Hi Jenny

No silly thing is that some lenders work off a percentage of Gross Turnover as shown on your BAS and only require your last 2 statements.

In some cases we can annualise the income based on a 6 months BAS and then apply a turnover calculation.

Bottom line is you should never commit to something where you cannot clearly meet the…[Read more]

Exactly as Alistair says at a lower lvr on a Commercial property but no chance on a residential property.

We have done a couple with Unit Trust where the property is self funding and the lender can assign the Lease to cover their repayments.

Cheers

Yours in Finance 

MK agree with Jac (as always) but if rates fall much lower you should be able to get + cash flow with P & I.

All a matter of education and associating yourself with the right type of person to source the properties.

Cheers

Yours in Finance

Of course there are also Non Cash Deductions such as Capital Allowances / Depreciation which can be claimed and therefore this will help balance the shortfall on the household budget.

These are claimed in the same proportion as the ownership of the Title i.e Sole Ownership / Joint Tenants / Tenants in Common etc etc.

Have to bear in mind that…[Read more]

Jenny an Income Accelerator is a way of increasing your short term income to enable you to be able to invest in more long term property.

Whilst my background in the UK was Currency / Share trading i wouldn't recommend this as a strategy for investors.

Ideally potential investors want to reduce their non deductible debt whilst increasing their…[Read more]

Jack, see you do not intend to listen to your Broker's advice in 2013…….

There was me suggesting 1 more dependant could actually increase your serviceability.

Cheers

Yours in Finance

Hi Jack

Happy New Year to you and Sally. Hope the kids had a good Xmas.

See you must be on night shift answering this time of night / day.

Talk to you when i get back.

Cheers

Yours in Finance

All comes down to negotiation.

You could still be looking at 1% + depending on the location.

Cheers

Yours in Finance

Hi Alex

Why don't you get in touch with Nigel again at the Property Know How Club.

I know you have spoken to him a couple of times but Nigel's membership is growing fast and he has a good US set up know with a growing number of members investing in the US.

We are starting to hold monthly meeting all around Australia and even overseas within the…[Read more]

Hi Gemma

The answer to both of your questions is fairly simple in the current climate and that is the Personal Guarantee would not be released.

In the case of a Director moving on and resigning (I have been there and done that) this requires the loan to be re-written. Unless the lender is satisfied with the Guarantees provided with the remaining…[Read more]

Hi Equity

Yes that is correct minimum of 2 Years and then you require your Diploma in MB.

Depending on your Aggregator most will require membership of one of the industry bodies.

Course over and above this you need membership of an External Dispute Body such as COSL and your Professional Idemnity etc etc.

Cheers

Yours in Finance

Remember Ross any Condition needs to be accepted by the Vendor.

I am a great believer in trying to combine conditions under a Due diligence condition rather than have 101 individual conditions.

As long as your Solicitor ensures you are well covered then try and keep it simple for the vendor to accept.

Cheers

Yours in Finance

Hi MK

That's ok it is what the forum is all about learning from others.

Lets work thru your questions:

1) Yes the interest will still be deductible as long as the intention of the funds is to earn an investment income. Would be the same as buying an off the plan property in Australia. The interest on the deposit will be deductible from the day…[Read more]

Sure Kevin can you email me your email address.

Cheers

Yours in Finance

Joe i agree with you and thankfully i have never been divorced.

Cheers

Yours in Finance

Me thinks it was a case of a typo with Nigel's response as we have arranged finance for dozens of his clients and he has always made it clear to them that the interest would be deductible.

Cheers

Yours in Finance

Hi Matt

Look forward to having a chat with you when i get back from the UK as i have a few ideas which might help you with such Income Acceleration.

Cheers

Yours in Finance

Hi Dippa

Since we started First Home Owners Group in 2000 we have been offering Installment Finance to clients.

We charge a rate of interest based on a couple of benchmarks (depending on the client) but where we have borrowed money to purchase the property (In some cases where we do the loan inside our SMSF) this usually equates to between 1.5%…[Read more]

Sorry Kevin just can't agree on using someone like ESuper.

Hate to say in the SMSF world one product doesn't fit all and the little quirks often required with a SMSF Deed you are better  off using an expert like Jac M has mentioned.

Also i can tell you many of the SMSF lenders require Deeds to be re-written with organisations like ESuper and of…[Read more]

Just gone past midnight in Qld so Happy New Year everyone and hope you all achieve your 2013 wealth goals.

Look forward to answering many more posts in 2013.

Cheers

Yours in Finance