DFT = Discretionary Family Trust

From what you want to achieve i think you will have real financing issues in utilising a PIT or similar beast.DFT with either a Company or personal Trustee would be a lot easier to achieve the end result.

As SNM has mentioned sounds like you are buying a bit more than the average block.Talk to the Council and see what opportunities arise. Nothing to stop you (subject to of course DA) retaining the current dwelling and constructing on the balance of the GFA.If the neighbouring block is zoned for multi dwellings then you or your tenant might be…[Read more]

JaffaLike everyone else i am looking at properties where i can add value i.e corner blocks, large lots etc etc.Everything i own in SE Qld has something going for it or alternatively is a darn good cash flow i.e blocks of units, sounds leases etcIf i get down your neck of the woods I will ask you for some advice.

Dont worry Jaffa I might need forum members help when i buy something interstate so hopefully i can count on local advice.Sort of 2 way street. I give you a report for your property and you give me some knowledge of an area for mine.

You can try but dont expect a quick response.At the end of the day the lender has the right to change policy and at the moment this can change daily.

I certainly would not suggest you use the 5 day Cooling Off period on a standard Qld Contract to terminate the deal unless you are confortable in loosing 0.25% of the purchase price which the Vendor will be entitled to.The Contract should be subject to finance and a Building Inspection and if these are not acceptable to you the Contract can be t…[Read more]

Hi MichaelYes i was referring to the NAB rather than Homeside for a reason and would disagree with you that Homeside offers a  lower priced product than retail NAB.Personally in my experience the pricing depends on the relationship you have with the Business Development Manager the volume of Business you transact as well in NAB's case whether y…[Read more]

Hi MichaelJust out of curiousity how would a client benefit using an ORP Broker over a standard Broker when dealing with organisations like the NAB.

AdamHave a look at the online shop as they have all Steve's books.

Hi NathanRTA = Residential Tenancy Authority.Ben this might help http://www.qbe.com.au/Personal/Landlords/Insurance.html straight from the horses mouth.

95% is still available as i mentioned earlier but you need to be whiter than white.

Financed a couple for clients over the years and i think Terry is spot on.Nothing new however they seem to think they have got around the 80 year rule.Before however you rush in and part with your hard earned I would check that you can still get finance using such a structure.The majority of lenders will want to give such a entity a wide berth in…[Read more]

New one to me also.

See how the market has changed.When i first started out in the industry in the 80's in the UK it was 3 x the main income + 1 x secondary income.The odd lender did 2.5 x Joint income however that was an exception.As Terry mentioned some years the figure has increased however varies from lender to lender as has been pointed out.

Badger you have confused me on your 2nd point.The gross rental income is added to your other taxable income and then any expenses deducted both cash and no cash items.If the property is held as Joint Tenants then you would apply 50% of both expenses and income to each party.Obviously this will vary depending on the holding entity.For cash flow…[Read more]

Maree has made some excellent points above.Remember in the current climate financing is taking longer than normal especially if it is structured correctly so i would also set the settlement terms to suit you and your Broker.

Sorry hate to be the bearer of bad news but lending doesnt work like that.Just because you are buying a positive geared property doesnt get you over the line especially in the current climate.Most lenders are going to want a lot more than that especially if the LVR is over 80% and mortgage insurance is involved.Remember every lender you go to will…[Read more]

Hi ChrisIf you have the capacity to borrow and the saved up deposit then a suitable loan could be found however more information would be required.Not many lenders left doing 95% lvr and those that are have fairly stringent credit criteria.

Yes this has been a recent policy change with a few lenders however we have done many deals recently at an 80% lvr.In fact did a deal from another forum member only this week who was Dutch and we have obtained an 80% lend without a problem.Admitedly the amount of paperwork the lenders require is a bit more but nothing more than if you were a local.