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Q: We currently owe $682,000 to ANZ and the rate is 4.19%. My income is $130,000 and my wife’s is $95,000. We have 3 kids under 10 but don’t have any other debts. The house would be valued at around $1.3M and we are thinking of refinancing. What’s the best rate could we get?
A: Dear Sam
Oneof the cheapest rate is 2.99% which is a fixed rate,but in this environment, I would encourgage you to sit with me, build a budget and try and pay off more in a great variable rate. You are welcome to call me on 0425341086, or send an email to loans@financeandmortgage.coml.au, My office is in Bella Vista, you can come on a weekend, to sit and have a detailed chat. Finance and Mortgage Solutions is an award winning brokerage.
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Q: Hi I have client they are both first home buyers brother and sister. They both going to purchase owner occupied property together jointly. Can both claim first Home Owners Grant so they can use for deposit?
A: The First Home Buyer is usually given to an individual or a couple,and does not extend to family members jointly buying. You can look at AMP and CBA to individually have loans that can function independently to other people paying slower or faster than the other person. Best to check First Home Grant at the Office of State Revenue of the state.
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Q: Hi,
I work in the media and have a number of different contracts. I’m trying the get more funds into my super but in my line of work I need to be careful. If I make more super contributions is there any considerations to being able to access funds if needed?
Thank you
A: Dear Elizabeth
You can maximise $25,000 contribution per year,go for it, we are all living longer and we will need more money.
Regards
Madhu
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Q: First home buyers, my income is 92,000 and my wife 85,000 and we have been living the same property for 3 years and never missed paying the rent. We have saved 35,000…. have no debts and pay off our credit card each month. Can we get a loan and roughly how much could we borrow?
A: Dear Peter
You could possibly look at a $500,000 first home purchase purely based on income and savings,but to doa full assessment please get in touch 0425341086.
Funding position: No stamp duty as First Home Buyer
Loan for $475,000 at 95% LVR.
Savings: $35,000.00
Lender's Mortgage Insurance: $16,210.00.
Land transfer fee: $142.00.
Mortgage registration fee: $142.00.
Deficit: $6,492.00.
Regards
Madhu
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Q: Hi
Current home loan is $635,000, fixed rate ends in November. Property value is $900,000 and we have credit card balances of $15,000 and a personal loan of $10,000. Between my wife and I our combined income is $185,000 – no kids. Can we refinance all the loans into one and what is best rate we could get?
A: Dear Timo
Note that the current owner occupied rates are as low as 3.54% ,however it is the features that you may want that will determine the ultimate rate, redraw versus Offset, Credit Card etc. There are always promotions with banks to attract new customers, which might benefit you. I would be happy to chat 0452341086 and after a full assessment would be able to present a variety of options.
Regards
Madhu
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Q: Hello
I recently became an Australian citizen and have a full time employment in I.T software. If I do some freelancing work for overseas companies do I have to pay tax on the money I get paid
A: Dear Vlad
Any money earnt while you are a tax resident here needs to be declared in your foreign income section if earnt overseas. You can talk to your accountant, and check if the payment is being made after tax being deducted at source overseas. and if they have any dual treaty with Australia.
This is quite a common thing nowadays., no need for concern.
Regards
Madhu
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Q: Is now a good time to be fixing my home loan rate? 2 or 3 years? .... and are there fixed loan where you can still make extra repayments - current rate 3.87% thanks
A: Dear Mark
Fixed rates for your personal Owner Occupied is a good idea, in a time, when Banks are raising rates,and are lending with tighter guidelines. Please to your existing bank,and ask them about the maximum you can pay as an additional sum over the fixed rate period,most banks allow it but they have varying features,per year or maximum amount in the fixed rate term. Feel free to send me your details, loans@financeandmortgage.com.au, and I can check and advise as well.
Regards
Madhu
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Q: First time in business and my friend and I want to start a casual dining wine bar on Sydney northern beaches. Going through financial projections and wondering what benchmark we should be using for profit margins. We have the funds to fit it out so no borrowings and another $50k to start. Any advice would be helpful?
A: Dear Ronny
Best to go to a local accountant, and look at a profit and loss with him,of a small dining bar, ask themif they have a similar profile client,and then understand, that there are a lot of places,which needs some cash injection, and will that 50K be enough, I am not sure.
4 Weeks Rent Bond to be paid upfront
Staff Hire and one months pay
Cost of goods
Cost of running the place
Marketing
Pay yourselves.
Most businesses have a gestation period, and also note that Dining Bar is a seasonal business, Winter Sales will be down, you need to have a lot more money in your pocket.
Also, you are not going to make profit till it becomes popular...it may take 6 months worth of costs of running in savings. You need to have a peace of mind, so that you can concentrate on the business of the Business.
Best Wishes
Madhu
0425341086
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Q: Hi I am considering buying 1 bedroom apartment as first home buyer in Sydney west and rent it out after 6 months as I will be away. I have 5% deposit. How secure is to go into property market now as its cooled down maybe I can be bankrupt and not find tenants.
A: Dear Michelle
The strategy to move out after 6 months is perfectly legal,however as an investor you must become aware thaty you should consider vacancy of 20% as a part of the cash flow. The security of the property market may or may not be there,however if you are a young first home buyer, then you will live through a cycle , but most importantly you will have a roof over your head at retirement. Thats the main purpose of property to give you shelter.
