Jamjam

First place to look would be the Office of Fair Trading as you will find in WA you are required to hold a Credit License to wrap properties.

Can you email me further details as i may have a couple of sets of clients who maybe interested.

If you are interested in an instalment Contract / License to Occupy for Qld then drop me a line.

No not necessarily.

Sounds to me like a standard residential block so 90 even 95% should be available.

Just bear in mind there are less lenders to choice from so let your mortgage broker do the work for you as it costs nothing.

Hi Holly

No unfortunately this would breach the SISA legislation.

Hi again

I will assume that you still need to look at a lodoc style loan and on this basis the maximum lvr will be 80%.

From the current equity position o think you are going to be extremely limited on what you can and cannot buy.

Based on the fact that you can access circa $65K equity and assuming you will need around $15,000 to cover your stamp duty ect then you will be limited to a maximum purchase price of $200,000.

Of course if your income figures can now be verified then it would be different.

Hi Bluebird

Feel free to call me Richard all my friends do lol.

Unless you have cash to put in to cover the deposit (and you will need one buying under a Corporate structure) and to cover the stamp duty ect then there is no way to funds the deal without using a line of credit or similar (Before anyone tells me that you can use Vendor Finance i would point out this restricts your choice of property and still have to fund the purchase costs.)

If you have a nil income then the only way forward it to use a Nodoc style loan product and these are virtually gone.
Maximum LVR under Nodoc would be 65% these days so you would need 35% deposit +.

You have to remember that unless the property is self financing meaning the rents received is greater than the interest payable and other expenses you wil have shortfall and you will need to fund this from your own income. If you have no other income you have a problem especially when the market is not so active.

Hi Bluebird

Firstly sorry to hear about the divorce this is never nice.

Nothing suprises me these days when so called Professionals hand out advice on an area they probably have no knowledge of. The PPOR is in your own name and I would keep it like that as you are quiet correct any change in the ownership structure will trigger a stamp duty liability.

I am assuming that your new investment properties will be purchased in Trust using a Corporate Trustee as this appears to be structure set up by your Accountant however you really want to try and avoid where possible cross collateralising the securities.

Whilst the loan secured on the property will be in the Pty Ltd name with as Guarantor being a Director and Trustee there is nothing to stop you keep the line of credit on your own PPOR total separate.

This day and age buying with a Corporate trustee will cost you more in interest and set up costs as financiers deem the structure as slightly more risk and do not offer the same rate beneftit as they would if it was a personal trustee. 

However in saying this a good mortgage broker should be able to strutucture the loans for you to maximise your savings and minimise your security risk.

Ok couple of immediate issues here which could be got around with a bit of careful planning.

Firstly i will assume that the valuation is correct and that the figures we are working on are as per stated.
Your current loan appears to either be a P & I loan or you have made a capital reduction so be very careful if you redraw or take a new loan that the purpose of the funds is solely for investment otherwise you will contaminate the deductability of the loan interest.

Subject to your holds the current mortgage on the property you should be able to go upto an 90% lvr which will free up a little available capital. (Mortgage Insurance will be payable however this is a loan cost and can be claimed as a deduction).

I probably would not use the same lender as the LMI premium will be higher so thats another consideration.

Serviceability well thats another matter. Lenders work on a % of your rental income and this will be circa 75-80% of the Gross rent. In addition on the liability front most factor in a Living Allowance depending on the number of applicants so for a single applicant they will allow between $800 -$1100 each month. This is on top of you rent payment.

I still think the application is doable however there are a few questions that still need to be answered.

This may also help.

http://www.sro.vic.gov.au/sro/srowebsite.nsf/revenue/28D9FE2D4C70D11DCA2573C100831BA6/$File/publication-LTX-05_2008.pdf