It can be frustrating and is likely the result of the new credit legislation.

Basically, lenders want proof that you're going to use the funds for the purpose you stipulate. In most cases, a signed stat dec will be enough.

However, for some lenders I provide them with a scenerio which explains how the LOC will be spent. I tell them that it's going to be used to purchase an IP for $x and demonstrate to the lender how the client can service the new investment loan.

Cheers

Jamie

Could cause dramas when reselling…..others will have the same concerns. However, if the price is right, it might be worth it.

Cheers

Jamie

Unfortunately a deposit is not enough, the banks wants to see that you can service the loan as well. It's likely that you'll have to wait a few years until you're deriving more income (as you've mentioned) or bring a much larger deposit to the deal. 

Do you plan on purchasing more IPs down the track? Because a $1.2 million PPOR is going to really limit your borrowing capacity.

Cheers

Jamie

Hi Sweethome

Just be careful with the amount of lenders you're dealing with. If pre-approvals are being sought with each of these lenders you'll be receiving multiple hits on your credit report……too many of these could cause dramas.

Cheers

Jamie

Pete Tersteeg from Sage Lending.

He was my broker before I became a broker…..give him a buzz, I'm sure he'll be able to help you out. Just google his details.

Cheers

Jamie

It would be difficult finding upwards of 7% but not impossible. You'd have to be a little creative.

 – purchase something that can do with a cosmetic reno to increase the rent.
 – purchase something that will provide two income streams – ie. house with granny flat/separate studio out the back
 – perhaps rent out indiviual rooms to students if the IP is close to one of the Uni's
 – some of the OTP deals could possibly generate decent yields upon their completion

For the most part, Canberra is "buy and hold" territory – prob not the right place to look for CF+ deals. Accross the border in Queanbeyan……now that's a different story.

Cheers

Jamie

Canberra – consistant, reliable and I can self manage

I'm also keeping an eye on QLD – Logan.

Cheers

Jamie

What's a good deal? A lower rate from a bank that won't do the deal or a marginally higher rate from a bank what will?

For the fundamentals of property investing, I'd recommend Jan Somers – Wealth through Residential Property. It's a little outdated now but the fundamentals are still relevant today.

Cheers

Jamie

You don't need to be handy – you could outsource the work. Simple things like a cheap kitchen, new flooring and painting could be carried out by a local handyman.

You'd be surprised at how much instructional info is also available on the net also – I learnt how to tile via youtube

Cheers

Jamie