Totally agree with Terry the 2 loans should be standalone.The disadvatages are numourous and rather than take time to list them do a search and you will see what Terry and I have written previously about such a strategy.Your mortgage broker if he or she is investment orientated shoudl be able to explain to you the reasons why you dont want to X…[Read more]

IanBackdating your ABN when you only started to carry on an enterprise 6 months ago with the sole purpose to obtain finance would be seen as fraund and certainly not recommended.There are a couple of lenders that do not require you to state your ABN on the application form so as long as you understand the term lodoc this is achievable. 

At its meeting today, the Board decided to increase the cash rate by 25 basis points to 7.25 per cent, effective 5 March 2008.This adjustment was made in order to contain and reduce inflation over the medium term. Inflation was high in 2007, with an annual CPI increase of 3 per cent in the December quarter and underlying measures around 3½ per cen…[Read more]

Hi MMYes with the right lender your understanding is correct.

KrisWhich lender allows you to borrow at a standalone LVR of 90% and avoid LMI / risk fee ?

Hi KrisVery difficult to comment without all of the information.I assume that the extra $50K taken on the PPOR was a totally separate loan and not a redrawn amount ?The structure of how to purchase the new IP will depend on many thinks so with a little information i can provide some structured advice.

Hi and welcome to the forum i hope you enjoy your time with us.As Alistair has mentioned a securitsed lender mortgage insures every loan irrespective of the loan to value and also raises its funds from the the debt market rather than retail deposits. As such you will start to see the margins erode and their cost of funds get more…[Read more]

Hi LuckyNo no i have no problems in using a LOC to fund the deposits in fact this is the normal structure i put in place for clients.I do however have a problem in using a LOC to have your income and rents paid into and then redrawing it for a mix or personal / investment expenditure.It is simple do it this way and the interest will not be deductible.

Yes that will be the reason but i still think there is a way round it.If you find a full time job and there is a probabtionary period some lenders will want this to expire first before they will consider the application. Others you will be fine with.

Hi MMCouple of points to bear in mind.If you intend to buy it as an PPOR and then turn it into an IP down the track i personally would borrowing 95% LVR (even 100% maybe worth considering) and putting the extra funds into a 100% offset account.Would look to take the loan as an interest only loan and accept the fact that you will incur LMI.Remember…[Read more]

Miss MFirstly welcome to the forum and I hope you enjoy your time here.Before spending money on a Financial Adviser (Yes I am one and we do charge by the hour for a Financial Plan or advice) you would be better of to consult a mortgage broker (Yes I am also one of these and I charge nothing for the advice given under my MB hat) to ascertain your b…[Read more]

ScottyI dont think having 2 Accountants is really feasable as the advice maybe different from each firm.Chan Naylor are an Accounting firm like many others however there have carved a niche in the market with heavy marketing and book publications etc but there fees are charged like a wounded dog.You can do just as well with a smaller specialised…[Read more]

LizzieDont now about Brissie but if you are happy to deal with someone from the Gold Coast then try Steve Hodgkinson who is partner at the Gold Business Group in Southport.Steve has been my Accountant for 12 years and is an expert in property investment and entity structuring.He can be contacted on 5532 2855.Tell him i referred you as most good…[Read more]

TuggerAn interest only loan with a 100% offset account would be the preferred way to go.One day you might want to purchase a PPOR so would need the capital but in the meantime gives you lots of options. 

Yes the way a lender calculates interest is extremely important to the speed in which the loan is repaid.You want to look for a loan that charges interest on the daily balance. Some of the credit unions i see have quarterly rests which disadvatages you if you are looking at make capital reductions.

An Accountant certainly maybe able to advise you on your Accounting options but is unlikely to have an idea on loan structuring.Certainly they are unable to advise you on most areas of Financial Planning.  Any amendments to the title such as Transferring the property into Trust will incur Stamp Duty and possibly CGT and therefore is probably not…[Read more]

MarcYou are absolutely bang on. Comes of typing a reply whilst i popped in from cutting the grass in the dark and rushed off as the mower was still going.Whew thank god i am not in finance…….oh help i am…. pass the calculator i dont have enough fingers.

tuggerReally i have never heard of a lender that insist on that. Certainly would never recommend that. If you redraw the funds above 80% an the use is not for investment purposes you will be unable to claim the interest as a Tax deduction. Not sure who the lender is but it doesn not sound like a very flexible package.Have the properties been…[Read more]

TuggerUsing the equity in the properties by refinancing them will provide you with access to capital to purchase your next IP and so on.I would advice you to consider switching the loans to interest only which in turn will reduce your loan repayments but also free up monthly capital to put towards the next IP.If your mortgage broker structures…[Read more]

Adrian No if's or buts it will incur stamp duty.After you have worked out the figures you need to consider the marginal tax rate of your wife. If she is on a lower tax rate than you consider selling it into a Trust structure with you as a Unit holder / Trustee.