Unfortunately WBC will only allow parental guarantee’s.

The best rule of the them all: Use a GREAT broker who specialises in investment lending. A broker works on your behalf, so can find the best lending to fit your needs. Instead of trying to navigate the maze and avoid the landmines, build a team of professionals who can assist you with your needs. You’re going to end up with a superior result, increase your own knowledge and make your investments more successful – without a doubt.

Trusts can have very real benefits, but for some people they can be rather superfluous or ‘over kill’. As Terryw has mentioned, it is well worth considering, weighing up the pros and cons of buying in the type of structure. Finance can be affected by purchasing through a trust – something to keep in mind.

Kirstie you’ve got quite a few questions. :)

Form a great team of experienced professionals (broker, accountant, conveyancer/solicitor etc) who you can then leverage off their knowledge to assist you to meet your goals, and CHALLENGE your goals to make you achieve much more than you original set out on.

Kinnon who has been posting a bit in this thread is a great broker who is also a seasoned investor, with experience in investing in multiple States – have a chat with her regarding your situation and I’m sure she would be able to open your eyes up to your potential, list any challenges you might face upfront and MOST importantly how to overcome them.

Casual employment isn’t so much of an issue these days – lenders are realising that ~30% of the workforce is casually employed and need to accommodate this large segment of market.

First port of call would be organise a valuation on your existing investment property, if the value has increased since your purchase + the excess you’ve paid, you may have sufficient funds to draw against to make another purchase.

Claudio_Baldo wrote:

The increment of the interest rate should be the same for all providers and it should be the increased cost of the money decided by the Australia Central Bank. The increase in general is done in 0.25% as long as I know.
So if I start today with this rate it will be always the same compared with a different loan made with a different bank, isn`t that right?

Unfortunately that is not how it works. The Reserve Bank of Australia does set the cash rate in Australia, however this is not necessarily linked to interest rate movements within the banking sector, and this has become more the case over time as funding sources have diversified further away from the RBA. Lenders are free to change their variable rates at any time to any rate they wish. Generally you will find the competitive long term big players will try to maintain a competitive advantage, whereas some lenders actively sell cheap rates, only to have the cost of funding continually climb after the loan is written.

I wouldn’t say financing community title is that difficult at all. Some lenders have a small few other requirements (solicitor inspecting the community deed at cost) but it’s not exactly onerous.

• This reply was modified 9 years, 12 months ago by  Corey Batt.

Catalyst wrote:

Banks count your credit card limit as double when applying for a loan.

So if you ave $20,000 limit on a credit card the bank counts it as you having $40,000 loan do this will affect your borrowing capacity.

Keep thinking. Or you could just work more and save quicker.
Or look for ways to add value to the property you be, revalue, withdraw equity.

That’s actually not true. Lenders factor credit card limits as being fully used for the most part, so based on a limit of 20k you might have repayments of $600 per month. Dependant on the lender, this may equate to a reduction in serviceability of 100k – so much worse than simply doubling the limit!

With regards to your question Clint, the simplest way is usually the best course of action for a reason. Knuckle down and save for your first property, most likely something cheap and tired and could use a cheap spruce up. This will give you the opportunity to create sweat equity, which can be leveraged into further purchases.

Security guarantee shouldn’t effect your stamps concession.

The car lease will drop your repayments significantly. If you are looking to make a purchase/grow your portfolio over the next few years the lease will act as an anchor unless you’ve got sufficient income to absorb it. Best to speak to a savvy broker who can talk to you about your specific situation, and how a lease/cash purchase will play into your borrowing capacity. :)