Hi Morty

Please note that your Accountant is not qualified to write up a Financial Plan for you as this is the domain of the Financial Planning industry and can only be done by a Licensed Financial Planner.

I guess it all depends on what you want if you are looking for loan structuring advice and know the sort of property that you want to purchase then any experienced mortgage broker can do this for you.

We offer this free of charge to our clients when we arrange their investment loans but do ave to charge for the full Financial Plan like any other Planner.

No worries Jessica.

As i mentioned tell her i referred you and she will either close the door or give you the deal of the century.
Only kidding she is a true wonder but dont tell her i told you.

Why not try Leonie Dixon at CSM on the Southside.

Leonie has been my Solicitor for the last 13 years and has completed over 200 transactions for me during that time and the same number again for clients of mine from the forum.

Give her a call on 07 3807 9521. This is her direct number so if she doesnt answer first time she is on the other phone or out for lunch.

Tell her i told you to call and she will either throw you out or welcome you with open arms – lol.

I agree with the other 2 comments.

The severity of the credit blemish will detemine the LVR and the interest rate.

Something small you should still be able to get 90% LVR at standard rate. I have just done a 95% LVR with 2 paid defaults at standard rates but they were small defaults.

Hi Ko

When i first started buying + cash flow properties some 13 years ago I had the same concerns as you are having but what you have to remember is to trust your instinct and due diligence> If you have carried ths our correctly ten you will not have to any problems along the way.

Ask yourself what is the open market rent for the property if the tenants move out and I have to re-tenant the property.
Talk to the managing agent about te rent and ask his feelings. Remember this will be entirely different to what the selling agent has to tell you who is after the sales commission. 

Talk to your broker and ask him what the Bank's valuer assessed the rental assessment to be. Again a good valuer will have had a look at the lease agreement and made comments as to whether it is likely the rent your are receiving can be maintained when the property has to be re-tenanted.

Either way be positive you are unconditional so cannot go back on the settlement so go forward and trust your judgement.

Good luck and let us know how you go. 

Hi Hgwell,

The comment about lenders assessing your credit cards as maxed out even though you pay them off each month is not quiet correct. Some assess your liability as a percentage of the credit limit some will ignore the liability if you can show 3 months of nil balance statements.

With regards to the question in hand one other consideration would be to look at how you are going to roll over your existing loan balance as when it comes of the  5 Year fixed rate it will be considered as a totally new loan again by your lender and will require re-underwriting.

Might be an idea to get your broker to re-assess your entire position at the same time and structure our refinance so that it does not hinder your progress going forward with future additional properties.

Hi Juder

Yes most lenders will take the rent on the property you are purchasing into consideration when accessing serviceability on an investment property.

The percentage considered will vary from lender to lender as will the evidence they require to consider it. Some will only take a valid lease others want 6 months managing agents statements and others a valuers opinion of the rent assessment.

Remember when you purchase any property as well as the loan amount to cover the purchase price you will also need to come up with funds to cover the acquisition coss such as stamp duty, solicitors fees, mortgage insurance etc etc

Hi John

80% is available at a sensible interest rate dependant on the location of the property and the type of security.

Hi John

I think you are getting a little confused with your interpretation of the structure you may have employed previously.

If the property has been purchased by the Pty Ltd Company then the loan would be in the Company name as well with a personal guarantee given by the Directors (or Director) wich i assume is you alone.

If the property was purchased in the name of a Hybrid Unit Trust then the loan would be in your name so that you could purchase Units in the Trust.

Purchasing a Commercial property is exactly the same although the only difference from a lending perspective is that you will need to offer up more deposit. Depending on the type of security you are looking to purchase you may be limited to 70% LVR.    

Hi Post

Yes i think the market will be enormous for SMSF.

You wlll now be able to purchase a property whether it be residential / commercial in the name of your SMSF and borrow against the property with funds from your Bank. The Super Fund will be able to negative gear albeit at the marginal rate paid by the fund of 15% and then once the loan is repaid or the property is positvely geared the fund will only pay Tax at 15% on the profit. If this does not occur until such time as the fund is in Pension stage then no tax will be payable.

The fund will be able to do development (as long as this is within the Deed objectives and it is not deemed the fund is carrying on a business.

If you think you have 15 years to go before you will retire then the loan could be geared accordingly.

Remember when you sell the property asset in the SMSF if you are entitled to claim the concessional CGT you will only pay Tax at 10% on any profit made.