Cross x-ing is not too bad – in a rising market. Properties can be uncrossed fairly easily. My second property was even cross collateralised with my first. But it just makes things much more flexible if you avoid crossing!

Terryw
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Just build it in to your offer, ie that the vendor will fully coorporate with your application to council etc. Get your solicitor to work out the finer details.

Terryw
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Another thing is, even if you setup a company like Rob suggests, partnerships often breakdown. One party may suddenly wish to exit, so you must plan how this can happen. ie can they sell there shares to anyone, does the other party have to buy them or do you have to sell the whole property etc. So you will need a shareholders agreement as well.

However, when buying a property under a company structure, all directors will be required to give a personal guarrantee for the loan (if you have one). Therefore if something bad happens, the lender can come after one or both parties, and their personal assets.

Even if one party just wants out, the loans will have to be redone, so the guarrantees are removed etc. This can cause probelms if your circumstances have changed, eg. you have stopped work, and your partner wants out. You may not qualify for the loan on your own.

Terryw
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Get another opinion. You can purchase assets in the trust or company.

Terryw
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I forgot the rest…..

I was going to add, the rules around and/or nomineee clauses vary from state to state. In some instances, you can set up a trust or company after exchange, and then nominate that entity before settlement. In other states, this would result in paying stamp duty again.

Terryw
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ANZ will only refinance up to 95% where the new loan does not exceed the old loan.

I think Royal Guardian does, or did, 95% refinances.

And then there is Libert or Bluestone which will refinance to 95% to help clients payout credit card debts etc.

BTW, I had a call from a broker friend the other day. He had a client getting a 95% loan, settling the next week, and he wanted me to lend them the deposit!!

Terryw
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The cheapest loan is not always best!

Terryw
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Working will help you get finance and to save for more deposits. You can’t expect to retire in a year or so, but if could be possible within a few years. Then you could ease off the job and spend your time finding properties.

Terryw
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Excel the XP version has a loan amortisation spreadsheet included for free. Just set up two of these, one for your loan to the bank and one for the ‘tenant’s’ loan to you. Then at any given time you can see their payout figure and your payout figure and hence, you will know how much cash you will receive on cashout.

If you haven’t got these calcuator in your excel, email me and i can send you a copy.

Terryw
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I personally would not invest in Tasmania. As Steve showed in his MAsterclass, the market (actually Hobart in his example) was flat for along time, then investors discovered the place, it took off, but local incomes etc have not kept pace and rental yields have dropped. There could be another long period of low growth. There is not real point in investing if there will be np growth.

However, if this is your first property and you have limited funds, then a $50,000 property down there maybe a foot in the door.

Terryw
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