Hi RomeopFirstly welcome to the forum and I hope youenjoy your time with us.Both Aussie and Rams are franchises so the advice you will get will depend on the knowledge and experience of the franchisee. You could well find the individual was a second hand care sales on Monday and a Broker on Friday with a weeks corporate training.Forget asking t…[Read more]

Hi PeterPersonally i like the attitude of never never sell so if it was me i would use the equity and gear against and then use the raised funds to buy again however thankfully everyone is different.Remember the costs of selling and then in turn the cost of repurchasing.Equity position seems ok however i cant comment about the serviceability as…[Read more]

Yes you might get 65% of net GST GR so if this was the case loan around $1.1M.Still going to be a few $$$ short.Banks dont lend on GR so would be the domain of the private financier.

No problems recruit.

Hi DaveYes what i am saying is that without other security no private lender is likely to lend you 100% of the purchase price / valuation unless of course they are the vendor and it is done by way of an instalment contract.

Thanks matt great first post.

SashaFirstly if you work on around $1200 / square metre for a simple townhouse you wont be a million miles away.I understand what you are saying about your equity but it doesnt work that way.Assume it costs $200K to build you will still need to borrow and show serviceability of $200K irrespective of the equity derived from building the new…[Read more]

Hi fredoYes every lender has a method of calculating your serviceability and each model is different.By speading your risk through a few lenders you will find that your borrowing capacity increases.You will suprised what some lenders do and do not take into consideration.

Hi quickchickWhy would the deal not work at an 80% lend?As long as you have serviceability to cover the new loan and the funds can be seen in your account then most lenders would approve.The original post was in regards to private investor which are actively out there and we have done many many a deal however it all boils down to risk and lvr. You…[Read more]

Only by selling the property to a Unit Trust or transfer your wives interest to you and borrowing accordingly.Other than that that no it has been set up incorrectly in the first place and not a lot you can do about it know.If you had taken 90-95% lvr and paid the LMI done the deal on interest only then Yes you could have claimed interest on the lot.

Yes wouldn't have an issue with the structure recommended.

Hi DaveHate to say i think it unlikely as it all boils down to risk.Why would an investor want to lend you 10% or similar and risk loosing his funds on a second mortgage when he / she could do the deal themselves.In saying this of course nothing to stop you looking at doing the deal with the vendor leaving say 20% plus yours costs in the sale and…[Read more]

No Steve is correct even adding back the negative gearing deduction on the interest into the equasion your income is is going to be a barrier to moving forward and purchasing again.Whilst some lenders are using 8.25% as their serviceability rate a couple of the Big 4 are using 8.91% or thereabouts and this will dramatically reduce the amount you…[Read more]

Welcome to the forum and I hope you enjoy your time with us.How would show your wife can support the loan when she is not working irrespective of the lvr.Secondly once you have purchased the property you will find that it wont be so easy to get a LOC in her name if her income is limit.Why would you not purchase the property in Joint names either…[Read more]

Subject to other 101 details and timing (When interest rates incresae affordability rates also go up so the amount you can borrow goes down) of your purchase you should be able to show serviceability.As stated this would depend on you other loans and liabilities, number of adults, children in the family, potential rent on the property etc etc etc.

Secret agent the better mortgage management loan is thru Adelaide Bank and still requires you to state an income.The income you declare is what the Bank will accept so if your Broker must have manupulated the stated income to suite the servicing criteria. Adelaide Banks rate is 1% higher than the Anz rate but in saying that the Anz product is…[Read more]

Very good GOM.

Must admit i have never noticed another post from him.

Intersting GOM 7 posts from our friend steve and 6 of them are self promoting.The last one relates to wanting to find a property investing club presumably to sell his wares there.

drsYes thats right Bank lend against cost not against GR.