FIRB = Foreign Investment Review BoardResidential real estate means all Australian urban land other than commercial properties (that is offices, factories, warehouses, restaurants, shops). Acquisitions of 'hobby farms' and 'rural residential' blocks by foreign interests are included in the residential real estate category.Foreign purchasers…[Read more]

DIMSure what LVR and where is the property ?

MartinWith all the nodoc / lodoc short term financing we deal with you will have similar costs.Maybe set up costs instead of exist fees but certainly the rate will be considerably higher.

Your brother and sister would be treated as bording with you and unlikely their border income would be considered in assisting your serviceability. If they formally rented say the low half of the house under a Tenancy Agreement then possibly.In saying this if the funds are being draw down to purchase an new IP then the anticpated rental could be…[Read more]

MartinWhich State are they located in and what is the LVR.Any reason why you dont want Bank funding would be a lot cheaper.

Hi  JayroThe Big C only have one interest at heart when doing deals and that it is their own and certainly not the borrowers.Firstly you can X as many properties together as you like however this is not a recommended strategy as it leads to problems as you have outlined.Restructuring your whole porfolio would allow you access to funds (subject to…[Read more]

EternitThere is no exchange of Contracts in Qld so the duty is payable 30 days after the Contract goes unconditional as long as this is prior to the date of settlement or possession date in the case of a wrap.

Forget the likes of Mortgage Choice you are merely dealing with someone who bought the local franchise.Why not give Alistair a ring from the forum who knows his stuff inside out and always is to answer questions.He is Melbourne based.Dont have Alistair's details to hand but just do a search on the members name for A Perry and drop him a line or…[Read more]

bennidoWhy not look to using one of the other insurers ? Gemworth are particulary hard at the moment.

I think it is not only a matter of lodoc rates moving up but rates on full doc loans moving north over the next few weeks.Have spent all day at an Anz Bank Golf Day i was told by their State Manager that they are really looking hard at the viability of 0.7-0.8% discounts they offer under the Pro-packs as these loans are just not profitable. This…[Read more]

KurnLook very carefully before you take the plunge for many reasons.Do a search and I am sure you will see various previous posts commenting on such an investment.One thing is trying to finance such a project especially if it is a tiny single hotel room under say 25 sq m's.

Must admit i disagree with a couple of your points.6) At settlement buyer pays stamp duty.7) Stamp duty is only payable when title is transferred i.e. at the end and if contract is broken then no transfer of title and hence no stamp duty.Unless this is different in Victoria which i doubt the Buyer pays the stamp duty on or before the date of…[Read more]

OpportunityHate to say i do disagree with you there There is no money in managing rentals.Wouldn't have stuck my hard earned into buying a large establish rent roll otherwise.I agree under say 100 -125 properties there is no money in it and many property managers would be loosing money but at the other end of the scale it is certainly a profitable…[Read more]

LouSorry it is not a straight forward answer.1) You would transfer the security when you knew you were moving out so the funds raised could be used to finance a new property. Altenatively you would invest this in an 100% offset account whilst you were waiting for settlement.2) Yes stamp duty is payable charged according to the State rate. There…[Read more]

All expenses in relation to the preparation of Mortgage documents and borrowing costs for the loan are deductible.In the first year the expenses are proportionalised from the date of settlement to the end fo the financial year. The 4 full years are claimed and the final year is the balance of the first year.

JasonIf you wished to use the $50K for a deposit on an IP then you would be better off paying down the capital on the loan and then split the loan into a separate account and borrowing $50K for the deposit or to defray the purchase price.Dont use the redraw as the original purpose of the funds will not satisfy the ATO.All in the planing and structuring.

SMLet us assume that your monthly repayments where made up of Principal & Interest and on a loan of $450,000 were $3500.Interest only repayments on such a loan were $3,000 meaning a principal reduction of $500 / month.Now with $50,000 sat in an offset account your monthly P & I repayment would stay the same however your interest would only be…[Read more]

Yes it is possible to capitalise the interest with certain lenders in certain circumstances but personally i would not do that where the loan was used for personal circumstances.

The security you offer the lender is neither here nor there it is the purpose of the funds which makes it deductible or not.Cross collateralising the loans whilst not my prefered strategy would enable you to borrow 100% + costs and the entire interest would be deductible. You however would probably want to split the loans between the 2 securities…[Read more]

I think one problem is every lender is going to tell you they are the best.Each has their own little foibles with regards to serviceability some of which they publish others are more of a credit issue and therefore not marketed openly.Unless you check out 30 or so lenders I think you will find it difficult to get a balanced answer.Most will have…[Read more]