In the main lenders take 3% of the card limit as an expense each month so reducing the limit certainly increases your borrowing capacity.

Some lenders will ignore the C/c expense if you can show over a period of 2-3 months that the monthly expense has been paid within the due date.

Hope this helps.

Cheers

Yours in Finance

In addition some lenders charge a loaded rate / application fee etc when lending to a Trust with a Corporate Trustee whilst others are used to such structures and offer the same rate / terms.

Just a matter of finding a lender who is investor orientated and understands Trust lending.

Cheers

Yours in Finance

Hi Merlinn

Sure happy to do so.

Just to throw another log in the fire remember you cannot subdivide the property whilst it is under finance.

Certainly when the loan is paid off and the security property reverts to the SMSF you can do so as long as no borrowing is required.

IMHO a lot better off to buy a vanilla style property than a smaller…[Read more]

Hi again P@ck

Ok thanks for the clarification that makes a big difference.

Well remember that 92k has to cover your deposit and acquisition costs.
Yes keeping the loan to valuation ratio under 80% will remove the payment of LMI however will certainly limit the growth of your portfolio.

When we work with an investor we try and ascertain their…[Read more]

Hi Cooper

Sorry that may be the case in the good old US of A but certainly not in Australia.

The agent can help you not only with the home loan, but with negotiating the offer.

In Oz you need to hold a Credit License or be a Credit Representative of a License holder and as the agent acts for the seller and not the Buyer. Only a Buyers Agent can…[Read more]

Hi P@ck

Firstly welcome to the forum and I hope you enjoy your time with us.

Limited information to go on but the main thing is the potential equity. I am unsure whether you are referring to “borrowable equity” or “property equity” as there is a massive difference but let us assume all is well at this stage.

Subject to serviceability there is…[Read more]

Although if you intend to do do act quickly before potential financial reform changes kick in and you are prohibited from doing so.

Must admit we are knocked off our feet at the moment on the rush of forum clients wanting to set up SMSF’s and have them source a property for them before the 2015 Budget.

Cheers

Yours in Finance

Guys simply ask them in what areas they buy in Brisbane.

Until last month when I sold my block of 18 units I had 40 of my properties in Brissie so I know the area well.
Let us know and we can comment although of course I have a feeling where they will tell you.

Also ask them do they show you 2nd hand properties. Thru our Brisbane Buyers Agents…[Read more]

Another thumbs up for Darryl.

Shot over another couple of clients this afternoon.

Cheers

Yours in Finance 11 years ago

Can’t recommend a decent Mortgage Broker unfortunately.

Will PM you a decent BA in each of the 3 Cities.

Cheers

Yours in Finance

Time to be switching brokers and ignoring comments from work colleagues.

Cheers

Yours in Finance

Hi Darkness

Not a silly question at all.

If you are buying for 600K then your new loan will be for 600K and interest repayments will be based on this figure.

Remember there is a big difference between equity and borrowable equity.

The other thing is if you are looking at buying another property probably a good idea to get the equity loan set…[Read more]

I will see if i can’t link one of the LMI articles i wrote from the API magazine.

Cheers

Yours in Finance

Hi Mike

Sure what do you need clarified.

Have a number of clients on a similar income to income and asset position to Bozzie who we have helped acquire 4/5 properties over an 18 month period.

I am originally from the UK but living in Brisbane and built up a portfolio of 40 unencumbered properties in a 10 year period giving a gross rental income…[Read more]

Hi Bozzie

Not sure i would be diving in to buy a 1 bedroom unit in Brisbane City Unit at the moment due too the increased holding costs but you can certainly buy plenty of quality properties in other areas which will give you cash flow and potential capital growth.

On your income there is no reason why if your loan structure is set up correctly…[Read more]

Hi Mitch

Welcome to the forum and I hope you enjoy your time with us.

Certainly IO with offset is the way to go as long as you don’t pay over the odds for the privilege.

You might want to consider look at going to 90% and placing the 10% in the offset as the LMI is a Tax deductible expense.

There are also a couple of alternatives which might…[Read more]

Bobby than limit yourself to an 80% lend why not borrow 100% and use the 20% as collateral cash security.
That way when you eventually rent the property out you will be able to claim a Tax deduction on the full amount of the original loan.

Cheers

Yours in Finance

Hi Michael

I think I responded to Alan on a similar deal yesterday.
Easy way around it is to get the broker to order another up front valuation before submitting it to any lender.
That way it avoids another credit hit on the customers file.

Cheers

Yours in Finance

Hi Achimy

Firstly welcome to the forum and I hope you enjoy your time with us.

Totally agree with you that it is hard to build a team of professionals that you can trust as most are dependant on the income they receive from their recommendation and without this they are unable to put bread on the table.

I usually say to client just ask the…[Read more]