If you are also looking at shares or managed funds tro compliment your portfolio then you will also need to look at margin loans.Whilst these may have a slightly higher interest rate over a secured loan against property they will free up extra equity and in most cases are done as nodoc loans. With both of the mortgage insurers having "cash out"…[Read more]

TimYou are right we wont split hairs as I am not aware of any lender that has a Risk Fee which is 50% cheaper than the equivalent LMI premium..

Anz have self insured through PMI for as long as i have been in Oz.

Legalities aside her CGT and Stamp Duty (if applicable) will be worked out on market value.She should obtain a valuation on the property prior to signing the Transfer.

Hi FuelIt sounds to me like your existing broker has little or no knowledge or experience and has probably come from the sausage factory. If it doesnt fit first time say no and move on to the next client.Depending on the actual valuation, your income and a few other factors you could look at a relocation style loan.Normally anything over 80% loan…[Read more]

What are hidden issues of puchasing properties for "pure investment" aka managed One would be financing them.

Sorry been flat out over the last couple of days.Ok some immediate observations:1) The size of the project is relatively immaterial as far as the ATO is concerned and it more about the regularity.    If this was a one of project there is every likelyhood that you would be able to claim any GCT concession on any unit held for    > 12 months.2) Tax…[Read more]

So do most lenders Rudiga but it is still available for the right project and client.

Hi TranceWont see much written by lenders on the effect of an offset account as many do not offer such a product and those that do are too keen on paying you such a high rate of interest.To answer your questions:What is its real purpose? When you place your everyday savings, rental income and other forms of income in an everyday savings account…[Read more]

Hi RudigaWelcome to the forum and I hope you enjoy your time with us.Hopefully i can make things a little clearer for you and you will understand the benefits of an offset account.What your saying is For EG, I take out a $300K IO loan on a OO security with value, lets just say $350K….has an offset attached to it. One of the benefits with the…[Read more]

Hi MarkCouple of questions all rolled into 1 post here so i will try and answer them individually.Firstly refinancing merely to obtain an offset account on such a small loan would probably not be a viable consideration due to the saving not being great enough.Remember when you refinance it is only the funds used for investment that are Tax…[Read more]

JJI couldnt agree more with gibbo in that when choosing a professional to act for you make sure that individual has trodden the same path as you wish to and is not wet behind the ears.So often i talk to clients who have felt that they now more than the mortgage broker or financial planner put together and are concerned about being steered in a…[Read more]

I am with Terry.I am suprised you have relied on the word of some Bank employee that all is ok with the finance.I recommend clients do not go unconditional until we have the letter of offer and mortgage documents to hand in case there is a last minute hicup.Suprised the Solicitor didnt ask for something from you Bank before exchanging.

Depending on the numbers might be a case for considering selling your existing PPOR into a Trust structure and borrowing 100% of the current valuation and then using the entire net amount raised for your new PPOR.Because the purpose of the loan is for investment 100% of the interest is deductible. Depending on the purchase price of your new PPOR…[Read more]

MarkNot having a go at Duarango being his first but regretfully there is a few inaccuracies.I will come back to this post later this evening (just stepping out the door) and answer it properly.

CarlaWhich part of town are you in ?

Place the funds in your Solicitors Trust Account and have him write a letter which the Broker can give to the lender merely stating he is holding an amount in Trust of $30K representing the deposit.He doesnt have to say where it has come from.I have done this on many an ocassion and lenders are fine with it.As Terry mentions if it is disclosed to…[Read more]

AngelaNot wrong i totally agree.

Hi EttyOne of the disadvantages of being classified as a active investor or developer is that you will loose the halving of CGT when you sell the asset as it will be considered trading stock and therefore tax will be paid at your normal marginal rate if an individual or at the Company rate of owned by a Company (A Company owned asset does not…[Read more]

I have to agree with Tim it is a clear cut YES and in fact is one of the qualifying questions on most of the FHOG application forms. The Grant is a Federal scheme administered by the individual States.It is not a grey area unless you are buying under Vendor terms and then this varies from State. (Here even though you are not getting Title to the…[Read more]