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Viewing 13 posts - 1 through 13 (of 13 total)
  • Profile photo of BlissyBlissy
    Participant
    @blissy
    Join Date: 2010
    Post Count: 17
    March 29, 2010 - 8:24 am

    I'm interested aswell i live in the Shire.

    Profile photo of BlissyBlissy
    Participant
    @blissy
    Join Date: 2010
    Post Count: 17
    February 27, 2010 - 12:08 am
    Qlds007 wrote:
    Hi again Blissy

    Firstly congrats on the news of your new arrival.

    From those numbers i think your equity is fairly limited so might be a matter of using some of your cash / managed funds and looking at a 90-95% lvr.

    Not cheap when it comes to the associated costs but gets you miving forward.

    i am assuming you havent considered buy a PPOR and claiming the FHOG ?

    Richard,
    Thanks for your reply, I have no problem with using my savings I assumed that i would have to and I am also happy to use the money I have in the managed fund if need be.

    I just dont really want to pay LMI as it is dead money but if i have to then i have to,  but im looking at a new IP around July so that gives me roughly another 3 -4 months to save as much as i can (hopefully around another 5K) plus my fiancee will have roughly 10K to go towards the funds. So by the time July comes around i would like to have rougly 45-50K in funds plus what ever my equity is at the time (currently around 22K).

    I am no longer entitled to the first homebuyers grant as i have already had it and sold that property.  It made more sense financially for defence to pay my rent and for me to use my money to invest.

    Profile photo of BlissyBlissy
    Participant
    @blissy
    Join Date: 2010
    Post Count: 17
    February 26, 2010 - 8:46 am

    Hi all,
    This is my fist post for a while but i have been a active reader whist I have been working on changing my IP loan to interest only with a 100% offset account.

    I can happily say that it is now finalised and im now on IO with 100% offset with St George.

    My IP in South Penrith is worth  $290k – $300k
    IP loan balance                            $262,373.45

    The IP rents for                             $400 p/w

    I currently have                             $26,581.36 sitting in the offset account. and $15,000 in an Equties trust fund

    My Pay p/w, $1000, Fiancee's pay p/w, $1000

    Our Rent, $95 each p/w (subsidised through Defence)

    The only debt between us is my IP debt.
    And since my last post i have found out that im going to be a father for the 1st time as my fiancee is now 3 months pregnant :) she is due late Sep early Aug.

    Ideally I'd really like to have the second IP by July at the latest before ub is born and I have been doing alot of research and reading.
    So how do you  think my situation now looks? Roughly how much equity do you think i have in my IP? and what is my LVR?

    Thanks again everyone.

    Profile photo of BlissyBlissy
    Participant
    @blissy
    Join Date: 2010
    Post Count: 17
    January 19, 2010 - 9:46 am

    Here is a new development happening in Penrith straight across the road from Penrith Stadium http://penrith-press.whereilive.com.au/news/story/450m-breath-of-life/
    This will be massive for Penrith its worth an estimated $450 million the vacant block of land is huge.
    There are also plans for a giant in land beach at a massive new development at Castlereagh 5kms from Penrith.

    Profile photo of BlissyBlissy
    Participant
    @blissy
    Join Date: 2010
    Post Count: 17
    January 17, 2010 - 4:07 am

    In Dec 09 i purchased a property in South Penrith for $288,000 and St George valued it at $290,000 so i was happy with that.

    Profile photo of BlissyBlissy
    Participant
    @blissy
    Join Date: 2010
    Post Count: 17
    January 14, 2010 - 10:24 pm

    Great news, Thanks Dan.

    Profile photo of BlissyBlissy
    Participant
    @blissy
    Join Date: 2010
    Post Count: 17
    January 14, 2010 - 8:24 pm

    Thanks for the info i'll give St George a call today.

    I have another question what happens when all the interest is paid? does it revert straight to paying the principle?

    Profile photo of BlissyBlissy
    Participant
    @blissy
    Join Date: 2010
    Post Count: 17
    January 14, 2010 - 7:56 pm

    Hi all,
    This may be a silly question but what does COCR stand for? remembering im new to this. 

