The new changes actually make interest only a negative for the majority of lenders - as the serviceability is instead calculated on the remaining P&I period, ie, a 25 year loan instead of 30.
There are some non regulated lenders which will still accept actual repayments for their calculations...
You shouldnt have too many problems with that chunho, the equity release just needs to be put as for future property investment use - ANZ's policy is pretty flexible with this.
Once released you can do as you please, placing it in redraw/offset etc.
Lenders take the lower of the valuation or the purchase price so you can't pull that off unfortunately - it does mean that after a few months you can draw out any equity gain however which may get you onto the path of buying your second property (a common strategy a lot of my younger clients are...
Based on the current regime (and the previous), aiming for a 10% deposit + costs (90% LVR) provides you with a much more cost effective finance structure, and allows you to grow a lot quicker than 95% LVR purchases. Whether or not there may be LVR caps imposed in the future below this level is...
There's a very small handful of lenders who will even touch HDT's anymore - consider the risk moving forward should this restrict even further.
Discretionary/Unit trusts on the other hand aren't a problem with most of the lenders.
Can get 90% LVR resi rates with the right lenders. This is to the max of 4 units on 1 title. Have a chat with an investment savvy broker who can guide you with the right lenders, instead of being in the dark. :)
You'll find some mega threads on Adelaide already which have been running for years:
Plenty of info to be gleaned from these resources, amongst others!
Well under market. You can expect 240wk for standard properties -270wk or upper end renovated properties. Depending on the supply at the time, you can get 250-260wk for a basic house when theres minimal listing.
I own some properties on the streets around that property - they've done quite nicely in both rent and CG. Theres a fair few redevelopments happening in the surrounding area which is only helping things along. Overall looks like a decent purchase if you're getting a 7.5% yield.
No fat in there for delays - 30 days is open to lender muck ups creating very tight situations.
Don't forget not all people require a loan to purchase, they can have a large LOC available or cash.
Alternatively if its the right State they might be happy just to go overtime and wear the...