Hi KateYes if the first 2 loans (investment loan and equity loan for the new PPOR) are secured against the current rental property and the balance of the PPOR loan is secured against the PPOR sounds like you have done it right.Dont forget to get the existing lender to revalue your PPOR regularly and draw back up to the original loan so you can pay…[Read more]

Hi PatYes a few lenders will lend for foreign investment and we do many loans for clients each and every month like this.Big difference is the security they accept and that is only Australian based.If your question is "will any Australian lender take security on an foreign property" then answer is simple – NO.CheersYours in Finance

Mark big difference between "Not wanting to do it" and "Cant be done".You will read in my email it can be done although admitedly may mean changing lenders because of the CBA limited serviceability model when it comes to investors.CheersYours in Finance

Hi KateC/C is where you have more than 1 property and your loan is over both or multiple properies.Assume you have a PPOR with no loan against and wish to buy an investment property for $400K.You need to borrow $420,000 to cover your acqusition costs and wish to borrow the full loanamount.The Bank may take both the new IP and PPOR as security and…[Read more]

HI MackaJust to let you know as at 11.35am Qld time i havent received your email.Happy to respond as soon as i do. Email address is as below.CheersYours in Finance

Hi OceansFirstly welcome to the forum and i hope you enjoy your time with us.How have you calculated your budget is this based and on line lenders calculator or something more sophisticated.Remember you can borrow upto 95% + LMI with the right lender so as long as you can demonstrate 5% deposit over 3 months and your serviceability is sufficient t…[Read more]

Hi MackkaFirstly welcome to the forum and I hope you enjoy your time with us.Look i hate to say you appear to have made the cardinal sin that a lot of property investors make and that is you have cross collateralised your securities and hence the pot is not dry.This happens oh so often and even this afternoon i received an enquiry from another…[Read more]

Hi MattGood for you on already looking for the next IP.Just make sure you structure your lending correctly to avoid cross collateralising your securities as that will certainly slow your investment journey down.Why dont you contact Jamie M who has already commented on your earlier post and get him to steer you in the right direction.Cost you…[Read more]

Hi JacksyYes interest charged on an investment loan is tax deductible and no reason why you couldnt do what you have outlined.I started in 1996 and arrived at where i wanted to be in 2004 aged 40. I used a combination of development, capital growth and increased rents and now life is good thank you.CheersYours in Finance

If you are looking for a so called property investment expert then you probably need to engage the services of a Buyers Agent and there are certainly a few on the forum here who cover the areas you are looking at.In regards to buying a property where the valuation is different to the purchase price Yes this can certainly be done and all depends on…[Read more]

Hi StreakerAn offset account would only be recommended on an investment property if:1) You have no non deductible debt on your on your PPOR.2) The cost of the offset account makes it still worthwhile.Reason you would not redraw funds on an PPOR is that interest on the redraw where the original purpose was to buy your own dwelling would not be…[Read more]

Hi TigerYou can insert any condition into any contract however whether the vendor will accept it is a different matter.If you intend to make application to obtain a DA you would want a very patient vendor or would want to be prepared to release part or all of you deposit to him irrespective of whether you proceeded or not.As far as removing a load…[Read more]

Hi VictoriaFirstly welcome to the forum and I hope you enjoy your time with us.I have to say your situation is one we come across oh so regularly with clients and especially under the new Credit Act needs some careful structuring.Yes lenders will take into consideration your potential rental income but not if you intend to buy and sell the…[Read more]

Hi DavidYes assuming the original purpose was for investment.Although you would have to asking why you took out a P & I loan in the first place.CheersYours in Finance

SimonThe question of whether is has to be an LLC is NO.The question of whether is should be an LLC is totally different and would depend on your risk aversion and whether you wanted to protect the balance of the Assets in the fund and be personally liable for any potential litigation.I now what i would prefer.CheersYours in Finance

Hi PatrickFirstly welcome  to the forum and I hope you enjoy your time with us.For a non broker Derek has done an excellent job of illustrating the suggested structure we would implement if you were a client of ours.Only suggestion I would make is that normally i always try and work backwards for a client to see how we stand.Let us assume you a…[Read more]

Hi Wobbly On a small development such as that you will find a few lenders open to the idea but what residential lenders do not like is multi properties on the 1 single title.Simple reason being that if you dont complete the property and they take possession and they get left with the project re-sale is a lot harder given the number of potential…[Read more]

Hi WarrenNice idea but hate to say it wont work in SMSF.CheersYours in Finance

JacksyArent too many cons although not offered by many lenders and those that do may charge a monthly fee (We usually work it out for clients to ensure it is the way forward given their anticipated spending and savings patterns).if you depend on the taxable interest you receive on your bank account to live on then i guess it is not for you.Also…[Read more]

KrisI will let those with experience in Vic in undertaking such a project comment on the possible pitfalls however i would advice that you be very wary with the choice of lender as many lenders will not allow 3 units on a single title.Given that you probably cant Strata Title the land until the project has been completed you want to make sure the…[Read more]