It may depend on your circumstances. There are many low docs out there, soem with LMI others without. Location may be an issue with LMI so those without include:
Suncorp, upt to 80% LVR
ING
Adelaide Bank – both up to 76% LVR without LMI.

Incidently, other than these three, nearly all low doc loans are mortgage insured, but most times the client…[Read more]

To all those people getting a divorce, watch out for spouses with joint cards. We have seen more than a few clients with blisters on their CRAAs, that they did not know about, due to their ex spouses going out and spending up on the credit cards.

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

Yes it will be harder than the average loan. Banks will only lend on the value of the security and if you are buying a going concern, there may be some ‘goodwill’ built into the price. 40% deposit would seem about right.

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

I don’t know, but would think it would have to be market rents at least for tax purposes. And you would have to pay tax on whatever way you calculated it.

For loan purposes, you could get a letter from an agent indicating what the property would rent for, but if you are not receiving any money you could not use a figure for rent for…[Read more]

What I do is make an excel spreadsheet for each property, and they add up all expenses as they are paid. I then just print out this summary and give that to the accountant. That way he just has to plug the figures into his software and he is done.

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

Alf

Sounds alright to me. Selling the PPOR and moving into the investment is a great idea.

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

It wouldn’t be illegal, but some people have clauses in their contracts saying the tenant would need the landlord’s permission to sub lease.

One of my LO tenants did this (without my permission I later found out). He paid a small option fee, sublet and waited a couple of years, selling the property for a nice profit without paying stamp duty (he…[Read more]

Alf, why did they say no? Maybe due to not enough equity in one of the properties?

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

You will need around 20% deposit plus costs for a low doc.

Because you are self employed as well as paye, most lenders will want to see you business financials – they are worried that you may be running the business as a loss.

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

Kay

dunno. But some of these groups do seem cultish don’t they. It would make a good sociological study for someone (Ph.D Topic maybe). I have also heard that Robbins used to be a member of the mormons.

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

Jenman has actually put some conditions in there. One is that they cannot make their millions by running their own get rich quick seminars.

BTW, is this the guy that is also promoting MLM?

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

Dom

A few comments,

You have forgotten to list your existing rent, assuming you are getting a 5% yield, this would be about $615/wk (this may be too generous?).

You should be able to service a new loan of about $290,000. If you did not have children, the figure would jump to about $360,000.

If you could borrow the required amount, as your…[Read more]

Talk to your solicitor and accountants and mortgage brokers etc Someone with possible clients with money laying around. (Sorry, not me atm). Also relatives, eg one of my clients used his parents property to get a LOC and used that money to get started. Dangerous tho.

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

Personally, I would never fix any of my loans again after being stung with high exit fees recently.

Circumstances change and 15 years is a bloddy long time. What happens if you want to sell the property? or move the loan to another bank with better lending criteria to withdraw equity etc. You could be hit with very high break…[Read more]

X-coll is not too bad. You can just apply for a release of security for a cost of about $300.

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

Some banks allow a valuation from one of their panel valuers to be reassigned to them (eg Bankwest). So you could find out who is on their panel for your area, order the valuation youself and then if it is an acceptable amount you can proceed with the loan application and ask the valuer to re-assign the valuation to the bank. They will charge…[Read more]

I have found a new online trust deed provider with discretionary trust deeds available for about $135.
http://www.cleardocs.com.au.

I have a client who used them recently, and their deeds seem to be comprehenisive.

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

Why not post the offer directly to the owners and just bypass the agent. And/or ring the owners and tell them the agent is not putting offers to them.

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

I have no experience in this area, but imagine having separate titles would be a good thing as it could make it easier to sell off part of the farm.

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

It is probably best to start with a few in your individual names. You may not go any further than this. If you later decide you are serious, then you could go to the expense of setting up a trust. But all the cashflow from the intial properties will not be able to be diverted to the trust without you selling to the trust and this could mean stamp…[Read more]