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Part nine agreement questions

Posted: Sat Apr 10, 2010 4:06 pm
by Bellarose
Hi I would like advice on following:

currently renting but have investment property valued approx $260,000.00 loan of 183,000.00 remaining.

Have a part nine agreement in place till 2013 paying 410.00 per fortnight.
Pay 350.00 rent
recevie 275 in rent
pay additional 105 a week to home loan
have family trust and earn through trust 2400 per week excluding Gst.

Would like to purchase residential property in trust name to gain more tax advantages

what would be best options as far as home loan approvals etc
thanks
bellarose

Re: Part nine agreement questions

Posted: Sun Apr 11, 2010 6:08 pm
by Otto Dargan
Hi Bellarose,

Generally most lenders would want you to pay out the Part Nine Agreement before allowing you to take on new loans. Because of your strong equity position we should be able to get you a loan for up to 80% of the combined value of your existing property and the new property that you buy. There must be a good explanation as to why the Part IV occurred otherwise no lender will assist you.

Please call us on 1300 889 743 to discuss in detail.

Thanks

Re: Part nine agreement questions

Posted: Sun Apr 11, 2010 7:22 pm
by Bellarose
Thanks

Re: Part nine agreement questions

Posted: Sun Apr 11, 2010 7:50 pm
by Bellarose
Hi just a few more questions:

we have additional income from profit share which maybe best used to pay off the part nine ahead of time ?

Our reasons for the part nine were necessary and valid obviously we have improved our position financially since then.

The 80% loan would require a deposit of 20% as well as the equity in our investment property ?
As we have had financial stress we really want to plan and prepare to be wise and secure into the future.

Regards

bellarose

Re: Part nine agreement questions

Posted: Sun Apr 11, 2010 7:57 pm
by Otto Dargan
Yes you could use money in the profit share to pay off the part IV ahead of time. That would increase your chances of getting a loan. Until we know the full details of your situation we can't be sure if you can qualify for a bank loan or if we will have to use a 2nd tier funder.

The equity in your existing property can be used as the deposit. As long as the total loan doesn't exceed 80% of the value of both properties then you can theoretically borrow 100% of the value of the new property as well as costs such as stamp duty.