As the boys have stated – this IS a commercial loan. In which case your ‘income’ is not so important – the most important thing is can you afford the debt for the project. This may involve using other assets you have (but you have indicated you don’t have much else), or pre-selling the units in order to clear the debt upon completion. Please…[Read more]

That’s correct jazz, as long as the property you’ve bought is not a commercial property – then it gets a bit more complicated.

Maria if you are having problems with affording your own place, that means that you are either limited by a) your income or b) your savings. For most people starting out the limiting factor is your savings. Therefore you have to buy a property that allows you to use maximum leverage, which may mean going up to a 95% LVR lend.

This is where the…[Read more]

Maria,

They are being built for several reasons:

1) As a developer, selling the student accommodation to a hapless ‘investor’ yields the greatest return. Student apartments are typically about 23 sqm, and they can sell to some idiot for $10,000 a sqm. Since they are small, the developer can fit heaps of them in one development – hence maximising…[Read more]

Technically speaking the rental income from the property has to flow to the person who owns it.

However, what can happen is an arrangement is made between you and your friend, so that all the rental is paid from him to you. The agreement would have to be in writing (preferably) and detail why he is paying you the rental – perhaps it could be in…[Read more]