Don't forget to get your conveyancer or solicitor to have a look at this if you are new to the game.

Regards

Shahin

Definitely have a look at the strata report. By onsell I mean are there any restrictions associated with the property that may stop you from selling the property if you need to.

If the net yield is 10% then that's good.

Regards

Shahin

Simple answer is title. She can't do much if she trying to put the fence on your land. Which state is this in?

Are you sure it was a crack?

Of course with lo doc you will need to use a higher deposit base which is another potential disadvantage (particularly if you have an aggressive investment strategy). 

Regards

Shahin

Hi Jenny,

Lo doc loans are provided for self employed applicants that do not have sufficient paperwork that would be required for any standard loan. Generally speaking and based on the stats released by lenders, this demographic of applicants are subject to higher defaults than applicants of full doc loans. This is why banks and other institutions do not look favorably on these clients, impose tougher restrictions or charge higher interest/fees or any combination of the 3.

If you have full documentation then you shouldn't be applying for a lo doc. 

Regards

Shahin

Firstly why are those interest rates so high? Secondly, speak to a your banker and broker to do the numbers and see which scenario adds up. Thirdly, have you considered other strategies such as purchasing property under an SMSF or NRAS? 

Regards

Shahin

On a purchase of $500k in NT you are looking at approx $20k in Stamp Duty and $15k in LMI. The total funds required would be approx $535k. 

At a 97% lend your loan amount will be $484k so the difference between this and $535k will give you the deposit amount required which is $51k. You also need to add legal fees of approx $1,500 and building and pest inspection of approx $500 into the equation. 

Regards

Shahin

No lender will accept capital gains as taxable income for servicing unless (and this is a maybe not a certainty) you can seriously show that the capital gains is repetitive. By this I mean you need to show the lender a history (minimum of 2 years) capital gains income, you need to show that you are full time in this profession (i.e. a property developer) and provide a stack of further information from the accountant justifying it. It is an incredibly hard sell. 

Documentation is dependent on the credit assessor but the accountant would need to a) confirm the nature of the business b) confirm that the business operates as a developer and the income is distributed via the trust entity c)  the CG income is consist for the past 5 years as it is their primary source of business income.

Regards

Shahin

If you are looking to purchase something for $500k then you will need a minimum deposit of $51k and this is at a 95% plus LMI lend. Again servicing will not be an issue – its your deposit that needs beefing up. 

Regards

Shahin