Hi Wynard

Yes lender would look to take 40% of the capital growth.

Personally i would think when you are getting into a property that maybe better than would be if you had to support the total loan  then giving up some of the capital gain isnt a bad thing at all.
 
A percentage of something is a lot better than 100% of nothing.

Cheers

Yours in Finance

Hi Cath

No you an certainly buy in your personal names but you cannot change the structure or percentage ownership wihout incurring Stamp Duty or possibly triggering Capital Gains Tax.

With a Discretionary Family Trust you have such flexibility.

Cheers

Yours in Finance

As Terry mentioned taking the lodoc option used to be the easy route for a lot of bankers and brokers when with a bit of financial understanding you might find it is not necessary.

Cheers

Yours in Finance 

Hi blake

Regretfully whoever told you this is incorrect and as SNM mentioned can only be done with a SMSF.

In saying this of course even with a self managed fund there are many restrictions and requirements.

Cheers

Yours in Finance 

Hi Airstrike

Not suprised Anz said the deal was borderline as they are not the best when it comes to self employed clients.

You mentioned that the majority of your income is earned between September and April so this will show up in your Annual Tax return upto June 30 of each year. Based on the fact that everything else remains equal i cant see thiis being an issue.

Will however need 2 years Returns in most cases.

Drop us a line if you need any further information.

Cheers

Yours in Finance

Hi Cath

Why would you be concerned by the valuation of your properties if they are not be cross collateralised ?

Also sure you can put 3 names on the mortgage but how will you hold the property – that is the important part.

Your husband would not be a Trustee given his Credit History but a Beneficiary (There are a few lenders who require personal guarantees but they are like the plague – rare). Of course he could be included as a Trustee down the track when his credit history improves or if you switch to a Corporate Trustee he could become a Director. 

Your Broker should be able to annswer the rest of the questions especially in regards to the Trust and getting into property 2.

Cheers

Yours in Finance 

Didnt he invent the telephone ?

Sorry just couldnt resist that one.

Cheers

Yours in Finance

Hi Cathy

Hate to say under NCCP it is not as simple as that and there are too many variable to list

As Jamie mentioned some lenders will take between 75 – 80% of the potential rental income into consideration others will take between 0-100%. Some lenders use a sensitised rate (so assume you are paying 7% they might add on a margin and work out the payments assuming you are paying 8.5%- 9%) others do not.

This can also vary if you are taking out a fixed rate.

Credit cards can be assessed from everything for zero per month to 3% of the balance.

Living allowances are normally taken from the Henderson Poverty Index but you would be suprised how the scale varies depending on what update a lender is using.

All in all there is no simple formula for calculation.

Cheers

Yours in Finance  

Hi Tommy

Firstly you could probably save 0.7% plus by considering refinancing the IP and this will make a big difference to your cash flow.

Couple of lenders i can think of and you would be looking at circa 6.9% for an equity loan (even less if the lvr is less than 65%).

I assume you have lodged a PAYG Tax variation so should be seeing the benefits of Tax credit in each pay packet. Will also assume that you have done a Quantity Surveyors report for the property .

Might want to consider accessing the equity from your PPOR (again interest rate could be improved) rather than the IP loan.

All in all sounds like you might need an overall finance check to put everything in order to enable you go forward.

Happy to help if you decide this is the way to go.

Cheers

Yours in Finance

Hi Tommy

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

Whilst I have to hand fairly limited information in relation to your incme and expenditure I will ignore this for the purpose of the exercise and focus mainly on the structure question.

I will assume that your investment LOC was used solely for investment and that there is no element of personal expenditure going through it. Even then i would question why a LOC is being used as the main loan on an IP.

Again not sure of the interest rate being charged on the IP but will assume that it is fairly competitive and the loans are not cross collateralised.

Simpliest and cleanest way is to look at an equity loan secured against the IP / PPOR (depending on the purchase price of the 2 new IP's) to ideally cover 20% of the new purchase priice and then look at a standalone investment loan secured solely against the new IP to cover the 80% balance.

I wouldnt touch the funds in your offset account as you would want to maximise your deductible interest especially whilst you still have a loan albeit of $20K secured against your PPOR.

Carefully structuring with a couple of lenders should get you where you to need to be without much ado.

Shoot us an email if you need any further information or advice.

Cheers

Yours in Finance