I would personally never use one of these non-bank lenders for a number of reasons such as
1. There is no guarantee they will remain low. (neither are the banks)
2. usually high exit fees
and the main one
3. LMI is applied to the whole loan which could limit you in the future
and
4. difficulties dealing with them in the future
5. difficulties in trying to get an increase etc

I would only use a major bank.

1. yes, but check with the OSR in your state as you may lose your FHOG. It may be ok if you remain there too.
2. Doesn't work like that. If the tenant was renting half of the house you could claim half of the interest (not whole repayment) and other costs
3. If rented you could claim depreciation
4. yes. If you rented out half you would probably lose the CGT exemption on half of it. The little you save now may end up costing a lot in the future.

It might be better to put in a 'boarder' who doesn't pay rent, but pays a fee for expenses (fine line) and not declare it. you may not save any tax, but will not have to worry about paying CGT later.

will probably be able to keep it CGT if you buy in your own name and have no other property being your main residence at the same time.

Yes it is common in many cases, especially commercial ones.

no worries. its easy when you know where to look

Would you offer vendor finance for those unable to come up with the full $1? I have a client who could pay in installments at 7%pa interest over 25 years.

(sorry, couldn't help myself////////)

I have seent these sorts of sales on TV – it is a way of attracting people to the town and for the council to get more income from rates etc and for the establishment of jobs – there are usually conditions such as must build a house within 1 or 2 years, and must be owner occupied etc. Good idea

Hi.

Yes, can use FHOG for stamp duty etc (or buy in NSW where no stamp duty up to $500k). There are still a few 95% loans left, St George, Bankwest and I think Suncorp still offer them.

This comment referred to a previous version of the post. not to property options. Glad to see the change.

An option is a contract which gives the buyer the right to purchase the property at a future date.

You may be able to add the LMI to the loan so there is no upfront cost – but more interest in the loan run. This could enable you to buy more or stretch your money further.

On the other hand, $11k is a lot of money how much extra is the extra 10%? maybe work out what the return would be if you invested $x in the property (ie paying more deposit) you would 'make'' $11k.

It will be difficult probably to do all that you want. If you are on title you may lose your benefits, but if not then you can't get the loan in your name. I assume your mum can't qualify for a loan in her own name.

You could set up a trust and rent to your mum – she could possibly receive rental assistance too. But Centrelink may need to class your trust asset and income as if they were your own. This will depend on what sort of benefit you are receiving.