In most cases the costs are borrowed and included in the loan amount however the biggest mistake most small investors make is that they listen to their Bank who of course actively encourage them to Cross Collateralise both loans (normally because they now little alternative).Rachel, whilst you have finance pre-approval make sure that the loan is…[Read more]

My own small portfolio of 45 properties here in Brissie seemed to have be acrued ok with the boring old offset linked to the IP loan.But maybe at 43 i am old fashioned.

In saying that before last Tuesday we were getting 0.8% off the SVR rate with SGB on the right size loan but must admit we do a fair amount with them each month.I am not convinced CBA offer will last much longer given the other majors are starting to tighten.

If the agent or vendor is insisting on a deposit ask them whether a Deposit Bond will be acceptable.Your mortgage broker should be able to organise this for you.

Hi TranceI wont comment on the type of investment as Marc has succinctly point out the pluses and minuses of such an investment.With regards to the Deposit Bond Guarantee this will not be offered by a Bank but an insurance company who will issue a Bond Guarantee that in the event that you do not settle the Vendor will receive payment. You will not…[Read more]

Only way to do this is to lodge a Transfer document with a change of name.In saying this I would be very careful in doing so as it will trigger a Stamp Duty payment as well as possibly a Capital Gains issue. You will also require the consent of the lender who will probably want to reassess the deal given your father will be a prty to the loan and…[Read more]

Hi CaboShort answer is Yes you would. Although as i mentioned obtaining a LOC to 95% maybe harder that it looks these days. 

Transferring any property into a Trust Structure or any other entity for that matter will have both a Stamp Duty and possible CGT implication.Whilst there are numerous benefits for wanting to hold property or assets in general in Trust you need to weigh up exactly what you are trying to achieve first so that a clear plan of progression can be…[Read more]

I am with you Andrew i didnt understand a word of that.I fail to see why in the world you want a offset account within a LOC but each to there own.

Pleasure Jodie.

I would have tried to split the loan back to the original balance you used to purchase the new property and then a separate loan for the rest. If you had some equity in the original purchase price (and on the basis that the loan did not exceed the original purchase price) then you might get away with some consolidation however cleaner to start…[Read more]

JodieMhhh sounds like a wee bit of a mess to me.I think you probably need a bit of overhaul there but certainly if you use the available equity in the house do set it up as a separate standalone account.

Hi PaulNot so common these days but yes you maybe entitled to a refund of the mortgage insurance paid.It will vary from lender to lender and usually the maximum refund would be 40% of the initial amount paid.Quick call to the Bank and they can tell you what you can expect to get back.

Hi CaboIt is funny it is the most popular question we get asked at the moment  "how to structure my finance" ?In essence the ideal way is as you have described however obtaining a line of credit to 95% is not as easy as it sounds in the current climate.If you wish to drop me a quick email with some actual figures I would be happy to give you some…[Read more]

DigianDrop me an email and I might be able to help you with a copy of Trust magic.

TimYou are correct any Broker operating in WA needs to hold a State Credit License (which of course thankfully we do).Chelsea is looking at a R40 block which can be strata titled into 4 lots in WA. The loan would be done as a small lot development and i must disagree with you that most commercial funders are shying away from WA. We have re…[Read more]

SmainThanks for your email, glad we could have been of assistance.

TimIt was supposed to be a touch of comedy.8.77% is still available depending on the numbers.

You wont find much written publically about Trust structures because every client is slightly different.If you havent done so i would make sure that the loan on your own IP (Yes if it now an IP) is an interest only loan and linked to a 100% offset account.Also might like to use a Buy with friends Agreement. We normally suggest this for clients and…[Read more]

As mentioned to you in our email correspondance without knowing how much actual cash you have to put in the equasion it is a difficult question to answer.To buy a standard residential property which needs refurbing will require a cash imput of around 6-10% of the purchase price merely to cover the acquisition costs plus the amount required to…[Read more]