This is a sound strategy as you are not keeping all your securities with the one bank.

As already addressed get a “top up” but make sure it is in a separate loan split to keep PPOR debt and IP debt separate for tax and accounting purposes.

If you do use another broker be upfront and offer to pay for the service.

Nothing worse than some one milking you for info with no intentions of engaging your services when you could be spending the time and resources on some one who is genuine.

If you do use another broker be upfront and offer to pay for the service.

Nothing worse than some one milking you for info with no intentions of engaging your services.

Bank staff compound the problem by telling people that offset and redraw are the same, clearly they are not.

An offset used correctly can be a powerful yet simple strategy that is typically not used to its full potential.

@Panina any reason you cant put in a 10% deposit as opposed to an 20% deposit. Yes you will cop some LMI but you will have held back some of your capital that can be placed in a offset account for the next purchase and/or a buffer.

@Panina any reason you cant put in a 10% deposit as opposed to an 80% deposit. Yes you will cop some LMI but you will have held back some of your capital that can be placed in a offset account for the next purchase and/or a buffer.

@Ethantimor flick me an email on cice@cdrfinance.com.au and will gladly send you a copy.

Cheers.

@Rob H yes thats right and you can borrow 105% in order to cover all costs involved.

If you do have savings you now have the option of holding it back as a buffer in an offset account. This helps you pay less interest on the loan as it “offsets” the debt.

Many other benifits in addition to the one mentioned, if done right.

Did a quick google search and came up with this;

About the WA Property Meeting Organisers

20% is required as any less is in LMI territory and the LMI providers wont do these deals.

You could always get the full 20% and repay or offset the loan with the extra 10% you may already have. Swings and roundabouts really.

If my parents were to agree to this, how would it work and are they only liable for the amount of equity they allow me to use (i.e. 10 or 20% deposit)

20% deposit + 5% for costs can be covered by the vacant land security.

If you select the right bank they will only be liable for the 25% portion.

or are they actually liable for my entire loan…[Read more]

If my parents were to agree to this, how would it work and are they only liable for the amount of equity they allow me to use (i.e. 10 or 20% deposit)

20% deposit + 5% for costs can be covered by the vacant land security.

If you select the right bank they will only be liable for the 25% portion.

or are they actually liable for my entire loan…[Read more]

If my parents were to agree to this, how would it work and are they only liable for the amount of equity they allow me to use (i.e. 10 or 20% deposit)

20% deposit + 5% for costs can be covered by the vacant land security.

If you select the right bank they will only be liable for the 25% portion.

or are they actually liable for my entire loan…[Read more]

Is it easy to find a lender that assesses it this way?

Yes.

Could it work for multiple properties if we were to find the right lender or would we be better off keeping everything separate from now on?

Yes can work for multiple properties with same lender.

Will it be a vacant block or will you construct a property/s as well?

You will be taxed inline with what ever tax bracket the profits lift you into assuming you are PAYG employee minus any costs associated with the development.

PPOR profit will be CGT free so only be taxed on the IP profit. If you can hold onto the IP property for 1 year you…[Read more]

@jambv Did a quick google search and came across the following which I found interesting and you may as well :)

Queensland (QLD) Real Estate Fees, Agents Fees, Real Estate Commission

Caution… it’s not what the agents charge you at the start that is important, it’s what they cost you if you use the wrong one! The official line from the…[Read more]

@jambv Did a quick google search and came across the following which I found interesting and you may as well :)

Queensland (QLD) Real Estate Fees, Agents Fees, Real Estate Commission

Caution… it’s not what the agents charge you at the start that is important, it’s what they cost you if you use the wrong one! The official line from the…[Read more]

You will need to lodge a joint application with your friend to access the equity. You would also need to seek legal advice if you are going to be using these funds exclusively for your own use as your friend will be liable (called joint and several) for this debt if you default on the security the funds are borrowed against. Same applies to you if…[Read more]

You will need to lodge a joint application with your friend to access the equity. You would also need to seek legal advice if you are going to be using these funds exclusively for your own use as your friend will be liable (called joint and several) for this debt if you default on the security the funds are borrowed against. Same applies to you if…[Read more]

Can someone please tell me how I can access 50% of the equity in this property so I can buy a place on my own?

You will need to lodge a joint application with your friend to access the equity. You would also need to seek legal advice if you are going to be using these funds exclusively for your own use as your friend will be liable (called joint…[Read more]