Totally totally agree with Terry as you will be surprised what documents a Bank can pull out and show you that you signed them when you opened when times get tough in the business.

Just because the mortgage is upto date doesn't mean your home is not at risk.

Lenders seem to have selective deafness when you want to increase the overdraft for a…[Read more]

Dave depending on the what your long term objectives are you could well find that the property would suit a purchase, rent and then sale by Vendor Finance strategy.

This is one of the income accelerators i used to build my buy and hold portfolio.

Of course in saying all of this if after talking to a local property manager you feel that the area…[Read more]

Shahin old mate The Dragon doesn't do a Non Relocation loan where an owner builder is involved.

Trust me Max is in Brisbane and we have been down that path.

Cheers

Yours in Finance

Wow wish my Landlords Insurance bill only came to $2500 / Annum ……

Unlike Life Insurance where there is a defined guarantee of payment (although regretfully you may not be around to enjoy it) House or Landlords Insurance has no such guarantee. It is a payment for what could be a non defined risk occurance.

With every client i talk about risk…[Read more]

Personally I would run a mile.

Will depend on what your fathers investment objectives are as to what and where he purchases.
I am not sure why can only spend $150K but assume there is a reason.

Depending on his age he may even want to think about setting up a Self Managed Super Fund.
Make a deductible contribution to Super (within maximum…[Read more]

I agree it is impossible to answer with any form of confidence or accuracy without knowing the conditions of the Contract.

If you feel that the rent is slightly higher than market rent are you not better off to reduce the rent and meet the market rather than let the property get stale whilst you are arguing over the terms of the contract.

Whilst…[Read more]

Richard i hate to say that is simply not the case and is a myth that many investors when they first start out believe in.

Regretfully it is simply not true as every lender requires every Trustee (and with some lenders every Adult Beneficiary) to guarantee the loan and then going forward every lender requires you to disclose any previous…[Read more]

Deerinpj is there a reason why you would limit the lvr to only 80% ?

I am assuming you have bags of equity in your PPOR and don't envisage running out of equity to fund future acqusitions.
Whilst you may save a couple of deductible dollars on LMI it might also be a lost opportunity cost going forward as extracting the equity on the IP's down the…[Read more]

Jane away from the property itself ( as i am sure others closer to you will comment ) make sure your Broker / Banker structures your loan correctly as you want to ensure that the loan is set up correctly from day 1.

Just because the property starts out as being a PPOR you know you will rent at the end of the day so ideally want a Interest only…[Read more]

Pay attention to what Jac M says in the area of Geelong as she owns half of the City.

The other half she currently has options on …………..

Cheers

Yours in Finance

Richard go that route and your finance options become less and less.

All you need is to hit serviceability wall with one lender and you could struggle to find another one come to the party.

I can only thing of half a dozen lenders that would knowingly accept a deal under an HDT structure.

Cheers

Yours in Finance

Sorry for the delay but been flat out last couple of days.

Was actually up in Toowoomba on Tuesday looking at a property for a forum client and then the following day got a contract in from another member.

Second biggest City on Qld and certainly the gateway to all towns East.

There are certainly some excellent areas and some i would probably…[Read more]

The only factors that prohibits an investor increasing his portfolio is a combination of lack of equity or lack of serviceabillty.

If these circumstances can be overcome then you can carry on purchasing.

Of course the appropriate lender choice can have a big bearing on your loan planning.

We are working with a couple of lenders that are…[Read more]

Hate to say getting a second valuation wont do you any good as the loan is still based on the lower of the two figures.

Got one here in Brisbane where the valuation came in at $40K over the purchase price (Very unusual) however we can initially only lend against the purchase price. Nice for future equity release though.

Depending on the numbers…[Read more]

There are also lenders that offer an unsecured credit card facilty with the investment loan charged at home loan rates.

These funds can then be placed in a 3 month Term Deposit Account and used as genuine savings on the next purchase .

We are currently working on a 100% blended loan in conjunction with a couple of lenders that will be ready for…[Read more]

Hi Steve

Hope you got my email response and it made sense.

Cheers

Yours in Finance

Coming late in on the conversation but as the boys have already said you would never a non recourse standard residential loan.

I think many US states learned a lesson or two on that score post GFC.

Cheers

Yours in Finance

Yes the beloved RHG.

i had two forum members contact me this week alone wanting to get out of RHG.

Course this is the bit that Westpac didn't want to pick up when they did their big shining white knight act and bailed out the old RAMS. 

You can certainly do better.

Cheers

Yours in Finance

Hi Max

Firstly welcome to the forum and hope you enjoy your time with us.

Sorry i might have misread your post but from what i can see from the numbers i believe it is certainly doable.

There are many ways to do a deal even if your existing Bank so no.

Course as i say i may have totally misunderstood your post but i dont think…[Read more]

Definitely based upon purchase price or valuation whichever is the lower. 

In the old Challenger days they used to actually lend on valuation rather than the lower of the two but those days have been and gone.

Commercial lending can be different with a little more flexibiliity.

Buy the property and borrow based on the 95K and then get your…[Read more]