Hi TYU,

All lenders have a default living expense when they assess loans as part of their NSR. Despite the title and loan being in your name only, they will still consider you as married and will treat living expenses as such (which is obviously a higher figure than that of a single person).

Cheers

Tom

Fair enough. I would say the biggest downfall in using DSR is living expenses don't take into account marital status, number of dependents, which not only varies between lenders, but with some by huge amounts.

Hence why they use NSR. I suppose us brokers have got it easy with all the serviceability calculators lenders give us to use to determine…[Read more]

Hi Devilz,

As others have mentioned, don't pay for the car via a loan, as it isn't deductible debt since it is being used for personal purposes.

I think you may overestimated the positive gearing, with both your properties rented and claiming expenses, your net profit would be in the region of a few thousand for the year, not $10K. Unfortunately…[Read more]

APerry wrote:
Hi Gerrit, The First Home Owners Grant (and reduction in stamp duty in some states) is a compelling reason to purchase yourself a house first, even if you only live in it just long enough to qualify and then turn it into an IP. Apart from this, it probably makes more financial sense to purchase IP's and rent. Although purchasing a…[Read more]

TYU,

I think you have misunderstood what we were trying to say. When taking into account the LOC, the lender will use the worst case scenario and calculate repayments on the total limit amount of the LOC for servicing despite what you are thinking of withdrawing.

i.e. you take out a LOC for $100K at interest rate of 6%, and despite only…[Read more]

With respect to DSR and the offset account, no it isn't taken into account, as the lenders view is that it can be withdrawn at any time to be used on something else.

DSR is really old school. Lenders typically use the NSR method in calculating serviceability. Different guidelines between lenders may mean that there might be situations that with…[Read more]

Yep, generally 10% is the norm deposit required initially, though you can try to negotiate it lower. Balance is paid at settlement.

As for being self-employed, no reason it needs to be any harder than normal PAYG salary if you have a decent history.

Cheers

Tom

Hi Kelie,

Heres a link from the ATO site regarding part renting a property.

http://www.ato.gov.au/corporate/content.aspx?menuid=0&doc=/content/00262404.htm&page=10

From what it says, If you do claim deductions, it is done a floor basis area.

As Catalyst says, your accountant will know better.

Cheers

Tom

Hi Kara,

Welcome to the forum.

A deposit bond is basically a substitute for a cash deposit that the vendor receives when contracts are signed. No physical cash actually changes hands, it's basically a document that says you're good for the 10% come settlement time. As it isn't actual cash, the vendor doesn't have to accept it. That's why if you…[Read more]

Can think of plenty of ways, but the downside is they are all illegal.

One thing I thought of a few years back was to plonk excess money into an overseas poker site account which is based on US dollars, and let it sit there until the Aussie dollar dropped back to historic levels, and then pull the money out making a tidy profit. Decided against…[Read more]

Much more inviting Joe. Tell you what, you have some nice green grass there on the front lawn. Around my area, the green has faded to yellow from the dry weather we have had lately.

Or is that an older photo you have put up?

Cheers

Tom

Hi Rosebud,

As Jamie mentioned, without a deposit of your own, the only way would be a guarantor loan.

Another option depending on whether your renting situation classifies as genuine savings, is if you can get you hands on a cash deposit via a gift, sale of assets, etc, some lenders might be willing to take you on.

You also would have some…[Read more]

Looking at the national depositing funding website you listed above Shedin, they offer your deposit for a property as a personal loan, which surprise surprise, is only for choice properties constructed by builders approved by them, and is financed through brokers affiliated through them. Fingers in all the pies.

Though how they can get finance…[Read more]

Joe,

Agree with the others. That main pic with newspapers over the windows suggests squatters have been living there, not a good look.

Updated nice wide shot of the front, added with at least a backyard shot with the others you already have would do wonders.

Cheers

Tom

Which denomination Joe? Catholic, Orthodox, Witch Doctor? 

Just out of interest, what suburb are we talking about?

Generally as Terry mentioned, you can't hide them as that would be considered fraud if something happens down the track and they aren't disclosed.

You can protect assets somewhat using trusts, you would need to seek professional advise for your circumstances.

Cheers

Tom

Yep, to be never heard from again.

This thread must have appeared at the top of a Google search, and the firm has told their cheer squad to spam this site.

Cheers

Tom

Depreciation schedule is handy.

Cheers

Tom

Good point about the valuation Derek.

Dellas, as settlement is over a year away, the lender won't approve any loan until closer to settlement. That's when they will also do their valuation, and there might be a chance that the market might drop causing a lower valuation than the purchase price. Depending on what that is, you might have to…[Read more]

AJ, just make sure when Christmas comes around, that if you still have the Bayswater property, to restructure your loan to give you the maximum benefit both deductibility wise, and saving for that Eltham property.

Cheers

Tom