Personally I would be looking to set up a flexible investment line of credit now over your existing securities and then as Terry has mentioned you would be able to get upto 80% lvr with a 1 Day ABN.

Couple of things to bear in mind.

1) Dont name your Company / Trust "XYZ Property Renovators Pty Ltd" or " The Smith Property Developer Trust" or have any mention of the word property in it as lenders just love to decline loans for clients trying to get residential long term finance for really what is short term development.

2) If you havent already done so register your ABN now as the longer you hold it the easier and more options you have for financing.

Hi Newby

Sorry wasnt having a go at you at all had just answered the same question about a dozen times so thought it was easier for you read some past comments.

Income is important but deposit and equity are equally so.  

On the income side you will also receive rent when you purchase an investment property so this helps increase your borrowing capacity.

Loans are assessed these days with a combination of credit scoring and then DSR or income suplus testing.

There are many ways to get started with a deposit and the rest is just a matter of structuring correctly and maximising your equity as you go along.

Hi newby

Wow Steve new book must have been popular this Xmas as this has been the most asked question on the forum over the last 8 weeks.

Simple answer is NO forming a new Trust does not increase your serviceability one bit.

Do a search on the subject and you will see the various comments.

Rosemary might want to do seach on this topic as it was discussed some months ago.

Remember the interest on the new loan will not be Tax deductible in the main (with the exception of anything you can claim for running your own business from part of the house and then you may not want to) so the interest on the entire loan will need to come from after tax dollars.

Have you crunched the numbers to see whether it is viable to sell your Tassie property into Trust and borrowing 100% of the current value and using the raised funds as deposit on your new PPOR.

This would convert a lot of the interest from non deductible to deductible. Maybe a bit of stamp duty and consideration of Land Tax but could work very well for you given the potential purchase price.

I dont think you can switch to IO with ING during a fixed rate period.

I cant see an issue with Frankston and wonder why QBE said NO.

Be suprised how many older houses have had internal fixtures and fittings upgraded which help with the Capital Allowance claim.

You dont have to buy brand new to be able to claim both Depreciation and Capital Allowances.

Anything post 87 will be good however obviously the newer the property the more left to claim.

Something 2nd hand within the last 10 years would probably be better value depending on where you are looking at.

As i put on Sommersoft in answer to the same question Bank West, Suncorp, Adelaide Bank to name a couple.

In saying Gemworth are harder to deal with at the moment.

You would be better of with a lender that self insures.

Dependant on where the property is i can think of one or two.