Hello to all,
Great forum with plenty of useful info. I had a question about financing a second investment property and possibly many more in the near future.
I belong to an investing group who have just purchased our first IP (through a trust). We have a combined income of between 200k – 250K.
We are dilegently saving for our deposit and costs for our second IP.
What we would like to know is there any product that would allow us to borrow 100% or more with little or no deposit.
We find our selves in the situation that we don't have much other debt besides our first IP loan,
and a ability to service a much higher amount of debt, but looking to maxmise the use of time.Any help is very much appreciated.
TMZ
TMZ
I think financing an IP loan at 100% + days have unfortunately gone unless you cross collateralise the existing security and offer this to the Bank as well.
I would however offer caution to this statement as it will come back to bite you in the end.
Also remember LMI will have a limit as to the cover they will provide you so this will also limit you going forward.
I am assuming that non of the Trustees have any other property from which they could access equity to contribute a deposit.
Richard Taylor | Australia's leading private lender
Hi Richard,
Thanks for your reply. Very much appreciated.
Cross collateralising is not something we are looking to consider at the moment.
You are correct in assuming none of the trustess have any properties to contribute.
I guess we are restricted to a 95% loan in the current market condition? Are there any 100% loans available at the moment for IP's? What do they use to calcualate your LMI limits?
TMZ
What type of Trust are you using and where will you be buying i.e Metro / regional.
Many lenders no lend to certain Trusts.
Max exposure for LMI varies from lender to lender.
Richard Taylor | Australia's leading private lender
Richard,
We currently holding properties in the Chan and Naylor Property Investor Trust.
We are looking at buying in the brisbane metro area….10km max from CBD
Regretfully many lenders have been warned away from PIT's from their legal departments although in saying that we have financed a fair few over the last 3-6 months.
I dont believe you will find too many 100% loan facilities accept them (Even SGB which we used to use a fair amount will not accept a PIT under their No deposit Scheme) so you will be limited to probably 95% + LMI.
Richard Taylor | Australia's leading private lender
Hi All,
Just for my curiosity… re: PIT
What happened if someone get audited by ATO +/- legal court battle?
Do you think that Chan and Naylor will back you up and pay the indemnity in case if it goes wrong?Cheers
Hi All,
Just for my curiosity… re: PIT
What happened if someone get audited by ATO +/- legal court battle?
Do you think that Chan and Naylor will back you up and pay the indemnity in case if it goes wrong?Cheers
Hi God of Money
I am a trustee of several trusts including "The Sxxxxx Family Trust" and "The Wxxxx Family Trust". Should the Sxxxxx and the Wxxxx families back me up and pay the indeminty in case I get audited and/or end up in court?
It's just a name. That's all.
Cheers
K
Hei Linar,
I am saying about complex TRUST account.. not Discretionary Family Trust (i.e simple structure).
If you look at C&N.. they advise complex trust structure?
I heard that ATO is looking into Hybrid, etc ????Cheers
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