Ezn

For a virgin developer they would probably insist on a proportion of pre-sales maybe 3 out of 10 with deposits taken and also look for good serviceability in your existing income.

In addtion they would want to be seeing at least a 20% return and that you have cash reserves to carry the debt in the event of contingency.

No disrepect to the last post but by switching your loan to interest only or refinancing to a cheaper variable interest rate will have little benefit increasing your serviceability with a subsequent lender and unlikely to worth doing given the externals costs of refianncing.

Many lenders take into consideration 100% of the rental income where the loan remains with a 3rd party and do not apply a sensitised interest rate on your existing debts so this would make a difference. 

A good independant broker should be able to crunch the numbers for you and find a suitable solution.

Most lenders will use their panel valuer and not budge from this.

In saying this it is not too difficult to merely work backwards and look at which lender accepts HTW for their valuations in that area and approach them. Your Mortgage Broker should be able to assist in this respect.

We had just this from a client of ours only last week. They had a HTW valuation which they were pleased with and all we did was place the application with a lender who accepted HTW. A matter of getting the report retyped into a format acceptable to the new lender and we were home and hosed.

You would want to use a Put / Call Option however i dont think you would find that a deceased estate vendor would allow this.

If there is that much profit to be made why not bite the bullet and settle rather than risk the fact of loosing the deal altogether.

A P & C is normally used when you wish to flip the deal and is standard in the development industry.

We simply bit the bullet in 2002 and employed 2 full time staff to prepare ours but in saying that you need to have a enough to make it worth while.

To date we have never had any real problems and other than a once a month meeting with them let them deal with the day to day running of the business.

They are done on a case by case basis and therefore dont have anything to send you.

Simply operate like a standard secured personal loan although offered by a private investor hence the higher interest rate being charged. In saying this it is only charged on a small percentage of the overall purchase price unlike a standard wrap where you will be charged on the purchse price + a percentage of the mark  up.

If you are looking to buy an IP in Qld you will need more than $10k to cover the stamp duty x 2, registration costs etc etc.

What is the 3 year fixed rate  Advantage finance, Virgin, and RateBusters are currently offering ?

Hi Paul

Yes you certainly can but you maybe better off to consider selling the property into a Trust structure which would give you a little more flexibility as time goes by.

We find that many of our clients are wanting the same thing as they often realise they should have stuctured the loan differently to maximise the interest deductions. One reason why we prefer to recommend 100% offset accounts to our clients.

Try Steve Hodgkinson who is a Partner at the Gold Business Group In Southport.

Steve has been my Accountant for 12 years and my business partner in a property business we around 7 years.

Has many properties himself. He can be contacted on 07 5532 2855.

Tell him i referred you as most good Accountants are not taking on new clients and you wont get past the receptionist.

Sounds like your Mortgage Broker and Investment Coach have absolutely no idea.

It all depends on whether the property is negative / neutral / positively geared as to whose name you would put the property in.

I think i would be listening to a qualified Accountant or Financial Planner any day over the others.

With children or dependants you should also be considering a Trust structure.