The loans are with the CBA they are both 3yr economiser (variable) currently 4.96%. I'm thinking I need to wait till our home is complete, then refinance to a line of credit and use it to put down a deposit (20%) and refinance the IP with a different lender (80%). Have I got the right idea? Are there any other options? In essence you are correc t…[Read more]

Yes it is a Call Option contract with the execution date being 1st July 2009.Settlement can be 30 days later.Capital Gains Tax is based on the Contract date not settlement date and I dont want it assessed in this financial year.

bb8It is a standard clause with the NAB as 0.5% is the norm and anything more is by negotiations.In saying this the 0.7% is available on a loans over 250K whereas with Westpac, Anz, CBA this only kicks on with loans > 750K.

Thats great news Karen.I just picked up a house today for $85K through a very good agent friend of mine in mid Qld which was originally on the market for $155K and is rented at $215 / week. Contracts all accepted with 90 day settlement so bringing it into next Tax year.Not bad cash acqusition for the SMSF.The bargains are starting to come back if…[Read more]

Mick beat me to it with his comments on how you intend to finance your first deal.Realistically maximum lvr these days is 90% of the purchase price / valuation and most lenders require between 3% and 5% genuine savings. If you have any form of bad credit you will end up paying a higher rate of interest and probably some additional costs.Your…[Read more]

Tim2 posts to date both advertising your own properties for sale.Can you answer the last question left on your other post and also advise us why these are such a "wonderful opportunities".

the 7It is not too bad 2% Yr 1 / 1.5% Yr 2 & 3 / 1.2% Yr 4 & 5.But when you consider that you can pay as much as you like into the loan in the first year and after year 1 it reverts to the variable rate currently 5.64% with no monthly or annual fees not a bad product at all. 

Lodged 4 applications to date i have set out some of the T & C's above.What else

Best way to finance the new IP would be establish an investment Equity Manager Lien fo Credit with Anz secured against your current property to fund the 20% deposit and acqusition costs.Take out standalone investment loan with alternative lender or Anz if no CC secured against the IP.Yes you could consider selling the current PPOR to a Unity Trust…[Read more]

Hi JohnI assume that you mean you either purchased the property for cash or are looking to refinance.Either way seems to be fairly straightforward and repayments will be a lot less than $900 / month.Shoot me an email if you want a hand setting this up.

Welcome Happy Man.

Hi KarenYep sounds like a good buy.Just dont be too disappointed if your financiers valuer doesnt put more than the purchase price on the property as this is rare even with a good buy.Also just for reference make sure the loans arent cross collateralised another pet hate of mine.

GOD you are correct there are no more conventional 100% loans these days with maximum LVR being 95%.

In an ideal world you would want to establish a LOC against the PPOR and use this to fund deposits and acquisition costs for the new IP's Unfortunately with Anz they wont allow LOC to be opened unless they can justify where the balance of anything over and above $25,000 is going so might have issues there.If you have decided to purchase theese…[Read more]

Hi RudraThose form only some of my reasons for disliking Cross Collaterlising securities.In the current lending climate there are issues that i couldnt ever have invisaged occuring with lenders when i wrote that.Been away for 2 days with the long QLD weekend and had 3 forum members email me whilst away  to ask me to help them refinance to get…[Read more]

Hi EarthlingYes the product still exists in some circles however with some lenders the requirements include a copy of you last 2 lodged BAS as well as maybe your Bank statements to verifiy turnover.We deal with some lenders who require nothing other than a signed statement. Very much horses for course.As to whether the product will be around…[Read more]

Grrr dont get me started on CC. As GOM mentioned read the thread then post any questions.

MartinThe cleanest way is for both of you to take out a loan secured against the jointly owned property to cover the deposit and the acqusition costs and then the partnership lends this to you/ your wife or the Trust at the same interest rate as you are being charged.The new entity takes out a standalone loan possibly with an alternative lender…[Read more]

To be honest i cannot see it happening in the near future due to the incredible exposure to high level debt.In the UK the maximum loan is 85% and in parts of the USA it is down to 70% maximum LVR.Not only will first home buyers loose the FHOG Boost wef 1.7.09 but requirement now is that they provide 5% genuine savings and this needs to be…[Read more]

Given this is an Australian site Rob i think your networking options are limited so i would just hang around for the cool conversations.