Terryw wrote:

NCCP

Thanks Terryw, I assume you mean for resi lending only, right?

Thanks guys all your comments help.

It seems the reliable way is to have lots of money to begin with (:-)) so you can buy multiple properties at low LVR
and even at 10% interest rate, they are all cashflow positive :-).

The other challenge that you have mentioned is that with the rental income the lenders will only take 65%-80% but will
any lender lend based on rental income alone without a PAYG type income or is this where low-doc comes in?

Seems to me that if I want to go full time investing in property (no development), I need to structure myself such that
all rental income should go into one company from which I draw a PAYG salary. So when I go to the lenders to organise finance
for the next purchase, I can “proudly” show my stable & constant PAYG salary plus new property income to make the application
straight forward?

Am I thinking along the right direction? What kind of expert or consultant I should speak to? My accountant has no clue
when it comes to questions related to full time property investing “business” :-)

Thanks again.

FXD

Thanks guys.

I guess choosing the right tenant is the key here. However, I’ve seen many retail businesses suddenly
close shops without any tell tale sign even for some popular franchise brands.

Although by right outgoing tenant should (must?) find and re-assign the lease to new tenant in reality
how often does that actually happen?

Therefore, I really want to understand what mitigations available to minimise the loss before I get
into the retail sector of the market. I am not 100% sure what seems to be over heated retail sector
translates to more stable and constant cash flow is my main concern.

Thanks,
FXD

Terryw wrote:

FXD
Sounds like you mean lease doc loans.
A non recourse loan is one where the lender will only take the security property but not chase the purchaser for any shortfall on sale. These exist but are rare.

Ok thanks I always assume lease doc also implies
non recourse and vice versa.

Any idea anyone offers such product featuring both?
I assume the rate may be high even if it exists?

Thanks
FXD

HI Ethan

That’s exactly what I am talking about, refinance with original lender #1 for a LOC or something for that $76K
and use it + own cash for next buy. But to access that $76K lender will need to assess serviceability as what
terry said.

My question is how will lender #1 assess serviceability for the $76K LOC when it will be 100% serviced by a new
purchase but *before* the new purchase is actually made. You see my point ? Will lender #1 say wait *after* you
buy then come back and we can re-assess, it’s really a chicken and egg situation.

Also, I don’t want to lock myself into a position where all my borrowings are tied to same lender simply for the
ease of accessing existing equity.

In theory it seems, it’s do-able but I just don’t know how to go about accessing existing equity *before* a new
purchase is actually made and yet that equity is needed for the new purchase.

As I indicated before, I want to establish a strategy to achieve perpetual borrowing well into retirement without
having serviceability dependent on PAYG income because I will then have no PAYG income, therefore the thought of
using non-recourse loan to begin with.

Anyone can help?

Thanks,
FXD

Hi Terry
Thanks for your explanation to help me narrow the question further.

My question arises from the context that if I need to transfer my ex-PPOR to my brother, both CGT and stamp duty will apply I assume.
However, my brother has already been living in the property for about 7 years or so and I have been absent for same duration.

No question about SD as bro will pay as per any other open market sale transaction.

CGT wise is confusing. My name on current title, my name on some of existing utility bills, insurance & rate notice.
Should I better off just move back to the same property for 12 months to “clean” up the confusion and then do the transfer instead?
That way, the property is re-purposed as my PPOR and for the period of 7 years of so when I didn’t live there (as proved by AEC name
registration) it wasn’t rented out as such but I allowed bro to live in it.

Will the re-purpose of PPOR then exempt it from CGT on my part?

BTW, I am assuming that with the above off-market transfer scenario CGT is still payable.

Thanks,
FXD

Thanks Corey.

Are you saying that the lease back rental may be
inflated by vendor to distort the true value of the
property?

Thanks
FXD

• This reply was modified 8 years, 6 months ago by  fxdaemon.