Hi Matt

I am a mortgage broker, but have had no luck finding a lender willing to finance wraps.

Mortgage House in Liverpool claim to do it with full disclosure. There is also a company near newcastle somewhere caliming to do it (associated with Peter Solner).

Good luck.

Terryw
Discover Home Loans
North Sydney
[email protected]

You can only have one PPOR at one time. (Expect for a period of 6 months between proeprties when you can have two-allows moving time).

Terryw
Discover Home Loans
North Sydney
[email protected]

Getting a valuation out of CBA is very hard. They even refuse to give the mortgage broker the figure that came in on the valuation.

Terryw
Discover Home Loans
North Sydney
[email protected]

I think there are 4 lenders offering these loans including Bluestone, St George, CBA and another building society.

Terryw
Discover Home Loans
North Sydney
[email protected]

Mike

I thought we were talking about changing trustees? If the sole director of the trustee company is the previous trustee, then there should not be any change in beneficiaries – alto the new company would itself be a beneficiary.

There are some interesting articles on trusts available at:
http://www.taxlawyers.com.au/Publications

Including one on Trust Reseetlements:
http://www.taxlawyers.com.au/Publications/New/resettlement_of_trusts.htm

with this quote:
Can I appoint a new Trustee for my Family Trust?
Changes made to the Trustee do not by themselves result in the ATO deeming a new Trust has been created. However if, in addition to a change in the Trustee, other fundamental changes to the Trust have been made that alter the nature and character of the Trust relationship between the Trustee and the beneficiaries then the ATO will deem that a new Trust has been created.

Well worth a read. And Sebastian check with someone before you change trustees!

Terryw
Discover Home Loans
North Sydney
[email protected]

Aussie mike, are you sure about this. I have asked Trust guru Dale GG about this in the past and he seemed to think it could be done without paying stamp duty and was a matter of filling in some forms indicating a change of trustee.

Sebastian, it may also trigger a CGT event if there is a change in beneficiaries etc so it is best to get some advice.

The loans will also be affected and it would probably be like a refinance.

Having said this, I have never done it nor seen anyone change trustees.

Terryw
Discover Home Loans
North Sydney
[email protected]

Nathan, Some answers:

1) Yes and no. The tenants could argue that this is a favourable purchase as they have an option on the property. If the LVR is less than 80% they should be able to get finance based on valuation at the time of cashout, not what they are paying – provided they have the income to service. On higher LVRs than this the mortgage insurers must be involved which makes it harder, but it may still be possible.

2) I think it is best to leave yourself a bit of a buffer and stay just below the clients strike price – otherwise you would have to pay money out of your pocket when they were to cash you out.

Terryw
Discover Home Loans
North Sydney
[email protected]

It is generally around 70 to 75% LVR, but you may be able to get 80% using a second mortgage.

Citibank have a good product where they will assess the application on the rental income only of the property.

Terryw
Discover Home Loans
North Sydney
[email protected]

You could just apply for a release of security with your existing lender so that you home is not used as additional security for your IP (crossed securitised). The LVR is nearly 80% at the moment.

Then, you could borrow up to 80% of your home, using a LOC or redraw etc. This would release another $170,000 approx. which could then be used as deposits on a few more properties. But this would also depend on your serviceability (ie income to service the loans).

Terryw
Discover Home Loans
North Sydney
[email protected]