not all valuations come in low. One of my clients purchased a unit and the valuation came in at 20% more than purchase price. The bank ended up giving him a 95% loan with no mortgage insurance.

Terryw
Discover Home Loans
North Sydney
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Dino

Offset accounts must be in exactly the same names as the loan accounts (Something to do with ATO regulations).

I agree with Melbear pay off your home loan and then borrow – which sounds like what you were planning to do.

But check with an accountant about gifting money to a trust. This may be a good idea from an asset protection point of view, but if it is a gift, you may not be able to claim the interest. If you loan the money to the trust you should be able to claim the interest, but if you are personally sued the trust technically owes you money so creditors may be able to call in this loan.

Also check this, you may be able to park your trusts money in your personal offset account until it is distributed-saving you interest on your PPOR.

Terryw
Discover Home Loans
North Sydney
[email protected]

Molkenr
Don’t bother even looking. Just go for Dale Gatherum Goss himself. He is located in Victoria (which could result in tax deductable trips!). And you can do everything via mail/fax/phone. I think his web site is http://www.gatherumgoss.com .

BTW Dale is author of that book, Trust Magic_

Terryw
Discover Home Loans
North Sydney
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This is an dangerous strategy right now. Many think that the property market has peaked. And you don’t seem to be in a good fiancial position as it is. Just be very careful and don’t believe anything the real estate agent is telling you without doing your own checks.

Just this week I had a client that had purchased off the plan 2 years ago using a deposit bond. The person does not earn a good income and has a very small deposit and the FHOG. In addition the property is located in an area where LMI won’t touch. The value came in less than the contract price, and due to the low growth and low income that person cannot get finance. They are now going to probably be sued by the developer.

Terryw
Discover Home Loans
North Sydney
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it doesn’t really matter that much. Use the Ip equity first and then the home equity. If things go bad you will want to protect your home first.

Terryw
Discover Home Loans
North Sydney
[email protected]

I would just use a credit card. Short term finance is usually at a rate of around 10% per month.

Terryw
Discover Home Loans
North Sydney
[email protected]

you could still buy your share in your trust and they could buy their share in their own names-or their trust. You could also setup a unit trust and have 50/50 ownership. You existing trust could hold the units in this trust.

It depends on how many you are going to buy together. It may not be worth it to set up a unit trust if you just do one property.

Terryw
Discover Home Loans
North Sydney
[email protected]

If you have the income, work history etc, then you can get your first property with about 5% deposit. You can get your next one with 5% as well. As long as you can service and have the deposit or equity, then you will be ok.

Terryw
Discover Home Loans
North Sydney
[email protected]

I know a lot of people wrapping in Sydney. You don’t have to wrap cheaper properties, you can get bigger returns and less work by doing some big ones.

Terryw
Discover Home Loans
North Sydney
[email protected]

Guieseppe

It depends how risk adverse you are. Some people like to buy as many properties as quick as they can. If you changed the repayments to IO it would be about $144 per week. This would free up some money for the next one. In my opinion it won’t matter too much if it is positive by $10 per week or negative by $10 per week, as long as it is growing you are doing alright.

Terryw
Discover Home Loans
North Sydney
[email protected]