Yes i would be interested as well.Also be interested to see the number of lenders who accept this structure.

 Hi AdamA few answers for you:a) what would be the average deposit for a renter to buy be if there is one or is it a case to case scenario 1)if they were a first home buyer how long before they could receive the FHB grant. This will vary from purchaser to purchaser. Remember at the moment if you only have 5% deposit and maybe a small default it…[Read more]

HulkInterest is charged on a daily basis and debited monthly on a the Line of Credit account similar to a normal interest only loan.Difference is the flexibility of a LOC.Initially what would happen is you would take the land loan to 80% and then 80% on the construction costs.Interest would be charged on the land and then progressive interest r…[Read more]

Hi HulksterIdeally you dont want to cross collaralise the 2 securities so need to be careful on how you structure the 2 loans.Probably easiest way to go is to look at an investment line of credit secured against your PPOR to cover 20% of the land & building costs and then through a separate lender look to take out standalone interest only…[Read more]

Look i hate to say he or she is totally wrong and with the equity you have there are a couple of lenders who would do the deal.Genuine savings is not required when you have that amount of equity and your employment also should not be a issue.

WeswasThere are a couple of factors and steps to consider.Firstly buying as a first time buyer and I assume wishing to claim the First Home Owners Grant you will have little alternative but to buy the property in your sole name as using a Trust or other entity will disqualify you from claiming the FHOG on this property.Secondly there is not point…[Read more]

Hi thereYes i ahave dozens of forum members in Melbourne and Victoria.To be honest you dont need to reward her for incorrect information. Brokers do this all the time and i have had dozens of clients where we have provided them with all the structured advice and then they have gone elsewhere.Unfortunately just facts of life in the industry. 

Hi SheranI answered your question on the other forum but in essence this is what i posted.I would be wary if the agent selling the property wants to organise your finance as he acting for the vendor certainly will have any interest in the matter and it wont be yours.Just because you are only part time is not really issue with certain lenders given…[Read more]

Hi SheranI would be wary if the agent selling the property wants to organise your finance as he acting for the vendor certainly will have any interest in the matter and it wont be yours.Just because you are only part time is not really issue with certain lenders given the LVR however it is how it is structured that is probably more important.I…[Read more]

Hi RuffaI hate to say the usually reason why a broker suggest this is because they dont understand how to properly structure an investment loan.You certainly wouldnt in your position corss collateralise the 2 securities unless you wish to invite trouble down the track.The way you would structure the loan is to take a investment line of credit…[Read more]

JudithNobody said it couldnt be done in the US in fact we have been helping clients with this for nearly 15 years.The reference was made to Australia and was stated that it couldnt be done here in Oz.To be honest depending on the State 18% is not that great a return.

George2 out of 2 great opening contributions.

Hi JudithI hate to say i a disagree with you.Perhaps you would good enough to explain to us all how it would work under the Australian Mortgage System.

A Pty Ltd Company pays Tax at the Corporate Rate which is 30 cents in the dollar.If the property is purchased solely in the Company name then you will loose the CGT concessionary rate.Alternative would be to have the Company as a Corporate Trustee for a DFT or similar.

Hi BillThere are a number of reasons why you wouldnt unless you had to X collateralise.Couple of quick ones would include:1) LMI premiums higher as the total loan and lvr increases exposure with the 1 lender and as LMI premiums are based on a sliding scale your costs will increase. I am assuming that your lender will go to 95% + LMI ? as most wont…[Read more]

PaulReport just emailed to you.

Hi LukasFirstly welcome to the forum and I hope you enjoy your time with us.Before you start out you need to decide where you want to go and why. Are you looking to buy and sell property or buy, renovate add value and rent them out.Once you have established this you can start to formulate a structure and entity for moving forward.There are reasons…[Read more]

Hi NickIf you are unable to evidence your income then it sounds to me like the pre-approval you had was done on a lodoc basis.Not sure with whom the pre-approval was with but lodoc lending terms and conditions change fairly regularly at the moment.Assuming you decide to purchase a property prior to departure and that you are able to distribute…[Read more]

Certainly not a scam and is a strategy which we have used to great effect here in Qld and i know Steve has done so in Victoria.Same like anything that an Agent doesnt undertstand he merely states it cant be done.

Remember in Qld that the date the contract is executed you as the buyer are responsible for  the Buildings Insurance.Given that most insurers will run a mile when you mention Student accomadation you might want to line up you Insurance Cover in readiness for the offer being accepted.