The Comparison Rate is 5.51% and not 5.25% and there is a $15 / month charge for the offset account.The product is fine if you can put up with the Banks level of service and tight credit policies.Couple of other products out there that are similar.

No A DFT is probably the most favoured way of protecting your assets but like everything it has certain drawbacks dependant on your own position and circumstances.Didnt say you couldnt get finance just that there are less lenders by the day.

Not quiet correctYou will have to hold that IP for more than 12 m to get discounted CGT ( 50%) if claim the house as investment property, The date is actually based on the original contract date so you can actually live in the property for a month if the Contract date was dated 11 months and 1 day prior. CGT is based on Contract dates and not…[Read more]

Hi DamonThe policy is a PMI policy which is not uncommon however i believe we can get around that as long as the unit it over 40 sq M.Away from the security property there is a few other qualifying criteria but happy to report back to you regards the height issue if you want to drop me a line with some other details. 

Hi DamonNot in Sydney but maybe able to answer your question.Problem is that there isnt too many insurers to chose from so often you will get the same answer from a vairity of different lenders.Can you tell me a bit more about property you are looking at. If it is a studio will it have a separate laundry ?What sort of size is it. Appreciate it is…[Read more]

Hi EmmaNormally your Vendor would need to buy the house first and then offer you a contract to purchase the property.Yes there is always the danger that the wont make their loan repayment so make sure you are happy with the intergrity of the person concerned.Anyway good news on the purchase price good luck and let us now how you go.

Yes there are a couple but unfortunately they will not lend to UT or HDT's even on full doc.More and more lenders are shying away from such structures so tread carefully.Have had many people appraoch me over the last 12 months wanting to refinance out of their current lender but because of the nature of the entity under which the property was held…[Read more]

Yes

One of the downsides with SGB and their Advantage Professional Package is it is a condition of the letter of offer that the loans be cross collateralised. Secondly the Bank charge for everything so be wary.I believe you could do better. 

A couple of lenders offer such a product and depending on the amount of the loan you should be paying around 5.25 – 5.45%.

KY is right and in Qld i would have suggested a License to Occupy style contract.You dont qualify for the FHOG so that isnt going to be an issue but if you qualify for rent assistance the Vendor / Investor may have more confidence in taking the deal on as he can assign the rent directly to himself and you pick up the balance.Shared Equity is…[Read more]

Unless it was a wife or spouse a Guarantor will not normally enhance servieability.If they are prepared to offer their property as security then possibly a different kettle of fish however further information would be required to comment fully.

A small default may not preclude your loan from being considered by other lenders depending on numorous factors.If you have a copy of your Veda file and this is all it shows with a satifactory explanation then i would still think several lenders would consider a new deal.

Adam Probably a bit much to ask for on a website.The intricies of each product varies depending on the clients actual needs and requirements and your average website wont give you this.

Hi JezzaSorry to appear to burst your bubble but obtaining development style funding is not that easy in todays climate especially if you have not done a project before.Lenders will want to see a good deposit, income to support the loan along the way and even the odd presale or 2 wouldnt go a miss. Secondly your standard conventional Bank lender…[Read more]

Hi EmmaFirstly welcome to the forum and i hope you enjoy your time with us.Certainly i dont in anyway wish to appear to be putting you down as i have done hundeds of Vendor Finance deals over the years and really enjoyed the experience in dealing with many of my eventual buyers.I would however point out a quick comment in relation to affordability…[Read more]

Hi AdamFirstly dont always agree that a smaller organisation will have a cheaper rate of interest than one of the larger Banks.What may appear nice and low on the surface doesnt always look that way underneath.One of the big advantages of an offset account is that your everyday funds are offset the interest on your non deductable home loan so…[Read more]

RenoahA small default of $200 with a good explanation should be fine with most lenders although admitedly with Anz at the moment i am not sure.Certainly tightened up their Credit policy so maybe best to raise your deposit and acqusition costs there and then use an alternative lender for the actual IP loan.

From a separate angle i assume that the Vendor was concerned for his CGT when he wanted a settlement in the Financial year 2009. Might be worth pointing out to the agent that the Contract date is the trigger for CGT and not the settlement date so if you settle in July he can still offset the gain / loss in 08/09.Other than that i think you would…[Read more]

Yes as long as there is enough fat in the deal then yes all costs can be covered.