It sounds like you’ve already decided on the place. It is not good getting all of your loans mixed up like that, but you can fix it down the track by appliying for a release of security.

Cross securitising also doesn’t show you how much the bank is willing to lend in that area. eg it may have a policy of 80% LVR in that area. this may affect resale value.

Personally $14 per week is not much, unless it is in an area which will grow substantially.

Terryw
Discover Home Loans
North Sydney
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I agree with Mel. It sounds like it is paying for itself. How much has it gone up in value since you purchased it? And more importantly how much do you think it will go up in the future?

Terryw
Discover Home Loans
North Sydney
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Hi.

I guess it would also depend if she needed the money (that she would be using to pay off the loan) or not. There is an opportunity cost as the money could be used elsewhere.

What tax rate she would pay would also depend on if she is a resident for tax purposes, and what other income she has.

Terryw
Discover Home Loans
North Sydney
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I recall that a few years ago, the University of Western Sydney was running courses on property development. Don’t know if they still do or not, but it may be worth while contacting them.

Terryw
Discover Home Loans
North Sydney
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Further to what Steven wrote above, there are a few 100% loans avaialble, but these are not ideal products. They are very hard to qualify for – ie more stringent requirements. The Lenders Mortgage Insurance is about 2.6% of the loan amount (on one product at least), and the types of property that they can be used on is fairly restricted (ie no country proeprties). And at least one product is only available for owner occupiers.

Terryw
Discover Home Loans
North Sydney
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Rob. Just don’t tell them about the trust. Borrow in your name. The title will be in your name, not the trust. I beleive if you are the trustee, then just borowing in your name on behalf of the trust is fine (Have done it myself).

Terryw
Discover Home Loans
North Sydney
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Jarmbie
My understanding is that Macquarie cannot do low docs if you have just become self employed. You still need 2 years history (and the rate is more like 7.30%, but this drops down to about 6.50% over a few years). I htink Combank will waive the 2 year requirement if you have recently become self employed in exactly the same job (eg computer person changes over to sub contractor working at the same company).

There are some lenders that will lend for low docs with only an accountants letter (eg Tonto), and one that did low docs for PAYE if employed for more than 6 months (verified by phone call).

Terryw
Discover Home Loans
North Sydney
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Yes it is possible. Could be messy if your loans are cross securitised.

Terryw
Discover Home Loans
North Sydney
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What about somethign slightly different.

Buy your $300,000 home, pay down as fast as you can, then buy your dream home using the equity. Rent this dream home out, keep saving, paying down your PPOR and maybe even buying more property.

Then sell your PPOR, CGT free, use the money to pay down your dream home which now becomes your new PPOR. So far no capital gains tax. Then maybe you could sell one of your other properties and use that to pay down the loan on your PPOR. Then use equity to buy new IPs, and keep going.

Terryw
Discover Home Loans
North Sydney
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Hi Tom

I am just doing the same thing, putting the rent up in line with the CPI. I found the following page on the ATO web site:
http://www.ato.gov.au/taxprofessionals/content.asp?doc=/content/cpi.htm

Terryw
Discover Home Loans
North Sydney
[email protected]