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Blank Frank
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@blank-frank
Join Date: 2011
Post Count: 22
February 20, 2011 - 10:51 am
GOM, I do not see your 6.76%, package or not. We are talking about investment property loans, right? If they have such an attractive rate why isn’t it on their website?
Fixed Rate Home Loans
NAB Tailored Home Loan (Fixed)
NAB Choice Package
InterestRate ComparisonRate
1 year 6.94% pa 7.41% pa
2 years 7.29% pa 7.47% pa
3 years 7.45% pa 7.54% pa
4 years 7.69% pa 7.66% pa
5 years 7.89% pa 7.80% pa
10 yrs 8.09% pa 8.18% pa
http://www.nab.com.au/wps/wcm/connect/nab/nab/home/personal_finance/6/1?urid=1298198577948
Blank Frank
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@blank-frank
Join Date: 2011
Post Count: 22
February 19, 2011 - 7:12 am
propertyboy wrote:
I have $1.1m in debt.
Three seperate investment property loans.
The current interest rate I am getting is 6.96%
Is anyone getting a better rate than this at the moment?
Could I renegotiate a better rate or am I getting the best out there on the market at the moment?
Just want to know if I should devote time to refinancing or not.
What kind of loan is it…is Fixed? (term?) Interest Only? Does it have an Offset facility?
Who is it with BTW?
Blank Frank
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Join Date: 2011
Post Count: 22
February 17, 2011 - 6:11 am
PQ wrote:
Dont be silly Leo, Australians are just as greedy as Americans and everyone else in the world for that matter – its a basic human trait to want a reward for no effort!
I think there will need to be a significant drop in employment before there is an American-style crash in Australian property prices. Plus there is still the matter of low supply in Australia – America had a glut of properties prior to the GFC and the foreclosures added to the supply.
Yes, we have the greed, but Leo is right in saying we do not show the same hubris. Our actions are more tempered by a conservative streak, and a kind of wariness: "Things have gone wrong before!". This is hardly likely to be forgotten given recent events.
The only people I see with unbridled hubris would be the Chinese 'Players' and people who have just come out of property investing seminars! You know the ones I mean.
Blank Frank
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@blank-frank
Join Date: 2011
Post Count: 22
February 11, 2011 - 2:51 pm
Derek wrote:
PS many of the bigger QS/depreciation companies work closely with the ATO so they are on the same page.
Your accountant basically only needs to open the report up and transfer the figures from one piece of paper to another. Makes life pretty simple.
Cheers Derek for the valuable advice. Thinking it over, it would probably pay for itself in saved Accounting fees alone over a few years.
Blank Frank
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@blank-frank
Join Date: 2011
Post Count: 22
February 10, 2011 - 8:00 am
I’m chiming in with question:
I am buying my first unit off a plan. the Builder has put out a thorough document detailing all building costs and finishing. = $170K brick and tile strata unit
Is a quantity surveyor necessary?
If not, how do I work out the depreciation that I should claim year by year?
Blank Frank
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@blank-frank
Join Date: 2011
Post Count: 22
February 9, 2011 - 2:40 pm
Terryw wrote:
Why do you think paying principle woudn't be deductible.?
What about if you had a loan with Bank A and you refinanced it with bank B? You would be borrowing to pay principle
In that case, you are not paying off the principle, you are just rehousing the the loan facility. And the interest continues to be deductible.
…technically wobbly is rehousing the debt bit by bit by shifting it into his LOC. So interest that accrues on that is deductible.
But the money paid to reduce the principle on the other loan in itself generates no deduction (which you may not have meant).
Blank Frank
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Join Date: 2011
Post Count: 22
February 9, 2011 - 2:15 pm
Well, ignoring the Call Option document worked out. They accepted the offer without it. I bought the last unit.
Blank Frank
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Join Date: 2011
Post Count: 22
February 1, 2011 - 2:15 pm
Jamie M wrote:
Off the top of my head, try Adelaide Bank Frank.
Cheers
Jamie
Darndest thing…there is evidence that Adelaide did until 17 Oct 2010 (with a rate of 6.93% slobber)…then they got bought by Bendigo who seem to have never heard of any such thing…they have bad website however, so there is a faint hope that it is just not listed.
Blank Frank
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Join Date: 2011
Post Count: 22
February 1, 2011 - 12:01 pm
Jamie M wrote:
Blank Frank wrote:
Interest Only can be fixed or at a variable rate. Can you get an Interest Offset account with a fixed interest loan In Australia?
Yep, sure can.
Cheers
Jamie
CBA doesn’t.
St George doesn’t.
Westpac has IO with 100% offset but no ability to fix the rate.
Aussie doesn’t.
ANZ has it for 12-month cycles.
You sound confident….
Blank Frank
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@blank-frank
Join Date: 2011
Post Count: 22
February 1, 2011 - 11:46 am
Jamie M wrote:
Hi propertyinfo
Depends on the deal – in general, the lower the LVR the better the rate. After 5 years you can normally refinance to another interest only term – some lenders, such as Adelaide Bank, offer 10 year IO loan terms.
Cheers
Jamie
Jamie, you seem to be saying that banks can be bargained down or somehow negotiated with. I haven’t found that, but haven’t tested the field.
