Steve, you have confused terms here or conflated ‘borrowers’ with ‘mortgagors’.

Mortgagor is the one who gives a mortgage

Borrower is the one who borrows the money

usually but not always they are the same

e.g husband owns the property and husband and wife go on the loan. Husband is the mortgagor and both are the borrowers.

You cannot be a…[Read more]

Why would a ‘bank’ be interested in reading a link to an article?

What are you trying to show them? And Why?

That can work out well in limited circumstances, but in these days of low interest rates the trust would soon make a profit on the property that it rents to you and that income would be taxable income where it otherwise wouldn’t had you bought in your own names. Also have to factor in land tax on trusts if buying in NSW and VIC, plus the estate…[Read more]

Yes, a potential conflict of interest. What if something pops up with the property and it is something the buyer’s agent should have picked up or that they caused will the settlement agent tell you or down play it?

You should use a lawyer, a solicitor, to protect yourself and to get some legal advice as well as transferring title.

beware as accountants cannot advise on land tax as it is state law and doing so would be providing legal advice for which they would not be covered by insurance. This is the case also when they set up trusts.

In WA a trustee of a discretionary trust could get a separate land tax threshold to land they hold beneficially (not as trustee).

That will depend on the circumstances such as where the land is located and alternatives. There could be less land tax with using a trust to hold property, the same or more.

That is true, there are many advantages with cheaper properties, others include being able to sell and minimise CGT as you can sell one property per year and spread the gain.

I think the name of the game is to make as much money as you can rather than make a job. Expensive ones might have low yields bu they can result in more money. One of my…[Read more]

The first thing to do would be to try a different lender.

You have to consider whether such a property is a good investment. Just because it is high yield it doesn’t mean it is good.

It will still tie up serviceability and equity and you could be investing in something else with higher returns – there is an opportunity cost.

Regional areas do seem to be growing though so there may be some capital…[Read more]

disagreements, affect on serviceability, one wanting to sell, being liable for the whole debt, death, stamp duty if one wants out, family law disputs etc.

Yes its possible

It is possible to borrow money with bad credit

This is not true.

Its a bit more complex than this but very rough this is the case. Lender calculations are hidden behind the scenes though. They will also use living expenses worked out on the higher of what you are spending or one of the spending indexes.

In most cases borrowing capacity is only 6 to 8 times the borrowers pretax annual income. If you earn…[Read more]

If you don’t qualify to borrow then you won’t qualify to guarantee…

Don’t believe everything you hear is the first thing.

Second thing is that lending tightened up significantly in 2009 when the NCCP Act came in and again in around 2017 when APRA started trying to cool the market down by curbing lenders. So ask the people when they acquirered their properties.

If you have already tapped out it might be too late,…[Read more]

With low doc loans you will need some sort of proof such as bank account statements or BAS.

This is a bit out of the box thinking – you could get a job!

what do you mean? The borrower is first asked to repay the loan with the guarantor only liable if the borrower doesn’t.

There are low docs still out there, but you will need to declare an income still – and pass serviceability. If the income is too low you will still not service. You will also have to supply limited evidence of the income which might be bank statements, bas or accountant letter or a combo