My company has its own 100% lend product. the interest rate is 6.45%, and some of the condition are;
Owner occupied only
max $300,000 lend
No units in buildings greater than 4 stories
no defaults
need 12 months of continuous employment
need 3% genuine savings
The LMI fee is 2.6% (!)
etc

As you can see it is very tough to qualify, as the risk is…[Read more]

To get certain low doc loans (ie good ones), you must be self employed (for 2 to 3 years). The way banks check on this is to do a search and find when your ABN number was registered. So it may be an idea to register now just in case…..

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

Another way, is You could borrow the 20% deposit from elsewhere (friends etc). That is the only way really.

BTW on the 100% lends out there the mortgage insurance is about 2.6% of the loan amount!

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

That sounds very strange and therefore I suspect it to be wrong. Can’t think of any reason why it would be correct.

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

If your PPOR isn’t paid off, then put you cash off that loan, and then get a LOC (or just a loan with redraw) on your home. Use this money as deposits for loans with a different bank.

Terryw
terry@discoverhomeloans.com.au

You could buy 4 properties for wrapping and make approx $16,000 passive income per year.

But you would have to pay tax on this, and then pay for your rent with after tax dollars. So maybe not a good idea after all. Depends on your circumstances.

Terryw
terry@discoverhomeloans.com.au

You can claim anything that is an expense related to your current earnings. If you have not IP you technically cannot claim it, but can it relate to your current job in anyway? You don’t need a business name either.

Terryw
terry@discoverhomeloans.com.au

6% return is very poor compared to average properties returning about 4%. Factor in the higher management costs, lower capital gains, and the difficulty obtaining finance and on-selling. I don’t think it is worth the risk!

Terryw
terry@discoverhomeloans.com.au

That table didn’t paste very well.

The figures for High growth property are:
10% capital 5% rental return Growth on property value
Year 1 $330,000 $16,500
Year 5 $483,153 $24,158
Year 10 $778,123 $38,906
Year 15 $1,253,174 $62,659
Year 20 $2,018,250 $100,913

The figures for cashflow property are:
5% capital 10%…[Read more]

Vluu

It is not hard to get aloan without a job, but it is hard to get a GOOD loan! I would get an ABN number now, so that you could get a good low doc loan. Some of these need 2 years self employment history, which they prove by the date of ABN registration.

You could use the $300,000 as security if it was a term deposit. But why? You could…[Read more]

Hi

I consider a proeprty to be positive cashflow when the income exceeds all expenses. Positive geared is when it might be negatively geared but then positve after depreciation and tax benefits are counted.

Any property can be made cashflow positive by wrapping it. doens’t matter where it is.

You could also change a negative cashlfow into…[Read more]

One of our clients is doing this at the moment. it is working really well for him nad has left him with 2 unencumbered properties. he hasn’t finished yet and will be very Rich when he does.

As long as you have a good margin in there you will not max out.

Terryw
terry@discoverhomeloans.com.au

The best way to find out what a property will rent for is to ring up some agents and pretend you want to rent a similar property and see what the going rates are. If you ask the agent while you are looking at the property to buy, she/he is likely to exaggerate a little.

Terryw
terry@discoverhomeloans.com.au

Nu Gen

The banks will still be able to get you whatever structure you use as they require personal guarrantees from directors and/or trustees.

Freeby

The best way to minimise tax is to minimise your earning. ie by paying for things with pre-tax dollars. eg. that holiday to the goldcoast, it was really a trip to inspect one of your properties,…[Read more]

I don’t have that much experience with deposit bonds, but was told by one company that they do a CRAA check. However, I have had a bond myself and no check appeared on my CRAA.

usually with loan pre-approvals the bank will check your CRAA. It is one of the first things some banks do. But with some you can request a pre approval subject to CRAA…[Read more]

Thank you fellow brokers!

Terryw
terry@discoverhomeloans.com.au

Mary

A Trsut will cost about $1000 to set up. All you have to pay after that is the tax return which should not be any more complicated than for an individual. Say $100 per year. Well worth it I think.

Terryw
terry@discoverhomeloans.com.au

Hi Chris

I only know of one good financial planner that is property focused, and he has just retired (early 30s). There are very few financial planners that know about property or recomend property, fewer still would know about wraps. Maybe you could see a solicitor to get an idea of the process and a wrap contract. Check out…[Read more]

Teylu. yes I am a mortgage broker located in North Sydney. Happy to help you when your ready

Well put aussierogue!

Goldmember

Terryw
terry@discoverhomeloans.com.au

Hi

Here are a few ways to get the deposits:
-Wrap- and get the $7000 FHOG as deposit
-Wrap Cashouts – reinvest back into more wraps
-Lease option – Option fees
-Buy under value – revalue and with draw equity
-Buy and add value – revalue and withdraw equity
-Buy under value – borrow based on valuation not contract
-Borrow deposits – offer family…[Read more]