Freckle wrote:

APerry wrote:
There seems relatively little chance of the US$ improving much against the A$ while the US is printing money to fund debt. This is a recipe for inflation, the only reason it hasn't happened already is because the money being printed is not going into circulation, it is being hoarded. At some stage all this cash…[Read more]

There seems relatively little chance of the US$ improving much against the A$ while the US is printing money to fund debt. This is a recipe for inflation, the only reason it hasn't happened already is because the money being printed is not going into circulation, it is being hoarded. At some stage all this cash will come come into circulation and…[Read more]

Qlds007 wrote:
Exactly as Alistair says at a lower lvr on a Commercial property but no chance on a residential property.

We have done a couple with Unit Trust where the property is self funding and the lender can assign the Lease to cover their repayments.

Cheers

Yours in Finance 

Most of the non-recourse (this is the name given to a…[Read more]

Gemma Lea wrote:
Hi
I've tried searching for removing personal guarantees from trust/company loans. Cannot find much information. I was wondering if somebody could tell me if this is possible.
Ie a couple of scenarios

1) personal guarantees made when taking out initial loans. Trust buys several properties. After 2 years has 2 tax returns…[Read more]

TheFinanceShop wrote:
Purely depends on zoning and the council restrictions. Each council conditions vary enormously. 

Shahin,

This same advice has been given by several posters and it is just not correct. Zoning obviously matters, in all probability the land is Res1 if its in Victoria, but this in itself tells you little. The zoning and…[Read more]

Ross.Poulter wrote:
Hi Richard,

I have my current property with westpac and have a good relationship with them.
I have spoken to them about using a DT for my future investments and they are fine with that, they will lend to the same LVR as long as I guarantee the loans.
Would westpac do this project for me as a straight forward package?
Or will…[Read more]

Hi Jason,
By asking for specific advice without providing supporting information you are asking this broker to breach his responsibilities to you under the responsible lending laws. He is doing the right thing refusing to give advice without that info.

jmsrachel wrote:

APerry wrote:
On a loan that size you may very well get 8% LVR. With regard to loan term, it will be shorter, but at least 15 years. The much shorter loan terms that are sometimes applicable are more common with much larger loans.

Hi Alistair,

I hope you really mean 80% other wise i'm buggered!!

Sorry, wireless keyboard…[Read more]

christianb wrote:
Aloha,

A few things you may wish to consider:

Our clients are finding two dwellings much simpler to finance than three

Make sure your structure suits your sales/retention strategy

Keep a cash buffer from the start – it's easier to solve problems quickly

Include all you can in the build contract – little bits outside the…[Read more]

On a loan that size you may very well get 8% LVR. With regard to loan term, it will be shorter, but at least 15 years. The much shorter loan terms that are sometimes applicable are more common with much larger loans.

Hi Aloha,

Do you know if you want to do the development under a commercial or residential loan, with three on title you can probably do either. Residential is a little cheaper but there are advantages to using a commercial lender, sometimes you can get more money and there are options such as capitalizing interest, rather than making monthly…[Read more]

That article is nothing but great marketing by Mark Bouris. This sort of deal has been Mac Banks strategy for some time, if you go to their offices they have one lot of desks for credit people assessing Mac Bank labeled loans, next to them are a group of people assessing Aussie Home Loans labeled loans, and they used to have a very small and quiet…[Read more]

I've got a small NRAS business I set up to help move some properties in Bundaberg. We don't have specific consortium approval with any of the lenders, but most will fund them. The general rule is that you have to be able to get out of the contract within 90 days with a maximum cost of $1,000. Ours have all been valuing up fine as we haven't used…[Read more]

Hi Rob,

One thing you need to understand, if you are looking to maximise your borrowing potential is the difference in the way valuers are instructed depending on whether you ask for a residential loan or a commercial facility. A resi lender will order the valuer to value on an "as is" basis, which means if there is no house you get a lower…[Read more]

Looking forward to it Troy.

I can't add anything here, but this is a very good example of the difference in cost between using a broker who knows what they are doing and a home loan comparison service. The initial mistakes in structuring in this circumstance are not reversible and will result in 000's of dollars in additional tax being payable over the life of these…[Read more]

ygue6072 wrote:
If banks are dropping their fixed rates does that mean that they think the RBA will continue to drop the cash rate? 

Derek — what is SANF? Sorry if this is a silly question.

The RBA will almost certainly be dropping rates in the near future. The money markets suggest it could be up to 1% over the next year, although most…[Read more]

I had a look at this prospectus, Cromwell are one of the better managers in this area, in my opinion. The return is good, tax effective and they are not paying out of borrowed funds. However, you have to take into account that you are getting only $0.92 of property for each $1.00 you put in. When the trust is wound up there will be selling costs…[Read more]

newJo wrote:
Thanks for your answer

I have 150K left in my PPOR plus an additional 30K of redraw and the last valuation was 400K but I fear the value has dropped since then.

What is the benefit of offset if I can just put my money into redraw as I currently do? Does an offset account decrease both properties?

I worry about an interest only…[Read more]

Danny F wrote:
I am currently looking at buying my next property and have come across a few good commercial properties.

My questions are, do the bank look at lending money to buy a commercial property differently?

                           what other responsibilities do i take on as a land lord of a commercial property?

With regard to…[Read more]