Who says she has to sell because of too much exposure to property?

Her lender?

Maybe changing lenders will be the most efficient option here.

Cheers,

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Craig,

The actual steps are.

You set up a facility whereby you can draw 20% plus costs for the new property. If you are unsure of what you will be spending then just extend the current loan to 80% of valuation.

Draw the deposit when you need it and the remainder at settlement.

Set up a new loan with this or another lender for 80% of the purchase price.

Another way is to set up a LOC against your current property then draw as you need it. Little more expensive but more flexible.

Lastly, as suggested, buy it with a deposit bond but you will need to follow the above suggestions by settlement.

You are already aware of cross collaterising the two properties.

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Thats an attractive rate you have there. Tell us some more about why you prefer an LOC?

Cheers,

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Every now and then this is rasied in the media as a topic for discussion.

I am not aware of any concrete plans to abolish or change negative gearing.

Cheers,

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Well the problem is that all the lenders have their own serviceability calculators. Big job to include them all and keep it updated.

Brokers have their own software that is updated with all the different lenders requirements on it so they can enter the one set of figures then get a print of all the different lenders and what they will lend.

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

I have been through all of this.

One property had the guts of a built in BBQ taken even though contract said it was to stay. My solicitor advised me against any legal action as it was well used and only worth a few hundred dollars new.

Another property had a failed HWS in it (working at building inspection time). Although I eventually did get the owner to repair it I was advised that under fair wear and tear provisions she didn’t need to. We actually encouraged the tenants to take it to the Dept of Fair Trading – (tenancy section) as it is illegal not to fix HW, security or safety issues if the property is rented, and it was fixed.

Anyway whilst she fixed it she hasn’t paid the bill and now I get hassled by the tradesman for payment.

I think the insurance requirements vary from state to state. Here in NSW we need a certificate of cover for the bank prior to settlement but that certificate need only be effective from settlement. I believe it is different in QLD.

Cheers,

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Be aware that most banks are not keen on owner builders. It can be done but does give extra problems.

They are not keen on kit homes either.

The way around these issues is to have the kit erected on a fixed price contract by a builder.

Cheers,

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

If you borrow money against any property with the purpose of paying down your PPOR then that loan will not be deductible.

One idea might be to make all of your deductible loans IO and direct app Principle payments into the PPOR.

Another idea might be too realise the profit on a IP and then pay down the PPOR. You can do this by selling the property. If you wish to keep it then consider “selling” it to another structure controlled by yourself.

Best to seek an accountants advice before embarking on this strategy!

Cheers,

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Makes a lot of sense to put everything down on paper logically. One more way to remove the emotion from the deal.

You have all the right headings I think.

I agree with SIS about his points re cashflow and also the units.

I think to take a hit on the cashflow or to buy a unit with the higher outgoings and less land content than a home you need to be assured of better than average capital growth. Just something else to consider and weigh up. No real right or wrongs.

Cheers,

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Sorry Kay,

I better check whether my colleague is buying it before I pass on too much identifying detail [?]

Apparently it is on the market for $350K and pulling in $650 pw.

Thats all I know – and that it is 12 month old.

I don’t even know if it is a house or whether a purpose designed building. This will have an impact on the type of finance.

Cheers,

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.