G’day Jenny…

In many ways I feel happy for you that you fully understand the MCP. What you have described is my original Mortgage Control Program of November 1993.

I arranged for a computer guy to set up the program with my input. Originally the Advance Bank was sceptical but within a year referred their customers to me…Fantastic!

Then…[Read more]

G’day Dino…

Thanks for the article appreciated you sharing it.

“This suggests inexperienced investors are still being drawn to the increasingly risky housing investment market.” I wonder why?

Bill

Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
billomara@iprimus.com.au

G’day Benny…

$14,000 gross return on $80,000 pp = 17.5% Gross.

Based on the figures you have been given please make sure of the following:

1)Evidence of the $14,000pa

2)The title ?.. as it sounds like you could be buying into nothing more than a “hotel room”.

3) Can you arrange your own Prop. Mgr. If not be extra careful…ask Alf in…[Read more]

G’day Mel, Huey,Pl and Paul…

LuckyPhil has a “hostie” on just about every flight into Canberra. So,if any Canberra arrival has ever been delayed, take my word for it…LuckyPhil has had to arrange for that to happen.

On numerous occaisons, I assure you, that he has been known to divert a Melbourne flight so that the inbound Sydney hostess…[Read more]

G’day Guys…

Bloody hell Simon…that scale of costs is so difficult to go thru …It must have been designed by a Public Servant on overtime.

cheers

Bill

Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
billomara@iprimus.com.au

G’day Falcon…

Huey is right… but No1 is your best bet.

If you have an offset account with your mortgage “park” your money and savings there.

Saving 6%+ on your mortgage is as good as earning about 10% before tax. A better option is to get the Bank to include a Line of credit as part of your martgage… like a sub-account: Park your money in…[Read more]

G’day Karl….

Please take Simon up on his offer and call him.

I was about to respond to you, but better that you speak with Simon. I am sure we would both tell you the same thing mate.

Bill

Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
billomara@iprimus.com.au

G’day Sala…

Facts if I understand you correctly:

You own the IP, Debt was $64,000 and you borrowed $63,000 against this to purchace the house in joint names?

As you paid $400 + costs and will have more costs in a resale the Matrimonial Home is a line ball situation…No profit/No loss.

I think any reasonable person would consider that you…[Read more]

G’day Westan…

My reference to selling in early ’94 to August’94 was perfect timing for the Canberra Market. Many times since 1970 the Real Estate Mkt. in Canberra was running it’s own race.

Be assured that the market in ’94 crashed in September as the number of rental columns in Canberra times ran up from 18 to 44. It was no soft landing.…[Read more]

Hi Leigh & Peter…

Apologies if not clear.

Simply this…

As those perhaps trying to sell, and can’t get the price the want…decide to rent out the property instead. As more and more do the same they add to the growing Rentals… they don’t like what the agent is telling them, fewer buyer inspections etc. so they list their property for rent…[Read more]

G’day Phil…

I realise that mortgage payments are made with after tax dollars….however consider 3 things:

1) Forced savings…bit like your super.

2) A Roof over your head

3) Tax free CG….over time.

4) Yeah, Im Irish, just another thought… You have security of tenure, and renting ain’t much fun, ask around.

(5) Can’t count…[Read more]

G’day Alf,Luckyphil,Mel,Cashking and Kay…

I agree with Cashking re a 20/25% fall across the board. Perhaps with the exception of Blue Ribbon Waterfront. Some areas, Regional/Country towns may very well fall much more.

However, Alf and Phil…Do not sell your family home….cost of buying/selling again is my reason.And it IS your home…not an…[Read more]

Milen…

What you are suggesting is unproffessional, for heavens sake….Do your research and then make your offer with confidence.

If you are in anyway unsure then don’t make an offer. If you get a reputation with good agents that you are one of those that reneges on acceptance…your offers will not be taken seriously.

That does not mean to…[Read more]

G’day Kay…

10% Bank interest? I hesitate to ask Which Bank?

For my money I would certainly put your $$ in a safe bank, Rather than expect to make a profit in the last legs of a R/E Boom. But, have you considered the Share Mkt?

The DJIA has gone up about 32% in the past 12 months. Why ignore the next Boom ..it’s only a year old.

Bill

Bill…[Read more]

G’day…

Yes and No!

Provided you realise it’s a big bit of plastic and use it wisely LOC is the way to go. You only pay interest on what you have drawn and you can always “park” unused funds to offset any interest.

Used to it’s full extent, why not pay all rent and other salary/income into the facility?
Maybe even get a sub account as a LOC as…[Read more]

G’day Alf…

I can’t ignore your question Alf …but you knew that I wouldn’t.

I don’t see that it is a problem…[?]it should be sold as it has not been a good investment. Consider how it has performed in comparison with your own home.

While the Investment went up a lousy 15% your home increased by 120%. My advice is to sell it in Todays…[Read more]

Peter…

Don’t worry about the fees mate.

AS Mel said the fees can come out of the loan.

Given the BIG payments for your Mum & Dad, I suggest you make an appt with Westpac and perhaps go with them asap.

Just put yourcards on the table and take evidence of the payments they have made each month unless already with Westpac. Don’t leave it until…[Read more]

G’day Peter…

Tough to give any precise answer without all info.

However, some suggestions…

Depending on your situation…Could you help out as guarantor/co-borrower ? That wpould increase their borrowing power. Maybe they can simply consolidate the debt @ 6.5%….the annual interest bill would only be $3,250…$270 month.

I would encourage…[Read more]

G’day Craig…

Sounds like you better put the commercial idea on the backburner mate. As with most if not all R/E you will buy cheaper down the track

As for that Propert/Agent…. give that property deal with a 50% vacancy factor a big miss.

Cheers

Bill

Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
billomara@iprimus.com.au

G’day xyy…

I have the 1980 edition by Charles Mackay, with all the original John Law stuff of 1841.

Complete with feproductions of original illustrations from 1841-1852 Edition. 724 Pages

Harmony Books NY, ISBN 0-517-54123-8
and paperback: ISBN 0-517-53919-5

Cheers
Bill

Bill O’Mara
Real Estate,Mortgages,Share Market…[Read more]