Where can we get a copy of the Prospectus as required under the Managed Investment Act.

Burnie

There are many variables in calculating serviceability and no 1 lender is the same.

Lenders will normally take your net income and then add in a percentage of the Gross rental and from this deduct certain expenses including existing loans, potential credit card limits and a living allowance.

Arriving at a net figure they will work normally divide this by a principal & interest factor based on a serviceability rate slightly higher than the standard variable rate to allow for potential rate increases. 

Of course in saying all of this what one lender will offer can be totally different to another and therefore it is a matter of fine tuning your strategy to enable you to keep buying and moving forward.

I agree with IP freely i would sell but utilise the equity and use the extra cash flow to reduce the interest charged on your current non deductible home loan.

Look to gear against the current equity and then use the funds released as deposit for a couple of other IP's.

Yes in addition to the 3 Banker has mentioned i can think of 3 others off the top of my head who would also do the deal and 2 others who would go to 90% lvr.

Not a matter of what you havent got more a matter of what you have.

The fact that you dont have Tax returns may scare some Brokers and lenders however others adopt a more common sense approach.

Wont comment on some of the individual areas in your list as i have property in them and are very happy with the appreciation and returns but if you have any particular properties you are looking at be happy to email you a Residex report on the property itself.

Hi Matt

You would be suprised.

For the right applicant 95% lvr is availble with no genuine savings (in fact the saving can be borrowed) at standard interest rates.

Andrew

You called.

Under the new NCPP the emphasis lies with the introducer to ensure that all of the information is correct and that the applicant is suitable for the finance recommended.

Recently attended a briefing held by our Aggregator and they had a lawyer from Minter Ellison there giving everyone an overview.

Their advice was until the details of the Act could be further clarified with ASIC then lodoc loans should be avoided as there was little way in proving the applicant could afford the loan and that stating an income to meet the lending criteria could prove very dangerous and personal liable down the track.

Like everything the proof of the pudding is in the eating and i am sure time will tell.

Registration for your own license i see could range from between $465 – $26,500 annually.

And I thought Financial Planning was bad.

Terry agree there is a little moore appetite for debt.

Will be interesting to see whether the Lodoc / Nodoc market disappears totally under the new Credit legislation.

I for one certainly wont be writing any more lodoc deals from Jul 1.

Kat

If the difference between the Bank valuation and your loan amount is $50K then unfortunately this is not useable equity as in most cases you would only be able to borrow upto 90% of the current valuation meaning you would have less available for a deposit.