Yes if you wish to utilise that structure.

You cannot simply transfer your existing property into Trust without incuring additional Stamp Duty and other related costs.
In addition you would loose the FHOG benefit i assume you obtained and also the concessional Stamp duty which you have paid.

Maybe start again for the next one.

Your Mortgage Broker should have advised you of the options available on the first deal.

Away from Terry's comments which i totally agree with i think you may have a potential security issue.

I assume from your original post these properties will tend to be smaller style units as they are aimed at the single person / student. Just make sure the internal floor area is not too small and that they are not in a high rise where the mortgage insurers may want to limit their risk and not provide cover over 80%.

Also most lenders will want to see a separate bedroom, bathroom and kitchen and although some lenders will lend against studio units might want to see a separate laundry.

Firstly welcome aboard and I hope the Country is good to you on arrival.

Difficult one to answer as there are so many variables which include loan to valuation (most lenders limited to 90% at the moment), do you have clean credit, is serviceability a problem, are you looking for variable or fixed rate loan, what features do you require with the loan.

In a nutshell more information about your own personal position would be required to offer a constructive answer.

Hi Don

The lender will want evidence of where the funds to complete will come from and a vendor loan will not be accpetable.

Secondly if i was the Vendor then i certainly would not take a PG without security. I am sure his Solicitor will advise him to take a 2nd mortgage to protect his interest.

I think your valuation will reveal that but i doubt it was referring to the property value more likely the land value.

Obie

Sorry but that is one of the issues of X collateralising loans you just cant do it

If my IP lender does not want to remove the second mortgage on my PPOR I will just refinance them out of the equation.

Assume that the Investment property has increased in value but your PPOR has fallen in value or has remained stagnant.
Sure you maybe able to refinance the IP loan but your existing lender may also ask you to pay down some of the debt on your PPOR mortgage.

The whole concept of refinancing is usually to raise funds for further deposits but it is not that easy.

I have had 101 clients approach me over the years asking us to unravel the mess they have got into with X collateralising securities and you are at the prayer and whim of the existing lender.

Ash

Love your enthusiam and well done for wanting to start so young but regretfully you are bang on in saying that youare unable to purchase a property or enter into a mortgage before the age of 18. The same goes if you look to buy in Trust.

Remember even when you are old enough lenders will want to see sufficient income to service the loan as they only take a percentage of the rent into consideration and will be looking to rely on your income. The fact that the property is CF+ makes no difference at all at $9000 pa you would not even be able to show sufficient income to cover your living expenses (Under the Henderson Poverty Index a single person allowance is around $800 – $1000 / month).

Also away from the deposit 10% with most lenders you will need to cover your acqusition costs which could easily be another 6-8% so my suggestion would be to save as much as you can so that when you are legally able to enter into a Contract you have a good sized deposit.

Read, learn and talk to as many property investors as you can as 2 years will fly by.

Might want to read the attached before you venture down that track

http://www.bantacs.com.au/booklets/Capital_Gains_Tax_Booklet.pdf

Varies from location to location.

May not show on the Contract as if there is no rate shown the default rate will normally apply. 

This will vary from State to State.