I’ve looked into borrowing from Japan. It can be done if your are working there and earning Yen. LVRs are around 70%, and there can be margin calls if exchange rates move suddenly. Also if you stop working and leave the country, you will have to convert the loan to AUD. I looked at NAB, but other Aussie banks should offer similar products. rates are about 2%!

Terryw
Discover Home Loans
North Sydney
[email protected]

I use TPG ADSL at the office. it is pretty good, but has a few problems every now and again, but that is due to the telstra network going down aparently?

Terryw
Discover Home Loans
North Sydney
[email protected]

Kaybeesee

You could still get a quantity surveyor in and claim depreciation of fittings such as carpet, hotwater system, ovens etc. I have a few really old properties (built 60s and 70s) so haven’t bothered myself, but it may be worthwhile depending on the quality of the fittings.

You can also claim travel expenses, borrowing expenses (ove 5 years) etc.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi Bear

Yes, that is one way of getting finance based on valuation. if your LOC is large enough, you could pay cash for a property, do it up a bit, and then get a loan on the property to release teh cash abck into your LOC (ready for the next one).

Terryw
Discover Home Loans
North Sydney
[email protected]

One of the main problems is mortgage insurance.

The mortgage insurance companies (GE and PMI) have policies which exclude certain areas. Some of the (mainly smaller) lenders have all of their loans mortgage insured (even on LVRs under 80%), so this restricts their lending a bit.

However major banks will usually lend for most areas at up to 80% LVR (no LMI involved), if not higher.

If you wish to check if a postcode or location is on the ‘acceptable postcode list’ of one mortgage insurer, PMI, go to their website:
http://www.pmigroup.com.au/locationWizard.asp
and you can do a search and see up to what LVR they will lend to.

eg postcode 2880 (broken Hill). They will lend for loans up to $350,000 at 95% LVR, and higher amounts at reduced LVRs.

Hope this helps.

ps. Rural properties are a different ball game, the LVRs for these are generally lower depending on size, location and use etc.

Terryw
Discover Home Loans
North Sydney
[email protected]

Just go for Dale GG
http://www.gatherumgoss.com.au

Terryw
Discover Home Loans
North Sydney
[email protected]

Westan

The mortgage contract will specify what you have to do. eg with one of my ANZ mortgages it states:
“If anyone succeeds me as trustee of the trust, I will make sure that my successor executes whatever documents ANZ requires to ensure that this mortgage is binding on my successor”

If the loan is in the trust’s name and you are guarranteeing it, and you then set up a company with yourself as Director, you would still be guarranteeing the loan anyway. So there would not be much difference, but a few forms will need to be filled out.

Terryw
Discover Home Loans
North Sydney
[email protected]

not all low doc loans are mortgage insured, but banks are already hedging their risks by having lower LVRs and higher rates for these loans. I don’t think they have a higher default rate than the normal loans either. And it is not just people who do not have the income that use them. Many people just use them for conveniance too. If you are self employed with a few companies and trusts it is a real hassel providing all the tax returns etc

Terryw
Discover Home Loans
North Sydney
[email protected]

if it relates to your earning an income, then it should probably be allowable. You just have to be able to justify it if you are audited.

Terryw
Discover Home Loans
North Sydney
[email protected]

I don’t give anything to tenants. but sometimes buy investment books as presents to ‘loved ones’ and then claim the costs as a deduction.

Terryw
Discover Home Loans
North Sydney
[email protected]