I think that Destiny recomend St George's portfolio product. It is a great product for a LOC, but a slighly higher rate than the standard variable loan.

I to would never recomend cross collateralising your properties – too restrictive and hard to untangle later. And, if you are going to get a LOC i would recomend you only do so for the excess equity in your property. Using a LOC for a standard investment loan could be a disaster from a tax point of view.

The problem will probably be that you have a company as trustee. That means the legal owner will go on the title ie company, but the loan needs to be in the name of the unit holder. That is the main problem that banks have = loan in a different name to the title.

St George used to be ok with this – but I haven't run across a HDT for a while now so not sure if they still do.

On the title deed the name of the legal owner appears. This is the trustee. The name of the trust doesn't appear on the title – just usually on the contract and loan documents etc.

Hi Mick

Have a look at any first year law textbook on contracts such as "contract Law in Australia" by Carter – btw you can pick up very cheap books in the 2nd hand uni bookshops.

It looks like contracts for land must be in writing and must contain the following essential terms (the 3 ps)
– Parties
– Property
– Price

The document must also be signed – signatures can be in many forms too, eg. a secretary signing on your behalf in front of you.

All these requirements need not be on the same document too, they could be spread out over a few documents of different dates.

Hi Anne

Sounds  a bit vague doesn't it. Some of Spicers books are years old now and tax rules have changed. Some of the stuff which he promotes or hints out would be illegal too – eg hiding income in tax havens and not declaring it.

Yes, it does seem pretty good. thanks for the post

What about St George – they used to do 100% loans.

Hi Anthony

Thanks for your comments. You make some good points. I will have a look at that ID you mention and would appreciate it if you could send me a copy of what you have from the ATO.

btw have a look at the pdf files on http://www.bantacs.com.au. there is a lot of info there on this sort of thing.

I studied property law last year and from memory you need to be in possession of the property for a min of 12 years and there aer some other conditions such as the possession must be open, not secret etc. I can look up my law books if you wish.