Yes if you wish to utilise that structure.You cannot simply transfer your existing property into Trust without incuring additional Stamp Duty and other related costs.In addition you would loose the FHOG benefit i assume you obtained and also the concessional Stamp duty which you have paid.Maybe start again for the next one.Your Mortgage Broker…[Read more]

Obiei think you are re read Terry's post and you will see some of the pitfalls with the strategy you have adopted.

Away from Terry's comments which i totally agree with i think you may have a potential security issue.I assume from your original post these properties will tend to be smaller style units as they are aimed at the single person / student. Just make sure the internal floor area is not too small and that they are not in a high rise where the mortgage…[Read more]

What sort of LVR would you be looking for and is there any real loan features you are seeking.

Firstly welcome aboard and I hope the Country is good to you on arrival.Difficult one to answer as there are so many variables which include loan to valuation (most lenders limited to 90% at the moment), do you have clean credit, is serviceability a problem, are you looking for variable or fixed rate loan, what features do you require with the…[Read more]

No the strategy is sound and as long as the loans are separate i cant see a problem.

Hi DonThe lender will want evidence of where the funds to complete will come from and a vendor loan will not be accpetable.Secondly if i was the Vendor then i certainly would not take a PG without security. I am sure his Solicitor will advise him to take a 2nd mortgage to protect his interest.

I assure you in the present climate the Banks do not want the loan and are more risk adverse than you are.

I think your valuation will reveal that but i doubt it was referring to the property value more likely the land value.

DonQuick question for you. What lender will allow a Contract where you are borrowing 25% from the Vendor.I appreciate the inventiveness but it is not as easy as that these days.Banks require full disclosure and as soon as they see you are securing a 2nd mortgage over the property from the Vendor think you will find they will run a mile.

ObieSorry but that is one of the issues of X collateralising loans you just cant do itIf my IP lender does not want to remove the second mortgage on my PPOR I will just refinance them out of the equation. Assume that the Investment property has increased in value but your PPOR has fallen in value or has remained stagnant.Sure you maybe able to…[Read more]

Jack sorry slightly confused as to what you mean when you refer to "Capital Value" are you relating to the unimproved value of the land ?With a little more information i am sure you get other responses.

AshLove your enthusiam and well done for wanting to start so young but regretfully you are bang on in saying that youare unable to purchase a property or enter into a mortgage before the age of 18. The same goes if you look to buy in Trust.Remember even when you are old enough lenders will want to see sufficient income to service the loan as they…[Read more]

ObieWelcome to the forum and I hope you enjoy your time with us.Agree with your sentiment but hate to say it is not all that easy depending on numerous factorsI intend to remove the second mortgage on my PPOR given to my IP lender as soon as my IP gives me a LVR of 80%, this will take a few years.

Might want to read the attached before you venture down that trackhttp://www.bantacs.com.au/booklets/Capital_Gains_Tax_Booklet.pdf

Check the Law Society NSW website.

Varies from location to location.

Depends on the Council.

May not show on the Contract as if there is no rate shown the default rate will normally apply. This will vary from State to State.

Been a few years since i did mine so subjects may have changed but from memory all of the above are covered (admitedly not in depth). All in all a broad brush really.Advanced Dip you cover a fewer more subjects i slightly greater depth and then you have to specialise if you wish.