First work out the following;

1. Your current cash flow position
2. if you buy an $X amount property how will your financial position and cash flow look like- what impact does it have
3. Are you after positive gearing or more towards capital growth – or more with your current financial position and looking at what resource for the next 2-3 years…[Read more]

Hi,

Newly self employed is fine, but you may need to go down the Low doc loan path.

1. Gross rent taken at 70-80% only
2. Servicing rate is based on current standard variable rate + 2% 

So are you still positive after increasing the rate to 2% and taking in gross rent of 70%?

3. It will depend on location as well- http://www.genworth.com.au/lender-centre/tools-and-resources/location-guide-australia/ lenders like cat 1 and cat 2…[Read more]

Sounds like a rebate scheme of some sort. 

suss…

Congrats Jamie!!! 

You be classified as a self employed, they will require 2 years full tax returns for them to consider you on their standard full doc loan/mortgage.

OR accountants letter only OR 6 month BAS OR 6 month trading statements for  low doc loans.

Mad.Max wrote:
Yes Terry, I am eligible (post 55) to withdraw all or parts of my super, if I do not intent to work. (Have spoken with super, have the form in front of me.)
The land is paid for. The money I withdraw from super will provide the required cashflow to build; then sell the existing house and move into the new one.

Converted your…[Read more]

MRCCON wrote:
Terry, do you essentially get a "double deduction"? Is that possible?

Say, draw from your line of credit to pay for new carpet.

You claim depreciation on your carpet, as well as the extra interest on the loan?

Not really a "double deduction" – you claim the depreciation based on the depreciation value of the  principle (…[Read more]

tkasing wrote:
Hi All,
Ideally I'd like to structure with 20% down $120k – borrow 80% and keep the remaining $280k in an interest offset account.
In reality borrow, $200k @ approx 5.5% = 11k p.a

Tommy

Lenders work their serviceability based on 2% higher then the current rate; incase the interest rate changes.

tkasing wrote:

We can rent…[Read more]

19th April is almost 29 days away….fixed rate will most likely change by then.

To rate lock it will cost you 0.15% of the loan amount, meaning 0.075% per year – so your rate will be 4.99% + 0.07% = 5.065% per year for 2 years which is still decent.

depends on the bank, some banks are more flexible with cash out.

But yes it does get easier as your LVR reduces. At 85% or below theres pretty much no restrictions. 
Most investors stay around the 90% mark max for equity release. 

That's correct you only pay for the difference in terms of the top up.

How much depends which state your in…but it be around $900-$1,200 for 95% ( dont quote me ..this is just off the top of my head..)

95% internal refinance is possible but by no means easy, also from exp CBA will require very good reason and they will want to control the…[Read more]

Wouldn't say it's a reflection on the current market, short term money and cost of funding is extremely low right now…the lowest it has been for a while and will stay at this level for the next 12-18 month; hence why we have been seeing massive discount on offer by some of the major players and non-banks.

Having said that, Westpac has announced…[Read more]

wilko1 wrote:

 the last 5 houses i have bought i bought without subject to finance  because i knew without going to a broker/bank that i was within my borrowing capacity once i add the rent etc)

Just want to say for any Newbie reading ^ this can be very dangerous!

Just because you can "Service" the loan doesn't mean you will get the loan…[Read more]

Let them know you want to release some equity to invest into property – they will automatically ask you if you have found a place , as they would want to finance and lock you in for the 2nd mortgage as well

I'll provide you with a general run down that suits 70% of investors…however you should really obtain personalized advice rather than…[Read more]

^ you don't plan on keeping the property for long so your aiming for Yield rather than Capital growth????

With an 7% yield on a purchase price of $200,000 you would make $10-$20 p/w after expense generally speaking…not sure if that is a good "shot term strategy"…..personally rental yield strategy  works for investors who is after an "hold and…[Read more]

Definitely an hard deal to place especially at 90% LVR especially with an $10,000 "unpaid" Consumer debt also it sounds like you only just started your current job recently ie less than 12 month; which doesn't help..

Best to pay out the debt first before investing.

P.s once it's paid out, make sure you ring the CC company and get them to list it…[Read more]

Hi Katie,

Welcome to the forum.

—Meriton–
* One of the largest and most respectable developer; good quality build and on time most of the time.
* Their stock/properties generally priced slightly higher than the market compared to another OTP ( off the plan)- so hence capital growth can take a bit of a hit…

1. Your question " What should I…[Read more]

Jamie M wrote:

Property 1
Loan 1: existing loan against property 
Loan 2: separate loan set up to cover the deposit/costs on property 2 (the redraw funds)

Property 2
Loan 3: separate, stand alone loan to cover the remaining portion for property 2

Keep all loans IO with an offset against the one you live in. That's what I'd do…[Read more]

Steve – Jamies only gave you a "general " list of lenders that might do the deal…- Do yourself a favour and contact Jamie so that he can carry out a proper analysis.

Regards
Michael