I have arranged this set up for a client just recently. I negotiated 1.10% off the standard variable rate (i.e. 5.97%) for her non-deductible debt and standard rates for her deductible debt (i.e. 6.57%) with a Big 4 bank. It’s a good arrangement. We were able to get these discounts because she was borrowing in excess of $1m.

No application fees…[Read more]

Yes if loan > $250k ANZ will do 6.47% @ 60% LVR (but there are a few major lenders that will lend at 60% at standard rates).

Suncorp will do 80% (P&I) at 6.97%.

Watch the smaller lenders products… rate might look good but they can have high upfront fees and significant break fees. Make sure that you just don’t focus on rate but consider all…[Read more]

Trustee/s will have to provide a guarantee. However, if it’s a corporate trustee then the directors of the trust coy will have to provide the guarantee.

Some examples of good and bad lenders are:

1. ANZ will not lend to coys and trusts in its professional package. They only have one expensive product for coy/trust loans.
2. St George will do i…[Read more]

I have found Suncorp, St George and Big 4 better for regional locations.

Cheers

Stu

Welcome to the forum Terry.

I believe the forum rules do not permit advertising. Therefore, I have deleted your contact details.

You are still encouraged to help other forum members but perhaps you can do this by responding to specific questions rather than posting a “here I am” email. This would be more subtle.

Any problems… feel free to…[Read more]

I note other brokers comments about pre-approvals not being water tight. I agree. However, it is better than nothing!

Plus it would have picked up any serviceability issues and helped Luke.

They are still very worth while in my opinion.

Cheers

Stu

Wow, I wouldn’t stick up for the broker.

I have never told a client to go and purchase without a pre-approval. Especially when LMI is involved.

No, that’s a dumb broker in my opinion. If you take the risk and tell a client to purchase then you should wear the blame!

ALWAYS, get a pre-approval from the lenders. Then you have something in…[Read more]

Correct. No corresponding income or asset in the 03/04 year and therefore no deduction. At best you may argue that it’s an acquisition cost and therefore it’s added to the cost base. But I don’t think that’s the desired outcome.

Cheers

Stu

Dear Calron

I don’t think you can advertise on this websie for money partners. Please contact Admin if you disagree.

Sorry

Stu

Correct. Some lenders will allow capitalisation of interest (subject to the approved credit limit). Others will require minimum repayment of interest only.

Cheers

Stu

Okay, I worked out how to reduce the file size. It is now 0.5MB. It still takes about 2 minutes to download on a dial-up connection.

See http://www.prosolution.com.au/commercial.pdf

I think you may need Acrobat 6.0 to open.

See
http://www.adobe.com/products/acrobat/readstep2.html

If it still doesn’t work for you then email me and I’ll email…[Read more]

I wrote an article recently for API magazine.

See http://www.prosolution.com.au/ps_docs/prosolution_doc081903_180049.pdf. It’s about 1MB in size so it might take a while to download. Free free to email me your postal address and I would be happy to mail you a hard copy.

Cheers

Stuart

More than half of our business is placed with the NAB. Sure, I am missing out on a very significant amount of trail commission but they offer the best deals (often discount well above normal levels). I suspect they can do this because they don’t pay me a trail commission. In any case my ethics tell me to act in clients best interests or don’t a…[Read more]

I agree with Julian. Brokers should not be allowed to use the words “independent” and “unbiased”.

The existence of different commission rates impaires perceived and actual independence.

That’s not to say that some (lets hope most) brokers act in the clients best interest.

Cheers

Stu

You can not afford a company structure? It only costs $1,000!

The main issue, in my opinion, is tax beneifits, not litigation protection. How many businesses get sued when operating an investment business? Not many. It is not a business that requires insurance.

My suggestion is go for a company or trust structure.

Cheers

Stu

St George will do IO for a maximum of 15 years!

Cheers

Stu

Yes, interest only does give you more flexibility.

It wouldn’t improve your serviceability by repaying extra becuase you would still have access to these monies via redraw and the lender would consider this.

Cheers

Stu

I would try BNZA, NAB or Suncorp.

Cheers

Stu

Punter

The best two LOC’s are:

1. ANZ (Equity Manager) = 0.60% off = 6.47% (as Terry noted)
2. St George (Portfolio) = 0.70% off = 6.47%

Westpac will give you 0.60% off = 6.62%.

Cheers

Stu

If the property is tenanted NAB may take 100% however if it is not yet tenanted then they may only use 60% (but there is some discretion).

NAB’s qualification interest rate is 2% plus the standard variable (i.e. 9.07%) which destroys borrowing capacity.

Overall, NAB is at the lower end in terms of borrowing capacity.

Cheers

Stu