Hi G.J, what's the expected the rent on the property? Also interested to hear anyone's views on the supply / demand dynamics. With what seems substantial amount of land been released in North Shore, Ascot, Ras etc …will there be adequate demand drivers to keep vacancy rates down? Or would the alternative be to buy in established suburbs like K…[Read more]

Do you mind sharing who the insurance broker’s contacts as I’m facing the same situation . Many thanks.

Mike

hi mike.

I try to explain how I think it could benefit.

Say, LOC is used for investment purposes. For personal purposes you don’t draw down on the LOC as the interest is not tax deductible.

A savings account is maintained on the side of LOC to deposit salary and rent. Advantages are:

1) the savings account can be used to meet non deductible…[Read more]

Thanks Richard. Do you mind sharing why NAB’s LOC (portfolio facility) is weaker? I will probably need to give it more thought.

Cheers
MJ

Great. Thanks for the contacts. Are you aware if any of them also work in NAB branches in Sydney city?

Cheers
MJ

James, LOC is short form for line of credit. It is a flexible type of loan that allows you to draw down and repay at anytime.

Jess, I’m also looking for an LOC at the moment. I’ve been looking at similar products by some of the banks. I decided against ANZ because they don’t allow sub limits. I think CBA Viridian LOC and St George portfolio loan…[Read more]

Thanks Anita, I will give him a buzz.

Hi Anita. Yes, please send me the contacts. Thanks.

Thanks Richard. I will be in touch.

Looking at an office suite in Pymble, Sydney North Shore around $700k with rental yield of high 6%.

Roughly what sort of gearing level (LVR) and rate is possible for something like that. Thanks.

The responses have been very informative, thanks!

Terry, you mentioned that there are a set of rules restricting the corporate beneficiary on lending (distributions) back to the trust which concerned me.

My understanding is that the loan from the corporate beneficiary back to the trust must not then be redistributed to the individual…[Read more]