Hi Amanda

Hate to say wont be anything to do with an Accountant.

Issues are not only the Stamp Duty which maybe payable (However you maybe entitled to the concession if the value is less than $500K and it is a first purchase) but also the potential CGT you parents will incur on the sale.

This will be based on market value not Transfer value.

Also if it is not transferred by June 30 your parents could incur Land Tax.

Mortgage Insurance will be payable if the lvr is > 80%.

Why dont you look to be sensible on the loan structure and partly repay the debt.
Get your parents to carry 20% of the purchase (assuming they have equity in another property) price and you  pay them.

You may also be entitled for the FHOG but might have to explain away the relates parties issue.

Your mortgage broker should be able to help you.

Hi Veronique

Yes there are lenders that will however just bear in mind that what is cash flow positive may only cover the interest and not the other expenses such as Rates, Insurance, maintainance.

Also what happens if the property becomes vacant.

You would certainly want to have some form of cash or equity buffer built in.

Rates of interest also would be fairly ugly so if if you were self employed and had your ABN for 1 day the rates and terms would be some much more favourable. 

Sorry been flat out and couldnt get to this one until today,

Anz Bank – Depends where on the Coast but either HTW or CBRE.

ING – As above as well as Herriots.

NAB – Internal inspection from staff valuer. 

Adelaide Bank – As per Anz and ING.

Couldnt tell you about HSBC as they thankfully dont operate in the Broker sphere.

There are 6 or 7 lenders still doing 95% lvr and 5 of them dont require you to have any relationship with them.

Alex wouldnt touch it with a barge pole.

You wont get finance on it past circa 60% lvr so will need a decent deposit and all of these Hotel managements are only as good as the Company behind them offering the lease or guarantee.

Usually $2 shelf companies.

Several in Brisbane have got into liquidation and the investors left with a room and nothing to rent.

Depending on the lender interest should be calculated daily and debited monthly so the extra payment will have an immediate effect on the balance and the interest charged for the month.

Of course if you sat the funds in a 100% offset account then the interest savings would be the same.

Might even go 1 step further and think about a interest only loan and deposit everything into the offset account.

Did answer this on the other forum heading.

Minimum 3 year fixed at the mo is around 6.89%

Days of 6-6.5% have been and gone.

No as long as you get a Credit License you can offer it.

Check with the Office of Fair Trading in WA to see what the requirements are.

Hi Daryl

Seems to be a popular question as this is the 3rd time i have been asked it.

As long as your wife is in similar employment and it is not a 95% lvr then probation will ot be a problem for certain lenders.

Have to disagree with what Ryan said as approaching a lender direct will not do you any good.

Had a client today who had approached one of the big 4 lenders direct to be told NO Problems. Of course when she lodged the application it went from the Branch upto  the lenders credit department and they declined placing a CRAA entry on her credit report.

Bank staff are there a merely to sell you their own products and services and will certainly not tell you that you could do better across the road or elsewhere.

A good Mortgage Broker can look at the whole picture and then submit the deal accordingly with his knowledge of the lenders credit policy.

Yes it is but wont do you much benefit.

Normally if you want the Tax deduction in the current year you would pre-pay 12 months interest.