Forum Replies Created
- Benny wrote:Since you have started saving a Deposit, keep on going. Is it in an Offset account? (I hope so). If not, that one little change could make a big difference within 12 months.
I note that you are paying 6.65% – is that a rather high IO? Or are you paying P&I? If the latter, look at changing to IO and save the Principal component in your Offset account.
Yes it's in an offset account. I'm paying P&I @ 5.19% (fixed for 3yrs) over 30yrs. I'll contact my mortgage manager about switching to I/O and see what I can do
Benny wrote:Do you have any clues what the value of the unit is? What was your purchase price?Good question. Asking was $345k, final sale $333k and final Mortgage $316,400. Units in a similar condition in the same block go from $310k to $350k, depending on the agent (generally). The one I bought from seems to sell them for $350k quite regularly, I intend on having his agency manage the property eventually as he has a long proven record in my area
Benny wrote:Meantime as I said earlier, there may be others who might have "little time and lots of money" who may want to partner with one who has not much money, but has a plan to make it – so look out for JV deals on here. Who knows just what might pop up.Well I'm more than keen, although I'd hate to be risking someone else's cash, guess we'll see what pops up
Benny wrote:Re the Offset account, look at plonking all of your wage in there, and live carefully on your credit card for a month. Then, when the cc statement arrives, draw the amount out that squares the cc completely. Rinse and repeat next month.This will have you pay 0% on your credit card (some can have up to 55 days interest free) and, for most of the month, your whole wages are offsetting the Interest payable on your mortgage, thus saving 6.65% (interest free too) on those dollars over a year.
Definitely have to look into this and talk to my mortgage broker/manager. This was my original intention when I set up the home-loan last year but I guess with all the moving and everything else in-between, I completely forgot about that!! Thank you!! I'm pretty astute with my money so I should be able to make it work ok and it's definitely a good starting point
Benny wrote:Oh, and at 25 you don't need to be striking out so hardNo way! I want to be a stay-at-home dad, property will let me do it while the kids are young-ish!! No kids yet, but soon
Cheers
Alex
Hi Jamie,
Thanks for your reply.
Just a quick question with your plan though; When I move to my next residence would I then be able to claim the interest as a tax deduction or would I have to re-finance the loan? As I understand the deduction is based on the purpose of the loan, not the security so if the original purpose is a "place of residence" and the purpose changes to an IP later can the interest purpose change mid-loan as well?
If I cant, would I then be better off with a credit line, withdrawing a portion as a deposit and re-financing for a smaller amount (and interest) with the (now) IP unit?
Cheers
Alex
