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August 6, 2010 - 4:06 am

Hi Soloman

Yes the PPOR could be P & I or interest only.
If you think you will live in the PPOR forever and a day then P & I is fine.
If you think one day you might move out and rent the property I would go interest only.

Either way i would be linked a 100% offset account to the loan and this is the account you would deposit your wages and rents into.

Sub loan would interest only or an LOC.

If you really wanted you could have the LOC split so that you could identify which 20% went to which property.

Might be over cooking it though.

If you use 2 separate lenders then it is simple the loan cannot be crossed.

Drop us a line if you need more info.

Richard Taylor | Australia's leading private lender

August 5, 2010 - 12:42 pm

Suggested structure would be:

1) Line of credit or interest only loan secured against your PPOR to cover 20% of the new purchase price & acqusition costs.

2) Separate standalone loan for 80% of the purchase on the IP.

When value of the IP increases draw the loan upto 80% of the increased valuation and pay back the LOC.

Repeat.

Richard Taylor | Australia's leading private lender

August 5, 2010 - 1:44 am

Anything can be done at a cost.

Can you actually reverse the ownership percentage down the track? How would this be done?

You can indeed alter the split of ownership down the track but will incur CGT and possibly Stamp Duty dependant on the State the property is in.

I think you need some specialist advice as other  than Terry / number 8's reply i am not sure the other responses are quite accurate.

Richard Taylor | Australia's leading private lender

August 4, 2010 - 8:37 am

Darren you cant sell the property in SA through an Instalment Contract (Wrap) but nothing to stop you doing so through a Lease Option.

Richard Taylor | Australia's leading private lender

August 4, 2010 - 12:17 am

Jason

Serviceability is just one factor to take into consideration especially under the National Consumer Credit Protection laws.

As long as the initial IP is not Cross Collateralised you could keep this as a standalone loan and as Terry mentioned access the equity in the current PPOR to cover the Deposit and costs.

Richard Taylor | Australia's leading private lender

August 3, 2010 - 1:25 pm

night if it is an issue i would be suggesting you look at getting your Broker to restructure your loans and look for an alternative lender. 

Richard Taylor | Australia's leading private lender

August 1, 2010 - 10:58 am

Go Gecko also offer a capped commission for $5950 and can be reached at http://www.gogecko.com.au/

Richard Taylor | Australia's leading private lender

July 30, 2010 - 12:56 pm

All depends on the purchase price.

The Queensland Government sets the real estate fees / agents fees /real estate commission in QLD at a maximum of 5% of the first $18,000 of the sale price and 2.5% of the balance of the sale price. 10% GST is also payable

Richard Taylor | Australia's leading private lender

July 30, 2010 - 8:06 am

Now i would like to see that extended to 10 years.

Maybe brokers with less than five years experience should have a ‘P’ on their cards. OR at least get the clients to sign an acknowledgment that they understand their broker is still learning?

Or even a statement that the client had to sign to state "taking advice from me could seriously damage your wealth.
However if you have any questions about plumbing / electrical / bricklayer which were my previous occupations i would be happy to answer them with confidence".

Richard Taylor | Australia's leading private lender

July 29, 2010 - 12:50 pm

Maybe skip this months copy of API cos i am in it.

Richard Taylor | Australia's leading private lender

July 29, 2010 - 12:24 pm

Yes Nathan probably not a bad structure to start with.

Richard Taylor | Australia's leading private lender

July 28, 2010 - 9:52 pm

As Terry mentioned set up a separate interest only secured against your PPOR with My Rate for the deposit and acquisition costs and then look to take out a new Interest only loan secured against the IP you are borrowing.

Dont use the redraw facility in your current loan product or you will have issued when it comes to Tax time.

Richard Taylor | Australia's leading private lender

July 28, 2010 - 8:34 am

We have offered a Shared Ownership scheme in Qld through our Company First Home Owners Group Pty Ltd 5 years before Rismark and Adelaide Bank ever introduced it.

Richard Taylor | Australia's leading private lender

July 27, 2010 - 9:38 pm

Regretfully all you need these days is a Cert 4 in Mortgage lending which as Hans points out takes a week and an aggregator to take you on (sometimes harder than it sounds). A couple of industry memberships Credit License and you are up and running

I would like to see a minimal education standard (Cert 4 is a joke) and that you have had some previous lending or financial experience.

Just dont get me started………

Richard Taylor | Australia's leading private lender

July 27, 2010 - 11:30 am

I have to 100% agree with Banker and surely you dont want people with 5 days of mentoring experience out there advising sophisticated investors on the lending requirements.

The new legislation is trying to clean up the image and professionalism of the broker market and to me this means a combination of  experience and education and understanding. Non of which in my opinion you can hope to get in 5 quick days.

If i had my way then there would be minimum education standards and the time spent in the industry would be minimum of 5 years before you could be accreditated with a lender.

The days of the part time broker or the job sharing approach between your day job and a wee bit of broking in the evening surely has to be a thing of the past.

 

Richard Taylor | Australia's leading private lender

July 26, 2010 - 7:40 am

No not normally as they are remunerated by the lenders with whom they place your business.

Richard Taylor | Australia's leading private lender

July 25, 2010 - 10:55 am

Hi Jules

Realitically unlikely to get more than 95% lvr less LMI so on that basis you are probably going to need savings of around $18,000 just to cover the deposit and bank purchase costs. Then of course you have the property acqusition costs such as Stamp Duty, legals, transfer, searches etc etc.

It will be dependant on the State you purchase the property in but i think you are a fair way short of deposit at the moment.

Richard Taylor | Australia's leading private lender

July 22, 2010 - 10:01 pm

Must admit never had a 95% lvr declined with NAB and i have done them in many a regional and rural town.

Agree of course that all comes to the actual deal itself. Maybe we just whittle out the chaff before we submit them.

Richard Taylor | Australia's leading private lender

July 22, 2010 - 9:59 pm

610 might even have City views from there. I am doing a little (very little) development in SP Road and we have City view but will want more than $350K.

Only concern would be the size very small and per sq M that is expensive. 

Richard Taylor | Australia's leading private lender

July 22, 2010 - 11:52 am

Trent – NAB 95% lvr is only available if you are a 4 star Broker and Kellie's Broker may not be.

Richard Taylor | Australia's leading private lender