Lenders do impose maximum exposure levels – they will only lend a certain amount per client. This varies depending on low doc/No doc or full doc and from Bank to bank. But with the number of lenders out there, you will be able to keep on going as long as you can keep coming up with the deposits and can demonstrate serviceability – which you should…[Read more]

I agree with Richard that is it better to keep them all separate.

Hi SeanI think it will depend on a lot of things such as what features you need and what deposit you have, etc. Rates will also depend on loan amounts. eg under/over $250,000.

The lenders will release funds to the builder in about 3 or 4 stages as building progresses (eg slab down, lock up stage etc). They will need to send a valuer out to check the work has been completed etc. So there is usually another few hundred dollars in fees associated with construction loans.To approve the construction loan they will generally…[Read more]

Sounds like you have have purchased the townhouse prior to CGT and it therefore may be CGT exempt. If that is the case, you may be able to rent it out for years to come and watch it go up in value, and sell it CGT free on your retirement. Your other new home could be CGT exempt too if you class it as your main residence.Of course you could sell it…[Read more]

The end result will be the same overall, in terms of interest, but may be different from a tax POV. You would have access to spare cash via the LOC if needed – but I guess that if you needed cash for personal reasons it wouldn't be good to start using a LOC which you have used for investment up to that point. So option 3 may be better.

I don't really know, but I think it would be within his time limit. day 1 would be 29th of sept, and counting a long that would make 19th the 21st day. He left it close didn't he!

It would depend how you structure it.If you cross collateralise your existing properties, then your current loan would not increase. You would use these as additional security for the next one. So the next one you would have a loan that may be 105% of the value of the new property. $70,000 of this is supported by the exisitng properties. Another…[Read more]

Becky Lock wrote:
Hi,The same as Jillster I am looking for a referral to an accountant that understands property investing and is passionate about it. I am based in Sydney so that would be preferable.Our current accountant has set us up with a Hybrid Trust with a Pty Ltd company as the trustee which then buys the investment property/land. Does…[Read more]

Just think of the parents as a 'bank'. They are just lending you money with you making repayments to them the same as you would be if you borrowed the money from a bank.

I agree that you probably don't really need cash, – just access to it if you run into trouble. Some people recommend you have between 6 -12 months of annual repayments available if needed.

Qlds007 wrote:
No Marc I am a lot better looking !!!!!

I dispute that!

It is generally best to pay down non deductible debt first, so I would go for option 2.

Tyson,Some wrapees are able to pay lower rates than they would with a bank or other lender.eg. Someone with a bad credit record would be paying up around 11% with one of the non conforming lenders, not to mention all the fees such as risk fees, application fees, legals, valuations, and exit fees when they want to leave for a cheaper product (one…[Read more]

TuggerHow much would it cost to build on them? They could get a pre-approval for a building loan, go get plans drawn up and find a builder etc. They should be able to borrow about 80% of the value of the land and the construction cost and this should be plenty. They would only need to pay interest on the amounts as they are drawn down.

HiYou just have to document things carefully. what will happen is your parents are lending you money, and you can refinance this loan with a loan at a bank at a later date. Get a loan agreement drawn up and run it by your solicitor – your parents should probably take a mortgage to protect their interests. They would charge you a interest rate…[Read more]

You may not have much equity to make it worthwhile as you can generally only borrow up to 90% of the value of the propeprty. And if you go over 80%, there would be LMI involved.

Maybe you can start off part time, keep your day job and ease your way into it.

PeterHave a look at the latest Bantacs newsletter, http://www.bantacs.com.au/newsflash/current_issue.pdfthere is bit on "building a duplex with a friend"

You could sell the properties to your own trust, this way you can release equity, pay down PPOR and then get to keep the property too. CGT and Stamp duty will apply, but these costs have to be assessed against interest savings and tax savings.You can also sell your properties slowly over a few years to minimise CGT. eg. one per year, or even 1/2 a…[Read more]