Lol – does he want a job?

Cheers

Jamie

Hi Tom

Each lender has their own application form.

Most loan applications are lodged online and then the supporting documents are emailed or faxed into the lender. All brokers and lenders provide you with a privacy statement which describes how your information will be used and stored.

Anywhere between two weeks to two months. 

Normally I analyse a clients situation and make a recommendation on structure and lender. I'll then order a valuation whilst they compile their documents. They then email or bring their documents into the office. I write the application – they sign and I submit. This whole part usually takes between 3…[Read more]

Arun Bhuta wrote:
Dear Ynchai,

Early payment is required to be done but in Offset account. Hence to pay or not to pay is not the question but how to pay is question.

I don't mean to sound rude – but what does that mean?

Cheers

Jamie

Hi there

There's a few tricks to boost borrowing capacity. Off the top of my head, you can reduce credit card limits, get rid of personal loans (if applicable), set up all loans as IO, use a lender that will take 100% of your rental income.

Sometimes we simply need to restructure existing borrowings.

Most importantly though – can you afford…[Read more]

Are we talking about a PPOR or IP?

Assuming it's an IP then it's a silly thing to do in my opinion.

Use a portion to cover the deposit/costs and use the banks money for the rest. 

Cheers

Jamie

Hi there

Welcome aboard

You're spot on. The loan needs to be split up so you can distinguish deductible debt.

You only need one separate split for the IP deposit. For the renos on the PPOR, you could simply extend the balance on your current loan.

So end result is two loans accounts – the first is an increase on the existing with the extra…[Read more]

Yep, I've experienced similar in the past with the same bank too. Not quite the same scenario but something similar. 

I must admit though – it's not a single bank thing, they're all guilty of these stuff ups from time to time.

Cheers

Jamie

No probs

Deductibility is determined by purpose. If the purpose of a loan is to secure an investment then it's deductible. If it was to secure a non investment like an owner occupied home (PPOR) it won't be deductible.

Hi there

Just so I've got this right – you currently have one IP with $100k sitting in the offset and you're looking to purchase a PPOR?

If so, then just use the money from the offset to cover the deposit/costs on your PPOR and set up a loan for the remaining amount – that will bolster the deducible IP interest back up. 

If you need to borrow…[Read more]

Arun Bhuta wrote:
Dear DerekLangan,
I will strongly suggest you go to broker whom you can meet in person.

Most of my clients are based interstate – I'd guess it's an 80/20 split between interstate/local.

Everything is done over email/phone.

Even some of my local clients prefer to deal this way – it's more efficient and everyone's busy…[Read more]

Hi Alex

That's a shame – but good on you for offering it up to someone else on the forum.

Cheers

Jamie

hi BB3

I'd take advantage of Richard's recommendation.

Cheers

Jamie

Hamish_Q wrote:
Hi all,
I'm looking to get into the property world and am getting mixed opinions from family friends about buying my own house to live in first or then renting and buying an investment first and I dont really know what is best..? I've always seen rent money as dead money but am hoping i can get some help?

Regards,

Hamish

Hi…[Read more]

Hiya

Most lenders will let you take your borrowings up to 80% of the properties value when releasing equity.

Some will let you go up to 90%

If we take the 80% scenario for instance – we use 80% the value of your property ($300k) which is $240k and subtract the current loan ($240k) to work out how much equity you can access – which in this…[Read more]

Yeah I agree – employment type will always come into play. Even with servicing – there are some professions where you might be able to add back certain things – or claim certain allowances.

Cheers

Jamie

I'm not sure if there's a dedicated section to those sort of resources on this site – but I do know that somersoft has a sticky thread that provides a collection of templates, lists and spreadsheets for property investing that you might find useful.

Cheers

Jamie

Arun Bhuta wrote:

The last  thing you want is negative cash flow after tax.

Hi Arun

Why's that?

If the property is providing me with decent growth – I'm not going to be too concerned about it costing a bit to hold onto. 

It all comes down to the individuals longer term strategy.

Different strokes for different folks I…[Read more]

Yep, she's my world I can't believe she's almost one! Time really does fly.

Cheers

Jamie

It's wise to set it up as Alistair mentioned – that way, you should be able to claim the $50k loan as a deduction.

Cheers

Jamie