They are very old hat products.

They were available in the UK in the late 80’s along with 30 Year fixed rate products.

Cheers

Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
richard@tayloredfinancialsolutions.com.au
Looking for life cover – We Guarantee to beat any quote you have in writing.

And not bad for a maiden post.

Maybe a S & P plant.

Cheers

Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
richard@tayloredfinancialsolutions.com.au
Looking for life cover – We Guarantee to beat any quote you have in writing.

Hi Paul

No the lower the LVR the lower the LMI premium.

Also the LMI premiums maybe slightly higher for a interest only loan over a P & I loan.

In saying this each lender has a different LMI scale charge so a good MB will shop around and see what he can find for you.

Cheers

Richard Taylor
Residential & Commercial Finance Broker.
Licensed…[Read more]

Hi Paul

If you take out an interest only loan or a P & I loan for the purposes of investment the interest is tax deductible.

The ATO apply the purpose test for the funds and not the security on which the funds have raised.

Obviously with an P & I loan the debt reduces with each repayment and therefore the amount of interest you end up paying…[Read more]

As Terry mentioned 12 months Caual employment is all you will need forget about 2 years.

Also remember a lodoc loan doesnt mean you can inflate your income all it means is that normal evidence is not required.

If you do not wish to decalre any form of income then a Nodoc loan is the way to go although you are normally limited to 80%…[Read more]

If you have an ABN relating to one entity many lenders will still provide you with lodoc financing in another entity even though the ABN for that entity has only been registered for a day or so.

Also don’t let anyone tell you that you need to pay a higher rate for a lodoc style loan. Most quality deals can be done at lower than standard variable…[Read more]

Think you made the right move myabode.

I am not a great fan of our friend Maha even if he is my neighbour.

Cheers

Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
richard@tayloredfinancialsolutions.com.au
Looking for life cover – We Guarantee to beat any quote you have in writing.

He is correct and I should know they sold all off the properties we developed for a 8 year period.

Try a search on the forum here and you will read many posts about Mr Young and his organisation.

Cheers

Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720…[Read more]

You can sell your existing IP’s to your Trust but this will trigger both a Stamp Duty and CGT issue.

Think it is too late for existing properties.

As an employee you are unable to have your salary paid to a Trust.

Ensure that your Mortgage Broker has set up your loans correctly to ensure that future purchases in Trust are not happered by poor…[Read more]

If you are thinking about becoming a Buyer Agent or performing the servcices of such you may need to check the legislation in your particular State.

Most States require a BA or REA to be licensed and the penalties are harsh if this is not complied with.

Merry Xmas to all forumites.

Cheers

Richard Taylor
Residential & Commercial Finance…[Read more]

Understandable.

Your MB should point out to you all of the exit fees and early repayment penalties. Many lending institutions are also charging DEF on their suit of variable loan products when they are repaid early or lump sums repaid.

Make sure that the loans are not X collaralised and that have flexibilty as the lender will be required to give…[Read more]

A Nodoc loan requires no proof of income or does it require the borrower to insert a annual income figure on the application to show that he can service the loan.

In many cases there are no requirements to declare his Assets or Liabilities either.

A lodoc loan in most cases requires a figure to be shown on the application and the lender will…[Read more]

This all depends on what the use of the property is for and what your long term goals in respect to investing are.

If you are looking at a single loan which will be a PPOR and have no intensions to be purchasing an IP then the requirements for a lender would be totally different to a client who is looking at building up a long term property or…[Read more]

It might be late or it might be me but can i get you to elaborate more on your question as i am slightly confused as to what you are asking.

Cheers

Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
richard@tayloredfinancialsolutions.com.au
Looking for life cover – We Guarantee to beat any quote…[Read more]

Terry is right the traditional Lodoc loan was perceived to be more expensive than a full documentated loan but often the rates can be negotiated accordingly and many clients end up paying a lot less.

LMI is usually payable where the loan is > 60% LVR (although in saying this one ledner we deal with goes to 76% without LMI) and is either charged…[Read more]

As Terry points out sometimes you may 0.10% extra with a LOC.

With a PPOR you might decide that you wish to rent the house out after all and want to try and obtain the maximum interest deduction. If the principal on the loan has been repaid then redrawing these funds down mean they will not be tax deductible.

If you merely take them out of the…[Read more]

James

In the old days you could probably get upto 18months worth for a trail for a new loan but given the churn period this has dropped and depends on whether the loan in:

1) Fixed / variable
2) Int only / p & I
3) lodoc / fully verified.

Most of the trails i have purchased in the last 6/18 months have been at around 6-12 months of trail value…[Read more]

Thanks IG.

Cheques in the mail.

Wishing you both a merry xmas.

Cheers

Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
richard@tayloredfinancialsolutions.com.au
Looking for life cover – We Guarantee to beat any quote you have in writing.

Hi James

Yes there are organisations that buy trail books and the value of the books is dependant on many factors.

I have in the past purchased the trail books of many small operators who were keen to get there money upfront.

I would have not have thought that maintaining your PI cover was warranted for such a small amount.

More information…[Read more]

Yes certainly a mortgage broker could structure a financial plan for you to ensure that your funds went further and could be used to cover a few properties but you must remember when you repay a loan usually in the first 12 months the commission the broker receives is clawed back by the original lender.

It is therefore best to honest with your…[Read more]