[Hank HongParticipant@sid13473134Join Date: 2016Post Count: 13]

April 11, 2016 - 10:03 am

Plenty of brokers out there just do your research on them and read p on their backgrounds.

Google, LinkedIn and websites always a good place to look =D

Hank Hong
Email Me

Google Hank Hong he's pretty cool.

[Hank HongParticipant@sid13473134Join Date: 2016Post Count: 13]

March 18, 2016 - 10:13 am

Thats excellent Richard, will keep you in mind if there are clients that fit this Niche.

Hank Hong
Email Me

Google Hank Hong he's pretty cool.

[Hank HongParticipant@sid13473134Join Date: 2016Post Count: 13]

March 17, 2016 - 2:49 pm

Hi Gags327,

There are lenders who will accept a personal loan as a deposit, they would need to see that you can pay that loan and the new home loan as well.

I have usually stayed away from this as ideally I would to make sure I am not over extending my client financially, also we would want to see some commitment from the client.

In saying that there is also the family guarnatee loan, where if mom and dad have a property and they have complete trust in you, they can help you fund 100% of the purchase with no Lenders Mortgage Insurance. This is safer for the lenders as they have a guarantee from the parents.

Hope this helps =D

Hank Hong
Email Me

Google Hank Hong he's pretty cool.

[Hank HongParticipant@sid13473134Join Date: 2016Post Count: 13]

March 17, 2016 - 2:27 pm

Compeltely agree with the Dark Knight!

Hank Hong
Email Me

Google Hank Hong he's pretty cool.

[Hank HongParticipant@sid13473134Join Date: 2016Post Count: 13]

March 17, 2016 - 2:26 pm

SMSF have harsher restrictions on security, even more then normal lenders as they need to keep in mind doing the right thing for Super.

Hank Hong
Email Me

Google Hank Hong he's pretty cool.

[Hank HongParticipant@sid13473134Join Date: 2016Post Count: 13]

March 17, 2016 - 12:26 pm

Agreed with the guys above, might look into a lender who can blend the loan, do the applications all in one residential and commercial, but keeps the rates separate.

Commercial lending is gagging for business so they rates in most cases are lower then residentials.

This means they can look at the scenario with both the commercial and residential hat, rather just being a residential home loans person

Hank Hong
Email Me

Google Hank Hong he's pretty cool.

[Hank HongParticipant@sid13473134Join Date: 2016Post Count: 13]

March 17, 2016 - 12:19 pm

I have always been a strong believer of renting where you want to live (usually cannot afford to buy) and invest in places which can either give you potentially higher yield in rent or property increase in value.

If you cannot afford to buy in Sydney as everything is $1M, then have $1M in investments spread around works out the same. The main idea is to get into something that you can afford and does not affect your personal lifestyle.

The information provided by Jason above is excellent, as Sydney starts to get saturated with people buying up all the properties, it means you have to plan ahead, buying smaller properties for a few years then offloaded to buy the dream home.

Just get something as the market is filled with people who already own a home and looking to increase more property and people who are buying their first and getting out the rental cycle. You may look at buying 2 in Newcastle with the funds you have but it will be subject to your income power.

Hope this helps.

Hank Hong
Email Me

Google Hank Hong he's pretty cool.

[Hank HongParticipant@sid13473134Join Date: 2016Post Count: 13]

March 17, 2016 - 12:14 pm

Hi dana_c_83,

For a investment it depends what you are personally looking for, there are quite a few school of thoughts on the best ways to invest. Personally if you have enough money and income buy something to start and learn by buying.

My number one rule – take any emotion out of purchasing a investment property it has to be purely financial and logical.Understand this is not advice it is just purely my thought and experience.

Positive geared properties and negative geared properties neither is wrong or better but is subject to your personal financial situation.

Positive geared have worked in the past for people with lower income, it does not have higher equity increase, usually has higher rental yield and allows additional income to purchase more. In this situation you are looking to build up a portfolio of additional income to purchase more properties.

