Terry you must remember Michael from his Mortgage Detective activities.

I am sure he will explain to us what a borrowers agent is.

Cheers

Yours in Finance

As Terry mentioned:

1) Yes the SMSF can purchase a Commercial property from a member or related party as long as doesn't breach the in-house Asset rules under the SIS Act and the consideration is done at market value.

Few other criteria but it can be done.

One of the benefits would be to sell it when you are Pension phase as there is no CGT.

Cheers

Yours in Finance

That was my thinking Michael.

Again not sure if a Fin Planner is licensed to offer an answer to the first part.

Cheers

Yours In Finance

Must admit i find it strange for an investor to approach a Financial Adviser for advice on a property scenario.

Hate to say if you were tryiong to ascertain a borrowing amount the Adviser may not have been licensed to provide Credit advice and therefore that could be the reason he had not come back to you. This is the domain of a mortgage broker.

Have you paid for such advice as he wont earn any form of remuneration otherwise.

As i say sorry i am slightly lost as to what you have asked him for.

Cheers

Yours in Finance

Hi Dr

Simple politician answer is Yes and No.

Typically these days many lenders advertise they will do them but the trick is getting thru the mortgage insurer.

Very much Credit scored these days so all depends on the rest of the deal.

Sorry to sound so vague but without hard data it is difficult to comment further.

If you owned 3 properties with medium gearing and had a good PAYG income then probably a straight forward deal however with limited savings a gift from mum and just started work probably got no chance of getting it over the line.

Cheers

Yours in Finance

Hi Tim

Welcome to the forum and congratualtions on deciding to take the step forward.

Cant see an issue in what you have suggested and remember that LMI if charged on the new IP is a loan cost and a Tax deductible expense.

In saying that there are a couple of lenders who will waive the LMI charged upto 85% or indeed charge a fee alternative which might prove to be a cheaper option. Of course you need to weigh up the costs with the rest of the package but your Broker should be able to give you some alternatives.

Being an IP loan you wont need any frills and would suggest on the surface a Basic rate style loan with No application or ongoing fees would be the way to go. There are some fairly competitive products out there in the marketplace at the moment so certainly worth considering.

Cheers

Yours in Finance

Hi Brett

Hate to say "You cannot increase your borrowing capacity by buying in Trust" and Terry's initial comment is correct.

In saying this there are many ways to gear into property without necessarilty incurring mortgage insurance.

There are lenders who will go to 85% without LMI and those that will go to 90% or 95% by charging a fee instead of LMI which can prove more attractive. 

In saying all of this you need to work backwards and see what you want to achieve in both the mid and long term.

There is no point in setting up a complicated structure only to find that you buy 2 more properties and that is it. 

A debt re-cycling structure will enable you subject to serviceability to carry on buying by utilising your existing equity  in the IP's as long as you have structured it correctly.

Buying with Vendor finance is not that easy as most lenders are cautious about Vendor Finance and wont allow a 2nd mortgage to be registered. Of course under NCPP any Vendor Finance would need to be declared.

Cheers

Yours in Finance

Dennis agree with the boys i would stick to a couple of suburbs you are confortable in and get to know them. 

Structure the loan correctly so that you can comply with the loan conditions as well as maximise your Tax deductions going forward.
So many lenders try and push P & I loans without the thought or knowledge of loan structuring.

I would even think of borrowing the maximum lvr available and accepting their maybe some mortgage insurance payable if it means you can retain some of your cash savings for the next property.

Your Broker should be able to explain how to set the loan up correctly.

Finally dont be scared as it could be the 1st property of many you can add to your portfolio.

Cheers

Yours in Finance

Hi Lee

Sure feel free to drop me a line.

Email address below.

Cheers

Yours in Finance

I am with Terry as far as i am aware their is no spousal concession on the Duty in the ACT but remember you would only pay it on 50% of the value. so around $9000 with legals.

Of course in saying this you would only be able to claim interest on 50% of the $550K (going to take you circa 2 Years to get your money back based on a 30 cents in the dollar marginal Tax rate) also wheareas as a sale to a Unit Trust would give you a deduction on 100%.

Certainly worth doing the numbers.

Be surpised how many Spousal Transfer loans we do where after doing the numbers they work out favourably.

Cheers

Yours in Finance