Sorry prospector but that is not the case.

LMI premiums are based on both the total loan amount and the lvr.

It can be cheaper to take out 2 standalone loans at 87% lvr than it can be taking out 1 with a higher loan amount across 2 properties.

Sorry your Banker or Broker didn't explain this to you.

Cheers

Yours in Finance

Hi prospertor

Sounds to me like you have cross collateralised your two loans to get to this figure.

Not sure i would have done that.

A simplier and cheaper strategy would have been to have sent them up as separate standalone loans in order to reduce the LMI as well as the potential issues down the track.

Now that you have gone that route this…[Read more]

Hi Tom

If the premium was charged on the top up loan secured against the PPOR which was used for investment because the loan was now over an 80% lend then the entire premium would be deductible as a borrowing cost.

Assume Cham owned a pogo stick which the Bank agreed to take as security for an investment loan and because of lender policies they…[Read more]

Always happy to meet up with fellow forum members and have a general chat about property investing.

I am not at this stage going to Steve's seminar as i am off to the UK on buying trip for clients but go anywhere for a decent coffee.

Cheers

Yours in Finance 

Hi Cham

I am not necessarily saying you will save $$ by using your IP over your PPOR however most investors do not want their PPOR being at risk for their investment properties.

As LMI premiums are calculated on both a dollar amount as well as lvr you may find out that using your PPOR might end up costing you more.

As i say it comes down your…[Read more]

Thanks munmum glad you enjoy the forum.

Must admit late at night find typing on an Ipad i make many a spelling or punctuation mistake.

Maybe we should get Steve to put a spell check function on the wish list to help regular like myself.

Cheers

Yours in Finance

Hi Steve

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

Wont explore the question of whether the deal can be financed as we don't have enough data and that is the subject of another post.

Couple of comments in regards to your questions:

1) Whether you purchase an IP or a PPOR taking an interest only loan with a 100%…[Read more]

Hi Cham

First welcome to the forum and i hope you enjoy time with us.

Depending on the numbers and who the current lender is the figure will vary but my personal recommendation to clients is usually to minimize the amount secured against their PPOR and maximize the borrowing secured against the investment property.

Premium rates will vary…[Read more]

As long as the purpose of the loan is for investment irrespective of the security it is deductible.

Cheers

Yours in Finance

Also the state of the general market.

When they are twiddling their thumbs they are probably quite happy to talk about anything to a vendor.

Cheers

Yours in Finance

Thanks guys for the defence.

Very much the case of the fat finger. Duly corrected and I will try not to make the same missstttake again.

Maybe Virtual has some vast experience to share with everyone else …… on the other hand.

Cheers

Yours in Finance

Hi Mjm

I am looking at doing a series of investor information nights in early 2013 (yes i know i said that earlier this year but the volume of business from investors meant i needed to stay in Brissie and process loans) in both Sydney and Melbourne which you are welcome to attend.

Promise i have nothing too sell other than to assist and educate…[Read more]

As Shahin has mentioned there are a couple of lenders that allow 90% lvr without genuine savings and a couple more that will go to 95% (albeit the LMI and interest rate are a bit higher).

No need to be paying anything more for a 90% lvr even on vacant land.

Cheers

Yours in Finance

Hi Matt

Regretfully the Stamp Duty concession is not available if you purchase in Trust or Company structure only if you purchase in your own personal name and the purchase price is < 500K.

Secondly probably realised that the FHOG ended in Qld on the 11th October and was replaced by the FHOGC which is on new homes only.

In regards to using your…[Read more]

Yes exactly Frackle and love the Loonie story.

Being a Pom can't comment about Kiwi's.   Although i couldn't eat a whole one……………

Cheers

Yours in Finance

How is your Broker in the process of establishing finance if you haven't decided what structure to use ?

Seems a wee bit arse about face to me.

Cheers

Yours in Finance

Oh Matt Matt Matt this get worse by the day.

I would be terminating the Contract first thing Monday morning and then getting a Broker to review your current position and set up the new loan so that a minimum amount of equity on your PPOR is being used to support any new investment property.

Cheers

Yours in Finance

You are unable to live in a property or rent it to a related party where the property is owned by a SMSF.

Cheers

Yours in Finance

Heh Jac, whilst you don't have to meet your Broker i hope you are looking forward to doing so lol

PS. get my SMSF email.

Cheers

Yours in Finance

Yes Kat not wanting to knock a fellow broker but doesn't sound like your Broker is too au fait with investment loan structuring.

Sticking the funds in your offset account will be a nice red flag to the ATO.

Cheers

Yours in Finance