I used ANZ 95% IO loans with LMI added on top (5 loans in one year). ANZ are pretty good on serviceability and also offer 100% offset accounts on IO loans.

The problem with ANZ is the mistakes they made. nearly every settlement has problems. And now I have sold 4 of these properties recently and settlement was delayed by ANZ stuff ups.

Terryw
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Junior, No Doc loans are also called Asset Lends.

Terryw
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Hi Calron

There is a catch-The interest rates are high. This is meant to be short term finance only, so once the project is completed you could refinance with a lower rate. It will also depend on the location, anywhere on the east coast may be OK, but not country areas.

It works by getting 70% of the end value which is often enough to get 100% finance. based soley on valuation with no, credit checks, no financials etc (not even an application form).

Terryw
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Tilly and Mensch

Just imagine in Tilly’s example, if the driver of the car had one drink before driving. the Insurance company would be likely to wiggle out of paying and the driver would then probably be sued.

Regina

A tenant ‘may’ be able sue the trustee as the ‘owner’ of the property in some circumstances (say the faulty wiring was illegal repairs?). If a $2 company was trustee this would add more protection as the trustee would have no assets, whereas an individual trustee would. (Not sure if the house would be an accessible asset in this case).

M1in12 and mensch
Changing trustees in some circumstances may trigger a CGT event. I think if there is a substantial change in any of the major beneficiaries the CGT event may be triggered. Usually the trustees are the main beneficiaries. if you change to an different individual trustee you may change the main beneficiaries as a result. Changing to a corporate trustee with the previous trustee as director may not. Better check with a solicitor before you do anything. Paying a couple of hundered dollars now for some good advice may save you tens of thousands later!

Terryw
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Marty

You owuld have to apply for a release of security which costs about $300 usually. The bank will probably require a re-valuation on the remaining security to make sure in comes in at an acceptable LVR.

Terryw
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Sooshie

How do you triple mortgage a property?

I have heard of major frauds happening and banks losing millions but not doing anything because of the possible bad publicity!

Terryw
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And don’t forget some banks actually ask you in writing to indicate if there is any sort of rebate or money back at settlement. Westpac does this! NAB too I have heard.

Terryw
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Yes, your right. You would still ahve to qualify via serviceability and would need to come up with deposits (or equity as well). I think Stuart worked it out that a property would help your serviceability if you were getting 11% or more as a rental yield. Another thing to look out for is the line ‘too rent reliant’ which banks sometimes use.

Terryw
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Brokers can’t do much unfortunately. it is a common problem, all we can do is try to argue with the valuer. These days banks are trying to cut brokers out of the loop by ordering the valuers direct so we can’t even talk to them.

Basically do you research, ask the valuer to justify his valuation with comparable sales. See how old these sales are and go back to the bank with you response. Some times it woorks, most times it doesn’t. I am finding the same problems on gold coast property at the moment.

Terryw
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Dan

Watch out for the an/or nominee clause. In some states if will incurr double stamp duty.

In Victoria, you had to have an existing agreement with the nominee before you sign the contract. This agreement has to be written, like a statutory declaration. That was a few years ago, so it may have changed now.

Other states you can only nominate a related entity.

Terryw
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