It would probably depend on the amount of rent compared to the interest. If you will be making a loss, then you may as well claim it, if making a gain, then you will be paying extra tax.

Don’t forget to take into account depreciation, interest, loan establishment costs etc.

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Sometimes you can argue the case, and get them to do a full valuation.

If you are increasing your loan, then the repayments will naturally increase, but these extra payments should be attributed to the new purchase.

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Carlin

You just apply for a loan increase. Tell them it is for further investments. very simple. Some banks may only require a shorter application form to be filled out, depending on the amount. Many banks allow valuations to be done every 3 months.

ANZ is a good bank for increases, under $100,000 it is only a 2 page app form, and they allow a valuation for free 3 times per year if you are on the breakfree package.

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Like some sort of wrap.

Yes this will effect borrowing capacity as you still have a loan. But they are paying this, so you can declare this as income.

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Kiwi

Who approved the release of deposit?

The deposit was used to pay agent’s costs, so what happens if the sale falls through? Agent will probably have a clause in there to enable them to keep the deposit. You would have to chase the vendor for it.

Don’t think you can blame the solicitor for anything.

How much is the shortfall?

The lender won’t be happy either. They may have to face a loss if they foreclose on the property and then sell it for less, so you may be able to negoitate with them. You can find out who the lender is by doing the mortgage search.

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Hi Kiwi

This actually happened to me a few years ago. What I did was negotiate with the agent to take a lesser commission (he wanted to save the sale and get at least something out of it).

In your case you may be able to do the same, depending on how much the shortfall is. You can get a copy of the mortgage throught the land titles office, so you know how much you are dealing with.

The owner may have got a 95% loan initially, and then an increase while the market was high. Then the market dropped.

There is not much you can do. Either give up or complete the purchase by putting in more money, and then chase the remainder from them.

You cannot just put something against their credit file. You will first need to take them to court, sue them, and get a judgement – should be easy to do on your own.

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Yeah, brokers shouldn’ advise on structures unless qualified in accounting or law, but they may be able to give some suggestions for you to research.

I think Steven from this forum is in Melbourne.

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try http://www.lawcentral.com.au
look at the buying a house togther agreement, etc.

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A caveat would prevent them increasing the loan or changing the loan type. Lenders will do a title search and find the caveat and will not, and cannot, settle while the caveat is still there.

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Some branch managers used to have, and maybe still do, the authority to approve loans up to a certain level of LVR and amounts.

These days, data is entered and the loan is usually approved by computer. If rejected, then it may be manually assessed. There may be some slight discretion, but not much usually.

Some lenders have LMI people actually sitting in their offices, and once the loan is approved by the bank, it must then be approved by the LMI person – if LMI is applciable

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