Loans are set up using a series of LOC's or similar (Equity loan and an IP) and will not be accepted by every lender.
 
Set up obviouslty depends on the available equity you have in your portfolio.

Will respond on the other points later on as processing a couple of loans as i type.

Cheers

Yours in Finance

I am sure your Broker has his reasons for approaching ANZ but i cant think of lender less favourable when it comes to Contractors.

Just completed a 90% lvr for a client in a similar boat in the mining industry who was paid on Contract thru an employment agency with rolling 6 month contract.

If you can substantiate the regularity through past Tax Returns it shouldn't be a problem.

Course as Jamie has mentioned difficult to comment when you only have a small bit of hard data.

Cheers

Yours in Finance

Remember that only way to access capital growth is to either borrow against the equity which will not be tax deductible if it is for personal reasons or to sell the property.

When you sell the property everything you have claimed by way of a Capital Allowance is taken off the initial purchase price thus increasing the Capital Gains Tax payable.

ATO attitude is you can't have it both ways forever.

As Derek mentioned CA & Dep is the icing. The cake should be able to support itself either now or in the future.

Cheers

Yours in Finance

Hi Ch4rlie

When you say too conservative are you referring to the credit policy of the lending institution.

If so why waste your time ringing around and trying to get information on policy which most lenders wont give you anyway.
Why not drop either of the above guys a line and get them to come up with a solution as there is more to lending than the lowest advertisied rate of interest.

Cheers

Yours In Finance

No unfortunately only in brisbane although do everything interstate or inter country by email / phone in the main.

The question you have to ask yourself is what type of property am i wanting to buy and why do i want to buy it.

If the property is negatively geared and you need to claim the Tax credits then you may look to buy the property in your name (or as Tenants in Common – to keep the peace back home).

If the property is positively geared from day 1 then you may look to use a DFT to hold the property.

Second consideration is how long to you think you will hold the property.

If it is a short term buy, renovate and sell or a longer term hold then a DFT might be the way forward. 

In my opinion i would always hold all of my properties in Trust however i dont have a PPOR mortgage or any other non deductible liability. Not everyone is the same and some clients need to claim the Tax credit each and every pay day to put food on the table.

Once you have got over that hurdle you need to access the loan structure irrespecive of the holding.

Personally the way we would suggest every client structure the loan would be to raise where possible 20% deposit and acqusition costs on the security of the PPOR and then through a separate lender take out a standalone loan for the 80% using solely the security being purchased.

Lenders and some brokers (non on this forum) will try and encourage you to have 1 loan over the 2 securities and cross collateralise the 2 loans but i would run a mile if someone suggested this.

Hope this clears up the matter a little. More than welcome to give us a yell if you need anything else.

Cheers

Yours in Finance

JB No minimum time as the ATO will get there slice of CGT when the IP is sold.

Cheers

Yours in Finance

Waydo

Jac M has answered clearly the benefits of the offset account but let us take the reasoning a little further.

Without hard data it is difficult to provide exact numbers but i assume your personal loan is at a higher interest rate to your PPOR loan. What you could do is take out a sub loan on your PPOR and use these funds to repay the personal loan.

Then link the offset account to the P/L split and reduce the interest repayment by paying both P & I as well as the interest saving funds from the offset account. Once this is repaid re-link the offset account to the PPOR loan (which i am assuming will be an interest only loan) and look at your  investment options.

Depending on the numbers you might have to pay down some of the PPOR and then take out a separate loan for the deposit on the first IP and finance the balance on the security of the property itself.

Structured correctly you could save yourself a reasonable amount of interest.

Cheers

Yours in Finance

Hi both

No sorry i dont know anyone up here i would recommend.

I think it all depends many accountants would know how to structure a loan to save their skin so maybe not necessary as a first port of call. Alos if you are only looking at buying the initial house might be an expensive overkill first up.

Loan structure is probably just as if not more important when it comes to security of your PPOR.

Cheers

Yours in Finance

Hi Aj

Ok that makes a little more sense.

When you said you were looking at purchasing an IP i assumed that the interest would be Tax deductible.

In answer to your question Yes NAB credit scores all of its deals and that can be a good and a bad thing depending on a few things.

In saying all of this i still think there is a few things i would look at doing to get your house in order prior to lodging an application.

What happens if you decide to rent the property out after all and have used your own savings as deposit bit late to worry about loosing potential Tax deductions. Personally if in doubt play safe and go 100% finance with 100% offset account.

Cheers

Yours in Finance

On a separate issue anyone get the contact details of the 101 posts this morning for Ugg boots and ski equipment.
Moderators did such a good job of cleaning the the site up i missed on out the details and might be needing a pair shortly lol.

Hi AJ

Yes the documentation will show both securities under each loan.

Why would you look to fund the 20% deposit yourself and not use gearing when you have a PPOR debt.
Structuring it correctly will give you the best of both worlds / maximising your Tax deductions as well reduce the interest on your non deductible debt. 

If the deal is Credit scored (and most new loans are) and the NAB have done a Credit search this could affect your chances of securing new funding. Why would a lender need to do a Credit Search when they are merely quoting you a rate of interest other than to try and push you towards their product.

Cheers

Yours in Finance