Looks in the various Mortgage Broker magazines out there, as there are a few people advertising that are after trail books.

Going rates seem to be around 1 to 2 times the annual trail. So if you have 3 loans producing $100 per month trail you would get around $1200 to $2400 for it.

Terryw
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There are solicitor funders that can settle quickly and only charge approx 8% pa. around 70% LVR, Valuations required though.

Terryw
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Why a caveat loan? These are usually 5-10% per month.

What about a normal loan? around 8% pa.

Terryw
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Get a new broker. Richard should be able to assist. He knows his stuff.

You can get up to 100% lends with Trusts. Doesn’t make much difference.

Terryw
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Lending money can make good returns, but when you think about it, it cannot be leveraged.

So your $100,000 is returning you about $7000 pa. Not bad, but…

If you used $100,000 as deposits on 5 properties $100,000 and each grew 10%, then that is 5 x $10,000 = $50,000 in year 1.

Lending money is risky too.

Terryw
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The only problem with that Eddie is that the house will lose its CGT free status and the Land tax free status.

Another problem is the settlor can never receive a distribution from the trust.

Terryw
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Depends how you look at it. Most variable loans have no penalties, but fixed rates do.

If the bank lends you $100,000 at 7%, fixed for 5 years, they are assuming you will be paying them $7,000 for 5 years.

If rates drop to 5% and you suddenly want to pay off your loan to $50,000, then the bank will be losing out. They can only relend that…[Read more]

I cannot remember, think it may have been from a client in the ACT. May have something to do with the landtitles down there. Aren’t they all leasehold?

Terryw
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Maybe i should elaborate. The Land Titles Office (in NSW anyway) just records names. So there is no way to distinguish between people of the same name.

No lender is going to lend money without getting the joint owners to sign. If something went wrong, they would have no security. You would need both owners consent anyway to lodge a caveat and…[Read more]

1. no
2. no

Terryw
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Yes, LMI protects the bank, so they may be happy to reduce their risk. But the approval criteria is actually more strict for LMI loans, so it is harder to qualify as you have to pass the bank, and then the LMI company’s criteria.

Whether paying LMI is worth it or not depends on your circumstances. When starting out I got 95% loans to reduce the…[Read more]

Land tax applies to PPOR if it is over a certain value. a luxury property tax. Maybe you have some rich friends?

Terryw
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You could just ask for 80% (or whatever) of the value. The lender will ask for an estimate, and this will be given to the valuer. If it comes in higher, then you can usually adjust the loan value up – depending on serviceability.

Best to use a broker to assist in this.

Terryw
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Maybe they are on a fixed rate? Many lenders impose penalties for paying more than a certain amount per year off fixed loans – usually around $10,000.

Terryw
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Watch out for these small loans. Nearly all are mortgage insured no matter what the LVR is. This could severely restrict your ability to keep borrowing for multiple properties

Terryw
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I believe that you can still class a place as your main residence without living in it straight away as long as you move into it as soon as practical after purchase. Not sure if having existing tenants complete their lease would enable you to claim it as your main residence from day 1 of settlement, but it might.

I think it is a very good idea to…[Read more]

Stamp duty is tax deductible too, but only taken into account when the property is sold – except in the ACT where it can be claimed straight away apparently.

Terryw
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Hi Groages

Another benefit of the hybrids is the ‘refinancing principle’ (or is it principal?). ie the trust can borrow to buy back the units, giving favourable tax benefits.

Terryw
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Yes, you will need deposits if you wish to keep buying. You will either have to save it and/or wait for the existing home(s) to increase in value.

The banks will lend you money for more if you can demonstrate serviceability. ie can prove you can service the loan using you income and rents.

I would suggest you take a 30 year loan even if going to…[Read more]

Hi

Are you saying you have $2000 which you wish to invest into shares? If so, you will need to speak to a stock broker. I don’t think there are any hanging around this forum as it is mainly property here.

Terryw
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