Terry you are right my apologies.At 5.28pm i hadnt even had a glass of wine so cant blaim the drink.

Ok Demitri thanks for the explanation.Look dont want to be a a doom and gloomer but if the debt is owned as Joint Tenants then you actually liable for $120K 's worth in the eyes of any lender.With investment loans capped at circa 90% lvr (Yes i understand there is the odd exception) then you are going to need savings over and above repayment of…[Read more]

I answered this when you placed it on another part of the forum.

RichardHate to say it is illegal in South Australia with the odd exception.Needs to be done on a Rent to Buy or similar basis.

EdiotYes it would certainly limit your Tax deductions but it will also limit your loss.If the interest is greater than than the rent being received you are only negatively gearing the asset at your highest marginal rate.Someone still has to cover the other shortfall.If you can reduce this why wouldnt you.This is of course subject to not having any…[Read more]

HarryCouple of answers:1) When do i start paying the principal and do i have to pay it all at once.      No you dont have to pay at all subject to the provisions of the loan offer.     Most lenders have a maximum interest only period before they look to roll the loan over to P & I whilst others      subject to the LVR allow an Evergreen fac…[Read more]

Would you like to expand more on what you mean by Bad Debt.Just there is a big difference between Bad Debt and A Bad Debt.

Firstly thanks very much Andrew for the wrap its a pleasure as you now.Terry is correct whilst some lenders will insist there is a repayment made on the LOC others will allow the interest to capitalise.As long as it is not perceived that the loan was set up purely as part of a Tax avoidance scheme i cannot see an issue in this as part of a debt…[Read more]

What do you need it for ?

Hi DarrenProbably a couple of lenders i can think of which would meet you requirements but wouldn't list them on a public forum.

Hi DarrenFlexibility is the key and therefore why would you want to pay off the principal when you might 1 day rent the property out.If you redraw the principal payments you have made back during the time when you are living in the property the interest becomes non tax deductible so to me i can see NO reason why you would do so.St George Spring…[Read more]

Irrespective of whether it was an investment property or not if he is your partner /spouse as per the OSR definition then you will not qualify for the FHOG.

Reggie i have posted a response under the finance forum.

Hi VinodYes if the mortgage insurance is charged as a result of an application for an investment loan then it is considered as a loan cost and can be claimed over 5 years or the term of the loan whichever is shorter.I would not be keeping all 3 loans with the same lender if LMI is required as the premiums rise as the loan amount increase.The…[Read more]

Thanks for your opening contribution.

I have financed a couple of deals from clients who have purchased through them over the last week or so and both properties appear to have been purchased at less than market valuation.Certain time constraints when it came to finance approval but all in all as long as you have your structure in place should be fine.

Hi ReginaRegretfully i think you will find the average Bank will run a mile as soon as you mention to them that you are wishing to purchase a property to onsell by way of an instalment contract.Do either of you hold an ABN as a lodoc 60 loan might be a consideration. Other than this i think you will struggle.On a separate note have you carefully…[Read more]

50% Lvr in the current climate is a good loan to valuation for such as specialised security.

Yes great effort and shows what can be done if you buckle down and save.As crj mentioned i think you are a fair way away off getting approval for a loan as neither of the mortgage insurers will accept an application where there is a default so that will limit your lvr.Head down and save again and I am sure you will get there.

Hi DarrenPersonally i would look at an interest only loan with 100% offset account and place your salary and any other income into the offset account to reduce the interest cost whilst the property is your principal place.If you elect to rent the property out down the track and buy again you can always remove the offset funds and use these for…[Read more]