Gibbo

Yes there is a push and the quicker the better as far as i am concerned.

Sure i take a commission on life related products (usually discount it by a reduction in the clients premium) but for managed funds, investment advice or hedge fund management i work on a fee for service.

I think a real issue is the MIS schemes such as Great Southern Plantations where advisers were earning anywhere upto 10% of the original investment amount.

Never heard of him but No money deals in Oz in the current climate are almost impossible unless you are referring to Call Options and even then you will need some money down.

Hi dodo

One of the issues i tell every client is what starts off as your PPOR often ends up as a IP and therefore if the structures are correct from day 1 then it is a lot easier to control down the track.

Unfortunately the Equity Manager account is not a recommended product at all for your main loan.

I would need a little more information to give you a structured answer but if act fairly quickly (suggest pre june 30) anything is possible.

Hi dodo

You certainly have a reasonable amount of equity in the property due to the natural capital growth and the fact that you have been paying down the loan.

If you are looking at purchasing a new PPOR the last thing you want is to carry on paying principal & interest on the current loan and therefore i would look to switch this to an interest only loan with 100% offset account with immediate effect.

Deposit your salary and any other forms of income into the offset account and this will both protect the interest deductability of the current loan as well as maximise your interest savings.

In an ideal world you would want to maximise the loan on the current property which will be the future IP and reduce the loan on your new PPOR as the interest here is not deductable.

Transferring the current property into a DFT structure is probably not a good idea as this will incur Stamp Duty and you are unable to claim the negative gearing in a DFT. Selling the property to a Unit Trust maybe an option however there maybe a couple of other ways of achiveing what you want without going to this expense.

In ideal world try and ensure the loans are not cross collateralised and your mortgage broker should be able to assist in setting up a line of credit on the current loan which can then fund the deposit and acqusition costs on the new property.

Hi Paul

To be honest an unsecured personal loan would have to be the hardest type of loan to obtain in the current climate and i think unless you have a good asset base, job security and squeeky clean credit you will struggle to get anything.

These loans are solely credit scored with little human credit intervention so other than the big 4 try one of the smaller credit unions or building societies as they maybe finding business a bit slow.

Thanks for the endorcements guys and to confirm i DONT charge ANY commission upfront, during or post setlement and rely purely on what we receive from the panel of lenders with whom we deal.

Just on the buyers agent commission front the amount they have quoted you is standard for a Real Estate agent in Qld so is on par with what you can expect to pay. My only concern is that you actually save this amount at least off the purchase price otherwise you would be better of going through a Real Estate agent and paying nothing.

I can recommend a couple of good independant Real Agents who deal with units in the Brissie area if you want a name. I have personally purchased some of my portfolio through these guys and they manage a lot of my northside properties so can recommend them.

Shoot me an email if you want there details.

David

You would be lucky to finance 65-70% of cost on a maiden project of this size so thing financing will also be an issue.

Thanks Gibbo

I think you just saved me 10 minutes typing a similar worded reply.

Sure anyone can walk into a Bank and apply for finance but which Bank and how do you structure it.

Dont tell me the Bank are going to tell you the lender down the road has a better serviceability formula than us and their offset product is 100% transactional and will save you more money. Or they require the loans cross collateralised and have little knowledge or care about your asset protection as long as they are well secured.

I could so my own conveyancing but i dont as i trust my purchases to someone who knows what is right for me and protects my interest as much as anything.

Hi Mike

Regretfully you will not get to choose the type of valuation your Bank performs as they are the one normally paying for it.
Certainly you can request that they carry out a full internal valuation and see what they say.

Definately dont want to increase the current loan but take out a separate loan as otherwise you will contaminate the original loan and find it difficult or even ni impossible to cliam the interest on the Investment portion.

Really doesnt matter whether it be a LOC or an IO loan although if you dont intend to purchase for a while then you might struggly to convince the ATO that you wish to claim the interest on the IO invt loan when you havent used it for investment purposes. Appreciate one day you will it is all in the timing.

Finally remember your Bank may not have a panel of valuers and merely use 1 valuer for the area so you will be limited if you dont like what he says.

Why not get your mortgage broker to organise a valuation for you so at least you can see in advance what the valuation will come back in at and can decide whether you want to move forward or look to refinance.