The published rates is what I am offered.
Of they have more competitive rates, or are negotiable why keep it a secret?
I am going in with a 20% deposit….is that just average or am I an ‘attractive investor’. [please do not ask to see photo ]
Blank Frank
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@blank-frank
Join Date: 2011
Post Count: 22
February 1, 2011 - 11:37 am
Jamie M wrote:
Hi Johann
You’ll be able to get a much lower rate than that. If you had a $300k IO loan @ 7% (for arguments sake) you’d be looking at $1750 per month. There’s also depreciation and negative gearing (as mentioned above).
Cheers
Jamie
Best I can find Variable is 7.11%. Fixed is 7.64%. (these are Package discounts too). Are you saying there is better out there?
Blank Frank
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Join Date: 2011
Post Count: 22
February 1, 2011 - 11:29 am
xdrew wrote:
I had a choice of investing in an area with an immigrant issue. The area was Lakemba. At that time the 2br Units were at 120k (dont you wish you could time travel now?) and there were heaps on the market. I took a serious look at the couple of properties that were advertised and i decided against it. MOST of the properties not only had safety screens across the doors .. they had window locks and some even had BARS. They have gone up substantially in the meantime (would 260-280k surprise you?) but i wouldnt touch them with a barge pole EVEN now.
There are two things with a low soc-ec area. First .. if they own the properties .. they dont add much to them, they cant. Hence there is no way to create an upside. Second, if they rent them .. they arent usually the best tenants. Its a generalising but time and again .. it proves true.
What you are out there looking for is areas that are running ahead to having a better grade of home owners in the area. This is usually a lower middle class area. Simply because, they will respect the property .. and as tenants .. you have a better chance of getting a good one. Lower middle class dont want to have to move .. they will respect the property better. Besides .. a lot of lower middle class make the jump and become middle class. This also means they are prepared to pay more for homes in the surrounding area of their existing home (family .. offspring). THIS is what will push your house prices up.
Also beware cul-de-sacs. This is suburbs that dont lead anywhere .. dont have much transport to get anywhere and have people who cant afford to go anywhere else. I believe Cranbourne is heading that way.
How long did they take to move from 120K to 260K?
I get what you are saying re the aspirations of the suburb.
I know of something coming up, in a suburb like that. Unfortunately, they are only going to have a one-car garage and the transport is only by bus. And oddly, the buses don’t really nail the vital services (schools and nearest biggest shopping centre). Typical.
This is frustrating…but will the tenant spot it as a problem or mind it ? You could drive to most of these facilities in 5 mins, which might be nothing to someone moving from the outer suburban limit.
Blank Frank
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Join Date: 2011
Post Count: 22
February 1, 2011 - 11:20 am
Kent Cliffe wrote:
Hi Frank,
Past result and statistics should always be questioned. This is especially the case with median house prices. A few reason why median prices can be skewed include:
1) Subdividing large parcels of land into smaller blocks can cause the "median" prices to drop, but per sqr mtr prices to increase.
2) An increase in new units can skew median prices upwards.
3) The introduction of government grants (FHOG) caused volumes of cheaper properties to increase. This caused drops in median even though more expensive properties above the threshold were still selling at the same price.
4) Medians mathmatically always have an upward bias.
I wouldn't want to comment specifically on Maddington as we don't buy in that area. My tip when selecting invesment property, always use factors other the previous median results to make your selection. These include but not limited to, future supply, public "crowding in", transport, demographic changes and compre it with other invstmets in other suburbs (opportunity cost).
Hmm, I see.
How can I detect Future Supply and changing demographics? Statistics from official sources seem to always be at least two years behind or more.
Transport I did check = good.
What is public ‘crowding in’?
Blank Frank
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Join Date: 2011
Post Count: 22
January 29, 2011 - 10:33 am
Interest Only can be fixed or at a variable rate. Can you get an Interest Offset account with a fixed interest loan In Australia?
Blank Frank
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Join Date: 2011
Post Count: 22
January 29, 2011 - 10:22 am
Andrew_A wrote:
Those figures look like they might be unreliable for judging real growth, medians can be very volatile, much better to look into direct resales and see how they have fared. There are also housing index providers that do a good job, I don't pay attention to median data mostly.
Generally I would say that Perth has to be looking interesting at the moment on a national scale due just to it's extended flat period.
My top 3 capitals for 2011-2012 in no particular order would be Brisbane, Sydney & Perth.
Still Brisbane? Dependent on area / elevation?
Blank Frank
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Join Date: 2011
Post Count: 22
January 26, 2011 - 3:04 am
<Moderator: delete flame>
Blank Frank
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Post Count: 22
January 26, 2011 - 2:56 am
Me too.
Blank Frank
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Post Count: 22
January 25, 2011 - 7:10 am
After discussion with the agent, I am just not going to sign the ‘Call Option’ which gives the developer the option of taking back the property. Into the bin-shaped file cabinet.
Blank Frank
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Post Count: 22
January 25, 2011 - 6:05 am
Cheers, xdrew.
It is a low soc-ec area, but there is money going in…a Big Box mall is now there, very nearby: Coles, Woolies and sundry stores ++ , but nothing flash in the fit out. Business looks quiet in there.