It is a personal choice really.

However, if you currently have a loan on your home, why not divert extra payaments into this rather than paying off a investment property.

BTW would it be wise to purchase such a property?

Terryw
Discover Home Loans
North Sydney
[email protected]

What percentage of rent that banks take into account can be misleading. SOme give with one hand and take with the other. In general I have found Westpac and ING to be pretty generous overall.

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi

Not many lenders will refinance up to 95%, 90% is generally the maximum.

Theoretically as long as your overall LVR is 95% or less and you have the income to service the loans then it may be OK. So add up the values of all thre properties and the existing loans together with what you need to finance the new purchase and see what you get.

I get $500,000 plus $200,000 = $700,000 in value
loans $415,000 plus $210,000 = $625,000 in loans
The overall LVR would be 89%.

So yes it would be possible to borrow this amount, but you still must have the income to service the loan.

Terryw
Discover Home Loans
North Sydney
[email protected]

As a broker, I have been seeing htis since last year. I had one young client who purchase off the plan in Sydney 2 years ago. There was no growth in value at all. The person did not even have a deposit and had used a deposit bond. because of her low wage she couldn’t qualify for a loan. It was also in an area that was hard to get finance for.

The last I heard was that her mum was writing to the developer to say she didn’t want the unit anymore. They were told that it wasn’t as simple as that and they had better get some legal advice. I don’t know what happend to them or how htey got on.

Terryw
Discover Home Loans
North Sydney
[email protected]

The ATO is looking to grab as much tax as possible.

But what is the office of State Revenue thinking? I beleive the OSR (or Vic equivalent) is the agency that collects stamp duty-which is a state tax and has nothing to do with the ATO. So is it the OSR taht your solicitors were referring to? If not, maybe they were talking about CGT? Or I may be wrong in my assumptions.

If you are to be charged stamp duty, what would the rate be classified on? ie the option price or the value of the property?

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi

To get an idea on borrowing capability for this area, check the postcode at http://www.pmigroup.com.au/LocationWizard.asp

Terryw
Discover Home Loans
North Sydney
[email protected]

Yes, I agree that you cannot use equity on a property you have puchased off the plan until you settle. This is because you don’t actually own the property, and there is a chance that settlement may not take place.

BTW, nearly every bank will lend on currnet valuation if the contract is more than a year old.

Terryw
Discover Home Loans
North Sydney
[email protected]

I forgot one important point. If your properties are crss securitised and the shit hits the fan, things go wrong and you can’t pay, the lender can just sell up your properties.

If you are not cross securitised, they will still be comming after you for the money, taking the first secuirty property first, but if ths wasn’t enough, you would have a choice on how you would come up with the rest of the money.

Terryw
Discover Home Loans
North Sydney
[email protected]

Heritage Building Society had fixed rates with a redraw facility (no fees or penalty), but have very recently changed the rules on this product. I think now you can not payoff more than 20% without penalty.

There are no many product, as Simon said, but have you considered a split loan? eg 50% fixed and 50% PI with access to the offset.

Terryw
Discover Home Loans
North Sydney
[email protected]

Sorry about my short reply. let me elaborate:

There is no GST payable on established properties but you will have to pay GST on things like agents commissions etc.

If you are getting a property constructed, then you would pay GST on the construction portion, but not on land.

Commercial properties are different and apparently you have to pay GST on the purchase on these.

Hope this helps. ps I am not an acocuntant, so may be wrong.

Terryw
Discover Home Loans
North Sydney
[email protected]