Further to what Steven wrote above, there are a few 100% loans avaialble, but these are not ideal products. They are very hard to qualify for – ie more stringent requirements. The Lenders Mortgage Insurance is about 2.6% of the loan amount (on one product at least), and the types of property that they can be used on is fairly restricted (ie no country proeprties). And at least one product is only available for owner occupiers.

Terryw
Discover Home Loans
North Sydney
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Rob. Just don’t tell them about the trust. Borrow in your name. The title will be in your name, not the trust. I beleive if you are the trustee, then just borowing in your name on behalf of the trust is fine (Have done it myself).

Terryw
Discover Home Loans
North Sydney
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Jarmbie
My understanding is that Macquarie cannot do low docs if you have just become self employed. You still need 2 years history (and the rate is more like 7.30%, but this drops down to about 6.50% over a few years). I htink Combank will waive the 2 year requirement if you have recently become self employed in exactly the same job (eg computer person changes over to sub contractor working at the same company).

There are some lenders that will lend for low docs with only an accountants letter (eg Tonto), and one that did low docs for PAYE if employed for more than 6 months (verified by phone call).

Terryw
Discover Home Loans
North Sydney
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Yes it is possible. Could be messy if your loans are cross securitised.

Terryw
Discover Home Loans
North Sydney
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What about somethign slightly different.

Buy your $300,000 home, pay down as fast as you can, then buy your dream home using the equity. Rent this dream home out, keep saving, paying down your PPOR and maybe even buying more property.

Then sell your PPOR, CGT free, use the money to pay down your dream home which now becomes your new PPOR. So far no capital gains tax. Then maybe you could sell one of your other properties and use that to pay down the loan on your PPOR. Then use equity to buy new IPs, and keep going.

Terryw
Discover Home Loans
North Sydney
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Hi Tom

I am just doing the same thing, putting the rent up in line with the CPI. I found the following page on the ATO web site:
http://www.ato.gov.au/taxprofessionals/content.asp?doc=/content/cpi.htm

Terryw
Discover Home Loans
North Sydney
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Richard, these are legal and done all the time in Australia. Unfortunately you will be up for stamp duty as you are buying and onselling. You would also be up for CGT.

Terryw
Discover Home Loans
North Sydney
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I had a similar problem with ANZ. I went to sell a property only to find it was not in my name! ANZ never registered teh mortgage at settlement. I used a cheap conveyancer too.

Talk to teh banks customer complaints section. And it is probably best to speak to your solicitor too – and then ask the bank to pay for these legals fees (they probably will).

Terryw
Discover Home Loans
North Sydney
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Kim

I am not sure on the asnwer to this, but am under the impression that if you were to rent out part of the property (eg. 50%) then that part would lose the CGT exemption.

Melanie

I am not exactly sure but if that was the case, maybe Kim could stop renting out 50% of the property at some stage and then the 6 year rule would start again. Kim, please let us know what you accountant suggests.

Terryw
Discover Home Loans
North Sydney
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I made some enquiries a while ago and could only come up with a private lender that was willing to lend on someting like this. The rates would be in the 8% + range, and LVR was about 70%. This is not ideal, and severely limits the resale value of these units. Though, the rental yield can be higher than normal.

Terryw
Discover Home Loans
North Sydney
[email protected]