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  • Profile photo of Brisbane BrokerBrisbane Broker
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    @brisbane-broker
    Join Date: 2003
    Post Count: 25
    August 31, 2007 - 11:46 pm
    APerry wrote:
    Craig,

    Can you please explain in what circumstances this would be a better option than what Terry proposed?

    Regards
    Alistair

    Hi Alistair
    The circomstances for cash flow loan is an advantage is where liquid funds are tight.  Cash flow loans allow for reduced contribution and provide some gearing advantage by adding further interest capitalisation for legitimate tax claims. 
    The disadvantage compared to Terry's proposal is that cash flow loans do not allow for a starting LVR higher than 80% of the property value.  The capitalised interest is allowed to increase upt ot 90% over 5 years.
    The offset structure is a great self managed structure and a cash flow loan is a purpose designed loan structure

    Profile photo of Brisbane BrokerBrisbane Broker
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    @brisbane-broker
    Join Date: 2003
    Post Count: 25
    August 31, 2007 - 6:41 am

    Cash flow loan could also be applicable here where the loan repayments can be part capitalised and increasing LVR with the capital growth generally a 50% reduction in payments for the first year then increasing each year.

    Profile photo of Brisbane BrokerBrisbane Broker
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    @brisbane-broker
    Join Date: 2003
    Post Count: 25
    August 31, 2007 - 6:00 am

    It would appear there is something else here as the income alone would service with the mortgage insurers perhaps there are other loan or credit cards causing the loan to not service ?

    Profile photo of Brisbane BrokerBrisbane Broker
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    @brisbane-broker
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    Post Count: 25
    October 31, 2003 - 1:15 am

    LOC is the most powerful finance tool available however be sure to have your plan in place so you can use the tool to its potential.

    Just like all tools if not used correctly they won’t perform the best.

    Any other means of lending gives the lender more power over future changes.

    Craig

    Profile photo of Brisbane BrokerBrisbane Broker
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    @brisbane-broker
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    Post Count: 25
    October 30, 2003 - 3:35 pm

    Hi Normie

    I am open to meet and discus you options with regard to opening up and using you equity with bank finance options

    Employment situation can be overcome

    Craig
    Petrie[:)]

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