Hi Nick

Investors refi all the time but it’s usually not due to the rate. It’s usually due to their current lender not being conducive to their investing needs or because a messy structure has been set up from the start.

Depending on your current borrowings and LVR, you might be able to negotiate a lower rate with your current bank with the…[Read more]

goldies wrote:
So turns out CBA's lending policy no longer suits me as an investor. Had discussions with Broker and we have a plan to get this purchase through and then we will head elsewhere to another bank who takes into account 80% of rental income, not a significantly lower amount….

Hi GoldieGood to hear that it's been sorted (for this…[Read more]

jayhinrichs wrote:
Let's stir something up

What did you have in mind exactly????CheersJamie

Hi GoldiesI understand the frustration – we deal with this type of bank craziness all the time.I recently wrote a blog entry on how investors can improve their borrowing capacity. Do any of these work for you?Article hereIf it is ANZ, the good news is that there are quite a few lenders out there with more generous ways of assessing your borrowing…[Read more]

No, it's not true.Your borrowing capacity will be the same irrespective of whether the purchase is under personal names or a trust.CheersJamie

If the LOC has been set up and used purely for this purpose than yes, the interest will be deductible.If you have one LOC covering your PPOR and your deposits on investment properties, it's messy and dangerous because you will have a hard time trying to apportion your deductible debt from your non-deductible. Therefore, if setting up a LOC, it's…[Read more]

neRok wrote:
One option the bank gave me is a 2nd loan on my current PPOR for deposit money to buy my next PPOR (with a 3rd loan). Current PPOR would become IP and the 2nd loan wouldnt be tax deductible. Is this 'cross collateralise ', having multiple loans on 1 property? Or is it having 1 big loan covering all properties (another option they…[Read more]

Hi LauryI totally understand where you're coming from.I remember the hours and hours of research I put into my first purchase. After considering every city in Australia, I ended up purchasing something close to home. Just like you, I had a good understanding of the local market and what represented a good deal. I also had access to local tradies…[Read more]

kat13 wrote:
I am extremely new to this, I am desperately wanting to start a portfolio but don't know how. Bank will most likely not lend me more than another 10K,

Hi KatWelcome to the forum.Is this the advice of your bank or your own assumption?

kat13 wrote:
and I've been told you can use equity in your home somehow. My house is valued at…[Read more]

Hi BlockaWhen did you call?There was a short window of opportunity recently when some of the majors were providing 1% discounts off their SVRs (dependent on overall borrowings and LVR) It's not such a competitive environment at present.CheersJamie

Hi LaurySounds like you've already devised a goal – you won't achieve it by doing nothing.Due to your limited cashflow, perhaps it's an idea to save a bit of a cash buffer before going ahead with the 3rd.CheersJamie

Hi MarkIt won't be crossed if:1. The LOC is used for the deposit/costs2. The remaining portion is set up as a seperate loan (same lender or elsewhere)CheersJamie

If it's similar to the other unit you were considering at $450k then I guess that would be a logical price to have in mind.CheersJamie

Out of curiosity, why does it have to be a lady?Richard Taylor has recommended someone in previous posts. You might be able to locate the posts using the search function.CheersJamie

Hi Kev1. I would have thought that the $50k you take out will only be deductible depending on the purpose of its use.2. Are you moving into a new PPOR? If so, I'd set-up an offset account against it and have your IP rent paid into it.3. A quantity surveyor. There are plenty of companies to choose from.CheersJamie

Yes, they will want you to provide some sort of plan in regards to how you’ll service the debt once the baby arrives. If LMI is involved and your income is a significant contribution to your borrowing capacity than it can be difficult to get approved.

Cheers

Jamie

Hi wezwaz

The bank won’t ask you to close the facility.

You won’t be earning interest on the $330k but if you took it out, you’d be paying interest on your home loan.

If you have an inkling that your PPOR will become an IP at some point, I wouldn’t pay off that debt.

If faced with this scenerio you should have a word with your accountant as…[Read more]

Hi DMB

If you qualify for a 90% lend then you must qualify for a full doc loan. If that’s the case, then you should have access to the same rates applicable to PAYG borrowers on 90% lends.

Cheers

Jamie

In terms of living – the asbestos should only be hamful if tampered with. So as long as you're not ripping out walls in wet areas, etc it shouldn't pose an issue. CheersJamie

audio123 wrote:
Is it wise to save up deposit and pay in cash (which will take more time), or should we borrow more off our existing home loan?

I would considering borrowing from your current PPOR to fund the deposit/costs for your next property. These funds will be deductible whilst the property is an IP. I'd keep any savings as a cash buffer…[Read more]