Firstly at under $100K you may find that the post code may prove an issue but assuming that is not the case then you would need to cover the acquisition costs i.e stamp duty, mortgage registration etc etc in the State you are refering to.

Then in most cases LMI is deducted from the loan which is another cost.

Whilst a 106% Investor Loan is available which would cover all of your costs the minimum loan advance is $150K and it is post code restricted.

Depending on the wording within the installment contract the contract is terminated and the deposit and all payments along the way are forfeited.

Certainly when they were first offered in the UK by many mainstream lenders they did not drive up house prices.

That was some 20+ years ago and over the longer term seem to have had little impact on home loan affordability.

The interest rate would be the same as I am not aware of too many lenders that charge a higher rate for an IO loan over a P & I loan. The rate is not the issue the way in which the loan structured is probably more of a consideration.

Why not post a bot more information and we can provide you with a clearer answer.

Just watch Wizard the product is quiet what it seems and the establishment costs are high.

If you are looking to build up a portfolio of IP's then you need to think carefull about financing from day 1.

From my recollection they have a min loan of $50K on most products so this may limit you if you are looking at buying in regional areas. Ask them do the X collaralise their loans and look at the face of the Wizard rep when he wonders what you are talking about.

Ezn

Firstly if you are purchasing land and developing this in the course of business you will not receive any CGT concession as the profit will all be treated as Trading Income and subsequently Taxed at 30% being the Company Tax rate. The factthat you don't draw down the funds from your investor has no bearing on the matter.

From your reference to the 6 properties per year I assume that the developments are in Qld so Yes you will required to hold  Developer Licnese as required under the Property and Motor Traders Act.

I think you maybe better off with a Discretionary Trust over a HDT given that the business will be hopefully making a profit.

Neither of these need to be local to you just able to write business within the State.

I have many many WA clients but operate from Brisbane in the East Coast.

This day and age  with technology distance is not the barrier it used to be.

Starfly

Nice to hear you wanting to help your mother. I think many of us forget what our parents do for us.

Only problem i think you will find is the size of the unit at 30 square metres. Most lenders will want a minimum of 40 Square Metres and the 2 main mortgage insurers will struggle.

Their are a couple of lenders who will go down to 25 SQ M but either the rate is higher or the LVR is lower.

Yes i have and they are an excellent firm to deal with.

Say hi to Pual and Julie from me.

As Simon mentioned Lodoc / Nodoc style loans provide an important place in the market for just your type of enquiry.

This day and age you won't be paying a higher rate of interest for such a product.