Just think of it as a purchase with a very long settlement, with the purchaser given permission to live in the house during settlement if they pay in installments.

Terryw
Discover Home Loans
Mortgage Broker
terry@discoverhomeloans.com.au

You may be able to borrow up to 95% of the purchase price, depending on the location and cost. Having a higher rent would help you qualify as well.

Terryw
Discover Home Loans
Mortgage Broker
terry@discoverhomeloans.com.au

Hi

$40,000 pa is not going to get you too far. I would use the equity up to 80% LVR and then avoid paying mortgage insurance. On a $100,000 property, you will be looking at using about $25,000.

Terryw
Discover Home Loans
Mortgage Broker
terry@discoverhomeloans.com.au

Not much you can do. If they don’t settle soon, they will lose thier deposit and could possibly be sued. They could onsell to you, and have a simultaneous settlement, but you would have to pay stamp duty as well. There would be no way (legal) to avoid stamp duty, unless maybe the vendor rippued up their contract and you/someone signed a new one.…[Read more]

Most people seem to offer between 12 to 20% to their investors. They simply borrow money form them and pay interest. You will need a loan agreement drawn up by a solicitor.

Terryw
Discover Home Loans
Mortgage Broker
terry@discoverhomeloans.com.au

I would suggest, you form a trust, with yourself as sole trustee or sole director of the trustee company. Get the loan in your name with a formal loan agreement drawn up, with you friend lending money to the trust for deposits. Also have a joint venture agreement drawn up outlining profit sharing, risk sharing etc. Then you can distribute profits…[Read more]

Calder

Having an ABN certainly makes things easier, but most lenders will want you to prove you have been self employed for 2 years or more and usually take the date the ABN was registered as evidence.

However, No Docs only require the person hold an ABN for one day.

Terryw
Discover Home Loans
Mortgage Broker
terry@discoverhomeloans.com.au

1. If your main residence is rented out, after you first live in it, and sell it wihtin 6 years of renting it, and have no other main residence, then it may be CGT free. There is no requirement to live in it for 12 months first.

2. You can claim building allowance on any improvements and depreciaiton on any fixtures for a property you rent…[Read more]

Anyone can apply for an ABN over the internet. It is very easy to do and only takes 10 min. see http://www.abr.business.gov.au/(lhwlkv45qmulu4zxxlmp0mee)/content.aspx?page=abnapplication

Terryw
Discover Home Loans
Mortgage Broker
terry@discoverhomeloans.com.au

Felicity

That is a good idea. That way you could encourage them to refinance rather than drag it on.

BTW, what do you prefer? The long term cashflow or the quick exit approach?

Terryw
Discover Home Loans
Mortgage Broker
terry@discoverhomeloans.com.au

It may improve cashflow, but if you do not have a loan on your PPOR or it is low, then you will probably not save tax, but will be paying extra tax on the profit you are making (Rent minus costs).

If you bought a cheap property and did it up while living in it, it may not be wise to claim it as your PPOR as this would mean you would lose your…[Read more]

Some also charge a settlement fee and lenders legal costs.

Terryw
Discover Home Loans
Mortgage Broker
terry@discoverhomeloans.com.au

You could go for No Doc loans, asset lends, where no income is required. For the main ones, all you need is an ABN for one day. max LVR is 65% for these.

Terryw
Discover Home Loans
Mortgage Broker
terry@discoverhomeloans.com.au

Hi

Could your husband’s employer put him on full time for a few while the loan is being applied for?

There is one lender out there that will do a 90% low doc/full doc for self employed with only 12 months history. The rates are high though, but you could possibliy get (after waiting a few months) in and then refinance to another lender in 12…[Read more]

Gannfan

Are you nervous because your wife is trying to get pregnant or because of investing?

When you say you can afford both, can it be done on one income while you wife is out of action with the baby? Long term, it would tbe the Wollongong one that would make you the most money, but the LO will put more money into your pocket now with the…[Read more]

I have done a few loans for hybrid trusts.

Terryw
Discover Home Loans
Mortgage Broker
terry@discoverhomeloans.com.au

Hi ShOw_Me_ThE_MoNeY

It looks like you might be a bit short on the deposit. You generally need at least 5% deposit and would need another 5% for costs.

Terryw
Discover Home Loans
Mortgage Broker
terry@discoverhomeloans.com.au

Hi Michael

I think you have to take any losses off the gains before halving and then adding to other income.

I also tend to agree with Yack, Manly is a very good area with good long term growth prospects. I would not sell just to buy another property.

Terryw
Discover Home Loans
Mortgage Broker
terry@discoverhomeloans.com.au

I think the earlier they get out the better. You will make your quick gains on the markup, and then can go and do another one to replace the passive income and get another deposit etc. So I wouldn’t put too much penalty, maybe mirror your lenders early exit penalty.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

It is hard to get development finance with major banks. A lot want to see a certain percentage of the units presold before they give finance. They will also look at previous record etc.

There are some small private type lenders out there. I have onbtained fiance for a few clients using these. The LVRs will depend on location and size etc, but…[Read more]