Joshua

The SGB 100% loan has a max loan of 500K and the post code would not be acceptable.

Mike

This day and age most financing deals are done electonically so the need for a face to face sit down is not always necessary.

I must admit like a lot of other brokers most of clients dont live in Brisbane or even SE Qld btu right across Australia and throughout the world. Email makes life a lot easier and can be simpler than the spoken word.

The same goes for a good property Accountant. Lets face you would probably only see him once a year at most the other times he is on the end of a telephone or email.

Joshua

Perhaps Gabriel is a Licensed Financial Planner but if he is not is treading on dangerous ground offer financial advice to you when i assume he not done a needs analysis.

In saying this not sure how many capital protected funds are paying 15% per annum in the current climate.

My suggestion would be to invest the balance in an offset account earning circa 8.5% per annum guaranteed Tax free.

I also dont believe you will find too many lenders do 95% or over on a 900K lend.

LMI on over 95% would be circa 2.75% as a rule of thumb.

Terry

Yes in Qld anything over 6 per annum,

If you are selling your own properties as a Developer you require a Property Developers License.

Wow $900 a week thats an excellent effort.

There are many trains of thought but as Terry mentioned you never know when you may purchase your own Principal place of residence and need the surplus funds to pay down a non tax deductible debt.

My suggestion would be to get your mortgage broker to switch your current loan to interest only and link it to an offset account whilst you have no non tax deductible debt.

Increase the borrowing on your existing investment property to a level of 80% from which you can draw out deposits for future properties and acqusition costs along the way.

Take out a standalone 80% interest only loan on the 4 units. Onm this basis you would only need to raise from your current property 20% of 240K plus sufficient to cover the acqusition costs say $15,000.

This could be drawn from a Line of Credit sitting behind your current loan. 

Terry just to answer both Questions

No it is not a franchise and no there is very miniting security.

SNM

In Qld if you do more than 6 a year (which we do) then you do need to be licensed.

Josh

If you are merely looking for Asset protection and are not too worried on covering any negative gearing shortfall then i personally would be looking at a Discretionary Trust structure.

Discretionary Trust
A discretionary trust is often referred to as a "Family Trust". It provides flexibility in sharing income within a family and can operate for up to 80 years.

Income is distributed according to the trustees’ discretion, by allowing the income to be distributed to lower tax earners and relatives, including children (conditions apply and may not be entirely relevant to you at the moment).

Some advantages are low establishment costs and asset protection. Disadvantages include the fact that if there are losses, these will be quarantined within the trust and cannot be distributed to beneficiaries. Therefore a discretionary trust may not be suitable for investors who practice negative gearing – unless the trust receives income from other sources. Also, land tax thresholds are lower than for individuals.

Rams 90% Lodoc I would still classify as flexible and competitive.

Hi DaFiz

Firstly i certainly would not use my own capital as a deposit for an IP especially when you have a non tax deductible home loan.

If you dont necessarily need the cash why not look to pay the $13,000 into your home loan thus reducing the LVR and then look to refinance at the same time as you go to contract on  anew IP.

Borrow 100% of the IP purchase price plus sufficient to cover the acquisition costs and even if the combined LVR is over 80% it will charged on the IP component and therefore becomes tax deductible over the loan term or 5 years whichever is the shorter period.

Normally i am not a great advocate of cross collateralising your loans and therefore you may wish to restructure the loan into 2 separate components and keep totally separate.

The other consideration is of course the valuation on your own property. In 3 years you would expect to see some growth and it maybe an idea to get your mortgage broker to commission a valuation on the property prior to submitting an application to a potential lender.

This will at least give you a guide as to the valuation and an expected total LVR.