Hi Bozena

Firstly i promise us Brokers dont bite so nothing to fear by approaching one.

There are many factors that effect your capacity to borrow so it is not as easy as it sounds however to give you some idea:

Add your net monthly incomes together with say 80% of the current rent or proposed rent.
Subtract the Prinicpal & interest repayments of all of your mortgage loans calculated at 1.5% above the standard variable rate together with the actual repayments on any non mortgage loans such as personal loan etc. Also subtract 3% of your credit card limits.

Then subtract a living allowance based on the number of adults and children in the family. This is a sliding scale so you might want to check with the Henderson Poverty Scale as to what applies to you. As an example 2 adults and 2 dependant children would be circa $2050.

This will hopefully give you a net surplus figure.

Work out the P & I repayment for $1000 on the SVR + 1.5% and divide this into the net surplus figure you have.

This will give you the number of 000's you can borrow.

As i mentioned there are many other factors to consider such so will only be a rough guide.

Altenatively talk to a Broker as i say they dont bite.

Rafael

What percentage loan to valuation can a Foreign Nation borrow ?

Eddie

You must have got hold of one of the cheaper lawyers.

I have settled about 8 loans for clients and the legals fees for establishing the Bear Trust and associated Company varied considerably (between around $8500 and $17000).

As for the Broker we are are paid the same as a normal loan. The time spent arranging the loan with the mountain of paperwork doesnt make it viable anymore.

Hi Robyna

As you are buying up on the Gold Coast I can certainly recommend and excellent property Accountant.

Try Steve Hodgkinson who is a partner at the Gold Business Group in Southport.

Steve has been my Accountant for the past 12 years or so and is an expert on Trusts and Structures.
He can be contacted on 07 5532 2855.

Tell him i sent you as most good property accountants are not taking on new clients.

Lodoc for a Pty Ltd Company ATF Trust is still readily available so shouldn't have much problem in financing it once you have the structure set up.

Austin

Surely if it is positvely geared isnt that a good thing.

Remember you can still claim any available Depreciation or BWO both of which are non cash expenses.

Establish the loan so that it is not cross collateralised and use the reduction in your Taxable income to pour into a 100% offset account established on your current PPOR (personally I would look to switch this to interest only if it is not already).

This structure will help eliminate the non deductible interest payable on your current PPOR as well as giving you flexibility down the track.

With a further interest rate reduction likely in February it might be a good time to set yourself up for the next up wave in prices at a time when interest rates are falling. 

Point taken and the loan needs to be Lodoc ? Definately

I would be wary starting the construction as you may find any potential new lender not wanting to refinance a deal where the construction has commenced.

Realistically at this time of year a refinance will take a while to get through.

frini

At the moment i doubt you would get more than 0.8-0.9% however the important benchmark is not the rate reduction but the actual rate itself. With all of the 4 major lenders having a different Standard variable rate a 0.8% off one lender could actually be higher than a 0.7% off another.

Would need more information to provide you with an actual rate.

uforia

Given the size of the current loan probably better to start again as the LMI on a total lvr that high over 500K will not be cheap.

Maybe not what you want to hear but probably need to pay down the PPOR loan with the 20K and then take out a new loan of
20k to use to cover the acquisition costs etc. This way the funds borrowed become a deductible expense.

Whilst 100% loans are still just with us as duckster mentioned you will need funds to cover the stamp duty, LMI and other Government expenses i.e searches and registration costs. 

Ok i am back from the USA anyone miss me …..

WC the fall in official rates has been passes on % for % in the Commercial market as many lenders have withdrawn totally from this type of lending.

In saying this it all depends on the security involved as it is an area that lenders can certainly price in the risk.

If you are referring to a $400,000 retail shop then the rate has fallen considerably however if it is a 12 town house complex with high GR lend with no pre-sales then the rates have not fallen hardly at all.

Ok quick jetlag sleep and will be back in to answering more questions and catching up on emails.