Hi booge

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

I would have to say as someone starting out you should look to save your money and do as much of your own research as possible. A trip to local library will probably get you Steve's first couple of books and a few other and then read, read, read.
 
Try and do as much learning as you can as the firms you mentioned wil charge you dearly for their so called advice.
Dont end up buying something where the organisation which recommended it earns more by way of a fat commission at your expense.

A couple of dollars spent on self education will go a long long way.

Also get involved in the forum here ask a few questions post some comment and start to learn that way.

Cheers

Yours in Finance

jon, the FHOG is over and above your deposit so with most lenders you need 5% saved deposit minimum and the FHOG is a bonus.

Couple of lenders that dont work this way but in the main add the $7K to your savings.

Dont have to use it as deposit but will be catered for.

Cheers

Yours in Finance

Hi Jacedc

I will let others more capable than me answer some of the more specific parts of your post however i would make sure that you communicate to your mortgage broker that you are looking at building townhouses on the site and ensure they fully understand the mechanics of doing so.

I have seem many a deal come unstuck as the client went direct to the lender and didnt realise the complications of financing such a deal thru certain lenders. This can be either a matter that the dont like multiple properties on the one Title or indeed they dont realise that the security value reduces once the existing house is demolished.

Hope this helps.

Cheers

Yours in Finance

Hi C

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

Yes you have hit upon one of my biggest bug bears and a practice carried out by lenders and brokers alike through either laziness or lack of knowledge or care. Lenders do it as it provides them with a lot more security than they need but heh more the merrier.

I wrote an article on on the 10 reasons why investor and home owners alike should not cross collatrealise their loans so email me if you would like a copy. Whilst some of the points might be out of date other needed to be added. 

Ok so how to you get around it.

In your situation this is how i would structure the new loan based on the figures you have provided:

1. Take out an equity loan for $100K secured against your PPOR. This loan will be an interest only loan and used to fund the deposit and acquistion costs for the new investment property.

2. With a separate lender take out a standalone loan for the balance of the purchase price of the new investment property. Assume in your case the purchase price was say $400,000 and you have $20,000 in acqusition costs etc. The investment loan would be for $320,000 or say 80%.

As the investment property increases in value draw upto 80% of the increased valuation and use the funds to pay down the equity loan on your PPOR.

These funds can then either be used for the next IP or the loan cancelled.

In an ideal world you would borrow 100% + costs of the IP purchase price secured against the security of the IP solely however in the current finance climate this is not possible so what you need your mortgage broker to do is come up with a solution then gets you as close as can be.

Whilst normally anything over 80% incurs the payment of a LMI premium remember this is not a bad thing and it is an opportunity cost of doing business. If the payment of the premium reduces the exposure or loan secured against your PPOR or if it means you can buy 2 properties instead of one then it is certainly worth considering.

I now i go on about alot on the forum but careful loan structuring is paramount in setting a good investment portfolio and having the ability to grow when you want and not when the Bank tells you can.

Feel free to ask away with any question you might have.

Cheers

Yours in Finance  

As the value o

Heh Derek

Brisbane is also SE Qld and we certainly are not in the doldrums.

Brissie and the GC are 2 different markets at the moment.

Cheers

Yours in Finance

Hi Rudra

Course all depend on the property itself but based on the fact that you need a minimum 20% deposit plus acqusition costs I would probably say $65-$75,000.

You however need to understand the Annual costs and reporting requirements and at that level probably are going to find a retail fund is slightly cheaper to run.

Of course the big difference is that you dont have the same investment choice.

I am in the process of writing an Ebook on SMSF and Financing property through them so shoot me an email and i will add you to the list of forum members who have asked me to send them a copy.

Cheers

Yours in Finance

Is there any reason why you cant do both.

Buy the PPOR in the ACT and put down minimal deposit, take advantedge of the Grants and concessions and then buy your IP
up here in SE Qld.

Cheers

Yours in Finance

Hi Kevin

Firstly well done in switching the loan to IO to preseve the deductibility of the interest that is certainly a move in the right direction.

Now going forward.

1) Crossing the loans together will not get you out of paying LMI if the numbers are not right and to be honest often it can be cheaper on the LMI front to have split loan. Structuring the loans saves you down the track in so many ways. 

Had another forum client say to me yesterday Rams wanted to charge her a higher rate of interest for a LOC so i suggested a simple equity loan. Drawn down the funds on settlement, pay them back into the equity loan itself and then redraw them as the deposit on the new property it required.

2) No you dont need to come up with 20% and in fact i think i would be looking to put in 10% plus acqusition costs and reduce the exposure on your PPOR.

Take the new IP loan out with a separate lender and then once the IP has increased in value redraw upto the original loan amount (i.e 90% of the increased valuation) and use thes funds to pay down the loan secured on your PPOR. You can the repeat for the next IP.

Also in regards to claiming the interest you can still claim 100% + of the purchase price as the security for the loan is not important. What is the defining factor is what the funds are to be used for.

Go and secure them against a pedal bike and if the purpose is for investment the interest will be deductible.

You just want to try and reduce the debt exposure to your PPOR as much as possible

Your mortgage broker should be able to assist you with the structure.

Cheers

Yours in Finance

Your mortgage broker
 

Or alternatively borrow in a State where you can get Finance as a Foreign National.

Cheers

Yours in Finance

Hi Brokeraus

Think you will struggle to find most Aggregators take you on board as you need a minimum of 2 Years prior experience so you are going to be limited to the likes of Aussie unless you can find a mentor.

Secondly remember you need to have also completed the Diploma in Mortgage Broking by June 30 2012.

Good luck and let us know how you go.

Cheers

Yours in Finance