You can still setup the PPOR purchase such as that, without requiring cross collateralisation at all. It’s a common mistake/misinformation provided by the lender that the security would need to be crossed.

For the same benefit, you could just secure 80% of the value to the PPOR and the residual solely to the investment property. Still no LMI, but…[Read more]

Tax is determined by the name on the titles, not the loans so having your partner on there shouldn’t cause issues. As always though, speak to your accountant. :)

Cross collateralisation is always the work of the devil, so even though it may not seem like a problem – it never is until it is a problem. Well worth seeing about fixing that up when…[Read more]

Definitely wouldn’t bother – the rental scene isn’t that tight in most areas to be necessary.

There’s a product ruling for it and a new of brands offering the loan – we’ve had access to the product for a few months now. Dependent on the exact figures of the owner occupied and investment property loan, it can be quite beneficial.

Keep in mind there are a lot of requirements for this loan – which are for the clients benefit, ie the owner…[Read more]

If you’re buying Melbourne – I’d also suggest putting http://qura.com.au/ into your contacts list as a property manager, they’re well recommended.

In property you generally don’t want to stand out from the crowd – it’s better to buy the average type of property, than the unique one. The issue is that you will limit your buyer pool somewhat as some buyers + valuers will see it detracting from the value.

There’s millions of houses in Australia, of which there are many A grade properties.…[Read more]

Assessed as per norm as another borrower, same standard documentation requirements in terms of ID, income documents etc.

Probably a good idea to narrow down which city/State you’re moving to, before specific areas. Where you rent and where you buy don’t have to be related at all – it’s best to rent where most convenient for cost, lifestyle and work, whereas for investment you purchase purely on the properties individual figures and areas macro fundamentals.

Haven’t noticed it before – but I don’t worry too much about those particular figures as they don’t change anything in terms of research, I wouldn’t rely on them at all.

It would be worth a casual question to ask the agent what the deal is with redacting it in any case.

It’s an idea which has been floated for a short while in SA – would lead to very interesting outcomes. Obviously the real estate industry is heavily for this proposal.

There’d no doubt be an initial surge in prices as affordability would rise significantly. Other things such as flipping would become extremely viable with the removal of…[Read more]

You can move them into a trust but this is generally a stamp duty event – so you’d have to pay stamp duty on the current value of each property which can be quite substantial in costs.

Just the usual joint ownership, be it in personal names or trust etc – it’s all much of muchness.

Bear in mind that if you purchase this next property jointly, should either of you want to continue to purchase any future properties separately then the banks for any future purchase will consider you to hold 100% of the debt but entitled to 50% of…[Read more]

I’m not sure what you’re getting at Pimobpi – it is nothing to do with the type of security type, but LVR requirements. You cannot exceed certain LVR’s on property, as there has to be a retained portion on each property, generally a minimum of 10% if you’ve paid LMI, else 80% LVR.

Generally you setup a separate split as this can make it simpler…[Read more]

Yes – and in many cases is a prudent move. Just make sure the equity is ‘accessible equity’, theres a difference. For example:

A property worth 500k, with a 450k loan has 50k in equity, giving it an effective LVR of 90%. It however has $0 accessible equity, as the lenders will not allow you to exceed 90% LVR for a topup/equity release.

Hi Kristy,

Karen from Property Zest – shes working with some of my clients right now and know quite a few investors who have used her previously.

In commercial lending yes, residential they don’t like this – especially through mainstream lenders. Non coded lenders may accept it, but these come at higher ongoing costs which will outweigh the LMI.

Yes, there’s lending for citizens, permanent residents, non residents and never stepped in Australia. :)

Different lenders for different scenarios – but this is something we’re seeing increasingly.

Another recommendation for Sam at Qura – she knows her stuff.

99% of the trust deals we finance have a corporate trustee. Additional protection for minimal extra cost. In some instances it’s much more preferable to have a corporate trustee otherwise lenders will not lend to you or a limited number will, ie in SMSF setups.

Likelihood of a Labor govt being elected isn’t a high probability, let alone them getting it through parliament should they not do a backflip.

Carry on as usual, it’s been mentioned for decades and will likely for decades more.