SNM has beaten me to it.

Unlikely it is in your Banks interest to protect you when they can protect themselves.

Yes an offer or two a week is about right for serious investors.

As long as you make sure your contract is subject to building & pest inspection, finance etc you should be fine.
Most finance applications will require a Bank valuation as they certainly wont want to be lending you more than the property is worth in the current climate.

Make sure your Broker structures your loan properly and the Bank dont cross collateralise the securities otherwise they may just lend against your current equity and you be unaware that the valuation came in less than the purchase price. (Usually mostlenders allow a 5% variance).

Yes in an ideal world I would establish a LOC against the PPOR and a totally separate standalone loan against the new IP.

If 1 loan is taken out for the total amount the loans will have to be crossed and not my favoured way.

Hi PS

Yes you do as you will need a total amount of $300K (Ignoring acqusition costs) to settle the purchase.

In this example $270K is secured on the new IP and the $30K on your PPOR or other property.

Hi Eddie

If the lvr was 60% or below there are a couple of options.

All boils down to the Banks risk i guess. At that level they believe you will loose and they will win.

roy

No with most development finance subject to equity interest can be capitalised to the end debt.

 I only used the LOC for the deposit and fees such as stamp duty – That is fine.

I would also be careful about giving others advice if you are not licensed to do so.

Klein

Firstly welcome to the forum and I hope you enjoy your time with us.

Sorry you kinda lost me mid post.

Did you purchase the IP using a LOC in its entirity or only to fund the deposit and acqusition costs ?

If you did you may have an issue and suggest you clean this up immediately.

Are the loans crossed ?

I recommend to clients to have all forms of income paid into the 100% offset account and have this account feeding the other loan accounts even if they are with separate lenders.

Is anyone interested in Investments in Germany – NO

Unfortunately it is not as easy as your man at Westpac mentioned.

As i posted earlier several of the majors have "All money clause conditions" in their letters of offer and therefore splitting the portfolio is the only real way of safeguarding yourself.