Ben

That is a good strategy that you have described. ie set up a LOC (or redraw, it doesn’t matter) and then take deposits from this account for the new IPs.

When you go for future loans, the lenders will want to assess yuor serviceability on the full limit of the LOC, not just the outstanding balance, so it will affect your serviceability in…[Read more]

try

http://www.creativerealestateinvesting.com.au

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

Jarmbie

That’s correct. Even if the company owning the property has just been established, Macquarie (an virtually all lenders) will lend to the company. But to get a low doc loan, the director or applicant must be self employed for at least 2 years. This is proven by the date of establishment of the ABN.

Terryw
Discover Home Loans
North…[Read more]

Damon

I didn’t know the govt still discriminated (except in super), I thought a defacto was a defacto.

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

Your current lease probably prohibits this without the landlords written permission. So start by checking it, and then write to the owner if necessary.

Becareful of things like damage to the property. If the new tenants damage it, you will be liable to the landlord.

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

hi Freedom

Not many people get fixed rates on low docs. There are a couple of good lenders out there such as:

Integris Low doc
Var, 7.30%
3 yr fixed 7.57%
5 yr fixed 7.73%

Macquarie Bank Low Doc
Var 7.30% (this rate gradually drops by 0.8% over 3 years)
3 yr fixed 8.05%
5 yr fixed 8.15%

If you were to fix with Macquarie, you would not get the…[Read more]

Ian

It seems too good to give up. What about investing in other areas.

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

Bill

I have had a few similar problems. It seems that there are some virus’ going around. (I have the latest VET program, but have been receiving a few)

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

Try Lewis O’brien. (search on google?)

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

Skippy. yes you could use the LOC. The bank may try to use the contract price, but if you say you have done some substantial improvements you could get away with a new valuation being done. But you also have to convince the valuer it is worth more than you paid for it-thats the hard part.

If you are going to sell an option over the security…[Read more]

It sounds like you’ve already decided on the place. It is not good getting all of your loans mixed up like that, but you can fix it down the track by appliying for a release of security.

Cross securitising also doesn’t show you how much the bank is willing to lend in that area. eg it may have a policy of 80% LVR in that area. this may affect…[Read more]

I agree with Mel. It sounds like it is paying for itself. How much has it gone up in value since you purchased it? And more importantly how much do you think it will go up in the future?

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

Yes that sounds correct. Depending on the postcode, you will probably need at least 20% deposit for an inner city place.

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

Hi.

I guess it would also depend if she needed the money (that she would be using to pay off the loan) or not. There is an opportunity cost as the money could be used elsewhere.

What tax rate she would pay would also depend on if she is a resident for tax purposes, and what other income she has.

Terryw
Discover Home Loans
North…[Read more]

Yes the site fees would be tax deductible if you were renting it out. But these sort of investments are high risk as you basically have no security. Depending on what sort of contract you have with the park, you could lose everyhitng if the place closes down.

If you are only going to make $2000 per year for $40,000 investment, then that is only a…[Read more]

I recall that a few years ago, the University of Western Sydney was running courses on property development. Don’t know if they still do or not, but it may be worth while contacting them.

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

Elves

Sounds like your cross securitised.

Any lender will be able to lend you more than 100%+ of the purchase price if you are using two or more properties. I htink Young Investor was referring to 100% finance based on the one security.

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

Further to what Steven wrote above, there are a few 100% loans avaialble, but these are not ideal products. They are very hard to qualify for – ie more stringent requirements. The Lenders Mortgage Insurance is about 2.6% of the loan amount (on one product at least), and the types of property that they can be used on is fairly restricted (ie no…[Read more]

None my clients has ever had to pay extra for getting a loan thru a trust, but I too, have heard of that (somewhere???).

Generally loans for trusts would be at about 90% LVR max-if a corporate trustee, if an indivdual trustee, then 95% LVR is possible.

You do not need 2 years trading history. You are able to get finance thru a new trust…[Read more]

Rob. Just don’t tell them about the trust. Borrow in your name. The title will be in your name, not the trust. I beleive if you are the trustee, then just borowing in your name on behalf of the trust is fine (Have done it myself).

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