Hi Georgisj,

Servicing (how much you can borrow) varies greatly from lender to lender. You might find you can borrow what you need if you go to the lender who has the best servicing. Some lenders will use 100% of expected or existing rental income instead of 70-80% on top of your income from work which helps a lot.

There is no need to place a…[Read more]

They were common in previous years but many lenders backed out of them when the Hart’s kept going to Court. It went on for a few years through lower Courts. They won the first few cases but the Commissioner of Taxation was persistent and took it to the High Court and won on appeal.

There is nowhere else to go so these forced “combo-deals” are no…[Read more]

I heard an interesting comment today from a friend of mine who is also a mortgage adviser. I mentioned that I was interested in doing something to cater to mortgage brokers and he thought the idea was great. He then said:

“During the gold rush, people came from miles around to find gold. The only ones who got rich were the ones selling the picks…[Read more]

Thanks Steve. Likewise.

To expand a bit, ‘Hart’s Case’, which was a ruling by the High Court on 27 May 2004, stated that schemes entered into for the dominant purpose of obtaining a tax benefit were not permitted. They also stated that if the loans were taken seperately with different terms, it would not pose a problem. The decision can be read…[Read more]

I am wondering what happens if the tenant does not pay for the property within the 7 years and title passes – how do you get your money?

If you access the equity above the tenant’s purchase price, how will they be able to finance the purchase if there is not enough equity in it for them?

Regarding tax deductibility of interest, it is always…[Read more]

I am pretty sure you are spot on with the CGT.

Regarding the mortgage insurance, it is rare to get a refund from them but it is possible in some instances. It is a discretionary thing with the mortgage insurers and will probably depend a lot on whether the new purchaser pays mortgage insurance when you sell it to them. I would not be putting…[Read more]

Originally posted by FireCaesar:
Hmm, that’s an idea but wouldn’t I have to pay more for a 2/3 bedroom?

Another question I need to ask is when is a ‘0’ downpayment desirable and when is a 20% downpayment desirable.

This is what I’m confused about.

A simple answer to this is ‘0’ downpayment is desirable when you don’t have a 20%…[Read more]

Just so you know, the size of the farm knocks out the majority of standard lenders in the market. Select a knowledgeable mortgage adviser who will go searching for you and don’t take the first offer made. There is usually something better out there than the first offer.

Robert Bou-Hamdan
Mortgage Adviser

M: 0414 347 771
E:…[Read more]

Securised funds also require mortgage insurance. Many lenders will cover the cost of this up to 80% of the property value and charge mortgage insurance in excess of this. Low doc loans often see mortgage insurance costs kick in below 80%.

Securitisation also often restricts the security property types that can be funded by that parcel of money.…[Read more]

I would avoid cross collateralising property at all cost. The only time I may consider it is where the security property is not the most suitable and the lender will not provide the funds unless the properties are crossed (like with really tiny studio apartments in some areas with some lenders).

Robert Bou-Hamdan
Mortgage Adviser

M: 0414 347…[Read more]

Your farm would also be considered commercial by many lenders as you seem to be earning an income (albeit sporadically) from it. I would love to know the size of the farm as well. This may also restrict access to many of the more standard lenders. Using standard lenders where possible will keep your overall interest expenses down.

Robert…[Read more]

Also, if advertising for investment monies, you need a Product Disclosure Statement – amongst other possible requirements (like a Financial Services License, etc….)

Robert Bou-Hamdan
Mortgage Adviser

M: 0414 347 771
E: robert@mortgagepackaging.com.au
W: http://www.mortgagepackaging.com.au

Comments made are of a general nature and should not be…[Read more]

Hi Brownbear,

I was also at the seminar. It was pretty good!

I think what Steve was trying to get at was that any property could be made into a good investment. The current annual rent and rent return tells you the purchase price to get in today. Once in, manipulating the figures by doing things like changing the use of the property or throwing…[Read more]

Personal loans are easy to get if the servicing is there – ie: your ability to repay all your debt. Your costs will certainly be higher when you calculate your overall interest rate on the investment.

Other options do exist that are much cheaper than a personal loan.

Robert Bou-Hamdan
Mortgage Adviser

M: 0414 347 771
E:…[Read more]

Find a good broker. Simon is good!!!

Concentrating on what I do best… Investment & Finance!!!

© 2004 Mortgage Packaging Pty Ltd

Unique properties have a lower demand and hence should NOT be auctioned. Every property in demand should be auctioned.

Most commercial lenders will do this if it is an established and successful franchise.

Originally posted by The Mortgage Adviser:
It appears a few posts went missing… better put them back up. Can’t see why they would be deleted. Nothing offensive contained in them!!!

<<Admin: they were edited because they were deemed inappropriate. Take the hint!>>

I would be interested to see who did deem them inappropriate and who deleted…[Read more]

Originally posted by Gatsby:
Dear Rob,
I get the feeling that as a mortgage broker you appear to be heavily opinionated towards ‘INTEREST ONLY??????’ I also sense that as a broker your more concerned with making more dollars than ‘sense’. I’ve got to hit the sack as it’s late but don’t worry. Funny material and laughter will be added in…[Read more]

It appears a few posts went missing… better put them back up. Can’t see why they would be deleted. Nothing offensive contained in them!!!

<<Admin: they were edited because they were deemed inappropriate. Take the hint!>>