If you are having a problem with the concept of investing for cash flow and developing an unlimited borrowing power then maybe you should have a rethink and read the new Book from Robert Kiyosaki 'Conspiracy of The Rich: The 8 New Rules of Money'you can read it for free here: http://www.conspiracyoftherich.com

As an Expat I assume you mean you are Australian living overseas?Citibank will help you out and there are others I try to discourage people away from using the majors for what they have done to Australia's financial markets they are just greedy.Your plan for the land would most differently work with a verified 80% Loan, all you need to is show…[Read more]

But of course there is a different way and that is to Buy low sell high and reinvest the profit.

It all depend on the purpose for the purchase of the land and how you or going to claim the service of the loan.If you are buying it to build and fully verify your income then most of the lenders are happy to lend you out 90% but over 80% will incur LMI and they place their own restrictions and the cost can change the deal.Please don't just go to…[Read more]

As long as the LVR is <60% most lenders will look at this once you go over 60% you will incur LMI and LMI will place a lot more restriction on your abilities to borrow.Rather than go to the main banks try some of the smaller lenders like building societies or other second tire lenders you will find then much more accommodating with this type of…[Read more]

All land loans are either 60% LVR or there are a few lenders offering out to 80%

You have to remember when Steve was doing this strategy the world was a very different place money was a lot easier to organize, loans were a lot smaller and where they were buying properties were cheap and easy to rent. so if you have assets that pay for themselves your actual borrowing power is unlimited.ALso in those days there was the being of…[Read more]

single person Bank calculated living expenses $13.344paNo debt no dependentsIncome $80,000pa GrossBench mark 8%max borrowing = $503,385

this was just a scenario never to be used as advice And Noted That "all parties must be in agreement". Or should It be said that the terms and conditions need to be set out in a fully signed and witnessed legal document set out by legal representation. starting that the age patent are of sound body and mind and want to help out their child.

Fine in that case I will leave it in your very capable hands and hope you can help him outCheers

Hi Jo The only way you have any hope of doing this deal is going directly to the NAB rural section, if you really have your heart set on doing what you say here, then they are possibly your only hope that will look at you.They will want to use the equity in the IP toake over the loan and cross the two properties to keep the land loan down under…[Read more]

Hi Hany & BootlaceYes you are both correct in your suggestions but the facts remain that John has 240K debt and asking for something that does not exist any more and that is 100% loans. In today financial climate to do what he wants he first needs to restructure his financial situation clear all bad debt and set up a savings plan. The bubble has…[Read more]

ElkaI agree with Richard about offset accounts and the loan structure of a basic mortgage for Alex. I never recommend off set accounts to anyone you are far better off putting any extra money straight against the principle in a free redraw facility making sure you have direct access to that money at no cost.I never deputed Richard's credibility as…[Read more]

Hi Richard.as far as tax is concerned here we are now talking not two different loans. but  we are talking about two completely different scenarios for Alex.1. Alex goes into Bad debt and buys more expensive property!Dad lends Alex $360K and Alex Borrows $70-130K purposed to purchase owner occupied property $440-$500He gets $14k from FHOG and has…[Read more]

Anything over 80% will incur LMI, when they are involved they want to see where the deposit money is coming from and want to see records of genuine savings. you can pay up to $10,000 for high end LVR loans over 95%. the old Rams were good for this as they were able to over come the LMI problem by providing in in house Mortgage insurer but now they…[Read more]

the Comparitive Actual Rate is a column on the comparison rate sheet that shows what the actual rate is when all costs are added in to the loan.

Sorry for assuming alexz1011 is a young person. When mentioned "just started work and Dad will help me"and  In my defense: yes you are right any bank will jump at this LVR only thing that may be a hiccup is the work history. But I have found that the banks do put different conditions on younger applicants.[If your Dad is willing to put up the…[Read more]

OK here is a reply from a mortgage broker, would love your business But in all truth here is a suggestion.With your age and length of employment, no bank is going to look at you for any size loan in this climate, you will need to wait for things to change or you have more than two year continued employment.If your Dad is willing to put up the…[Read more]

What will kill this deal and what has kill most of these 100% lend deals is not so much the banks as the Mortgage insurer. Both the mortgage insurers Genworth an PMI require evidence of 3% deposit and 3 months of saving history. Any thing to do with LMI above 90% is becoming a costly nightmare. Saltiimbanco you have a $110K income and if this is…[Read more]

Why is any one still using the major banks and believing all their BS don't you realize they have a policy of dirty tricks that you have to pay for that discount with annual fees, hind cost, force to take out credit cards, other accounts and services that you will never need or use. When you are looking to purchase property you are looking for 1…[Read more]