow get that up to 45% say you do a redraw on another property you may find them willing to wave the personal guarantee.
Personal guarantees should be viewed as putting your head in a noose particularly in these uncertain times IMHO
Regards NR
NR
NAB will lend up to 70% and STGeorge up to 72%.
The personal guarantee is not a problem for me because I know that it's unlikely that I'll default on the loan. Additionaly, even if something did happen and I could not keep up with the repayments, I can sell and 30% is a large deposit so the bank loan will be paid in full.
You are right, I could redraw or I could borrow outside super and lend that amount to the SMSF but I don't need to do this. As long as interest rates stay under 7.5% the rent will cover the loan repayments.
cheers
And perhaps the same as the ones who said that HDT's were able to split capital gains and still negative gear.