[MobileMortgage3Member@mobilemortgage3Join Date: 2003Post Count: 21]

November 4, 2003 - 4:41 pm

Hi Terryw,
I apologize for the delay in responding to your question; I have had computer problems.

Terry I never said using a trust would increase borrowing power, I said it would increase serviceability due to the tax benefits that arise from having investments set up in a trust, a point you now agree with.

Another point I would like to make is that, lending institutions will take 75% of the income from an investment property as acceptable income regardless of who the beneficiaries of the trust are.

You also mentioned this below.

“Steven
I still can’t get what you are saying and your link provides no clues either. I agree that Trusts are an excellent tool and hold all of my properties in a trust structure. I know that trusts help save tax and so help serviceability in that regard, but I do not beleive having a trust increases your borrowing power because of the guarrantees required.
Are you of a different opinion?
Terryw”

Terry if your properties are held in a trust structure and the trust owns the properties and you are the director of the trust, then you are the guarantor,
So if guarantees are required, then you as director sign the guarantees for yourself.

You say the links I provided did not provide any clues, did you phone or e-mail Dale?
Please let me know how you get on.
Kind Regards
Steven.

Mobile Mortgage
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Phone 0402483216

[MobileMortgage3Member@mobilemortgage3Join Date: 2003Post Count: 21]

October 28, 2003 - 5:21 am

Hi Dom,
Can I suggest you talk to a good mortgage broker, if you haven’t already?
Having your loans structured the correct way, will save you from problems later on,

I am in Victoria, but Simon is a bit closer to you, he contributes here on a regular basis and may be able to help you, his contact details are below.

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Good luck, Regards Steven

Mobile Mortgage
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Phone 0402483216

[MobileMortgage3Member@mobilemortgage3Join Date: 2003Post Count: 21]

October 27, 2003 - 2:47 pm

Hi Terryw

I have contacted DaleG, Accountant, and Trust Guru, and invited him to stop by here, to help explain and maybe enlighten a few here with regards to some of the Trust issues discussed,

In the meantime I have included a link to an interesting discussion at the Somersoft Forum where DaleG regularly contributes, you may find this particular discussion relevant to the discusion here.
http://www.somersoft.com/forums/showthread.php?s=&threadid=12237

Also, below is a link to DalG web site.
http://www.gatherumgoss.com/

Kind Regards Steven.

Mobile Mortgage
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Phone 0402483216

[MobileMortgage3Member@mobilemortgage3Join Date: 2003Post Count: 21]

October 24, 2003 - 8:06 am

quote:

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Steve

So you are saying that trusts can save you tax. but it makes no difference in serviceability if you borrow through a trust or not because personal guarrantees need to be given. Infact it may even hinder serviceability by using a trust because you, as trustee, would be responsible for the loan, but may not receive any income from the asset as a distribution as the income would go to the benficiaries on the lowest taxable income.

Terryw
Discover Home Loans
North Sydney
[email protected]

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Hi Terryw
You say, “it makes no difference in serviceability if you borrow through a trust”
And “income would go to Beneficiaries on the lowest taxable income”

Beneficiaries of a Hybrid Trust can include you or your partner, spouse, Children etc.

You also say, “personal guarantees need to be given”

The guarantee is the trust, and you pay the loan,
Regards Steven.

Mobile Mortgage
[email protected]
Phone 0402483216

[MobileMortgage3Member@mobilemortgage3Join Date: 2003Post Count: 21]

October 22, 2003 - 3:34 pm

quote:

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Steven, are you saying that setting up a trust affects serviceability? I have found that it makes no diffence as the lenders require personal guarrantees anyway.

Terryw
Discover Home Loans
North Sydney
[email protected]

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Terry,
One of the advantages with trusts,apart from asset protection, is the ability to distribute profits in a tax effective manner,
hence increasing funds and the level of serviceability,
here is a link to more information regarding trusts,

http://www.strategicwealth.com.au/e2content.asp?Request=Structure.Structure

http://www.gatherumgoss.com/news.htm

seek Professional advice from an accountant regarding the benefits of using a trust.
regards Steven.

