Yes sounds like the Broker has re-written the Contract for the first loan as well and Yes it does sound as though they are crossed.

Nice work if you can get away with from a Broker or bankers point of view but not practical for an investors perspective.

Just look at the letter of offer from the lender and see what the security address is shown as.

If only 1 security address is shown then it is not crossed.

If 2 are shown then hate to say they have tucked you up good and proper.

Cheers

Yours in Finance

Hi Simon

Firstly welcome to the forum and i hope you enjoy your time with us.

As a Qlder i think an investment in the Sunshine State definitely make sense however just bear in mind the Gold Coast has been fairly battered in regards to price falls over the last couple of years.

We have a house on the water in Palm Beach (which we will probably move back into 1 day) that has certainly come back a little in value but i guess given that we only paid $292,000 for it in the first place are still a Mil or more in front.

As Daryl has mentioned avoid high rise units at all costs as what looks great when you are on holiday doesn't always bear fruit when it comes to investment.

We are starting to source property for clients who are wanting to start their portfolio and have to be honest the GC would not be a place we would look at for our forum clients as an investment area.

To conclude however i can certainly understand why you want to build a portfolio when you are still renting and on good incomes you just need to ensure the structure is right.

As an alternative you might want to also consider a SMSF as Shanin eluded to.

This is probably the biggest growth area of our business at the moment.

Cheers

Yours in Finance

Agree with Paul. Give Nigel a call.

Proceeding on the off chance is like driving down the Western Freeway with the window open and throwing dollar bills out the window.

Difference being when they have gone they have gone. With your property you will still be paying the Council Rates etc for many a year to come.

Cheers

Yours in Finance

Hi Gold

First welcome to both the forum and Oz and i hope you enjoy your time with us.

Let me first clarify one of you questions and that is:

1) No buying in Trust or a Company structure will not ease the issues with finance as you as a Director of the Company will be a Guarantor and will need to disclose this Guarantee in future applications.

If we  wind the clock back 6 years or so then certain lenders did not ask the question so many borrowers did not disclose it however such a liability would need to be disclosed these days.

In regards to your choice of investment i would probably think again as at that size very unlikely to get form of financing irrespective of you income as the security would not be acceptable to the majority of main stream lenders.

Once you had purchased the property for cash you would find you were unable to access any equity in the property for future investment.

In my opinion you would better off buying something that can be mortgaged and even if you are unemployed we can include the unemployment benefit as income and also the potential rent.

On the downside you would have some form of accomadation payment i.e rent / board or similar and also a living expense which lenders will take as a liability.

The amount you can borrow would be limited however there are many properties i come across where the rental income is covering the loan interest and therefore the outlay is minimal and this will aid your borrowing capacity going forward.

Without full information it is difficult to comment further however with cash savings behind you there are always options.

Cheers

Yours in Finance

Hi Young

Welcome to the forum and I hope your time with us.

Without the full details of the application it is difficult to say but i must admit if it is a standard Telco default i have a few lenders that certainly wouldn't have a problem with the deal.

Course i am assuming you are not buying in the middle of no-where and aren't looking for something out of the ordinary.

More info needed but certainly not a deal breaker.

Cheers

Yours in Finance

Terry, probably about the same we got offered to promote Mango Trees or Timber plantations in 2007-2009.

I know many a local FP who were running year end seminars and raking in 30% com and they thought I was crazy when we told them i was not getting involved.

You have too ask yourself if you start with 100K invested and the Financial Planner gets 30K commission your investment has to work darn hard just to get your initial capital back.

Cheers

Yours in Finance

Doug if the property is advertised on a public website it is old stock or overpriced.

You are better off in engaging a buyers agent who specialises in such properties.

We get asked all the time by members to source a property for them.

No such thing as a free lunch as these properties take time to negotiate.

Cheers

Yours in Finance

So true Paul and it is where most clients come unstuck.

Had a forum member from Sydney ring me yesterday who had sold her IP and her Bank had told her to pay back the net sale proceeds straight into her PPOR loan.

They told her when she needed the funds on the next IP just go ahead and redraw it………

On a $300K redraw that has just lost you the best part of $18K interest deduction per annum.

No point in going back to your Banker when the Accountant / ATO break the news to you as they will have moved onto to another Branch or shifted Departments.

Cheers

Yours in Finance 

My name mentioned…

Yeh i have been around here for a week or two or was that in fact 12 years lol.

Cheers

Yours in Finance

Ah Jamie is that the thing that sits on the right hand corner of my desk and rings lol

Yes we are back.

Anyone need any firewood? Got a tree down on my block that would keep you warm down South for many a Winter.

That's a job for the next few weekends.

Cheers

Yours in Finance