Hi Zac, The 20% deposit will work well, as 80% is the maximum you can borrow without having to pay LMI.Make sure you get a loan that has an offset account attached and keep the additional funds there (This effectively works the same as paying the money off the loan, except it is easier to access and more convenient).If you have any personal debts…[Read more]

DWolfe wrote:
Hi Andrew, Have to say they sure do suck! I could tell you stories about the NAB that would make your hair curl but yet again I will go cap in hand to them or anyone else who will lend me money. By the way you cannot actually transfer (via direct debit) to the NAB from any other bank (no you cant I really have tried and wasted part…[Read more]

In all seriousness, just provide some quotations and then do it youself anyway.Unless the bank is insistent on transferring the funds directly to the quoters directly (highly unlikely), then this will get you the funds you need and you can then complete the work yourself. Of course, if this will keep you up at night because you feel you are being…[Read more]

Hi Roger, You can use the existing property as security in addition to the new property when you apply for the loan on the new one. (This means you can potentially borrow 100% of thew new property if you so wish). Make sure you put some time into deciding on a good home loan lender as your best option is to continue using the same lender for an…[Read more]

terry – so to take this thread a little off topic, but what are the cost differences in the types of trusts you have mentioned above?YI

I attended 6 auctions in S.E Melbourne suburbs this weekend. 3 Houses (3 & 4 BR's on good sized land)1 New 3 BR Townhouse2 Small, Older 2 BR Units in need of a lot of work4 of the 6 properties sold within $30k of their advertised price (the first 4), and the average number of attendees was around 20-30. The 2 small townhouses went WAYYY over their…[Read more]

1.5% loan aye? [hmmm]

“Knowledge is Power”

Another reason for perhaps being able to borrow more from banks 2 and 3 when bank number 1 says your at your limit is competition.

Rival banks will often push their boundaries a little further if you are willing to bring over your existing loans from another bank.

As Terry mentioned though, this can get expensive so do the sums on both and work…[Read more]

Yup, bank will do a valuation when there is an application for more lending. Reason being that if the bank is going to use the same property as security, we need to make sure the value hasn’t dropped so far that it wont cover the losses in the event of a realisation.

Steve (YI)

“Knowledge is Power”

Hi all,

Just a bit of input on a few issues here. Im a business banker with one of the top 4 banks.

1. When requesting a valuation to be done for a security (property), we ALWAYS attach a copy of the title search, and 90% of the time a copy of the COS is provided too.

2. Our valuers tend to value conservatively, but they won’t just reduce the…[Read more]

Jessica – What period of interest only were you looking at?

Terry – What would have been the best structure for that scenario you speak of?

Thanks,
Steve (YI)

“Knowledge is Power”

Hi Eclipse,

I can recommend a very good and honest (especially with pricing) conveyancer who works out of Moorabbin.

Please e-mail me or send me a PM if you are interested.

Thanks,
Steve (YI)

“Knowledge is Power”

So then can you distribute the income of the company to yourself as a franked dividend assuming the company has already paid tax on that income?

Thanks,
Steve (YI)

“Knowledge is Power”

Hi Jeb,

I believe there is no LAW set in place to determine this.

Hence it will most likely come down to the decision Terry mentioned.

Are you willing to forego the extra amount for the current tenants?

Let us know what you decide and how it goes.

Thanks,
Steve (YI)

“Knowledge is Power”

Thanks Terry!

I’m signed up for Melb.

You going to any?

Steve (YI).

“Knowledge is Power”

d’oh!! [hmm]

Steve.
(YI)

“Knowledge is Power”

Hi there,

Forking out a large sum of money might get you 1 positive cash flow property, but if you use all your cash on the first deposit, it will take you another 2 years to save for another.

The trick is to use as little amount of cash possible to reach an income/expense level that you are happy with. This might mean that the property is +ve…[Read more]

Hi guys,

I couldn’t find a relevant topic, so I’m just using this one to ask the following question.

How does/did one join the R.E.S.U.L.T.S group? And secondly, what is it!?

Forgive my ignorance, but i’ve only just come back to the site after a long absence.

Thanks in advance,

Steve (YI)

“Knowledge is Power”

That’s so sad.

Thanks for sharing though – It will serve as a good reminder to some Landlords i’m sure.

Steve (YI)

“Knowledge is Power”

Also, as always with rate rises, the immediate effects will be absorbed by short term debt (ie: credit cards, personal loans, home loan redraws) – at least initially.

No one can predict which rate rise will be the straw that breaks the camels back, but i’d suggest this recent rise won’t do it. Australians have been able to suffer HUGE increases…[Read more]