I would probably pay $50,000 off your home loan and then get a LOC on this property up to 80%.
-Use this LOC (Line of Credit) to pay for the 20% deposit and costs of the new purchase and then get another 80% loan for the remainder.
-New loan should be IO.
-Home loan should have a 100% offset account attached where all salary and rents etc go.
-Use a credit card with points to pay bills and leave the money in the offset as long as possible.
-Borrow from the LOC to pay all expenses related to the new investment property such as rates, insurance etc. Keep the cash you would have used for this in your offset account.

Talk to your accountant on borrowing any short fall from the interest repayments – rental income.

Borrowing to fund investment expenses frees up money for the offset which saves non-deductible interest.

Here are my versions of answers:

1) should be similar to getting finance in your own name.
2) You could gift to the trust or lend to the trust. There are different tax and asset protection issues to be thought out with each of these.
3) Yes, even if you are not specifically named you may still be a beneficiary. the deed should be worded such that any relative of a named beneficiary is also a beneficiary. this could include non blood relationships such as marriage or defacto or adoption etc

4) Some lenders may assist – but I agree with Richard that it may be unlikely.

I agree with Richard that this will be an expensive exercise – with all the costs added up you may be able to afford another property. But if you are going to do it, now may be a good time with the recent price drops minimising the gains.

 For asset protection you may be able to do something much simpler such as increase the mortgages, or provide second mortgages to a trust etc.

Looks like you have been misinformed. You can have the existing home in joint names and the new loan in just one name – the other party not on title will have to provide a guarantee though as their security is being used. you can do this with separate loans too.

you could but………..

The trust will own the property so only it can claim any losses. Trusts cannot distribute losses, so unless your trust has other income it won't help you save tax now – the losses will carry forward and can be used to offset future income. ie you cannot personally claim the losses or reduce your own tax.

You will also be up for stamp duty and will lose the CGT exemption status on this property.

wat dii.

try http://www.guardianpartners.com.au

Did you know that rent rolls are valuable and can be sold. Maybe you could get a few friends together, do the real estate course and get licenced. You can then sell the roll – you will get around 1 to 2 times the annual income.

eg. if you had 6 properties renting for $400 pw = $28800 pa. in rent. at 8% management fees = $2304. sell at 2 times = $4608.

It may not be much, but imagine if you had 20 properties or even 50 properties.

Hi Richard

There have been some big changed within finance over the past year. No Doc loans have vertually disappeared and now Low Docs. Any one with a bad credit history is having a very hard time. Many or most of the small private type lenders have disappeared. It is very hard, if not impossible to get a loan for development based on end value.

Many people have short term loans which will need to be refinanced within 1 or 2 years. Many of these are maturing soon.

Cashbonds are old stuff. Don't know of anybody actually using them nor anyone who did use them- it was good in theory.

Hi Pete

Trusts can get the same LVRs as individuals. 95% or maybe even 100%.

If you guarantee a loan you will need to declare this if you apply for subsequent loans – not matter which name/entity.

One advantage – maybe the only one – is that if you have one loan on two properties then you may avoid deferred establishment fees on the sale of one property.