You can get a loan if you have the deposit, no question about it really. The only problem you may encounter is higher deposits and/or interest rates.

How bad is your credit file? If it is a small default, it may not have much of an effect.

What sort of deposit do you have? estimated LVR etc.

Terryw
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No, loans and credit cards are not recorded as being paid on the credit file. Only applications and defaults etc are recorded.

But if you have cancelled a credit card or paid a loan off, sometimes the lenders may not beleive you, so you should keep records as proof.

Terryw
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This will generally hurt you when you go for a loan. Lenders usually take 2-3% of the limit as a monthly repayment – whether you pay off the card in full or not every month. So if you have a few, it can really add up.

There are a few lenders that don’t have to take into account the cards if you pay in full every month, eg, ING.

Lenders will see…[Read more]

Yep. you will pay tax. If you have held the property longer than 12months then you may get a 50% reduction on the CG. If less, then no deduction.

The relevant date is neither of those, but the date of the unconditional contract.

Terryw
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Permanent residents can still buy property here even if not citizens. If you have neither, then I beleive you need the permission of the Foreign Investment Review Board to purchase, wwww.firb.gov.au There are some restrictions such as only being allowed to buy new property etc.

I beleive if you are working here logner than a certain period, then…[Read more]

Yes you could, but the lender may see that you were a shareholder or director when they did the credit check. If they do then this won`t really solve the problem as they might require further proof.

A better option would be to have a company controled by a friend or a relative. Even just leasing to a friend or a relative may be enough.

AS an…[Read more]

IG, Sounds like a good plan. Maybe you should consider setting up a hybrid trust rather than a DT so you can save some tax now on your properties.

Also, maybe consider getting the LOC and then paying cash for a property. Then mortgage it. If you buy well, you can get a higher LVR in the end as the lender will not be restricted to lending on…[Read more]

Dom, if you borrow from a LOC to pay interest on your IP loan, this would free up money that you would otherwise use to pay this – which can then be placed into a 100% offset account linked to your home loan.

You should be doing the same with expenses such as rates. Dont pay these with cash, but put the cash in the offset and borrow from the loc…[Read more]

Just find out the lenders requirements and work out how you can meet those requirements.

Terryw
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I haven’t heard of a tax ruling, but have heard that some idividuals have received private rulings relating to paying interest with interest. Check the somersoft forum and the invested.com.au forums.

Terryw
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I am guessing too, but would think that the ATo would allow depreciation on overseas property as this is an asset used in producing income on which you are being assessed. maybe you would need to use the UK equiv of a quantity surveyor.

Maybe contact the ATO and ask over the phone – ring 3 times as you will get different answers.

Terryw
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I have a client with Bankwest. I think with one of his loans, we pushed them and the took the bank direct deposits as proof – less than 80% LVR = no LMI issues.

Terryw
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Sometimes the slowness is due to the valuation being slow. Once the valuation is back, the answer should arrive within 24-48 hrs.

Terryw
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If you have an PPOR loan and investment properties, it maybe possible for you to borrow to pay the investment loan interest and to pay off your homeloan quicker. See a good accountant, or you could get into trouble with the ATO.

Terryw
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And why do you think companies can take out larger loans than individuals? The lender will want a personal guarrantee for the directors – this will be based on their personal incomes.

The loan size will also depend on the value of the property

Terryw
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Interest rates on LOCs are the same or slightly higher than standard home loans – 0.1% higher sometimes. To avoid the higher rates, it is sometimes possible to use a normal home loan like a LOC if it has free redraw – but they don’t like you capitalising the interest.

It is possible to capitalise the interest with a LOC, and to withdraw extra…[Read more]

one more thought. Maybe you could consider selling one of your proeprties to your trust. This will allow you to increase borrowings to 105% of the value of the property and the funds released could be put into your home loan, and then reborrowed for more investments.

You will have to do the numbers to see if the interest saved will be more than…[Read more]

Hi Dom

I would be reluctant to sell, especially if they are paying dividends. Just be patient and watch the values and rents rise.

As for serviceability. Be careful with your loan applications now. If you are careful, then you will be able to qualify for No Doc loans when you hit the limit. Then you can keep on borrowing if possible.

Also look…[Read more]

I think most should. It is really just a purchase and a resale.

Terryw
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What about getting the place rented to a ‘third party’ who signs a lease for the whole property and then onleases the place room by room.

Many lenders will go on the lease if it is properly drawn up and executed.

Alternatively what about showing the rental income coming into your account each month. A history of this should…[Read more]