    Profile photo of BlissyBlissy
    Participant
    @blissy
    Join Date: 2010
    Post Count: 17
    January 14, 2010 - 10:50 am

    Thanks for the detailed reply Terry,
    I really need to change to an IO loan ASAP, Do you think it is worth changing to IO with St George who my current PI loan is with given that i recieved this reply earlier?

    Qlds007 wrote:
    Secondly given that the loan was mortgage insured originally you would probably want to consider a separate lender to as staying with St George will mean the total loan will be > $500 and the LMI premium will start to mount. 

    Im just not to sure what that means? I gather it is will affect my LMI somehow?
    Your help is appreciated.

    Profile photo of BlissyBlissy
    Participant
    @blissy
    Join Date: 2010
    Post Count: 17
    January 14, 2010 - 8:32 am

    Thanks for the advice everyone its very helpful.

    Qlds007 wrote:

    Hi Blissy

    Yes there is a big difference between a redraw and an offset account as it all boils down to eligibility of the deductability of the interest.

    An offset account achieves the same goal however keeps things nice and clean when it comes to deductability.

    Probably need to confirm a few things off the forum before i could tell you the way to move forward.

    Secondly given that the loan was mortgage insured originally you would probably want to consider a separate lender to as staying with St George will mean the total loan will be > $500 and the LMI premium will start to mount. 

    Hi Richard,

    Im very dissapointed with myself !!!!  I rang St George and it turns out that I dont have an IO with OS account loan i have a PI with a redraw account loan.
    And for me to change to IO it will cost me $500 and for me to re finance with another lender it will cost me $1000 to get out of the loan. Oh well it as all about learning.

    I intend to see a broker and see what other options are available with other lenders as i definately want an IO loan as i intend to purchase as many properties as i can.

    I was always under the impression that the only way to be able to get another IP was to pay of the priciple ASAP to gain equity.  didnt realise it was so easy to get the money out of the offset account.
    Is it possible at all to still pay some money off the principle when you have an IO loan?

    Oh and does anyone know if you can claim loan account expenses for an IP as a tax deduction? such as the $500 & $1000 fees St George want to charge me to either change my loan or leave my loan all together?

    Qlds007 wrote:
    Secondly given that the loan was mortgage insured originally you would probably want to consider a separate lender to as staying with St George will mean the total loan will be > $500 and the LMI premium will start to mount. 

    Sorry but im not really sure what you mean by this Richard I gather you are saying i will be better off leaving St George?

    Thanks again.

    Profile photo of BlissyBlissy
    Participant
    @blissy
    Join Date: 2010
    Post Count: 17
    January 13, 2010 - 11:10 pm

    Hi Richard,

    My home loan is with St George and is an interest only loan.
    I have a redraw account linked to the homeloan account all of my money (pay and rental income) go straight into this account and this works against the interest is this the same as an offset account??? or should I refinance and get a 100% offset account?

    I thought that reducing the debt balance was the best thing to do to get equity?

    Profile photo of BlissyBlissy
    Participant
    @blissy
    Join Date: 2010
    Post Count: 17
    January 13, 2010 - 9:44 pm

    Hey Guys,
    I have another question to add to my never ending list this one is about depreciaition.

    If i get a depreciaition schedule done now and in the future i renovate the house ie new kitchen do i need to get another depreciation shedule done or do i just need to keep the paper work for the renovations with the exsisting report for my accountant to make the required adjustments?

    Thanks in advance.

    Profile photo of BlissyBlissy
    Participant
    @blissy
    Join Date: 2010
    Post Count: 17
    January 13, 2010 - 2:25 am

    Hi Lalibella, Yes the property is working well and i do intend on getting a depreciation report but i was waiting for a few minor improvements to be done boefore i get the shedule completed is that the right move or should i get the depreciation schedule done ASAP?

    There is no other debt between myself and my fiancee other than my IP loan, no children as yet, and no Credit cards or anything like that.
    I live in the Sutherland shire so im not sure if your broker covers that area.

Viewing 13 posts - 1 through 13 (of 13 total)