Anyone know of one that can add LMI to the top of the loan? St G can still – any others?

Hi

It may be wise to keep your cash for personal expenses that may pop up. If you use it all now you may be short later. You may be able to set up a LOC on your home and then use this for the 20% deposits and then borrow 80% of each new property. Get a 100% offset account on one of these and keep your cash in that to offset the interest.

That is one approach. Another is, leave your PPOR unencumbered – keep it safe and then use the cash as deposits.

All depends on how far and fast you want to go I guess

Don't forget it you have positive geared property you will need to pay tax on this income.  This income will increase over time as rents increase. Also you will need to fund your own increasing rent paid with after tax money.

And, you may not intend to sell, but probably will for various reasons. You could also be leaving a tax problem to children or beneficiaries.

in your eg. $350 x 52 = 18,200
Price is $400,00
yield is 18,200/400,000 = 4.55%

Have a look at rough rents in the suburbs you are looking at and the rough prices and work out an estimate. When looking at properties ask the agent what hey will rent at (and take off 10% for exageration!) and then call up pretending you want to rent a similar property and see how much it is.

It will be hard for you, as you will need around 5-10% deposit and demonstrate 3 to 5% genuine savings excluding the FHOG. Also you will probably need a financial positive position (ie own more than you owe).

So try to sell that boat and pay off those loans asap and keep saving. And, it may be wise to open an account with ST George now as they will only lend 95% to existing clients with 6 months account history with them. You may not use them for the loan, but best to prepare just in case.

St G is one that lends to 95% still – but you must have been a customer with the bank for at least 6 months prior.
Bankwest can also do 95% on the higher interest rate product.

Yes, it can be painful have to give back all your upfront – but it doesn't really happen that often.

Hi Craig

The FHOG and stamp duty concession adds up to a lot of money. You will also not get a CGT exemption on the property if it is owned by a trust.

Have you considered buying in your names and moving in for 6 months and then out again. This way you get the FHOG and can keep the property CGT free during an abscence of up to 6 years and claim negative gearing benefits. When it turns cashflow postive move in again.

There is only one sort of trust that is worth buying a property in and that is a discretionary trust.

That is not enough info to decide

How much CGT and selling costs will you be up for? How much stamp duty on the next one? Is your PPOR paid off?

Do you realise you will be selling one property to buy another? that is what it boils down to

i agree

Bankwest don't like trusts at all now. Unless you have an existing loan with them it may be impossible.

ANZ will not allow trusts on the low doc etc

But if your trust has a person as trustee, then it would be ok.