Negative geared is good for stronger incomes who are looking for equity increases and tax deductions from their income.

In responses to your questions
– if the suburb is expensive and you can afford it, there will be less rental vacancies and usually in very populated areas. closer to metro/city areas.
– I personally like up and coming areas which have been ignored
– depending on your situation if you can beat the rush it is always a great investment opportunity, especially if there is future infrastructure or new rail lines etc.
– Close to train stations is always number 1 on my list as a investment, and convenience to commercial or business areas.
– if it is your first investment areas that you know and feel comfortable with is always important. But if you cannot afford it going further out is never a bad idea.
– Areas with strong ethnical areas help as well as they create their own hub/village.
– ideally 2 bedroom wins over 1 but if it is 1 bedroom in the middle or close to the city will outdo a 2 bedroom further out.

We can go on forever which is better, best answer is purchase within your means, purchase in a area which has potential. Avoid any places that is dependant on one industrial income e.g. mining towns.

Hope this helps.

Hank Hong
Email Me

Google Hank Hong he's pretty cool.

[Hank HongParticipant@sid13473134Join Date: 2016Post Count: 13]

March 17, 2016 - 11:50 am

Madd Loans in Brisbane
Is run by a excellent Broker George Samios.

Hank Hong
Email Me

Google Hank Hong he's pretty cool.

[Hank HongParticipant@sid13473134Join Date: 2016Post Count: 13]

March 17, 2016 - 11:46 am

Hi Jojo,

Any additional borrowing is always going to reduce your serviceability for future investments, the bank has already put in calculations that if you earn X you would be able to have the amount Y in funding.

You can increase further funds either on the current loan or a new split it can be used for a renovations as long as there is enough equity. If it is major renovations like extension of a new room etc (non cosmetic) you may need to provide construction documents as supporting information.

If it is small renovations of $50,000 it is a simple cash out, you can even provide some quotes to evidence it. As above it is strctural then more information might be required.

Hope this helps =D

Hank Hong
Email Me

Google Hank Hong he's pretty cool.

[Hank HongParticipant@sid13473134Join Date: 2016Post Count: 13]

March 16, 2016 - 10:23 am

Agreed with Corey.

As long as there is a ABN is setup, profits can be evident in the business account.

You would require 12 months minimum ABN and a tax return to support this income, the lenders can use this additional income with your current employment income.

Its a excellent way to boost your income and make some extra dosh on the side.

Hank Hong
Email Me

Google Hank Hong he's pretty cool.

[Hank HongParticipant@sid13473134Join Date: 2016Post Count: 13]

March 16, 2016 - 10:19 am

Hi Michael,

The replies above are spot on.

With the broker setting you up with a LOC i believe is a expensive version of standard loan with a redraw facility.
Line of Credit works well for business owners who need to usually multiple daily transaction.
LOC also allows no repayments on this loan and they just it can “capitalise” the interest on top of the loan until it is maxed out.

If you were looking to just increase your loan and obtain funds ready for a property purchase (this being one transaction), creating a new home loan split and increasing with your current lender for a new home loan split would have worked. Your rate would have been half a percent lower, as it would have been classed as part of your home loan.

• This reply was modified 8 years, 1 month ago by  Hank Hong.

Hank Hong
Email Me

Google Hank Hong he's pretty cool.

[Hank HongParticipant@sid13473134Join Date: 2016Post Count: 13]

March 16, 2016 - 10:08 am

Hi Jprop,

Most lenders will shy away from Regional lending due to the low population numbers and sales. Also the prices are much lower and in some cases land size is outside their policy guidelines.

There is 2 lenders that come to mind that are happy to assist Australia wide with no postcode restrictions, this means there is no discrimination of regional or city. Lending can be catered for the deposit amount that you have.

Hope this helps =D

Hank Hong
Email Me

Google Hank Hong he's pretty cool.