Hi JimWhat advice are you looking for?At a minimum, your friend will need to save a 5% deposit and come up with enough funds to cover the purchase costs (stamp duty, legal fees, etc). His $7k FHOG may cover some or all of the purchase costs (depending on the state that the purchase is made in).CheersJamie

Hi GlenCashflow is important in property investing. Personaly, I view using the banks money (which is tax deductible) and preserving my own own savings as a risk mitigation strategy.CheersJamie

No worries. Most of my clients are interstate so everything's done via phone and email – but you can always pay a visit to Canberra if you like. It's beautiful here this time of year CheersJamie

Solomon10 wrote:
Thanks Jamie and Terryw, would you use any of the big four towards the start of your property buying and smaller lenders when coming close to "the wall" or vice versa?

Depends on the circumstances.As a general rule, we aim to use the least generous lenders first and save the most generous lenders to last. CheersJamie

No worries.Yep, that's the firm. The contact details are here – http://www.cosgravesoutter.com.au/praxis.php/section/content/contactCheersJamie

Hi GlenWelcome aboard.I can't comment on those particular areas. The Herron Todd White month in review usually has a write up on regional areas which you might find useful- http://www.htw.com.au/Month_in_Review/Month-In-Review-May-2012.pdfIs there a particular reason why you'd prefer to use your own cash rather than equity? At least the latter…[Read more]

Hiya KPA decent broker should be able to provide some advice on the finance structure. For specific taxation advice, you'd need to speak with an accountant.With purchasing your second property, it's important to avoid crossing it with your existing one.CheersJamie

There's no set rule – there's certainly no 30% of income rule.All lenders determine your borrowing capacity differently – some will allow 100% of rental income whilst others will only allow 75%Some will take the repayments you make with other banks at their actual value whilst some will add an "assessment rate" to them – which inflates the actual…[Read more]

Yep, there’s customer ordered valuations with cba, so the val can come back before an application is submitted.

Cheers

Jamie

Like Richard said – anything above 90% is difficult. Firstly, the lender's policy must allow it – secondly, your application is going to need to be flawless including excellent conduct with current loan facility, good serviceability, a low number of recent credit file hits and about a dozen other things need to stack up.Up to 90% is more…[Read more]

ravenhard wrote:
This is what Ill try and get out of my broker to do. How to fund the IP without touching my $40k in the offset, while not paying LMI

It should be straight forward – they just need to set-up a new loan split for $60k (which will take your current loan up to 80% LVR).CheersJamie

Kelly Lawton is my accountant – she's terrific.Michael James from Trinity Law is a good conveyancer – I refer my clients to Michael and also used his for a recent PPOR purchase.For property management it's Erik at Livein.If you want an amazing broker in the ACT – joking CheersJamie

Hi RavenhardWelcome to the forum.Your borrowing capacity based on those numbers should be quite high. However – you need to look at your personal budget and work out how much you can afford (and are willing) to spend on an IP. I haven't crunched the numbers on the proposed purchase but it doesn't look like it will be overly burdensome in terms of…[Read more]

What Terry said.Tax deductability is determined by purpose.If the purpose of the loan isn't investment related (in this instance to pay down a PPOR debt) then it's not deductible.CheersJamie

gibbo1 wrote:
With option 3 take your 80% loan as suggested against the new property but the other 20% comes from a new loan secured against your PPOR.  That way the loan is 100% for investment purposes.  Both loans can be setup as IO and you can have a cash offset account against one of them.

What Gibbo said. Your total borrowings remain tax d…[Read more]

Hi PeterSave your self the hassle and contact Richard – he does these deals all the time.CheersJamie

BB2012 wrote:
I am not clear about the issue if the bank cross collaterise the new loan with the investment loan. Can you please explain a bit more?. Thanks for the help.BB2012

HiyaIt's when the bank takes your PPOR as security for your IP – it's in the banks best interest to do this and not yours. It can be avoided but they won't tell you how.…[Read more]

giant45 wrote:
The bank (CBA) suggested "If you are prepared to put the unit up as security, you should do a 100% of the purchase price plus fees in one loan" and "…need to take out a mortgage against the unit".   We see this as cross-securitisation which we are dead against!   Do you agree?

Typical response from a lazy banker. They can't be…[Read more]

Hi newbieHere's a heap of websites that will help you get started – http://passgo.com.au/property-data-websites.htmlCheersJamie

BB2012 wrote:
Hi,I am having 1 Investment property and I would like to take the equity to buy a principal residence. The market value of the investment property is  550K and the loan amount due is 425K. Can I draw equity from the property (say by increasing the loan amount from 425K to 500K) and use 75K as deposit to buy owner occupied resi…[Read more]