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Q: Looking at the freehold of an existing child care centre in western sydney – I would like to know what the maximum lending ratio is on the freehold security and what lenders would look at the loan?
A: Hi Brad,
In that case then the lender will treat this as a straight out investment purchase on your part. You will be required to show sufficient deposit and or equity to complete the purchase and cover purchase costs, stamp duties etc.
Your ability to service the amount you want to borrow will then be assessed based upon your current income, plus the proposed income from the lease, factored against your existing liabilities and living expenses.
You will need to apply for a commercial mortgage. Please let me know if you would like any further assistance.
Kind regards,
Sean
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Q: Looking at the freehold of an existing child care centre in western sydney – I would like to know what the maximum lending ratio is on the freehold security and what lenders would look at the loan?
A: Hi Brad,
The majority of lenders are going to offer a maximum of 70% LVR but it may be possible to get up to 80%.
Can I ask if you'll be buying the business as well, or do you already run the business as a tenant?
Kind regards,
Sean
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Q: I'm interested to know - is a vendor required to disclose the amount required to pay out the mortgage at settlement? Is there a law that explains this?
A: Hi Lina,
When you are purchasing a property your conveyancer or solicitor will run title searches to confirm whether or not a mortgage is registered there, but it will only show the details of the mortgagee and does not disclose the amount.
The vendor's conveyancer will obtain a payout figure and advise the mortgagee of the intended sale, on behalf of the vendor. At settlement the conveyancer will ensure that the appropriate funds are made available to discharge the loan, and instruct their disbursal accordingly.
I do not believe that the vendor is under any obligation to disclose any details of their mortgage to a buyer.
Kind regards,
Sean
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Q: if i rent my house out and there is a short fall of 1000 buck a month can i claim it all back at tax time?
A: Hi Andy,
I should preface my answer by saying that I am not an accountant (- although you may well receive answers from others who are) but from experience I can tell you that when it comes to the end of the financial year, you need to show the tax man all the income and expenses for your property for the last 12 months.
Any profit will be taxable and any losses you may receive a rebate on. However the rebate will not be your $1,000 per month, it will instead be calculated at your usual mean income tax rate.
Therefore if you were making a $1,000 per month loss (- i.e $12,000 per annum) and paying 33% income tax, then you would expect to receive something in the order of 33% of your loss across the year - i.e 33% of $12,000 = $3,960 rebate.
Hope that makes sense?
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Q: Should financial literacy such as savings plans, credit scoring, personal finance, credit cards, interest rates, home loans, interest calculations, buying and selling and the value of money all form an important component of the high school curriculum?
A: It's unbelievable really that a proper financial grounding isn't implemented as part of the curriculum in even the most expensive private schools in the country today. After all, Albert Einstein told us years ago that compound interest was the most powerful force in the universe. So it seems almost negligent not to teach our kids the value of interest, as well as time/money, leverage, and a host of other topics related to finance, so that they can venture out into the workforce with some idea of how better to manage whatever they reap from their careers.
We do want a lot of things for our children these days - emotional intelligence for instance, as part of their survival kit for life. But what about "financial intelligence". My own children are still too young to grasp the concept of money, but I would certainly welcome some type of financial instruction being part of their education.
