An only too common scenario.Regretfully the "Purpose Test" applies and clearly the purpose is to purchase a PPOR so no go there.An alternative would be to look at selling both properties into a Unit Trust structure and borrow 100% of the purchase price.Whilst Stamp Duty would be payable on the individual Transfer prices the interest on the…[Read more]

Thanks Shane more of review of my last 15 years in Oz.

Hi SNMa) Is there a restriction as to the type of property that can be bought in a SMSF? eg: block of 3 or 4 villas/townhouses vs strata retail shop vs single dwelling? Yes and No. There is no restiction as to the type of property that can be owned within the fund as long as the Trustees have considered the risk and the acqusition forms part of…[Read more]

I have done an interview with the API magaazine for next months edition about property so might be worth a read.Any comments about grey hairs wont be tolerated lol.

If you are referring to a Discretionary Family Trust then No you cannot negative gear and any losses a closeted within the Trust.Remember however that 1 day the property or asset is likely to be positively geared and at this stage the flexibility of income distribution maybe extremely useful.If however you are thinking about a Unit or Hybrid Tr…[Read more]

Borrowing capacity will vary from lender to lender so some basic information is required to provide further detail.

Without further details this question is almost impossible to answer as every serviceability model is different.More importantly under the new National Consumer Credit Code it is not a matter of fitting the deal into a lenders serviceability calculator (The Banks dont have to comply until 1 Jan 11 with the code whearas Brokers and non ADI's do…[Read more]

Fredooh if only…..Isn't a valuation a valuation regardless if it is for sale, refinance or otherwise

Yes it is possible merely keep the lvr to 80% or less.Otherwise it is not. Not every lender charges LMI however they charge something similar.

JulieanneSteve has subsequently corrected this comment on a number of ocassionsOne of the main things that i've learnt from Steve is that by investing through Trust structures you can overcome your personal  borrowing limit.As Terry has mentioned buying in Trust will not increase your borrowing capacity these days.

Regretfully with effect from July 1 and the inception of the new National Credit Code we are not taking further USA finance application from Australian residents or citizens and this will be limited to our UK clients only. 

I think we had all figured it was The Dragon.

Of course other option is it could be one of the Credit Unions and a few of those offset interest on quarterly rests so have to wait to the end of the quarter to gain the benefit.Unlikely but as Banker menioned we need the lender to advise further.

In shortThe loan is an interest only loan and therefore the loan repayments will vary depending on the number of days in the month but the principal debt will stay the same. Interest will only be charged on the $20K rather than the full $100k being interest only.There is the odd lender that still charges interest on the full debt in this case…[Read more]

TinaRegretfully your friendly Broker will have little or no sway on a lender at a 95% lvr unless as been mentioned before he or she is an existing client or the deal / clients scores well in Credit scoring.Most deals can be done someway or other as long as the lenders parametres are met.

All depends on the size of the deal total loan to value, your other assets and ability to service.If it is a small residential project of say 4 units and less then Yes you would get be able to get upto 80% of land costs and 80% of ongoing construction (with a few parametres). Anything over 4 and you start to get in the domain of the specialised…[Read more]

No william is not suggesting that and these loans are not available for any form of property purchase.In fact the new National Credit Code which comes into effect July 1 will make it harder for people on limited income to be able to borrow as serviceability models tighten and emphasis goes back to being able to afford repayments (like it should be).

Hi ChrisTo access the equity you will probably only be able to draw upto a 90% lend so certainly need a little more appreciation.If you stay with the same lender LMI would be charged on the total loan and then a credit given for what you have already paid.With a new lender you will merely pay in on the new loan.No there is no lender left who will…[Read more]

You cant blame the lender you want development finance at residential rates yet arent prepared to pay for it.I have done 101 projects around Brisbane in the last 15 years everything from a 2 lot subdivision to 55 units at Nundah and have always found it is easier to be honest with the lender and accept the higher rate, fees etc so that the deal…[Read more]

Might be add my twopence worth as i have done 1 or 2 wraps over the last 14 years.1. How much are the vendors repayments above the interest rate applied to your money borrowed (is it more than a P&I repayment). i.e. what sort of margin is the monthly cash flow based on?We base all of ours over the Cash Rate rather than particular Banks variable…[Read more]