Hi Terry I did one via Mortgage Mart – agree with Richard – absolute nightmare!!! 80% was the max. ATO may have issues with personal g/tees and there may be GCT issues when ppty finally transfers into fund so watch out. NAB & Westpac are probably the main lenders left. However, I can't see us getting involved in another one of these for a while.…

Hi TessI would just say that you shouldn't act on tax or financial advice from a mortgage broker unless they hold an Australian Financial Services License or are a Registered Tax Agent. Just make sure they do.CheersStuart

Thank you! Glad you enjoyed it!CheersStuart

Good question Yossarian. Can you afford the loan without your husband's income? If not, then why would a lender be comfortable lending to a person that can't afford it. A low doc loan won't help because you need to state an income. CheersStuart

See http://www.prosolution.com.au/articles/valuations.pdfHope that helps. Cheers, Stu

IFFP is a good start – i.e. totally fee for service. As I said, great financial advice is worth thousands so $3k is nothing compared to the value it could add if its good advice.

Sure can. I have used Matt Ross personally and referred many clients to him. He is independent. Matthew RossAuthorised RepresentativeAustralian Independent Financial Advisers Pty Ltd, AFSL 286175Office:   Suite 2.15, 737 Burwood Road, Hawthorn VIC 3122Phone:  03 8862 6415Email: [email protected] luck.

Maybe I am unrealistic but brokers suggesting people borrow more than they need just to get paid more would hopefully be in the minority. Its very unprofessional if that's the case.

Sorry Richard. I should have said that 98% of FP's won't talk about property. I know that there are a small number of quality planners (fee for service) which will consider all asset classes.

That's right. You only draw what you need. Remaining amount is not drawn and you can access it later.

I don't think you need a FP – they won't talk to you about property. Check out – http://www.propertysearchers.net.au/home.htmCheers, Stuart

Yossarian, that is a silly comment. If you knew how mortgage brokers got paid you would know that majority of lenders claw back commissions if vast majority of LOC is not utilised within a certain time. Therefore, setting up LOC which aren't used does not generate revenue in most circumstances. If its a genuine LOC it does not have to be drawn -…[Read more]

I think $3k is pretty cheap but of course depends on the quality of advice. You want an independent FP who does NOT take commissions. See http://www.independent-advice.com.au/index.asp CheersStu

You don't need a private banker when you have a large portfolio, just a great broker! If you only have rental income, then lenders can have issues with that because you become "rent reliant". However, there are other mitigating factors like, low LVR, multiple properties = good exit strategy, etc. There's no set formula – my case by case. However,…[Read more]

Well if you have a huge portfolio, you have a lot of rental income and hence they may be happy to lend. If you have no portfolio and no job, you have no income and they won't lend you any money. And fair enough too. Cheers, Stuart

I agree with Richard – no lenders or mortgage insurers for LVR > 80% to non-perm resident. CheersStuart

I agree with the past two posts. It sounds like you are over stretching yourself and taking silly risks. Building wealth isn't an overnight exercise. What's the hurry? Why do you need to buy two properties in the same complex? You should look for some geographical diversification. Can you pull out of one of the purchases? Cheers, Stuart

We prepare an interest rate advisory note which you might be interested in reading – go to http://www.prosolution.com.au/IRAN.pdf Hope that helps. RegardsStuart

Thanks Terry. Its no Harry Potter!!! Its selling okay – only just been released and still to make its way into all bookstores. Plus have a bit more marketing to come… fingeres crossed.

I think this is a good warning to people about the strategy of using a LOC to fund the shortfall. Its an okay strategy if you are doing it because you chose to. However, its not a good idea if you chose this strategy because you have to (i.e. only way to hold the property). Too many risks (e.g. income decreases, no capital growth, rates income,…[Read more]