I think yours does under the Statement of Position question.

CJ Assuming you wanted to utilise the entire $40K you would pay down $40K from your PPOR mortgage and then look to take a LOC back upto 90% of the current market valuation.Of course if 80% is sufficient and it means avoiding LMI then you would reduce the loanaccordingly. Once you had the valuation back you would have an idea as to the available Li…[Read more]

YI i agree it is the responsibility of the banker to do the proper checks and ask the right questions.However it is also the responsibility of the applicant to answer the application form truthfully and correctly. As Terry and i discussed last week we couldnt find a lender who didnt ask the question "Do you guarantee any other loans in the…[Read more]

A change to IO with Anz will mean a new application and may incur additional or new LMI costs depdning on the current market value.One of the pluses with Anz is that your Mortgage Broker can order the valuation for you upfront to see how viable it is prior to submitting the deal to the Bank.

Hi JackoWelcome to the forum and i hope you enjoy your time with us.Firstly why are you looking to pay down your mortgage is it to obtain equity for investing ?If so then certainly I would not use a LOC for you initial loan but look at either an Interest only or P & I loan with 100% offset account. By all means a investment LOC can sit behind this…[Read more]

Errrrr Nah actually erodes your borrowing capacity over time.In saying this certainly has a place as is important entity structure for buying properties.

Hi grunterCant recommend anyone on the Sunshine Coast but can on the GC.At the end of the day i guess most business can be done over the phone and email.Half of my clients are inter or intra state and most loan applications are lodged electronically.Anyway his details are:Steve Hodgkinson and he is a partner at the Gold Business Group down at…[Read more]

No the interest will be deductible however only on the $70K amount.What you should have done was take an interest only loan with 100% offset account and then interest on the full $290K would have been deductible and you would have still had the $220K in a savings account with oncall access.

Hi BradNo unfortunately all of the wraps we have ever done have all been in Qld.

Hi MikeCouple of options but being this time of night I will be fairly swift:1) Yes you can claim the FHOG (assuming it still exists in is current form) if all other quailifying criteria have been met. Purchasing an IP first even in your own name does not disqualify you. The Stamp Duty concession is a different matter and will vary from State to…[Read more]

Hi RaewynWhat sort of additional research are you looking at ?Property, finance, legal ?

Hi JeffThe wrap kit never gave you a compliant Contract for you particular State.If you email me and tell you what you are after I maybe able to assist.We still sell our fully compliant Wrap Contract for Qld in PDF format.

In Qld if you sell direct more than 6 properties a year you are required to hold a Developers License under the Property and Motor Dealers Act.

You would still get 90-95% but not all lenders will offer you the interest rate discounts you would get if buying in your own name or have a personal Trustee.

Before you rush off to the Accountant remember that the $300 / week you receive from the rent from the family home will be treated as Taxable income split as per the ownership of the property (I imagine Joint Tenants) so you might want to think twice.Also not sure why you would use your cash for a deposit on an IP even if you had no other use for…[Read more]

Hi ShaneDepending on which State you are in may determine the requirements needed to act as a property developer and whether any particular license is required especially if you intend to sell your own properties.Other issue you ned to think about is how you will finance these acqusitions as a property developer the loans will be considered C…[Read more]

Hi JohnYes it is but i am unsure why you would want to.Using an interest offset account will reduce the interest charged however still protect both the access to the cash funds and the interest deductability in the case you decide to want to buy a PPOR.No you are right the separate loan sits in behind the first loan and does not effect the…[Read more]

Natalie i certainly appreciate your enthusiasm and loyalty but i assure you having sold my own property developments thru TIC between 1996 and 2004 i assure that the bargaining is not done for you.The Developer sets the minimum price that he / she wants and the "club" take it or leave it.We had many sales privately in the same complex where TIC…[Read more]

Hi John1) In a trust structure is it possible to use the equity of a property for personal use or as a deposit for another IP?I assume you mean where the property is owned by the Trust can you access the equity. Yes just make sure you split the loans so each can be identified.2) If the equity can be used can it be used to pay back a debt on an…[Read more]

Hi CeedeeI assume the new property will be your main residence so limited advantages in buying it in Trust using a Corporate Trustee.If you buy the property in your own names then you will get the property will be exempt from CGT shoud you sell it in the future and assuming this is your only PPOR. The property will also be exempt from Land T…[Read more]