Casual employment is a non issue for most lenders these days – the paid defaults would be more of a show stopper.

How much are the defaults for?

Go through a broker who can look at your specific scenario and test the waters before putting your deal through, to avoid any unnecessary extra credit file hits – every credit hit only reduces your credit score.

LVR is decent, so long as the other info matches up I can’t see this being a difficult deal to get over the line.

http://www.certuslegal.com.au/ <- majority of my clients have been using Certus, I’ve found them to be a pretty reasonable bunch to work with from my perspective.

The same serviceability requirements are required for companies, as individuals. They will need to see 1/2 years trading income, or if it’s just acting as a holding company the income of the director/s.

Obvious downside is lack of CGT discount, though there is the upside of max taxes at the company rate.

With $1mil you get a lot of options opening up, so you can get a mix of commercial, resi, equities.

A decent net yielding CIP/s with a mix of resi can give a decent return – largely dependent what states you’re looking in.

Yes it’s been removed for a few weeks now. Not a huge issue considering CBA above 90% was never really a common investor space.

Westpac and St Georges reduction in investment LVR’s to 80% max is a big one though.

I find it interesting that you’re offering on properties at what you’re suggesting in the peak, and that there will be definite bargains moving forward. How do you reconcile with that?

Jacqui has touched on an important point – it’s EXTREMELY important to find comparables to base your renovation works before starting – otherwise you can leave yourself open to overcapitalising, undercapitalising, misreading market demands etc.

As always the biggest profitability is in finding market distortions and taking advantage of them as much as possible – you can only achieve this by understanding what the market values particular quality levels at.

A lot of clients have been purchasing in both areas over the last 18 months – as you’ve touched on the cash flow is reasonable with a few 7%+ yields. Renovation potential properties are abounds too, which are seeing decent revaluations if you keep to a tight budget and buy a neglected property. Another area which you may find a potential bargain is Christie Downs, but competition is getting fierce.

Kinnon Bell wrote:

Why Latrobe or Bluestone? Having those as the options leads me to think there’s something out of the ordinary with your daughter’s situation such as adverse credit.

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I’m with Kinnon on this one – is there a specific reason she is being funneled to these types of lenders – is she credit impaired or some other adverse reason than she can’t source mainstream finance?

Be careful with the many ‘property mentors’ about, many are just Off The Plan sales shills who are doshing out low quality overpriced stock for developer payments.

If you feel like a professional assistance is required to start building your portfolio – it may be worth engaging the services of a buyers agent. They can be worth their weight alongside the rest of an effective property team (brokers, solicitor/conveyancer, accountant, property manager etc)