Hi mosics which bank did you use to do that?

Did your original loan go into a term deposit first (as security) and then onto the new property or was it a same day  settlement 

Have security substitutions lost a lot of their value now since the gfc and change of credit policy? If you cannot substitute even a single security in and single out without having to do a full assessment again it seems its lost a bit of its power that it had previously

i was under the impression that if you did a straight forward one for one security substitution that borrowing requirements were relaxed. I.e You wouldn't have to provide documents proving income/payg or self employed income again for the substitution to occur. Just a valuation to show the new security is of the same or greater value then the…[Read more]

Qlds007 wrote:

One of the products we will be launching at the Property Know How Club during 2013 is an exclusive 100% loan product for investors only with a 90/10 split between conventional and private loan.

sign me up to a few of these richard, got a few more properties i want to purchase this year.
What are the loan terms looking like.…[Read more]

Hi Richard

Assessment of serviceability for a SMSF though would that still be independent of personal guarantees given?
How about Low doc loans as well?

thanks

dragon_v723 wrote:
thx for all the pros and cons appreciate it

another question is do u have to engage a surveyor(or town planner?)  to determine if the block of land can be subdivided before making a offer to the vendor?

If you read and are able to comprehend each councils individual Development Plan. You could determine this yourself.…[Read more]

What area are you in firstly because that would change all of the answers?

Are u finding it hard to sell the chopped backyard?

I agree with the above posts that battleaxe land is harder to sell (if incorrectly priced) then say a corner allotment subdivided land. Building a dwelling on subdivided land would increase the speed of what it sold…[Read more]

Depending on your strategy and how aggressive you want to be in building your portfolio and your risk levels. You could take a personal loan out for your deposit on your IP. Your high incomes would easily support a personal loan of 50k which could could be used to purchase a high cash flow property or some sort of buy renovate/develop sell…[Read more]

Terry could you give a example of how having 2 or more directors all giving personal guarantees would hurt serviceability moving forward.
Am i wrong in thinking. Person A, B and C have signed personal guarantees. Net loans in the trust 1.5 million all for investment purposes. Person A then wants to go off and buy their own PPOR or do their own…[Read more]

jindou wrote:
There are some good areas in Elizabeth and to a smaller degree Smithfield. Davoren Park is generally quite bad. You really need a good "local" property manager. (I can give you some names if u wish). But for that price range… ie. 85-100k for a semi detached 3 br home., there is not much else you can get in Adelaide for the…[Read more]

Sorry pert, but are you only 44 years old and not 64 ?

"With renovating it can be really hard to know what you're getting yourself into … If you have major electrical problems you might be looking at $25,000 to rewire the house."

His electrician must be using that gold wiring again

http://www.ato.gov.au/businesses/content.aspx?doc=/content/57402.htm&page=4&H4

That pretty much sums up what would be treated as income over capital gains.

Terryw wrote:
If you or a related entity is declaring profits on capital account it is likely to be treated one off. Even when using a discretionary trust the income would flow thru as a capital gain usually. If you are trading or treating the sales on the revenue account then you are unlikely to be treated as a residential customer and more…[Read more]