Hate to say you can forget Citibank now.

Certainly can on an investment loan if you have no non deductible debt.Other than that no regretfully not as there is nothing to offset against.

Very True Linar but not to 200% of the purchase price.Most private loans (and i actually do them from my Super Fund) are done at max 70% LVR.

Only if the property comes with a furniture package or similar. Basic fixtures & fittings do not normally effect the valuation. Of course with the odd exception. If you are going to buy a property with solid gold taps they can depreciated however the property value may not be increased to allow for this.

Yes

Normally Depreciation and BWO would be shown separately under Div 10.$3000 seems a small amount for a combined figure.

Whilst of course we are keeping it simple i assume you have not considered any of the Building Write off if applicable.

What is the internal floor area of the unit.Anything less than 50 square metres and it starts to limit your finance options.

Regretfully as the saying goes "Tell him he's dreaming".Dont want to appear rude but it does not exist.

If you had purchased the property using a Discretionary Family Trust and have a wife and children on a lower marginal tax rate than you this would have not have been a problem.I think I would go back to the drawing board with your financier and get things put right for the next deal.

MicThere is the problem immediately and thatis the structure of the loan.Sure some lender has given you pre-approval (for thats worth) on $400K but they will be wanting to take your PPOR as security and that is the very reason why you dont cross collateralise your loans.Needless to say it is in your lenders interestfor you to do so but you are…[Read more]

Hi MicWelcome to the world of property investing.The main hurdle is to make sure you start with the correct foundations so that you can build from there.My prefered approach as Daniel has touched upon is a Line of Credit secured against the Principal place of residence which can then be used to draw down to cover your 20% deposit and acqusition…[Read more]

ChrisAlso need to shop around as Lines Of Credit are often charged at a higher rate of interest and this varies from lender to lender.In addition manylenders will not approve an LOC merely for "cash out" purposes of future investment these days.Again individual policies change from lender.

Hi DanielYes as i say with a DT no problems but MyRate wont touch HDT's.Interesting on their website how they compare only the standard variable rate of other Banks when in reality no one borrows at that rate these days.  

DanielThat is at 90% LVR and most lenders can do that. Terry is referring to a 95% LVR i believe.

Hate to say i think your book had not kept up with the GFC times.In this day and age obtaining Prime finance is hard enough so anything out of the box has certainly gone bythe wayside.

A Loc = Line of Credit or a revolving secured overdraft facility.The lender would approve the loan for a given amount and set a credit limit in place. You are then only charged interest on a daily basis on the amount you have drawn down.Assume you had a $100K limit and drew down $50K to cover the deposit and acqusition costs on the 15th Month then…[Read more]

I am with Terry wouldnt use all of your cash on deposits as you never now when you might need it.Set up a line of credit against the home to fund the deposit and acquisition costs and then each of the standalone investment loans can be interest only with a 100% offset account against them. Alternative is to use your cash as security for a 100% in…[Read more]

Course i have no problems in telling you.NAB thru their 4 Star Brokers and Collins do a 95% No Gen Savings amongst others thru their approved introducers.

As Terry mentioned as long as the rent is a Commercial rent then you will be fine.The question on what is market rent will differ from tenant to tenant and landlord to landlord.If you were using a managing agent you would factor in their costs and charges to the rent. The same would apply if you were paying for the gardens to be mainained when it…[Read more]