100% offset.

Edit- However i should be a bit more clear here, even though it’s sold and advertised as an ” 100% ” offset .. technically speaking it’s slightly different in that i would consider these Portfolio loan to work more like an re-draw ( no question ask re-draw- linked to a standard debt card).

Yes it’s confusing – i dont know why the…[Read more]

For those interested – it’s called a Portfolio Loan

NAB

http://www.nab.com.au/wps/wcm/connect/nab/nab/home/personal_finance/22/2/1/17

ANZ

http://www.anz.com.au/personal/home-loans/compare-home-loan/portfolio/

There is 2 type of stamp duty- Purchase Stamp duty + Mortgage stamp duty ( yes it’s stupid to have similar names) ..the latter one is only payable to Commercial properties ( Residential property no longer had to pay this part as of 2007 when it was abolished) – a side note it will be fully abolished even for commercial property as of 2012…[Read more]

ANZ one is- they are sub accounts.
NAB one is the same account – so a true offset.

Either way, having the LOC there can cause a lot of tax issues; once you start mixing non table debt with taxable one’s, and then it an get more messy with the offset…
Having the offset is more of a “marketing tool” i reckon.

LOC is only good if it’s ALL…[Read more]

anntoro wrote:
There is a little difference between offset account and line of credit. The main advantage of line of credit is that if you take a regular loan then interest is not charged. The interest is only paid on money actually withdrawn. 

Err not so.

Jamie’s answer explain offset and LOC perfectly.
Terry and number 8- provides a good…[Read more]

woodsy1 wrote:
Hi fellow investors!I have finally decided to pluck up the courage and buy my first IP, which is a fairly new commercial property on CBD land in QLD. It has sat on the market for at least 18 months and I am currently negotiating with the RE. My first offer was turned back and now 2 days later, the agent is phoning to "touch base"…[Read more]

OK, What was the reason for the deal to be accepted at 60% LVR only- ; you self employed?
When you buy an IP at such a low LVR, it limits your leveraging power and ability to grow; i guess that’s why you want to sell as well to lower the PPOR non taxable debt.

Also it sounds like your 3rd one is cross securitize since it’s 100% LVR, so if you…[Read more]

Sash wrote:
Paul – Thanks for the insight mate, I briefly thought of that as a concept but thought it would be rare to come by.Shape – Cheers for the feedback regarding banks perception on income generated to business towards the loan repayments. After further research it still seems that the biggest hurdle will be a deposit. What is the highest…[Read more]

Hi,

Can i ask what sort of property or deal is the 4th one? sounds like a “special” property ( studio, apartment in the CBD) for it to be declined by Suncorp and then accepted at 60%.

Regards
Michael

morpheusbushy – Love your blog, very useful and straight to the point… Good work

Regards
Michael

Sash wrote:
Hi Michael,,

Thanks for all your helpful information! In summary to your comments, it sounds like I should be ok with applying for finance? If the income can pay for all expenses without any $ coming from my pocket, surely the banks would be cool!!

What would be the best way to go about a business loan- use my broker? Contact a…[Read more]

In term of borrowing; target for an 75% LVR, the lower the better…but no higher then 75.

Regards
Michael

Try local newspaper ( Local to the property of course )

If you do get quotes done, dont organize for 1-2…make them all come within close intervals.
Bargain a price + time frame and take it from there.

Hi,

This is def NOT worth $39,000.
It all cosmetics renos no structural renos at all.

Unit overall – Good conditions, a paint job will solve most of the problems- Choose a light color to enhance the look and space.
Light fittings –
Kitchen – good condition, the titles aren’t broken…just need a new stove + new cabinets
Bedroom- are fine, paint…[Read more]

Last point, the uni lodge is strata titled – but it’s still zoned as board accommodation 2 ( which is the same as student accommodation) However anybody can live there as the agent mentioned.

If the place your looking at is not the uni lodge, feel free to post the address/building name so we can give you a better answer

Regards
Michael

Hi steve,

I think i know which property your taking about is it the Uni lodge?? Our firm is the main brokering company for that apartment and if your trying to buy that at a 90% LVR then it would be impossible without a bit of equity from your own IP1? or your parents place etc..

Either way any apartment under 40 squ meters would need to be…[Read more]

20-30 k for a UNIT is massive…it sounds like your either getting ripped off OR over budgeting.

If you get one company to do everything, it’s normally more expensive because they sell it to you as a “package” and it’s hardier to negotiate. Also they will take longer for sure…i can bet ya half way the work will slow down because most likely…[Read more]

homersyd – Welcome to the forum.

The 1st one doesn’t stack up; I been looking at south Sydney for a while because it’s so close to the CBD…but just look at Rockdale and the new apartments – they have gone down in value because it’s over priced, they expected the rent to be similar to the CBD…but were they so wrong!

1. Views of Airport…[Read more]

Hence why i point to HSBC (SINGAPORE) , less conditions and restrictions, i guess when you deal with an Asian country; money talks

Regards
Michael

Yes, we do deal with overseas mortgage.

However if you fall into any of the below points;

1. If this is your first purchase ie dont own any another property at all
2. Your combine asset after everything is sold is less then $200k

In all honesty it be impossible for you too get the overseas mortgage.

Drop me an email at…[Read more]