depending on the area you get…

Spoke to a insurance broker last year and he had a case where the tenant was not given his 1st preference of place to live in so he burnt the home down..so that he could get his 1st preference ….

All i could say- i will think twice abt buying NEAR a depart housing…and in regards to buying one or renting one out- no chance.

Regards
Michael

Jack sorry to say in that case your a true self employed.- since the company has no obligation to keep you as a “contractor” as such.

I would say the big 4 banks would be your next best frds, i have placed many loans for sefl employed with less then 2 years ABN via the big 4…it depends on your “story/history” and what history you have with that bank as well..

Case by case and possible. But one warning, i wouldn’t go to the bank directly- the “branch staff” will just look at you and say no…and if you have too many “rejections/ inquires” on your file-= no broker would be able to help you!

Regards
Michael

What your looking for is joint syndicate funding-Where a group of ppl pool their funds together for a set project.

However in joint syndicate the contribution of money is even… meaning one can not pay more or less…so if your lacking money i say look into standard property investing and take the “slow route” ie 95% LVR loans…

Min investment for joint syndicate = $50,000

Regards
Michael

Been so busy!!! sorry for this late reply…

Amy- being a new and basic investor i say stick with a basic structure else you will just get to confused…DFT has it’s benefits but also some disadvantages as well ( ie can not claim any deduction from your personal tax income).

I personally have a trust structure for my “risky” adventurers i take on- commercial loans and developments. But for my basic bread and butter IP and PPOR it’s under a standard set up…

In regards to having it under one name or 2..it depends on who will benefit the most from the tax break? if its even…then keep it under both names.

Regards
Michael

Sorry havn’t been on for a while- So busy!!! rates are so competitive and it;s always on the news….

Ferdinand – Did the Cal- yes you will be fine with serviceability for the amount your after.

In regards to LMI–

–ING—
NO LMI at 85% — Must be in job for 2 years MIN! ( so that’s a no for you)
Reduce LMI up to 95% — Same as above

—Westpac—
NO LMI 85% – “Vanilla ” Loan applicants only9 ( Perfect Credit File, No inner city apartments, >50squ, Stadard properties, Genuine savings, stable employment) -From what i can see You be fine….your consider a Vanilla loan – unless you have a default on your CR?

—NAB **—-

Up to 90% NO LMI – for selective clients only – Normally $600,000+ loan , Vanilla loan + “pro” pack professional or medico OR Staff of NAB

–Suncorp—
Reduce LMI up to 95% ( effective from April 4th)- new product! – Standard guild-lines…

—Citibank—-
NO LMI 85%- Vanilla loan only + Non-genuine savings up to 85% ok.

-nationwidelending—
85% NO LMI – havnt done a loan thru these ppl for over 6 month…so not 100% sure.

There are a few more smaller lenders, who uses similar product/lenders—-

Either way some of these deals are not available to the general public via the broker and intro market only.

Regards
Michael

just letting you know, Most MB dont charge a fee…it’s a free service to the client- we get paid by the lender… similar to going to a bank – the staff is paid by the lender/employer.

The only different with MB is that YOUR th client and YOUR the one we work for

And no you wont have problem using the funds from your CU to fund it to a different lender.

Cheers
Michael

Amy i dont know your full financial but what i will do is give you a few unbiased pointers.

1. If your happy with your CU – stay with them,…most CU in term of rates tends to be the same., if the rate your getting is under 7% then i say stick with them since your happy with their service etc..Service > rate ( as long as it’s not over priced)

2. Your current structure is fine. KISS – keep it simple.

3. IP2 – now this is where loan structure is very important. Essentially you would want ot borrow the funds for the renovations as well ( tax advantage ) and not use any of your own cash (pre-tax money) towards the IP.

Here are the problems:
a) Banks do not like owners builders!!
b) Which part of Orange are you in? ie postcode? if your in a rural area with population less then 10,000 you may have a problem as well

Here are the 3 possible solutions, which one you choose will depends on the rest of your details, ie which tax barrack you are in, Long term strategy, How much for the renovations, type of renovations and lender.

1. Redraw your $15k overpayment out and place into offset account, it will give you flexibility if times are tough. Apply for a top up or refinance with lender up to an 80% LVR and do it as an split loan, this will give you $40k to work with
2. Apply for LOC – this is the easiest one around your problems., you have access to the funds when ever you like and for what ever reason you choose, only disadvantage is the rate is higher around 7.5%
3. Apply for an standard loan, but get a quote done with a unrelated licences builder for the same job- fixed price….submit this to the bank as approval ( be aware some bank will do control funds and this will defeat the purpose, so lender choice is important)

Regards
Michael

A lot of ppl dont sign up.. because they are not confident they can afford to buy a place within the 4 years time frame.

In general, as long as you:
1. Can afford the loan amount your requesting
2. Have a “FULL time job” not contracting ( contracting is fine…but must do it for min 2 years)
3. PAYG paid- ie not self employed
4. Been with the employer for 3 month – even if your on probation it’s fine.

As long as you meet the above in general with no defaults or adverse CR file you be able to get a loan.

ahah yes that would work too Lalibella

Yes – if you have proof it;s for investmen purpose- Ie have a leased agreement btw you and the agent that cone the place is built it will be rented out and given to the agent to mange…

Regards
Michael