You need to be very careful of how you structure your loan – I am smelling trouble.

You have a few options – I would prefer a standalone facility (variable loan) with a linked offset. Have the funds sitting in the offset until you need to use it for the new purchase.

This whole thing looks like it was done badly especially if they are talking about Deposit Power.

a) it doesn't sound like you need the Deposit Power and thus you don't need to pay the fee and 

b) no reason why you cannot set up a separate facility

Regards

Shahin

Hi Poppy,

The Hills is ok I believe but I have never developed within the council. The councils to stay clear from due to their ridiculous (but of course intention planning) is Kuring gai, Warringah and Waverly councils.

Have you look at the DA guide for Dual Occupancy? Is it attached or detached? Have you considered engaging a Town Planner?

Regards

Shahin

Costs and outgoings are going to vary so you really need to look at the net and not the gross.

Regards

Shahin

The mortgage document is a legal and binding contract between you and the bank. The mortgage documents reflect the loan itself and many other things. Therefore, the loan and the mortgage documents are always the same and cannot be different. 

Your question may be geared towards asset protection more than the finance side. You may want to get legal advise as to the best set up for asset protection.

From a finance perspective there should be no issues with the loan in both names.

Regards

Shahin

Good idea about adding colour and it won't cost you an arm and a leg. However make sure you keep the landscaping as low maintenance as possible. 

Congrats also on the purchase – I think there are some good buys in campbelltown considering units are going for the same prices as houses.

Regards

Shahin

Where abouts is the property? I would keep landscaping costs to the absolute bear minimum and spend that money on the interior. Also look at keeping the landscaping as low maintenance as possible.

Regards

Shahin

What outcome are you trying to achieve? Do you want to own (title wise) a property under all 4 names? 

There are a lot of questions so that we can get a better idea of assets, outgoings, income, etc. It will make sense to find a broker that has experience with these scenarios so they can tell you whats doable and whats not.

Regards

Shahin

1. Set up costs (including the entities for a purchase) = Approx $3k

2. Lender Upfront Fees = Approx $2k

I normally deal with the Dragon for SMSF because its simply has the best product and lenders are slowly catching up. Just note that if you go with St George they lend at different LVR's based on the Trustee entity. 

Also be wary of the postcode of security and also the security type (i.e. vacant land, company titles, NRAS) as St George doesn't accept them. 

Regards

Shahin

What's your definition of high yield? Are you talking about net or gross yield and what about capital growth?

Regards

Shahin

What the broker has said doesnt make sense but im going to give the broker the benefit of the doubt. The only thing I can think of is that you are using the property as a rental property and thus the rental income and once the valuation comes back – they will say that it is unrentable or it is noted that there are detrimental impacts to the state of the property.

However going back on the figures you have provided its as strong as an application gets so you shouldn't even be required to use the rental on the proposed property.

Why did the broker tell you this? What is the reason he gave?

Regards

Shahin