I live of rental income and have done for a few years now but certainly wouldnt suggest that adopting a LOE strategy is a good idea in the current climate where financing a nodoc deal is almost a dead duck and even lodoc refinance is a very limited market.

Following on from what Terry has stated if you are in a defacto relationship you are not able to obtain the FHOG by placing 1 party on the Title and have 2 of you on the loan if the other party has already received the Grant. 

There would be a couple depending on who the existing loan is with and whether their is any cash out.Assume no other liabilities such as rent and that a declared income of $75K income would service the loan.

CraigHate to say no the days of 100% have been and gone.CBA policy is that if the client has a good asset base and excellent repayment history they will look at a 95% LVR however in talking to them this is likely to be more by exception than the rule as it requires approval from higher powers.

Regretfully not,They want to see your deposit as savings over and above any other expenses.Obviously if you are paying rent you will not be able to use these funds as deposit as they will have been (ignoring rent to buy schemes) paid out to the landlord.With FHB having to front up with 10% deposit these days with the majority of lenders it is…[Read more]

Your Accountant would be one place to start.

Yes normally this would be the case however there are still one or two lenders offering a fixed rate on a line of credit.You wont be able to extend the fixed rate loan once you revalue so would have to take out a totally separate loan for equity purposes.

Just to clarify GST registration has nothing to do with the amount you earn but is required if your turnover is over $75K PA.Ues there are a few lenders who do lodoc refinance but it all boils down to LVR, loan amount and a number of other questions.

Hi DavidMaybe not removed but certainly varied considerably to imply more risk to the guarantor.Remember whilst your parents property maybe unencumbered today do they want to not be able to do anything for the next XYZ number of years whilst your debt is still secured against it.As you can see i am not an advocate.

I think you are asking can you claim the interest on a redraw from your existing home loan to which the answer is NO.It is a lot cleaner and simpler to set up a totally new loan specifically for the purposes of investment so the interest can be easily identifyable.If you still have a non deductible home loan there is nothing to stop you being…[Read more]

Personally i dont like the FP style loan and never recommend them to clients as their is too much of an issue for the parents providing the Guarantee.Until the LVR is down to 80% your parents will not be able to move (with exception) refinance or borrow additional funds themselves. If they have a loan on their property they will have to refinance…[Read more]

You could always look at borrowing a little bit more and prepaying interest in advance for the year as well whilst it is still an investment property.

Considering HSBC have pulled out of the residential lender market bar the shouting and sold their loan book to First Mac i think it a matter of grasping at straws for business at any costs.Crunching the numbers and being aware of their old lending criteria i would have been suprised they would have qualified you for such a loan amount.

99% of times we only ever use our own funds to purchase as most Vendors and your financier will say NO.

Regretfully no you dont have much choice as the Dragon has it is own panel of valuers and in Toowoomba this will be limited.I guess the valuation is only an issue if you need to access the equity and if not well is probably not an issue for the time being.Remember there is a big difference between an open market valuation and a valuation for Bank purposes.

DanYes it is a lot to borrow and I would want to be putting a client in a loan of that size or multiple of income.Like anything in this world most things can be done it is just the cost of doing it.

All in hands thanks.

Sorry i disagree i think there are a few other lenders who would look at the deal with the right information.

You need to look at the Tax defination of a substantially renovated property.We do a fair amount of strata titled blocks in Qld (buy renovate and sell) and obtained a PBR from the ATO.If you are going to spend $35,000 per unit including development costs you may well find the ATO consider the work "Substantial" and then GST will be charged on your…[Read more]

Jo What is the property zoning and where is it located in WA.The use, size and 101 other issues will scare most lenders off especially in the current climate but not necessarilty ut of the question.