Thanks Terryquestion with the LOC, how do the repayments work I see some places saying no regular repayments are required as long as it doesn't go over the facility limit, but other places saying a minimum repayment is required. Also in the case no regular repayment is required I'm assuming the interest just gets deducted from whatever credit is…[Read more]

I think I might be mis-understanding the concept. The 2 scenarios were:1. setup an LOC lets say for example $100K2. take out an interest only loan of $100K using equity and put that $100K into an offset account attached to the new interest only loan until the funds are needed and withdraw from the offset account when required.In both scenarios…[Read more]

Thanks TerryMy broker was mentioning an Interest Only investment loan with an offset account to access the equity as opposed to using an LOC so just wondering what the difference/benefit isfor each.

Intrigue wrote:
Stupid question. If I have 10,000 sitting in an offsett account for a loan of $300,000 @ 6.54.How much interest am I saving as a result of having this 10k sit there? Is it as simple as 6.54% of $10k equals my savings each month?

My understanding would be that your monthly savings would be 1/12 of 6.54% of 10K

OK, we plan on living in this house for the next 20 odd years(until the kids leave) and hopefully will pay the loan off within 10-12 years(quicker the better) and have no plans in renting it out, will it still be a problem?My lender had this on thier website:An offset account is a feature of some mortgages. It is a savings account attached to the…[Read more]

Thanks Terry for your advice. At first we didn't quite understand too much about cross colaterallising so certainly will not be crossing anymore just hope we can sort out what we have at the moment to allow us to proceed with obtaining our next IP.Thanks for the idea regarding the offset. Our lender doesn't have an offset as such but the y have…[Read more]

Hi LobsterWe self manage one of our IP's as it is within close proximity of where we live. We have managed this property for 7 years now had a couple of issues ealier on but have had the current tenant for 5 years and she would go close in my books to the perfect tenant. In the end if the IP is within close proximity I think it is worth self…[Read more]

Thanks TerryMy thinking would be that rent would be piad into the LOC and interest payments from our Interest only investment loan would also be taken from the LOC. Might have to read a bit more about the concept, would like to see if I could use the same LOC for multiple investments.Starting to undestand this cross collateralising more, my…[Read more]

Thanks karen will buy the API and have a lookHave been doing a little bit more reading of threads on this forum and it seems our loans are cross collaterallised as recommended by our Mortgage broker to reduce the LVR to 80% and avoid LMIMy question now is what is the alternative to this and if we want to buy another IP are we going to have problems?

Thanks RichardJust another question, always hear about paying fortnightly is a lot better than paying monthly. Reading up about it a fair few sites say the only benefit is if you divide your monthly repayment by 2 and pay that fortnightly effectively forcing you to make extra repayments(approximately an extra month's payment over the year).My…[Read more]

Yeah my Mum done the same thing. I believe she had it written up in the contract that for a certain period before settlement she would rent the property for a certain amount of dollars per week

My thinking was that building/pest inspections were not tax deductible whether you end up purchasing the property or not, WJ Hooker are you saying you are able to claim inspection costs in you purchase the IP??

deirdre browne wrote:
anybody know who pays water usage and rates in melbourne rental properties – is it the landlord or tenant?

In Victoria in a set of flats/units/town houses where there is not a separate water meter per unit the landlord is responsible for paying for rates/service charges/usage. If there is a separate water meter per unit or…[Read more]

Do you have a body corporate if so you should be able to find out from them if the unit is owner occupied or rented. If it is rented you should also be able to find out the Real estate agent then you can submit a complaint with them. I think thats all you can really do it is up to the agent/landlord whether they kick them out, if they are owners…[Read more]

Section 213 and 213A of the RTA seem most relevant to your situation:http://www.austlii.edu.au/au/legis/vic/consol_act/rta1997207/index.html#s86Was the security deposit submitted to the Bond authority? If so(as it should) I believe you need to submit an application for some of that bond to come to you for rent in arrears

My guess is that it is not binding until the tenancy agreement is signed, I would have thought that would be signed with the collection of the bond.Best place to look would be the RTA which you can find here:http://www.austlii.edu.au/au/legis/vic/consol_act/rta1997207/index.html

Hi, am also a new poster and have found some very useful tips and hints on this site.My wife and I bought our first property in 2001 a 2 Bedroom townhouse for $100K as our PPOR. We lived in it for 2 years then it was getting too small so bought a 2nd property a 3 Bedroom house for $260K. We moved into this property and rented out the…[Read more]

My guess would be that it would be 4 loans:1. Std P&I (with offset) for PPOR, 2. Other Equity Manager for deposit and costs & 3. Equity Manager which is used for deposit of IP 4. IP loan (Interest only)The interest on loan 4 is tax deductible.I done something similar to this except I didn't want to have the Equity loan hanging about after purchase…[Read more]

This just doesn't seem right, firstly that the rent increase was given during a lease period, secondly that it was 30% that seem's a lot and lastly that when you pointed her to the RTA she issues a notice to vacate.Just wondering if anyone knows much about this section 263 "notice to vacate for no specified reason"? I find it interesting that they…[Read more]

Does it need to have the tag "Business Account"? NAB have eBanking account which if you deposit at least $2,500 a month there is no monthly fee