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Hi Evan,
Steve’s strategy involves using separate trusts or companies to buy properties, with you acting as guarantor. Because each entity is separate, lenders (especially if using different ones) may treat the loans independently — allowing you to borrow multiple times.
That said, lending policies have tightened since those early books. Most lenders now factor in your total exposure, even with guarantees. So while the strategy still has merit, it requires careful structuring and the right mortgage broker to navigate current rules.
Hope that helps!
Hi Steve,
Thanks for the clear explanation—your examples really helped clarify the common misconception that loan interest is always deductible just because the loan is secured against an investment property.
The key takeaway for me is that deductibility depends on how the borrowed funds are used, not where they’re borrowed from or what asset secures the loan. The redraw vs offset distinction was especially useful.
Appreciate you sharing your insights!
foreign income can be tough to work with, especially when it’s in Japanese. Most banks either heavily discount non-AUD income or reject it unless it’s fully translated. We ran into the same issue and found that the key was getting a mortgage broker who specialises in expat or foreign income lending. They know exactly which lenders will accept overseas salaries, how to present the documents properly, and which banks are more flexible.
Also ask your broker about portfolio loans or debt restructuring, since you’ve got equity in your PPOR that could help cover the shortfall on your IP without needing to sell. The right mortgage broker can seriously change the outcome — just need someone who’s dealt with these scenarios before. Let me know if you want a referral.
Choosing the Right Property Investment Firm: What to Watch For
If you’re a property investor—especially one exploring opportunities interstate—it’s crucial to choose the right advisory firm. A recent discussion among investors highlights the risks of dealing with high-pressure sales tactics, pushy developers, and firms offering “free” services.Many so-called investment firms bundle services like finance and legal, steering clients toward overpriced new developments in unfamiliar areas. These setups often benefit the firm more than the buyer.
To protect your interests, work with independent professionals. A trusted mortgage broker Melbourne investors rely on will help structure your loan without sales pressure. Likewise, an independent finance broker in Melbourne can offer unbiased advice, helping you understand your borrowing capacity and long-term risk.
Some investors also consider buyers agents, especially when purchasing outside their local area. Just be sure to clarify fees and ensure they represent your interests—not the seller’s.
In summary, avoid firms that rush you, push only one area, or discourage outside advice. With the right support, property investment can still be a powerful path to long-term wealth.
I’ve seen some mentoring arrangements where mortgage brokers pay around 20% of their commission, which can add up quickly depending on loan volume. For example, if a student writes 4 loans a month at $3,000 each in commission, that’s $2,400 going to the mentor. If the mentor has multiple students, the numbers get significant. It’d be helpful to understand how much time mentors typically spend reviewing files and supporting new brokers, so entrants can assess whether the fees are proportionate to the support they’re getting.
This issue isn’t uncommon with hybrid trusts, especially those set up by Chan & Naylor. Some lenders flag them due to past tax rulings or internal policy concerns. It’s not necessarily the firm, but the structure that’s problematic. Try using a broker familiar with trust lending—they can match you with lenders who do accept these setups. Also, definitely worth getting independent legal advice on the trust to see if restructuring is needed.
Hi Colin, totally agree with your point about checking nearby established properties — great way to sense-check the price. As a local mortgage broker in Tarneit, I’d also recommend comparing with similar established properties to assess value. If you need help understanding finance options or want insights on local builders like Pivot, feel free to reach out.
Totally agree with getting an unsigned contract early—having a broker do an “as if complete” valuation upfront can save major headaches, especially in places like Tarneit where valuations often fall short. Also, running the contract by a conveyancer or property lawyer before signing is a no-brainer. I’ve seen small clauses make a big difference once flagged early. Worth doing even if everything looks standard.
just adding some detailed context, taxi plates were considered solid investments, often financed at 60–65% LVR with 8–9% interest. But by 2017, ride-sharing and deregulation (especially in Victoria) caused plate values to crash. Many investors lost significant capital. This thread is a good snapshot of pre-Uber thinking, but anyone considering similar investments today should factor in regulatory risk, industry disruption, and exit strategy. A strong lesson in how quickly “safe” cash flow assets can become stranded.
Great Post! As a conveyancer for sellers, we handle the Contract of Sale, prepare the Vendor’s Statement (Section 32), arrange property certificates, and manage the settlement process. We also liaise with the buyer’s solicitor and ensure everything is legally compliant. Basically, we make sure the sale runs smoothly, and you avoid legal issues down the track.
Great post! First-time buyers have a lot to think about, and your tips cover the basics really well. Just wanted to add a few more helpful points:
- Get pre-approved for a home loan – This gives you a clear idea of your budget and shows sellers you’re serious.
- Work with a home loan broker – They can compare rates across lenders, explain different loan options, and help you find a deal that suits your financial situation.
- Plan for upfront and hidden costs – Think stamp duty, inspections, legal fees, moving expenses, and home insurance.
- Don’t max out your borrowing limit – Just because the bank offers a certain amount doesn’t mean it’s wise to borrow it all. Leave room for emergencies and lifestyle needs.
- Look beyond the home’s appearance – Check the structure, age of major systems (roof, plumbing, electrical), and potential maintenance costs.
- Research the neighborhood – School zones, commute times, public transport, and future development plans can all impact your home’s long-term value and your quality of life.
- Understand the fine print – Read your loan contract carefully. Ask questions about interest rates, loan terms, offset accounts, and repayment flexibility.
Thanks again for the helpful post, these tips make the process a lot less daunting for first-time buyers!
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Sounds like an awesome session, always good to hear Brendan Kelly speak, especially right before the holidays when most people hit pause. Keen to hear what strategies were shared for getting deals over the line this late in the year. Did anyone walk away with new insights or a fresh game plan for 2020?
Funny how some of these ‘bad rep’ suburbs are now full of cafes and Teslas 😂 Goes to show how fast things change in Melbourne!
William Smith