Regards
Madhu
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Q: I have a physiotherapy practice and want to relocate… are there any lenders who can help with loans equipment and fit out costs and is a deposit required?
A: Dear Sanjay
Depending upon the strength of the business in the new location, and past 2-3 years history, a few banks will lend on equipment and fit out. The term of the loan will however depend on the lease term. Please email me with details loans@financeandmortgage.com.au
Happy to discuss.
Regards
Madhu
0425341086
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Q: Hello
I am a first home buyer and would like to get some advice to buy a home. I have been in the same job for 4 years and earn $90,000 a year plus super. No loans and pay off credit card each month. I have inherited $120,000 and would like to know what price range I could look at, stamp duty costs and what do I have to buy to get the first home buyers grant. What rates and repayments are possible? Thank you
A: Dear Susie
The first home buy is an emotional journey, but this is also a great time to start things on a good start. The most important thing is to look at your current budget and spending styles, and your mortgage repayment should ideally match your savings approximately, not exactly. If you think this is hard, then consider rentvesting, i.e. live where you are, and buy an investment property and you can then be able to still enjoy life, and having a maximum home loan limit is not a good idea in an environment where rates may rise in the upcoming years. Happy to chat and discuss in detail.
Regards
Madhu
0425341086
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Q: Is it possible to use a deposit bond as the deposit to buy a property off the plan. Property will be completed late 2019?
A: Dear Marnie
Yes you can, and if you get a finance pre approval then you can talk to a broker or solicitor to go ahead with a deposit bond.
Regards
Madhu
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Q: I would please like to know the best type of home loan for a couple, where one partner has children from a previous marriage, especially if the partner without the children is putting in the deposit. Is it best to set up "Tenants in Common" or "Joint Tenancy".
Question 2.
Could you also give me the advantages of "Tennants in Common" and the disadvantages of "Joint tenancy" (and if there are any advantages in Joint tenancy?)
Many thanks
A: Claire you can have what we call a property share, that is although it is overall at what the deposit is put.For Example Partner with no child is putting 20%, there should then be two separate loans should be taken. One for 50% for Partner with Child from Previous children, and One loan for 30% adding to 80% loan..
Its important, that you have tenants in common,with different percentage of owner ship. i.e. 50% 50% upon selling profit is distributed after you have paid out individual loans, which will bring back the deposit more into the hands of the person who put it.
Joint Tenancy is a 50/50 , so no matter who put the deposit, you will get a equal share after loans, Therefore part of your 20% equity gets moved to the other person share. The downturn in the market is equally shared, however you will and you are going to be guarantors to each others loan in Tenants in Common,where as in Joint Tenancy you are jointly liable. your deposit goes in and you get one loan in the Joint Tenancy.
Either way if you buy a property jointly in either situation, you will always remain
liable in both cases, but I see more advantage in Tenants in Common. What you put in remains yours visibly.
Happy to discuss
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Q: Hi, I have a young family and want to go back to work and thinking of starting my own mortgage broker business. Previously I had 8 years in lending with one of the major banks and wondering if I should just go out of my own or join a franchise type model. I’d really like to get the thoughts of others in the industry and to also ask what else I should be considering, thank you
A: Dear Melanie
Work with a mentor and also explore franchises to be able to understand what are the components of running a mortgage business. I think that getting familiar with the current environment of credit policy and compliance, you can also have access to a team to compliment you to be able to help settle the loans.
As a new to industry broker go to as many networking events and chat to brokers in the same journey.
Happy to chat if you want some tips.
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Q: Hi I’m thinking of selling my home which I used to secure a loan for a investment property the bank told me I need to repay 80% of market value of investment property My loan is fixed interest only do i have to pay extra fees and charges ? Thanks
A: Dear Silvana
If the property is sold or refinanced before the expiry of the fixed rate period, the bank will charge you breaking costs, that can only be determined by calling them directly,it cannot be calculated .
If you have any further questions, feel free to call me 0425341086, or email me on loans@financeandmortgage.com.au.
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Q: I have been running a home maintenance business for 6 years and want to know how much deposit I would need to buy my first home if it was a lo doc loan?
A: Dear Mark
If you are a first home buyer we can work on a 95% loan, but we will need 4 Latest BAS at the time of taking the loan, you will need to keep extra funds for the Stamp Duty if applicable for above a certain price threshold, as well as government fees and charges as well as legal cost. Feel free to email me any question on loans@financeandmortgage.com.au
Thanks
Madhu
0425341086
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Q: If we build a granny flat out the back of our home (primary residence) could we claim the rent on our tax or would we have to apply for a sub division and have the flat on a separate title?
A: Dear Eddie
Granny Flats are basically another house,on your existing single title which has your home, so you do not need to apply for a sub division and have the flat on a separate title?
Regarding the income from granny flat,it will be added to your current income for example add $350 per week income, but then you can deduct Depreciation if you have a quantity surveyor's report, Interest on loan used to build the Granny Flat, and other deductions like agents fees, and rates. You should treat it as if it were an investment property. Feel free to chat.
