Hi Richard,While I don't want to get into a tit for tat hereYou may note in my responses that I made no mention of claiming the FHOG, obviously the client would need to make choices about if he where to claim the FHOG, if he was going to stay in the property, if he could claim the PPR, if he did renovate and move on, if he did decide to stay. My…[Read more]

Hi Kate,Under recent consumer credit laws introduced throughout Australia the loophole of not declaring debt that you guarantee, such as trusts, companies etc. has in real terms been closed. At best, while it was technically possible in the past it was still borderline. When Steve wrote the lastest book he was 100% technically correct, however as…[Read more]

It is not mortgage fraud if the property is moved into and partially let to boarders/tenants with an appropriate lease put in place and the lender accepts these leases as servicible income and accepts the well explained and documented application to support why servicing is evident. When you discuss with the credit assessor in the credit…[Read more]

Hi Thegoat,as I say time and time again, every situation is different and you need to research and do what is right for you. What is right for your friends may not be what is right for you.Playing the devils advocate, what if you had bought 2 propeties 10 years ago for say 150k  and your own property was worth say 200k with a 150k loan, each…[Read more]

Hi Wombat,Whoever gave you the tip to READ books was on the right track. Buy 10 books on property for about 300 bucks and read those. Mark the information that is consistent in those books and you will see that many ideas keep occurring in different areas, a good clue that these ideas are shared by many. It always amazes me that  someone can…[Read more]

Hi Matt, I agree with Derek, it sounds like your experience says tread with care on this one.  Given that you would first be able to only borrow against the land value you would need to make sure you were buying at that value only. You would then need to get full costings and fixed price building contract to borrow against that next stage. If the…[Read more]

Hi Ash, I am late on the scene hear, but the first thing I think you should do is a little reading on property and investing. Books by Steve Mcknight, Jan Summers are of good quality and not written by people trying to flog their own product. Then find a good licenced credit advisor and possibly a property mentor who can guide you through some…[Read more]

Hi Smartcube,If you are in Melbourne a great start would be Steve McKnights one day course in Melbourne on the 10th September that is advertised on this site. I attended the Brisbane one last Sunday and have been to many of Steve's updates and Seminars and you will recieve education, rather than a biased opinion from someone who just wants to sell…[Read more]

Hi Free to Bee,I just had a similar situation with a client and CBA and because the client was claiming the PPOR (Principal Place of residence) deduction for stampduty then the CBA would not allow gearing to be used for service as an investment loan. The way we overcame this was for the client to not claim the PPOR deduction until after…[Read more]

If the car is tax dedutable that might change the whole senario and before paying anything off you should really seek the advice of a good tax accountant. If it is not deductable then I stick with the original comment.good luck.

Hi Joel,This is one argument there may not be a right answer to but I'll give yo my 5 cents worth. If the debt does not have a tax deductable component IE. The car loan cannot be claimed. Then a rule of thumb should be to pay off personal debt with the highest interest first, in this case the car loan. THEN, the smart thing to do would be to…[Read more]

Pity I don't always spell check things before hitting that POST button.  Sorry

I've used BMT Quantity suveyors for 3 reports on apartments in Melbourne over the last few years, They have provided very thoughrough and detailed reports which my accountant has been extremely happy with.I recommend them to my clients, and NO, I don't recieve any kickback for doing so they are just good at what they do.

Again Michael is correct, the pattern here is plain for all. No 2 deals are the same, everything will be viewd on a case by case basis.

Mate, just remember all records count, the more you can show of a solid repayment history or debt reduction when you apply for the loan, the better your application will look in the eyes of a lender.RegardsColin

CBA are also non postcode specific as long as it meets all other service criteria, ANZ have also recently announced the same.It is important however that if you are borrowing over 80% that the chosen lender has automatic sign off with mortgage insurers under their lending policies. Post code restricted by the lender or not, if the deal has to be…[Read more]

Hi Bucko,Just to add a little that may help clarify, although your 2 responses so far are exactly correct.What I always tell clients is this, it does not matter what the money is borrowed against but what it was last 'USED FOR' that designates if it is tax deductable or not. Hence if you paid down the loan and then redrew the money it would only…[Read more]

Hi Chris,Derek beat me to it but his advice is very sound. While it 'Technically' may be possible to borrow at the upper end of your valuation you would have to ask yourself if it is sensible. As Derek comments it would be smart to concentrat on eliminating the non mortgage debt. This will also show you that you can fund an investment. If you are…[Read more]

Hi Guys,Old story. If it sounds too good to be true it likely is. No one gives away 140k. Two things, at 280k the block is likely very over valued if you look closely and why would they do it if they thought that they would loose. They would not. So who looses?The very first thing you should be looking at if even considering something like this is…[Read more]