Look i hate to disagree but i dont believe you need to spend $$$$ on over priced courses or ebooks from people who want to sell you something or charge you for so called mentoring.

The forum will give you alternative views and a lot of information some of which you take with a pinch of salt depending on who is posting it other can very educational.

Many people give up a lot of their time for nothing and are happy to talk and share information with others without thinking how much money they can make from the deal.

Read a few good books which you can do for next to nothing (Sure Steve has some in his library) talk to people who have been there and done it without wanting to charge you or sell you something. Most Mortgage Brokers, Financial Planners, Accountants and Solicitors will give you an initial free consultancy period which should help you move forward.

Cheers

Yours in Finance

Sure be happy to help.

Cant help with the redraw but more than happy to help with the balance.

Shoot us an email and we can discuss options.

Cheers

Yours in Finance

Why did your MB recommend that.

My house is in my wifes name and would never put it in my name for 101 reasons.

Unless you intend to rent the property out i cant see why you would need to.

Cheers

Yours in Finance

PJ

What Terry is saying is you can borrow at home loan rates subject to equity to repay the business debt but really wont do you much good as the interest wont be Tax deductible. In this case you would better of to have a split loan so you can pay down one and not the other.

As Terry also intimated if however you could direct income to a Family Trust and then back to the Company but will depend on your circumstances.

Cheers

Yours in Finance 

Hi Mike

Hate to say i dont think you will find lenders amending existing loan contracts to let you out for nothing will only be new lending.

If the loan is a variable rate loan then probably wouldnt be much to get out of the loan anyway. Fixed rate different matter and not sure i would ever suggest that.

Cheers

Yours in Finance

Hi Luke

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

You certainly seem to be in an good position to start your investing career as long as you are happy renting at home.

Normally depending on the type of property you are looking at (whether it be one for capital growth and slightly lower yield or higher returns and less capital growth) will determine what name or entity you would look to buy the property in.

Once this has been assessed you can look at going forward and seek out an appropriate loan and structure.

Some lenders will go upto a maximum 95% lvr for investment however if you work on 90% then at least your mortgage broker will have a wider choice of lenders to work from.

Remember when you buy a property you will receive rental income and this in turn is offset by the associated expenses such as interest, insurance, Council Rates and property management expenses to name a few.

Where the property costs you more to hold than income being generated the shortfall can be offset against your Tax at the marginal rate. In addition to the Cash Deductions you maybe also offset such items such as Depreciation on the internal fixtures and fittings as well as an allowance made for the Capital cost of the original construction based on the age of the property.

Such deductions help minimise the cash shortfall.

If you are a PAYG wage earner then such Tax credit can be reflected in your pay packet rather than waiting until you lodge your Annual Tax Return and this will also ease cash flow.

Once the property increases in value there is nothing to stop you drawing on the available equity for the next property and subject to being in a position together with the rent to show you can service the loan the process can be repeated.

If you start slowly and invest in an area with good ongoing rental demand you shouldnt have any issues however always good idea to keep a cash buffer available to cope with unexpected expenses.

Cheers

Yours in Finance  

Hi Jacqui

There are not many of them but Yes their is the odd lender out there that wont have an issue subject to the overall LVR.

You are however correct that each individual loan split will be in all 3 names however you can allocate the account numbers to each unit holder. Of course all parties will still be Jointly and Severally liable for the entire borrowings.

Cheers

Yours in Finance

Hi Mike

I think this day and age with the advancement of technology most loan applications are lodged electronically so the whearabouts of your Mortgage Broker is really neither here not there.

I have hundreds of forum clients who I have never met and realistically are unlikely to do so in the future.

These include clients intra / inter state as well as expat clients from all parts of the world.

Sure you are going to get the odd first time buyer who wants to see down and feel all warm and fuzzy as they chat with you and that is then possible where travel allows but more often or not clients have a rough idea on where they want to go and want some advice on how to get there and with whom. 

Investors are certainly looking for advice on how to structure the loan to avoid future pitfalls as well as have their Broker look at a range of lending options of which some of this research is only possible when he is back in his office.

As long as the compliance issues are covered off i have no problem in taking business from clients anywhere and most clients seem to think the same thing.

In saying this every person to their own level of comfort.

Cheers

Yours in Finance

Hi Ben

Dont worry i know the answer to my question but just keen if BJM does and as Paul has mentioned i think you could find these are the slums of the future with the wrong project.

Cheers

Yours in Finance

Thanks JacM

Appreciate the wrap.

Cheers

Yours in Finance