Hi both no problems at all.

Have emailed you the PDF article.

Cheers

Yours in Finance

Using other creative investing techniques to supplement their property income.

You can read my story on how I amassed all of my properties in my API interview.

PAYG income should certainly not be your sole form of income.

Cheers

Yours in Finance

Hi Kirstie

No need to necessarily meet face to face with a Broker as many questions can be answered over the phone or by email / skype.

My partner jacqui (JacM) is based in Melbourne and has been a forum member since 2004 with a vast property portfolio.

She is also a Buyers Agent so feel free to drop an email or send her a PM.

She can work you thru some options.

Her details can be found on her signature or email [email protected]

Hope this helps.

Cheers

Yours in Finance

Additional information needed to provide a structured response.

Casual employment is fine however we would need to know how long you have been in your current employmment.

In regards to your current investment property you mention that you have paid off 15K so it will depend on the available equity in this property whether you can access it to cover some of the costs.

Cheers

Yours in Finance

Sure if you email me you email address I can respond with the PDF attachment.

Cheers

Yours in Finance

Hi Macard

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

There are other important considerations to think about.

What is the end goal ? To rent the property out and start again.
If this is the case then the LMI will be proportionally deductible once the property is available for rent.

Maximise your borrowings now so that when you rent the property out the full amount of the interest is Tax deductible.

Refinancing it in 12 months might contaminate the loan and you will lose the tax deductibility.

Make sure your Broker is aware of the situation and understands investment loan structures as getting it wrong could be an expensive mistake in the long run..

Cheers

Yours in Finance

This question has been asked a dozen or so times on this forum over the last 3-4 months.

Rather than respond again suggest you do a search on the subject and you will read past comments.

Cheers

Yours in Finance

In addition some lenders charge a loaded rate / application fee etc when lending to a Trust with a Corporate Trustee whilst others are used to such structures and offer the same rate / terms.

Just a matter of finding a lender who is investor orientated and understands Trust lending.

Cheers

Yours in Finance

Hi again P@ck

Ok thanks for the clarification that makes a big difference.

Well remember that 92k has to cover your deposit and acquisition costs.
Yes keeping the loan to valuation ratio under 80% will remove the payment of LMI however will certainly limit the growth of your portfolio.

When we work with an investor we try and ascertain their initial and longer term goals.

If all they want to do is buy a single IP then sure going with a 80% is all fine and dandy. If however they want to grow their portfolio and build an income stream over the years then look at going to say 88.5% lvr.

Mortgage insurance is an opportunity cost which in most cases can be added to the loan and the premium itself is Tax deductible over the life of the loan / 5 years whichever is the lesser period.

There is a big difference in LMI costs amongst lenders even though they maybe using the same insurer. Of course cost is only one factor as there is no point in saving a few dollars if you can’t get the loan thru.

Hope this helps.

Cheers

Yours in Finance

Hi P@ck

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

Limited information to go on but the main thing is the potential equity. I am unsure whether you are referring to “borrowable equity” or “property equity” as there is a massive difference but let us assume all is well at this stage.

Subject to serviceability there is absolutely no reason why you can’t put that first foot on the property bandwagon.

Firstly make sure you don’t use your cash as this can have other uses but use your equity. Why not borrow 100% + costs.

Ensure that your Broker has some idea how to structure an investment loan and works backwards definitely not cross collateralising the investment loan with your home (A little trick the Banks try too encourage feeding you the line it is good for you or for them they can never quite remember).

Set the loan up with a new lender and engage a process of debt recycling over time to free up your equity enabling you to go again and again.

Start slowly and build a good team around you.

Cheers

Yours in Finance

• This reply was modified 9 years, 11 months ago by  Richard Taylor.