having trouble

Ideally you will go in with a 20% deposit. If less you will need LMI. At 5% deposit this comes to about $3700. At 10% deposit it is about $2500. At 20% deposit it is $0.

Stamp Duty comes in at around $6000 depending upon your state.

Legals will be about $1500 – 2000.

Inspections about $600

There may be other minor costs associated with the loan depending upon the lender etc.

Hope this gives you a very rough idea.

Cheers,

Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Hello again tamtam,

Our first loan was 106% of the purchase price of the investment property (which gave us enough to cover related purchase costs). We used equity from our owner occupied house so there was effectively nothing out my own pocket and we got maximum tax advantages from the loan interest. This gave us a great start.

Your associated costs will vary according to the price of the property and the state that it is in-

Try out the realestate.com.au calculators-

http://www.realestate.com.au/cgi-bin/rsearch?a=loan&t=res%5B/url%5D

Todd Burns
http://www.freepropertyhelp.com.au

Yes there are lending institutions that will lend 100% and 107%, although the LMI is quite high on these types of loans.
Cheers.

Regards
Steven
Mortgage Broker

Mobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.au

PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.

Yes Todd that is the preferred option,
If you have equity then you can effectively borrow 100% plus closing costs without incurring LMI,

This being the case I would suggest separate loans to avoid X-Coll
E.g.,
Loan 1 @ 20% plus closing costs i.e. stamp duty etc, secured against current property.
Loan 2 @ 80% secured against new purchase.

Regards
Steven
Mortgage Broker

Mobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.au

PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.

This is sound advice if using equity as security. We spent a small fortune earlier this year untying all the properties that have become crossed due to the loans being x collaterised. If the expense wasn’t enough, the time it took was fustrating. So if you do borrow the full amount plus closing costs, follow Steven’s advice, it’s one piece of advice we wished we’d learnt earlier.

Good Luck
Pk

hi tamtam
sorry put must disagree with crusher as its not a 107% lend if you are putting up other equity its 80% lend and then the rest lend on the other equity.
If you are going to do this its is alot better to get a line of credit on the first property draw out on this line of credit to put in as the deposit on the second property and then there is no cross collat.
put that is once you have a property.
in your case you need to first find out how much you can lend, the best place is a top four bank, nab I like.
they will sit down, run thru all your info and you will come out with a figure and all costs inc approx legals and the rest.
then find a broker and he will better that figure.
next find a property say 200k
the next I am reading off a corn flake packet and not giving it as advice.
you get the vendor to either sell it for 240k and vendor finance back the 20% or give you a discount of 20%
there are as it says here on the side of the box, lots of other ways and its says don’t put these on any bulliten boards
but ha most brokers read these boxes anyway so have a chat with them.

here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]

guday dazzling
not heard from you for a while.the main problem and I am haveing it at the moment and mine arn’t crossed is that they look at service ability and if they are all crossed the lender says wooo if you get a problem you can’t cover these loans and as one is relient on another its a deck of cards problem.
even with my ellaberate structure serviceability is the main issue and when you have done term deposits for the 12 months of interest etc and serviceability is still an issue if its all crossed you have no hope andif you have gone even worse and put it with one lender my advice is to buy a shovel and a metal detector and go looking for gold as thats the only way you are going to get finance or in your case ( not sure what you go prospecting for oil with I sub pose an oil can).
if you think that you will be expanding at a fare rate then you are going to require funding and my advice is never do two lends thru the same lender in one year and give your lends out just like you would a tender to different people to get the finance.
maybe a little out side the box but I like that.
remember bank managers are really nice when they like you and they can lend to you, then when they can’t they change hats and can be unfriendly to your requests

here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]

Daz, I’m hoping that P.K will reply with a first hand more detailed account of her experience with X-Coll,
I don’t know her exact details but I suspect it went somthing along the lines of the following.

The negative aspect of X-Coll usually becomes apparent when you need to access available equity in order to move forward and receive the disheartening news from your friendly and up until recently obliging lender “we regret to inform you that your recent loan application has been declined”

Unfortunately Its not your perception of how much debt you can service it’s the Lenders assessment, and there reasons for decline could be as varied as, changes to our lending policy, you are to rent reliant, you are to highly geared, we don’t like your shirt, the point is there reasoning is irrelevant.

Its usually at this stage when disappointment turns to frustration when you realize in order to release a mere $30.000 (insert amount here) in equity from 1 property in the entire portfolio, you may be required to refinance 3 or 4 (insert number here) properties across to another lender, extremely time consuming & possibly expensive and in most cases could have been avoided.

Also, It is still possible to have multiple or an entire portfolio with the One lending institution and not have them X-Coll. Cheers.

Regards
Steven
Mortgage Broker

Mobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.au

PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.

Thanks Terry. Let me refresh your memory. Yep – that certain person was me. I was looking for a better rate, prudent I thought at the time to do due diligence against my current Lender…..however the results that came back were less money and higher rates from the 7 brokers that I canvassed, as compared with my Private Banker.

I suppose if you are Mr Smith off the street walking into a bank branch looking for a loan, perhaps a mortgage broker is the way to go. Compared to the better deals that are available and not advertised or distributed to the broking community….then maybe not.

Anyway, thanks for the input, from both you and Steve. We are reasonably happy with our financing and haven’t hit a wall yet. X-colled to the wazoo and loving it !!!!
[/quote]

Good to see you can keep going, but it would have been hard if you had to move one property to another bank.

Also remember, I did come close to getting you a better rate, but you failed to give me all the info. I think I could have beat what you were getting if I had known this.

Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

No corners necessary GR….

Thanks Terry.