To add to Richard's comments, the idea I suppose is that there's nothing to stop you from pulling out all your funds in the LOC tomorrow, in which case you would have a hard debt of $250k which must be taken into account.

Alan you might want to check your figures a little. It's likely salt has made an assumption of getting $600 per week in rent which provides more income. Similarly, in working out the borrowing power, the new debt would be investment debt, and so salt would have added in negative gearing benefits. which further enhances borrowing power.Finally,…[Read more]

Your lease should identify how to calculate it. In a standard LIV lease, for instance, look under the definition in the lease for "Consumer Price Index" and you will see that it states "All Groups" for Melbourne as being the correct CPI figure.

David,The process is as follows – the bank will determine whether or not to give you the loan based on 2 criteria:a. Capacity – this includes things such as whether you can afford the loan on your 75kb. Character – this includes your willingness to repay the debt ie your credit historyc. Collateral – the valuation of your property1. The bank will…[Read more]

Andrew is right, paid defaults under $500 should be allowed under CBA policy.

We obtain a credit report for free within 24 hours for our clients. It might be that there is another default that you are unaware of. Saves you 30 bucks or 10 days, however you want to look at it. They have the ability to approve this deal in house, rather than send it…[Read more]

Poto, you can easily get a 95% loan + LMI as an interest only facility.

Consider the following:hello out there, I am in need of advice well it all starts like this:My wife and i are looking at buying a friends house off him to live in. We will rent out the unit we are currently living in to start off our portfolio. We are hoping to achieve a rent of $___ for our unit.The tricky part is his house has been valued at 33…[Read more]

kev2008 wrote:
hello out there, i am in need of advise well it all starts like this imy wife and i are looking at buying a friends house of him to live in and rent out our unit we a currenlty living in to start of our portfolio.now the tricky part is his house has been valued at 330,000 and has been offered to us for 290,000 but because we still…[Read more]

Agree, agree and agree.Doesn't matter if it's your first property or your 10th. The right structure should be interest only with 100% offset – ot saves you money and allows for flexibility.Using duckster's example, a person came into my office and wanted to refinance an investment property that they had paid off 2 years ago that was on a P&I lo…[Read more]

Also depends on how the building contract is structured ie if house + land package and you pay using progress payments. Typically if it is lodged through the bank FHOG is given when the slab is poured.

Sorry to hear about the divorce. Please provide details. Thanks.

Rastuss,You should avoid cross collateralising where possible, and it looks like you probably can in this case.Pull out more money from your existing property as a separate split, then borrow against the second property to make up the difference (or more). 4 loans should not really be that confusing, as long as all of your money goes into one…[Read more]

Hi Dave,The trust is usually set up by a property lawyer. It is the lawyer's job to "think" of every possible scenario that could happen and make sure that there is a way to deal with it. This is known as a "precedent". The lawyer lodges the trust to get stamped at the relevant government office in your state.Shoot us an email and I can introduce…[Read more]

Terry's right.

Mate,There's no postcode restriction!!

Hi nooby,How about that? My brother is also stationed in Darwin with the defence force! His wife is a lawyer there too so she might be able to give you a proper legal answer if you like.I am of the understanding though that if you are just sharing a room within your house then it will have no effect on either of your questions. Cheers,

Hi Jamie,Unfortunately looks like your family member is slightly misinformed. Above 80% should be fine.Good luck with itHany

St George have just tightened up their policy on 100% loans even further.Commitment cover ratio is now 1.25% (as opposed to 1.10%) which means you'll be able to borrow less…

RAMS will still give you 100%. But their approval times are horrendous.The 100% loan I would have to say is a dying beast.

Agree with Richard. CBA's is quite a pain to operate.That being said, there is some value is 'separating' the extra repayments.