To all those people getting a divorce, watch out for spouses with joint cards. We have seen more than a few clients with blisters on their CRAAs, that they did not know about, due to their ex spouses going out and spending up on the credit cards.

Terryw
Discover Home Loans
North Sydney
[email protected]

I don’t know, but would think it would have to be market rents at least for tax purposes. And you would have to pay tax on whatever way you calculated it.

For loan purposes, you could get a letter from an agent indicating what the property would rent for, but if you are not receiving any money you could not use a figure for rent for serviceability purposes.

Terryw
Discover Home Loans
North Sydney
[email protected]

Alf

Sounds alright to me. Selling the PPOR and moving into the investment is a great idea.

Terryw
Discover Home Loans
North Sydney
[email protected]

Alf, why did they say no? Maybe due to not enough equity in one of the properties?

Terryw
Discover Home Loans
North Sydney
[email protected]

Dom

A few comments,

You have forgotten to list your existing rent, assuming you are getting a 5% yield, this would be about $615/wk (this may be too generous?).

You should be able to service a new loan of about $290,000. If you did not have children, the figure would jump to about $360,000.

If you could borrow the required amount, as your deposit is not enough to get a 95% loan and pay costs, you would need to either increase your LOC if possible or cross securitise with one or more of your other properties. To cross securitise you would have to use the same lender.

These are just some quick and rough figures for you to look at.

Terryw
Discover Home Loans
North Sydney
[email protected]

Personally, I would never fix any of my loans again after being stung with high exit fees recently.

Circumstances change and 15 years is a bloddy long time. What happens if you want to sell the property? or move the loan to another bank with better lending criteria to withdraw equity etc. You could be hit with very high break costs.

Terryw
Discover Home Loans
North Sydney
[email protected]

Some banks allow a valuation from one of their panel valuers to be reassigned to them (eg Bankwest). So you could find out who is on their panel for your area, order the valuation youself and then if it is an acceptable amount you can proceed with the loan application and ask the valuer to re-assign the valuation to the bank. They will charge another fee for this (up to about $150). You may also be charged a slightly higher amount for the valuation as the banks get a discount for high volume.

Terryw
Discover Home Loans
North Sydney
[email protected]

Why not post the offer directly to the owners and just bypass the agent. And/or ring the owners and tell them the agent is not putting offers to them.

Terryw
Discover Home Loans
North Sydney
[email protected]

It is probably best to start with a few in your individual names. You may not go any further than this. If you later decide you are serious, then you could go to the expense of setting up a trust. But all the cashflow from the intial properties will not be able to be diverted to the trust without you selling to the trust and this could mean stamp duty and CGT issues.

Incidentally, you can set up a trust for as little as $135 plus stamp duty. see http://www2.cleardocs.com/

Terryw
Discover Home Loans
North Sydney
[email protected]