bm17 wrote:

Hi Noami,
Wouldn’t an appropriately selected buyers advocate be able to assist you with finding such a property?

Indeed – this is definitely in the realm of a buyers agent. Best to use a professional when looking to make a purchase worth hundreds of thousands of dollars – than relying on a stranger on an internet forum to find a property for you!

Realistically if you want to continue borrowing to invest the things you can do to open up more borrowing options are:

*either buy out your investment partner of their 50%, or sell your 50% to them
*increase your personal income
*cancel any credit cards/personal debt remaining
*either switch as much debt as possible to P&I OR IO – depending on the specific numbers for your situation which is best

In the end the best advice for your situation is going to be highly specific, so the internet isn’t going to help you. Best bet is to ask your broker, or if they can’t help you to speak with an investment focused mortgage broker.

It will completely dependent on:

*the shape and dimensions of the block
*utilities provision location
*type of subdivision that can be completed (ie requiring full duplication all services or can dual use be used)
*council that the land is located

There’s no way to ascertain any meaningful numbers on the internet like this – you would be best speaking to the council it is in and a surveyor who is familiar with the area, they will be able to give you a more accurate indication.

Hey Moresh,

This is done by a few developers that I know already – easy way to get funds + presales requirements completed in one hit.

As Terry has noted, it’s well worth looking at what is the most effective way to structure this to minimise tax and government charges.

Definitely don’t close the PPOR loan down – as this is coded as owner occupied for purpose the lender will be giving you the lowest rate compared to investment use loans so it’s best to hold onto that.

Either keep the funds in offset or into the redraw account – be careful however as not all lenders are the same in how they treat fully repaid loans with funds in redraw, some will automtically close the loan, whereas others will let the loan sit active and available to redraw indefinitely. Best to speak to an investment focused broker regarding your situation as this is a prime opportunity to setup the structures correctly before you jump back into investing – if you do it right you can strategically setup cost effective lending and be able to make a purchase as soon as the right opportunity comes up.

I’m a fan of the Salisbury council for <250k purchases. Quality is a touch higher than Playford Council/Elizabeth, for only a slightly higher price + slight reduction in yield. This will generally give you a balanced neutral yield/growth performer for the long term.

Once of my colleagues who is a mortgage broker in Adelaide wrote about purchasing property in the <250k price bracket in those areas recently.

Benny wrote:

Hi Corey and Richard,
Could a Stat Dec to the effect of “I undertake to only use these funds for investment purposes” go some way toward satisfying the lender? As I understand it, a Stat Dec is not something to swear to lightly – but would one be enough to cover the lender’s needs (especially since it is an existing lender, and not one where Simon is a new borrower).
If not a Stat Dec, is there some other possible “out-of-the-square” option? What about Simon’s own Business Plan that lays out his roadmap for his future investments?
It sounds a bit silly to be having to pay thousands to get a “financial statement” over such a small loan…
Benny

A stat dec used to work fine in the past – these days they have a lot less weighting and in this scenario I’d suggest there is not much chance getting it approved with it after they’ve asked for something more substantial. Once an assessor gets something in their head it’s not likely to be budged.

Yes Simon – this is 100% to do with the purpose of funds being verified, if you have a property purchase lined up and signed they’d approve and release funds. You don’t need to use the same lender, however they will check your borrowing capacity to make sure you can actually support the purpose on their borrowing rules.

Not sure if there’s any meta filters which can capture that information. At best you’re going to have to use a keyword search either through the normal listing sites or a paid subscription service like Real Estate Investar.

Indeed – the best thing would be to confirm that there is definitely no option for finance with the current structure as there are options in the market which can only be applied through brokers (and not all brokers have access to these products).

bricman wrote:

Thanks for the advice Corey
I am the middle option (fixed hourly rate with no guaranteed hours, paid to a TFN as an employee NOT an ABN).
I am basically a freelancer. Can your company help me out in this situation, if so what do i need to provide as a starting point.
Best regards
Ian

That’s not too difficult – it reduces the options available but definitely still possible.

Feel free to contact us via http://www.precisionfunding.com.au/ and you can have your situation looked at.