Been around for a week or two and have small portfolio so like to think so.

Cheers

Yours in Finance

If the question is have you ever done a flip or two then Yes more than dozen but we use a Put & Call option rather than a simple flip because we tend to focus on large development style properties that i may or may not want to settle on and develop.

I cant see why you would change lenders each time in fact your credit score is going to be affected if you do and would strongly suggest that you stayed with the same lender to establish a track record.

These days lenders dont have early repayment penalties so other than any application they may charge they earn their income from interest.

I have a few clients i have mentored into working with instalment contracts, wrapping to increase cash flow and capital.

Cheers

Yours in Finance

Tesst

Yes the loans will be separate but the investment loan will be over 2 securities your new IP and the existing PPOR.

This is known as cross collateralisation and is the evil for investors.

I wrote an article about why such a strategy was bad for investors some years ago for the API magazine and can let you have a copy if you drop me an email.

The way the loans should be structured are as follows:

1) 80% of IP purchase price with lender A secured against investment property solely.

2) 20% of IP purchase price and acqusition costs with lender B secured against your PPOR as a separate interest only loan sitting behind your current PPOR.

Your current lender will want to offer you 100% of the purchase price + costs secured against both securities and trust me there is a massive difference.

Cheers

Yours in Finance

Hi Tesst

Good for you on wanting to have the property in your name and i can understand you wanting your independance.

Obviously you are aware that as the property Title is in your name then you are the one who can claim any of the deductions. If your income is lower than your husbands which appears to be then you obviously wont claim as much as he would be able to. Of course in saying this once the property becomes positively geared the income will be added to your current income and taxed accordingly.

I am however slightly concerned about the way you are wanting to finance the property as it sounds like your lender has suggested that you offer your existing PPOR as security for the new loan and cross collateralise the 2 securities. I really would strongly suggest you avoid this at all costs.

i am also concerned that you have used your existing PPOR redraw to cover the deposit as you may have contaminated the loan interest from day 1 and therefore lose the deduction on this.

Structure the loan correctly and i wouldnt have a problem. I am not saying that it is the way i would proceed but i can understand your reasoning and as long sa you believe the property will perform strongly over the long term can't see an issue with your way of reasoning.

Definately seek some professional advice on loan structuring though before you go too far forward.

Cheers

Yours in Finance

A lender will want its own valuation (in fact more and more lenders are using Valex and not allowing re-assignments of other valuations) and will want it done for mortgage purposes.

If you are not happy with the Banks lending policies Nooob prepare your own valuation and then go into the open market and arrange private finance. If it that good a deal i am sure you will be able to negotiate a rate of interest similar to Bank rates.

Cheers

Yours in Finance

Exactly as Terry has mentioned.

You dont think they are going to give you some of their money to invest.

The funds will come from equity in your property.

All you would do is arrange the line of credit or similar at a cheaper interest rate invest these funds in a higher performing asset class than the interest rate you are being charged and chanel the surplus funds into the non deductible debt.

Remember you still need to pay Tax on the profit over and above the associated expenses so the rate would want to be very good.

We have been similar for years with clients who want to buy high yielding properties rather than ASX or US Stock.

Cheers

Yours in Finance

Renel dont you think there is a reason why they offer in house finance ……………….?

Wonder how many deals come back down valued or do they condition you in advance telling you how evil valuers are and that they always down value and there is nothing wrong if the valuation is $30K less than the purchase price.

You have to be kidding me.

Cheers

Yours in Finance

Hi Max

Mhhh sorry to hear thatyour so called Professional Advice was not as Professional as you thought.

Only way around is to:

1) Either sell the property in the open market.
2) Look to Transfer the ownership of the current investment property (i.e if it is in 2 names you might look to purchase your wife's interest or similar or alternatively look to sell the property into Trust and borrow 100% of the current value.

Downside is that Stamp Duty will be more than likely payable on the Transfer and depending on the current value and original purchase price you maybe liable for CGT. There are then Land Tax considerations if the property is held in Trust.

The numbers need to be worked thru before making a final decision and will be also be dependant on your Marginal Tax Rate.

It is a question i get asked almost weekly so you are not alone.
 
Cheers

Yours in Finance

I wont repeat what everyone else has already said.

Financing a purchase in the US through a traditional lending source is something we have done for Foreign National buyers for over a decade and is not out of the question. Refinancing where you have already paid cash for the property is a different matter.

As a Broker it all comes down to rate of return. We have to charge our clients a fee for arranging their US finance and the fee versus the number of hours spent makes it debateable. As Nigel mentioned you can finance a client into a better returning investment here in Australia and earn 3 x as much.

We are also finding a lot better returns throughout the UK & Germany where we can get genuine FN finance at attractive rates and where property management like here in Australia is treated as a profession.

Cheers

Yours in Finance

Like Jamie i have a leaning towards API because i have appeared in it on several ocassions and they managed to do wonders with my photo (took out all the grey bits).

I enjoy reading all of them but wouldnt ever rely on any magazine to do my due diligence solely.

Cheers

Yours in Finance