PosEnterprises wrote:
Will this make Living off equity in the future a harder thing to achieve?  How will it affect others who are currently living on equity?

They may have to get a job!

Consider doing it via a discretionary trust as this will give more flexibility with tax and more potential savings.

you will need to do a transfer of title. Some states have stamp duty exemption between spouses – but usually only for main residences. You will need to speak to a lawyer to do the conveyance and work out if you are stamp duty exempt.You will also need to reapply for loans again.

Cashflow is good and it helps you to borrow more and buy more properties, but the purpose of investing is to get rich, not to get as many properties as possible. Making $40 pw in net cashflow per property will not make you rich, but if you are able to buy high growth property you should be able to make more than $40pw.

Size does matter. The number of people who cannot come up to the large deposit of up to 30% must have an impact on potential purchasers – but this should be reflected in the price you are paying too.

I too would be very wary of Firstmac – what are the exit fees on their loans like, they were pretty huge last time i looked.

Stamp duty needs to be paid at market value – the actual transfer price can be whatever you like.

StampcamI am not sure where you asked that question, but I believe the stamp duty exemption isn't available if you have already purcashed a property – but this is something you should ask your lawyer or the OSR.

Not bad but not as good as the westpac one – 4.99% fixed for 3 years.

Here are some points to considerBanks don't usually have a problem of revaluing a property after purchase as long as you can justify why it has increased in value – eg done a renovation. But the mortgage insurers may have problems – so you need to keep the LVR to less than 80%.The bank's usually assign the valuation to a valuer – they don't do…[Read more]

yep.

I would start by making sure your loan in IO on a good rate with all of your savings going into a 100% offset account.Constructing will take a fair bit of resources, so may be a bit difficult at this stage as you may not have enough equity. If you can convert to dual occ, then you should get a lot more rent and that may add value too.If the value…[Read more]

IO may not be good for those types that spend every spare cent they have. PI can be like forced savings.But still i would not recommend PI on an investment until all non-deductible debt is paid off.

Ajax wrote:
Still with RHG-ERF's are 2% until July 2009 then 1.5%.I took out an 85% lvr lo doc loan with former RAMS in July 2007. Variable interest rate currently 8.48% 

85% LVR low docs where very rare back then (extinct now i think) and the rate was very low compared to another high LVR loans. So to console yourself think of the interest…[Read more]

If you sub-divide the land it will have a separate title, so you can sell and your friend could claim the FHOG just as be could on any other property

I would get IO for all loans. – IO lowers repayments, enabling you to afford more,- helps when you hit cashflow problems- allows you to pay PI instead and then to revert to IO if you hit problems- keeps your tax deductions high while you can focus on reducing non-deductible debt.

http://www.lendingcentral.com/2008/12/09/woman-takes-lender-to-court-over-fees-and-rates/

Stamp duty has been abolished on most loans in many states, including QLD I think.

Yes, its rough!

Not sure. I am with FAST.They may also use PMI (or whatever they are now called) – but from that email it looks like all Low Docs will be limited to 60%.This should be affecting other Low Doc lenders who insure through GE too.