They play in a few spaces with white labels and the like.

I’d note that they don’t work on a standard variable with discount basis – so their rates can change depending on the customer – with cheap rates offered in for new customers, and then floated up with time whilst cheaper rates are offered again to gain more business and not existing. With…[Read more]

If you do end up using a POA – make sure you keep the original POA document as this will generally be required to be provided to the lender during the finance process/prior to settlement. If you throw it out/scan and get rid of the original you can leave yourself in a pretty tricky spot.

It’s not about tightening – your broker probably just isn’t as familiar with commercial or has access to non-stress tested products. The original post still remains the same in terms of options with lease doc and even full doc without stress testing of existing commitments.

As per dividend strategies – that can help. Overall you will need to…[Read more]

I’m curious – are you saying you are looking to do a development which only requires 100-250k (talk about a range to begin with) in development costs to divide 56 allotments?

If you’re looking at finance you will definitely struggle in the current environment, with most lenders not wanting to take on first time developers at all – so you will…[Read more]

Good question. I think I’ve explained this in another thread you’ve asked similar – effectively with commercial it’s possible to still borrow indefinitely so long as you have an overall neutral portfolio in real terms. In this scenario the borrower can indeed continue to borrow as the new transaction isn’t seen as a burden in further transactions.…[Read more]

Good question – it really depends on the person as to how they can get there the fastest. ie age, what assets they have to start with, risk profile – there’s a millions strategies for a million people.

Overall the general trend is definitely in building an asset base in property, which you can then draw on into other effective income generating…[Read more]

Basically no capital growth. You have to find out whats the rental growth if any – otherwise you might end up paying cash for an asset which will have increasing costs each year and stagnated rents – quickly reducing your cash flow from the investment to a low level.

Personally I would rather not have a property which has a maximum potential net…[Read more]

Just an update on this – a number of lenders have been removing/looking to remove their lodoc products for commercial lending. Interestingly the lease doc products which provide the best bang for buck in terms of extending your borrowing capacity have not been limited – and actually had more broader policy features to allow for larger loan amounts…[Read more]

Definitely engage a property manager to handle this for you – that’ll keep it running above board.

You’ll need to work out how to handle any costs of holding the property and how to pay for these – the agent should be able to facilitate this. if you have to pay into a single account you can have the bank account require both parties to give…[Read more]

There’s quite a bit written about that product – in most cases you end up coming worse off than if you had an aggressively priced PPOR and IP debt. The big caveat is that you can only get as low as that interest rate if you have multiple times the amount of IP debt at a substantially higher rate to offset the interest saving.

Doesn’t surprise me that the builder isn’t too happy. I’ve never had this issue – I just provide the build documents to the accountant and a report from a quantity surveyor.

Don’t worry about it too much then – the variety of commercial products at this time means that even should your serviceability be constrained with time, there’s freestanding products available through certain brokers accredited with commercial lending panels which can be used to allow you to continue purchasing without your existing portfolios…[Read more]

Commercial generally won’t help your residential lending capacity all that much. In terms of commercial though it can help, or be treated as neutral/excluded from calculations – allowing you to keep rolling into new purchases as long as you have sufficient deposit funds.

Not the worst interest rate out there, but likely to be able to be improved depending on how you would like to have it structured. With the right lender you could get a an IO loan in the low to mid 4’s, else if it suits your strategy there’s P&I options at sub 4% at the moment.

To get the best bang for buck – have a chat with a broker who will be…[Read more]

Hi Steven,

The last option I’ve suggested will do just about that https://www.realestate.com.au/neighbourhoods. Otherwise sift through all the data in Australia – but you’ll find with over 3800 suburbs in Australia over 2000 of them will likely be <500k and be of little value to search via that method.