Mobile Mortgage
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Phone 0402483216

[MobileMortgage3Member@mobilemortgage3Join Date: 2003Post Count: 21]

October 22, 2003 - 11:57 am

Hi Mike
To be ellgible for the ANZ Professional Package
you will need a gross annual personal income of $50.000 or joint gross income of $75.000
or a practising member of the following professions
Medical Practitioners, Pharmacist,Accountant,
Barrister or Solicitor,Surveyor,Architect

The ANZ Breakfree Package(cost$295 annual fee) offer up to a 0.60% discount p.a based on loan amount,

St George have a Professional benefits package
with a discount of up to 0.65% this discount varies depending on total borrowing amount.

Regards Steven.

Mobile Mortgage
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Phone 0402483216

[MobileMortgage3Member@mobilemortgage3Join Date: 2003Post Count: 21]

October 22, 2003 - 11:18 am

Quote:

Hi Hot Rod

1 point eveyone appears to have missed is that it is a breach of the Property Act to cross collateralise the loan on a property which is subsequently sold under an Installment Contract.

Cheers Richard
[email protected]
http://www.fhog.com.au

Hi Richard
X Coll in this case is with multiple ips,
Example, (IP A) 200K loan commitment with ANZ Bank
(IP 200K loan commitment with NAB Bank

Regards Steven.

Mobile Mortgage
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Phone 0402483216

[MobileMortgage3Member@mobilemortgage3Join Date: 2003Post Count: 21]

October 21, 2003 - 10:06 am

Hi Hot Rod
Something else to think about with regard to x-coll
Is serviceability,
When you hit a particular lenders max lend amount,
Some reasons given by lenders may well include…
Lenders may feel you are to rent reliant to service the debt,
this can be a problem if you have a high level of mortgage insurance
attached to your loans, and a high LVR.

Some ways around this problem include, but are not limited to,
use multiple lenders, larger deposits low LVR,
have your investments set up in a trust
(Seek advice from an accountant) on this issue.

Hope this is of some help.

Regards Steven.

Mobile Mortgage
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Phone 0402483216

[MobileMortgage3Member@mobilemortgage3Join Date: 2003Post Count: 21]

October 21, 2003 - 2:06 am

Hi James
The ANZ Medical Practitioners Package has a LMI waiver with LVR up to 95% for house units & townhouses, conditions apply.

Some of the Pepper Homeloans packages (full doc & Low Doc)will go up to 90% LVR.
Regards Steven

Mobile Mortgage
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Phone 0402483216

[MobileMortgage3Member@mobilemortgage3Join Date: 2003Post Count: 21]

October 18, 2003 - 2:03 am

Hi Carrington,
If LVR is at 80% you may encounter mortgage insurance,
With a 20% deposit LMI should not be an issue,
Good luck.
Regards Steve

Mobile Mortgage
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Phone 0402483216

[MobileMortgage3Member@mobilemortgage3Join Date: 2003Post Count: 21]

October 8, 2003 - 6:50 am

quote:

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okay Steve i understand that but which option do you think is better wait and save or go for LMI option?????????or anyone else that has a opinion

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Hi Kristine,
I am afraid i cant answer that question, There are to many variables, there may be higher interest rates if you wait,but property prices may come down,and a lot of other issues also, feel free to contact me any time,
Keep asking questions and doing your research, this forum has a wealth of knowledge and knowledge is power,
Good luck,
Regards Steven.

Mobile Mortgage
[email protected]
Phone 0402483216

[MobileMortgage3Member@mobilemortgage3Join Date: 2003Post Count: 21]

October 7, 2003 - 2:50 pm

Hi Kristine,
From the information you have supplied I think you should have enough equity in your ppr to borrow more than $13K, This would be subject to serviceability,
option(1) $13K may get you a 95 percent lend, (that would be 5 percent deposit & 5 percent costs) but LMI would come in to play.
option(2) access more equity in ppr and borrow under 80 percent of the LVR for IP purchase, and based on serviceability and lender guide lines you may not have to pay LMI.

Please seek professional advice before you make any commitment, good luck.
regards Steve.

Mobile Mortgage
[email protected]
Phone 0402483216

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October 7, 2003 - 5:59 am

Hi Myydral,
I would be happy to answer any questions you may have,
Regards Steven.

Mobile Mortgage
[email protected]
Phone 0402483216

[MobileMortgage3Member@mobilemortgage3Join Date: 2003Post Count: 21]

October 7, 2003 - 5:44 am

Hi Mark,
Have a look at the MIAA web site http://www.miaa.com.au/
they offer on line education and links to other education courses that you will need to complete to gain accreditation with the MIAA and lenders,
If you need any more information feel free to contact me.
Regards Steven.

