Hi Charlie

As Nigel mentioned i am in the UK for another week.

When i came last year we sourced over 20 properties for my Australian investors using a variety of UK lenders.

Unfortunately finance market has changed dramatically over here and there is now only 1 lender who will consider applications from Non Residents for BTL loans.

Minimum Loan £100,000 and maximum lvr 60%.

Rates from 5.29% with fairly hefty set up fees.

In my opinion you are better to purchase in Australia if you are after some form of gearing.

Cheers

Yours in Finance

Sorry Prime that is incorrect.

As the boys have already mentioned the claim will be proportional to the Title ownership.

Cheers

Yours in Finance

Hi Rudra

I will assume you have done the numbers and maximised all of your deductions and minimised all of your expenditure.

Without any equity available (And again assume there is nothing you can squeeze out) you are going to be fairly limited.

Even buying a property for say $300K in SE Qld is going to normally require a minimum of around $32k in a combination of deposit, Stamp duty, mortgage / transfer registration etc assuming you can get the LMI capitalised.

One of the products we will be launching at the Property Know How Club during 2013 is an exclusive 100% loan product for investors only with a 90/10 split between conventional and private loan.

Away from this the structure and holding of the property will be important.

If it is neutral or positively geared probably are going to want to consider buying the property in your partners sole name and have both of you as borrowers (assuming that a  Discretionary Family Trust structure is something you have considered and dismissed).

Look forward to meeting up with you at our Brisbane meetings.

Cheers

Yours in Finance

Fully understand.

Look forward to hearing from you.

Cheers

Yours in Finance

Jack why not have a look at the Options market Jack instead of the Futures market.

Just find it doesn't give me so many grey hairs especially the US Options market with each Contract being only 100 shares.

Cheers

Yours in Finance

Hi Tinim

Which State are the properties located ?

Cheers

Yours in Finance

Mat, firstly welcome to the forum and I hope your time with us.

I always apply the same logic when making an offer on any new property and that is to accept the deal is a investment and if you miss out there will always be another opportunity.

Set yourself an upper limit and try not to go above it.

If you make an offer at $170K with an upper limit of say $190K accept the fact that the Vendor may countersign your first offer and this will now act as your new upper limit. You know the likely price is between $170K and the countersigned amount.

Get your Mortgage Broker to run you off a Comparison Report from Day 1 (I do them all the time for client's) so you at least have another measure of valuation. 

The other consideration is how the loan is structured.

You mentioned that you are still currently renting so from that i assume one day you may decide to buy your PPOR.

Assuming this i would be looking to possibily borrow 100% either by accessing equity from the existing IP or alternatively offering your cash savings as collateral security and borrowing the full purchase price.

Your Broker should able to guide you accordingly.

Cheers

Yours in Finance

AT, definitely explore an equity loan as the rate will certainly be cheaper than a LOC.

In regards to your current IP if you are thinking about selling it and the Tenant does not have a decent deposit remember you could always increase your cash flow (use the additional funds to pay down your PPOR) by looking to offer the property to him on Vendor Terms such as Installment Contract or Rent to Buy.

You obviously have a plan to stay put in your current PPOR and pay down the PPOR debt as quickly as possible.

I would look at possibly restructuring the PPOR loan and maybe fixing a portion of the loan as there will be a limit to how much you can pay back each month.

Make sure you are maximising your IP deductions and whatever you do i would make sure the loans are standalone as it sound like they are cross collateralised.

Even look at buying an IP with the option of selling it from day 1 on VF if you want to increase your income and pay down the PPOR. Course we haven't even explored the possibility of setting up a SMSF and purchasing property inside this structure.

Cheers

Yours in Finance 

Thanks Jamie appreciate the wrap.

Dell i am in the UK for another 10 days but be more than happy to buy you a cuppa and sit down and work thru some of your questions

Fllck me an email and we can pencil in a date / time to suit.

Cheers

Yours in Finance

Yes as Paul mentioned a 20% carry back makes life easier although at 5% there is still one lender / mortgage insurer that will allow non genuine savings at that lvr.

Course to cover any acquisition costs you might need to make it a 95% lend and a 10% carry back.

Cheers

Yours in Finance