Hi Terry,

“Some lenders, most lenders, treat guarantees the same as borrowings for serviceability.”

That is an interesting point – a lot like when lenders assess credit card limits – the borrower is deemed to be borrowing up to the limit, even if they owe nothing to the credit card company.

So, the way out of that is what?   I would think the h…[Read more]

Hi Terry,

“Some lenders, most lenders, treat guarantees the same as borrowings for serviceability.”

That is an interesting point – a lot like when lenders assess credit card limits – the borrower is deemed to be borrowing up to the limit, even if they owe nothing to the credit card company.

So, the way out of that is what?   I would think the h…[Read more]

Hi Terry,

“Some lenders, most lenders, treat guarantees the same as borrowings for serviceability.”

That is an interesting point – a lot like when lenders assess credit card limits – the borrower is deemed to be borrowing up to the limit, even if they owe nothing to the credit card company.

So, the way out of that is what?   I would think the h…[Read more]

Hi Rliwanen,

You say this:-

“The claims in the book and what Mr. Terry seems to be exact oposite. Can Mr. Mcknight please shed some light on this matter. We would like the idea of what is taught in the book but a lawyer says otherwise.”

I have always thought chapter 9 of the updated “0 to 130 properties” is very well written and quite…[Read more]

Hi SydMan,

I imagine whatever your next moves should be must depend on where you WANT to be.  Let me explain:-

You look to be in good shape financially, with several options.  Your path could take several different paths – e.g.

1.  sell your house and move North and pay cash for your next PPOR, without paying a cent on CGT, and say goodbye to…[Read more]

Hi SydMan,

I imagine whatever your next moves should be must depend on where you WANT to be.  Let me explain:-

You look to be in good shape financially, with several options.  Your path could take several different paths – e.g.

1.  sell your house and move North and pay cash for your next PPOR, without paying a cent on CGT.

2.  depending on…[Read more]

Hi Jane,

Wow, it is awful when laws change and the results of your earlier decisions become a minefield through no fault of your own.  I don’t know the answer for you, Jane, but I wanted to say there are a number of very smart people who are members, and I am hopeful that someone might have an answer that they can share with you.   I will le…[Read more]

Hi Suri,

“I am being pushed as the builder is saying if I don’t pay up by Monday next week they will start charging interest.”

Don’t be railroaded – work out WHAT that interest cost would be, then decide if it is worth having the “insurance” of a third party’s report.  e.g. let’s say you owe $100k to the builder, and they want to charge 5% in…[Read more]

Hi Jen,

I was told by the agent that the vendor will not look at any pre-auction offers below the $700k mark. Is the agent meant to update the quoted price range to reflect that?

I wouldn’t have thought so.  The agent is simply saying that the vendor is hopeful of having a “lively auction” where the price could go above the expected range, and…[Read more]

Hi Kiwi,

To me, one of the major questions is this – are you wanting to buy a house in Newcastle to be your own home, or to be an Investment Property?  Depending on your answer would change what I would do.  Here’s why:-

1.  You have some good equity in the Whyalla place – if it is not selling, that could mean you are asking too high a price fo…[Read more]

Hi Propdir,

“Does this -22% still apply, and if so, what meaning can we put to it?”

I would think it does apply, and indicates a 22% loss.  I don’t know of any more complicated way to view it, but would be interested to hear from others on this too (especially if my answer is wrong, or incomplete).

Benny

we are taxed on the increase of the asset not on the total asset.

That’s a very good point Sinner.   Tony Robbins does say to “take out 30% tax at each stage” and I hadn’t questioned it further, as my calcs seemed to meet with his original answer.

Well considered on your part though – that was a good catch.

Benny

Hi Sinner,

I took a look at your workings and noted a couple of things:-

1.  After the second line, you were only removing 15% instead of 30%  and

2.  You seemed to double the original expected figure (1, 2, 4, 8, 16, 32, etc) instead of doubling WHAT REMAINED after the 30% tax was imposed in each year.

So to clarify, your first 4 years in th…[Read more]

Hi Philip Green,

Let’s say that 10 years ago, when you first purchased your home, interest rates were 5% on your 30-year fixed-rate mortgage. Now, in 2020, you can get a mortgage at an interest rate of 3.5%. Those one-and-a-half points can potentially knock hundreds of dollars a month off your payment, and even more off the total cost of f…

[Read more]

Hi again,

I hear you, and yes, your questions make sense – Steve mentions two phases – accumulation, then consolidation.  As I understand it, the accumulation phase is where you go “all out” to gain equity that you can then convert into Income down the track.  Steve makes the point that Commercial Properties give a better yield (Income) than r…[Read more]

Hi Big Lachie,

From your words, I suspect you’ve got to page 100 or so, but perhaps not much more yet?   I see where you read the part about “thirds” – it is between pages 92 and 100 – or thereabouts.  Did you spend time on the other two “thirds” though, and what each of them does for you?  ‘cos it is all about the whole picture.  Steve used the…[Read more]

Hey thanks Terry – appreciated !!

Benny

Hi Amelie,

Sounds like you may have a DSR concern rather than an Equity one.  i.e. that the Bank may not let you take on double the loan so you can pay out the other partner.   I’d think the way to find if there is any chance is to speak with a reputable Mortgage Broker.

There are several who post on here (their signatures tell their tale), or…[Read more]