Mobile Mortgage
[email protected]
Phone 0402483216

[MobileMortgage3Member@mobilemortgage3Join Date: 2003Post Count: 21]

October 6, 2003 - 3:02 pm

quote:

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[]I am so sad today i have waited 3 weeks to find out that i can not get the money i am after for a loan what should i do now any suggestions would be greatly appreciated okay this is my situatuion we have a joint income of 64,000 we have 5,000 saved for property we have 79,000 equity we have a credit card that is paid every month 3,000 limit fortnight commitment for PPOR is 1,300 and we can only get a investment house that is worth 70,000 i have tried to get a loan through our current lender Aussie Home Loans but our home was not valued at what we thought it would be it fell 20,000 less buger…..what would you do now if you were me we would like to renovate our home a little anyway but should we do this with the cash or should we save in our redraw??? or maybe you think we should do something else Please help me []

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Hi Kristine,
(1)Three weeks is far to long to wait for pre aproval on a loan, I would sugest you try another broker,
(2)$650.00 per week in loan repayments on your PPR seems to high, what sort of loan is it?
(3)what is the purchase price of the I,P ? do you have any dependants? if so how many?

Myself and a number of other brokers on this forum may be able to help you, good luck,
Regards Steve.

Phone 0402483216

Mobile Mortgage
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September 21, 2003 - 1:16 am

With Regard to Baycorp Credit File,
you can also pay an annual fee of $30.00 (GST inclusive)and they will notify you by email of any changes on your credit file,
This can help minimise the risk of identity theft, and also keep you informed on the amount of hits your credit file has recieved.
Regards MM
.

Mobile Mortgage
[email protected]
Phone 0402483216

[MobileMortgage3Member@mobilemortgage3Join Date: 2003Post Count: 21]

September 20, 2003 - 2:27 pm

quote:

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is it true that if you go for a loan and get knocked back that it makes it harder to get another loan???? ….is their a black mark on your name????….okay i am a little nervouse that i wont get a loan odviously as you can prob. tell….okay i have 87,000- 97,000 equity in my home where i live, and my partner and i have a joint income of 64,000 repayments on current loan is 1350 per month both have good steady jobs, no children a credit card 3,000 thats it no other expenses other than normal living….what do you think our chances are of getting a loan if so for how much do you think we should go for??? comparing my details to your present situation please please help thanks in advance

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Hi Kristine,
Keep in mind there are many types of loans, LOC, IO, P&I, and so on, So its not just a matter of how much can you borrow, but also what is the best package that will allow you to buy more properties now and in the future.

You can get a copy of your credit file for free from Baycorp, Its handy to have, Here is the link,
http://www.mycreditfile.com.au Good Luck. []
Regards MM.

Mobile Mortgage
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Phone 0402483216

[MobileMortgage3Member@mobilemortgage3Join Date: 2003Post Count: 21]

September 19, 2003 - 9:59 am

quote:

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I forgot something. In steve’s book he talks about buying power. He says that the fact that the houses you buy are positively, geared your buying power should increase as you can meet servicability requirements. But will the banks keep lending to you when you are buying in small towns?? And you still have exposure issues to contend with.

Comments Welcome.

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Hi insider,
Servicability can be a problem if you have all your IPs tied up with one lender,
High level Rent relient will be the lenders response when you have reached there max comfort threshold,
To avoid this, Plan ahead, A good broker will help you avoid this problem.
Regards MM

Mobile Mortgage
[email protected]
Phone 0402483216

[MobileMortgage3Member@mobilemortgage3Join Date: 2003Post Count: 21]

September 18, 2003 - 8:41 am

Hi Jay,
I agree use LOC to fund deposits on multiple IPS,
Keep in mind deposits of 20% or more will not attract Mortgage Insurance.
Regards MM.

Mobile Mortgage
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Phone 0402483216

[MobileMortgage3Member@mobilemortgage3Join Date: 2003Post Count: 21]

September 18, 2003 - 1:32 am

Hi Wannabe,
Good advice from rosspj, I would also like to add,
With your long term goals in mind it may not be wise to put all your eggs in one basket,
Regards MM.

Mobile Mortgage
[email protected]
Phone 0402483216