Yep. Crossed collateralised means there is more than one property being used as collateral.So if you had property A securing loan 1 and then get a LOC Loan 2 on the extra equity in Property A. Then you go out and find property B, borrow 80% of this with a bank, loan 3. This loan would only be secured by property B. The 20% deposit would come from…[Read more]

bouncecf – the last post before your's was 7 years ago! You have dug up an old thread.

Best to avoid guarantees i think. This only doubles the risk and reduces borrowing capacity.

As a former broker I was recently approached by a friend. He had been pre-approved for a loan with a certain bank, thru the broker. Then he was somehow contacted by the bank direct and offered an extra 0.15% discount if he went direct. This would result in about $1000 in savings pa and he wanted to know how he could tell the broker he was not…[Read more]

hi AmsainiIts not wrong to do that, but it is less than ideal.The problem will arise when you take that money out of the loan. You will have one big loan with part investment and part personal. If the loan were interest only then it would be easy to calculate the interest. But if it is PI then each repayment you make will need to be aportioned…[Read more]

You might have a binding contract, but nothing is 100% sure until you have the cash in your bank account. If the sale doesn't go through you will still need to pay the solicitor for their work done, but you may be able to claim this from the purchaser in addition to keeping the deposit.

What they have said is correct, but not totally true in regards to having the same benefits.I guess no harm will come if you never intend to move out and rent the place – what ever you do, don't use this method with an investment property or you could end up with a large loan but not able to claim any of the interest.

whoa – beware!!! The redraw is totally different from the offset account. Some lenders say they are the same but there are serious tax consequences. This may not make a difference immediately, but if you were to ever move out of your current house to rent it you may, or will, pay more tax.Basically when you deposit money into a loan it is a…[Read more]

Why pay rent into the LOC – have it paid directly into your 100% offset account attached to your home loan. Save non deductible interest first or you will end up paying more tax.Best to try to limit your LVR to 80% I think. any higher is very risky, especially these days. If you do want to go higher you can set up a LOC on each property. If you…[Read more]

You will both be jointly onlending the money to your wife.

The LOC method is an excellent approach. Why use your cash for investment expenses when you could be using this to pay down your home loan and saving non deductible debt.But you will need to be careful how you set this up, especially if you are paying interest by borrowing from a LOC. If you don't take care you could be entering a scheme with the…[Read more]

Bankwest just sent a notice around saying they were increasing their LVRs from 85% back to 90% for new clients. ANZ also recently increased their LVRS too I think.

Transferring from 2 spouses to one of you?You will need a conveyancer or solicitor to do the conveyancing for you – unless you are capable of doing it yourself.You will also need to reapply for your loan and negotiate exit fees. There will be govt charges such as discharge of mortgage etc.If it is an investment property, or has been, or has been…[Read more]

opinions of ATO staff don't hold much weight I am afraid. I had a friend who worked at the ATO for years, he told me about one guy on the phones there who just used to say yes to everything. The law says if you incured interest on money borrowed to invest then it is deductible.In your example the husband is borrowing the full amount of the cost of…[Read more]

both i would say.

qin wrote:
Hi,I am new to this forum. With what I have been reading from this forum, I feel people here are very helpful, so I am wondering, I might be able to get some help here too. Below is my situation:(1) I bought a PPOR around 6 years ago (p1)The price I bought was at $380K, now it worth $500KI still have around $240K loan with the bank, I…[Read more]

Its probably best to speak to a broker to see if you can qualify for a loan. This would be the first step i think.

I would suggest you pay market rates for the land. If the owner has a debt to you of $80,000 then you can pay value less what he owes you. Its as if you have already paid $80,000 deposit.

You can pay whatever you like, butStamp duty must be paid at market rateshttp://www.austlii.edu.au/au/legis/nsw/consol_act/da199793/s21.html CGT must also be calculated at market ratesPutting lower figures on contracts etc could result in lower valuations which may mean lower borrowing abilities.

Say you buy a property with someone 50/50. You borrow 100%. Of but you only own half of the property so you can only claim 50%. Makes sense I guess, but the tax deductions for the other 50% are wasted. You could argue that you borrowed the other 50% and on lent it to the 2nd person. Who used it to buy their share. They pay you interest and you pay…[Read more]