Fullout

Using and/or nominee is different to options.

When you sign a contract and use “and/or nominee” after your name, then you have to option of nominating the purchaser to be someone else other than yourself. So it could be possible to ‘flip’ the property on to someone else without you have to buy the property.

But be wary of stamp duty. Different states have different rules. I beleive it works in Vic – but only if you have a written agreement with someone before you sign the contract. If you don’t then you both could be up for stamp duty!

Terryw
Discover Home Loans
North Sydney
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If your looking at country properties, it will be very difficult to get an 80% lend.

Terryw
Discover Home Loans
North Sydney
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You might as well jsut buy Dale’s book “Trust Magic”, about $99.00. There is also a book by Chris Batten entitled something similar to “Investment Structures 2002”. I have purchased this book, but have lend it to someone. Dales is very basic, but has what you need Chris Batten’s is very techinical. see also http://www.chrisbatten.com.au

BTW you probably only need a hybrid if you want to ‘negative gear’

Terryw
Discover Home Loans
North Sydney
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I agree with MH, I put a few clients into these sorts of loans. They are usually high net worth people who don’t fit the rigid guidelines of the banks and they are after short term finance so they can add value and then sell or refiance asap.

2nd mortgages are more risky as the 1st mortgagee naturally has first access to the security if things go wrong, then the second mortgagee. So if the valuations were a bit high, or prices have dropped or the security property has deteriorated in someway, then the second mortgagee could do their dough.

Terryw
Discover Home Loans
North Sydney
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Seems like your doing well with the capital growth on those properties so why sell – unless you can’t mangage.

Terryw
Discover Home Loans
North Sydney
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I’ve looked into borrowing from Japan. It can be done if your are working there and earning Yen. LVRs are around 70%, and there can be margin calls if exchange rates move suddenly. Also if you stop working and leave the country, you will have to convert the loan to AUD. I looked at NAB, but other Aussie banks should offer similar products. rates are about 2%!

Terryw
Discover Home Loans
North Sydney
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I use TPG ADSL at the office. it is pretty good, but has a few problems every now and again, but that is due to the telstra network going down aparently?

Terryw
Discover Home Loans
North Sydney
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Kaybeesee

You could still get a quantity surveyor in and claim depreciation of fittings such as carpet, hotwater system, ovens etc. I have a few really old properties (built 60s and 70s) so haven’t bothered myself, but it may be worthwhile depending on the quality of the fittings.

You can also claim travel expenses, borrowing expenses (ove 5 years) etc.

Terryw
Discover Home Loans
North Sydney
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Hi Bear

Yes, that is one way of getting finance based on valuation. if your LOC is large enough, you could pay cash for a property, do it up a bit, and then get a loan on the property to release teh cash abck into your LOC (ready for the next one).

Terryw
Discover Home Loans
North Sydney
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One of the main problems is mortgage insurance.

The mortgage insurance companies (GE and PMI) have policies which exclude certain areas. Some of the (mainly smaller) lenders have all of their loans mortgage insured (even on LVRs under 80%), so this restricts their lending a bit.

However major banks will usually lend for most areas at up to 80% LVR (no LMI involved), if not higher.

If you wish to check if a postcode or location is on the ‘acceptable postcode list’ of one mortgage insurer, PMI, go to their website:
http://www.pmigroup.com.au/locationWizard.asp
and you can do a search and see up to what LVR they will lend to.

eg postcode 2880 (broken Hill). They will lend for loans up to $350,000 at 95% LVR, and higher amounts at reduced LVRs.

Hope this helps.

ps. Rural properties are a different ball game, the LVRs for these are generally lower depending on size, location and use etc.

Terryw
Discover Home Loans
North Sydney
[email protected]