If you are using a new lender to secure the 90% lend on the IP then LMI will only be payable on this loan assuming the Line of credit you have set up on your PPOR to fund the balance keeps the existing loan under 80%.Interest deductability depends on the purpose of the funds so if the purpose of the line of credit was to funds the deposit for the…[Read more]

Hi JeanHate to say The seller is happy for the caveat to be lodged to protect my interests in the property. The Seller doesnt get a say in this is as under the Property Act he/she has no right to stop you registering your interest by way of a caveat.

Hi Ms TFirstly welcome to the forum and I hope you enjoy your time with us.Whilst using the equity in your PPOR is a way of securing your first IP purchase it is how the equity is used that is more important.Rather than offer your lender the balance of equity i would personally structure the arrangement differently.Look to secure a Line of credit…[Read more]

Trevor you mention that you are after finance but then you say the Vendor is financing the deal so I am a little confused.How much are you looking for and what sort of income are you currently earning.Most things with the right LVR are doable however more information is required to provide a structured answer.Email me the details if you dont want…[Read more]

Personally i would not mix the 2 loans as this could cause you problems in the future.Establish a line of credit now for the 10-20K so that you can utilise the funds when you need as the way the market is the facility may not be approved in a year.

Doubled up

Hi RobUnfortunately Anz are not known for their sympathetic ear when it comes to Casual employees.Depending on the time with your current employer will determine what lvr can be looked at.

Separating the loans is extremely important and the last thing you should do is look to redraw the advance funds as has been discussed.Also remember just because the property might start off as negatively geared this will not last forever so discuss with your Broker whether you will be buying it in Joint names, Tenants in Common, or even using a DFT.

No hate to say they are correct.The loan and mortgage documents will need to be amended.I am assuming the property is not an IP as both CGT & Stamp Duty may also be payable.SD is payable on a change to a PPOR anyway in some States.

Have the rules changed as a result of the GFC – Yes Dramatically along with many other policies

Hi PaulCouple of ways.1) Use a lender that still allows it.2) Do it as a Commercial Development. This unfortunately means additional costs, higher interest rates and lower lvr.

TonyMust admit only down side with CH is that it is not called Chapel Hill because it is flat.Riding down the hills lot easier that going up the other side.

Terry you are bang on.Westpac are not alone and certainly talking to a couple of other lenders their mortgage insurers have said a big fat NO.

Hi PaulThink he might want to check on the updated policy. Looked for a client recently and was suprised how many lenders said NO.In a multi unit dwlling situation 4+ is the magic number but not necessarily for construction. 

No worries Paul.

Hi PaulOff the top of my hear i think you will have a problem.Many lenders do have an issue unless the land has a separate Title and in most cases you wont get this until building has been completed.Some lenders will do upto 3 dwellings on the same site but will limit the lvr to 80%.

Most reports such as the Residex report we use relate to individual properties so you need a security address.Certainly they provide some interesting statistical information and demographic assessment. 

Hi Young cant comment on the location but happy to run a Residex report or two for you if you have a property address in mind.Will certainly provide you with some useful statistical information. I use it all the time for all of my IP purchases.Drop us an email with a security address and i can email the report back to you.

Have you considered a Buyers Agent ?

Happy to provide you with a Residex report on an individual property in each location which will certainly give you some interesting statistical information however an actual security address is required.