Hi Anthony

The trouble is not with the banks, it is with the mortgage insurers. There are only two in the whole of Aust. Generally mortgage insurers won’t touch overseas residents. I am not sure, but maybe you are an overseas resident for tax puroses, even tho living here???? If we can argue that you are a resident, then it may be possible. I’ll make some enquiries and get back to you.

Terryw
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Sounds like you just have to keep comming up with deposits. Wrapping property helps as you get the cashflow and small deposits. So you wil have to just save like mad, reinvest all profits, wait for a few cashouts or take backs and/or find investors to supply deposits.

Terryw
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What he can do is buy the land, then get a mortgage. When he wants to construct, he then gets a construction loan with the same bank. It is not a second mortgage, but an increase in the first. Many banks will lend based on a % of the end value of the project or a % of the construction costs.

He must still have a good enouggh income to qualify.

Terryw
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renaeg

Don’t be too impatient!

If your properties have no potential for capital growth, if may be better to sell them now, and reinvest into something better.

Otherwise, just keep saving for the deposit on the next ones.

Terryw
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Steamtrain

Having a trust would benefit in many ways:
– Allowing you to sell your property and yet still keep it, (like selling to the wife)
-Asset protection
-Tax minimisation

I wasn’t suggesting your sell your PPOR to the trust, but that is another option too. I mean’t sell one or more of your rental properties to the trust, put the proceeds off your homeloan and borrow big for the purchase, converting non-deductible debt into deductible debt.

Terryw
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Simon has some good advice above.

It depends on how far your plan to go. If just one property, then probably your own names, but if many more, than talk to your accountant about structures. But also talk to your mortgage broker too in conjunction as some structures will hurt your serviceability. eg getting one property in three names will mean, when going for hte next loan, you will be assessed on the whole debt (not just your share) but only 1/3 (your share) of the rent will be included.

Terryw
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checkout http://www.lawcentral.com.au for agreements.

Terryw
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You should be able to purchase a lease cheaply, $25 or so.

Terryw
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Steer clear of American stuff on investing , it almost always has no value and will just confuse you with all the hype.

Terryw
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They can also be obtained for free by faxing baycorp with your details and signature. Takes about 2 weeks to get it via post.
I suggest you get your clients to get their own and provide you a copy.

If you want to check rental history, you will have to ring all their previous managing agents. Be wary if they say there was no agent and they were renting from Mr X – who will probably turn out to be a friend of theirs.

Terryw
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