Forum Replies Created
Thanks, Simon for the your reply.
I understand one is better off getting loan from conventional channel like the banks before looking at these nonbank lenders. There are reasons I look elsewhere. Also LMI is not charged regardless of LVR – are you referring to deferred LMI option?
The Mortgage Originator (MO) I spoke with has a range of different LVRs, with or without LMI depending on LVR limits, to suit needs.
I worked with a bank a while ago and was unhappy about the bank’s service then, and now. Constant change of relationship managers didn’t help. On top of that there were costly recurring mistakes they did not own up to better the already sour relationship. All I heard from them were fees, fees and fees via product enhancements and product pushing.
Bottom line is I would like good service and up to date knowledge of their own products to give us their best finance option to suit needs.
The MO has a lot of features at relatively similar price structure, if not better than, that of the banks; just to name the most common;
*Split loan facilities
*No fee for portability and top up when required
*Zero monthly ongoing fee
*Direct transactions allowed on loan account (direct debit or credit facilities)We do not have any problem with full doc finance application, but find mortgage broker can do better what banks can’t (eg. not cross or give to much collateral than required).
I would definitely look at refinancing current loan and take out an LOC, and IO loan for IP purchase in the coming months. Also, we may need a separate business loan for meeting capital expenditures some time later.
Can a split loan feature accommodate for them all for tax compliance (personal, business and investment use).
Simon, am I on the right track?
Much obliged.
CT
Hi D and V8ghia, I think the problem is proving that it was fusion; and the onus is on me to prove with the support of the power supplier (in this case Alinta). So, it’s much ‘easier’ if I can make claim through Alinta.
Thank you all for your replies. Now it’s all done, machine works beautifully. I thought the repairer was courteous, efficient, able to answer my incessant queries with the need to replace the motor. Also, he returned the old motor and said it might well worth some money if sold in eBay, not that I ever would.
I am about to fill in the form (giving my best recollection of event and time) along with support documents of the original purchase date, the repair bill, and the receipt to be assessed. It’ll take about 4 weeks before I hear an answer.[tired]
My experience has taught me a lesson; even the best machine can and do break down, certainly didn’t justify the money spent. I’ll be more prudent next time round.[grad]
CT
Hi Celeste, Terry was right in that an ordinary discetionery trust is ineffective to allow negative gearing, assuming the individual has the finance arranged in his/her name (not the trust).
Other HDT benefits are
* the ability for other “lower income bracket” unit holder to buy back the units later for CGT reason,
* and of course, asset protection.
Hope it helps.
CT
It’s definitely a great thread for us learning the ropes of property investing.
I cringed as I read smoothsatin’s first reply.[wha] I believe everyone is entitled to their opinion, but I would practice tolerance and careful with the racial tone, it’s proving unpopular. As far as Minh Phat breadshops go, they’re one of my favourite customers.
I supposed Box Hill slipped your radar, smoothsatin. They’ve done tremendously well. In fact, besides Footscray, parts of Springvale too have gone through gentrification, you’ll see they all have fresher outlook. Crime is a diminishing problem now than before, old houses in ‘prime’ area are highly sought after, just need to do your due diligence and put in the footwork.
At the end of the day, there are deals for unemotional investors.
CT
Don & Liz, I take my hat off to your achievements. You have the foresight and intuition to take actions. I’m too cautious but I’ve learnt a lot in the past months.
I thought Marsden’s was just being curious, not being antangonistic at all, as we’re all here to learn from success stories we found so inspiring.
I’ve talked with people in the buyer’s advocate business (bird dogging), they seemed coy when asked about finding such deals.
Isn’t it not surpirsing that we find it a glaring conflict of interest using this type of service? Mainly keeping the best deal for oneself rather than the client. The onus is on the client’s dd and therefore it’s still a booming business as usual for the smarties.
CT
It’s great to hear your success, John. Wouldn’t mind a little more info on how you started.[smiling]
CT
Thanks V8ghia, it’s a relief to hear from you, I almost gave up on trying to make a claim.
I do not know for sure if our “still new” estate is prone to fluctuations of voltage. There were times when I found our digital time clock flashing in the morning. It seemed that they occurred in the wee hours in the morning.
The repairer might be trying to pull a shifty; the washing machine could start but not agitate (buzzer would scream at rinse cycle) but it could spin dry no problem.[eh]
I queried him, he explained that he rarely service this type of machine as they were known to last the distance. He was adamant that it was not the electronics but it needed a motor replacement.
Then he suggested to make claim through Home Content Insurance (fusion). I rang but found that I had to seek the electrical supplier’s confirmation of a power surge at the particular date and time of the incident. [crying]
So, I did the run around and found that I could make claim through Alinta instead (without going through our content insurer which would incur $300 excess, losing NCB and 5% increase in next year’s premium).
My machine was fixed within two days, and I have agreed to pay up on Monday when it is delivered. The repairer will give me a report and invoice which I have to pay upfront.
Being ignorant, I really hate to be conned. Are there any smart questions I have failed to ask?
Although it is a little late, I would be grateful for any answers or suggestions. Can you indulge me again, V8ghia?
CT
Hi ColGarras,
No idea how one can do it. But the only way I know is with higher deposit for properties in close to CBD. It maybe too restrcitive and concervative for returns on sum invested. Time in the market will make -CF properties positive, boring but true.
To fast track – you may need to check out or search posts here on creative investments, such as properties with a twist, wraps, lease buy, etc.
We tend to ask this very question when we don’t know where to start. Look at your plan and strategies in the long term may be the key.
Cheers
CTLifeX, thanks for your input and cautionary analysis of the property purchase experience for wealth creation for the benefit of all in this thread.
Honestly, I’ve not completely opted out of the property market in Melbourne; it definitely
* provides an alternative to shares – diversify into a bricks and mortar for solid growth,
* slowly becoming more promising judging from the steady price upturn (fear of buying high),
* has a flow on effect on rental yield improving (returns on investment), and
* beats the sleepless night thinking if the bull market has its days.If it had not been the sum involved in a single “quality” property purchase, I would easily backed property 100%. I’m about to conclude one way or another in the coming months….[blush2]
CT
Isn’t that so true, ttman.
I’ve got to pick and choose which one I’d go; some are just full of spins. I’d like to add that one needs to ask if:-
* there is a conflict of interest in what they are offering,
* do they empower you to invest and create wealth; or merely preying on your lack of “sophistication”.Been to a boutique investment company lately, anyone? From the outset, it looked very impressive by using ASX educator and fed information that it was virtually fail safe.
Before end of seminar, people have jumped in and proudly shaking hands, waiting to make profits by signing over their monies and getting a password for the gateway to trade warrants etc..
Thanks for sharing the free information and nibblies, it was even made clear that the director was not in the business to make money – but to serve investors. [puke]
There are more and more of investment companies entering the market place to get a slice of action with vast amount Super monies being their carrots.
Hint – their office is in Toorak, I’d run miles from them!!!!
CT
Hi celeste, I can only speak from my lack of experience in property development; I think you’re facing a lot of supply side competition. You rightly said:
tho looking on this shires development plan there is a heap still in planning stage yet to be developed.
I’m in South Eastern VIC, living in one of those newly developed estates (four in all) in what used to be an old daggy suburb. Property prices are higher in the new areas but have not flowed through to the older areas as much.
To put in perspective, it’s been two years since we settled in, land is still available for those wanting to get into places with desirable ‘green’ view, man made lakes and recreational parks.
Cheers
CTHi vyaw2003, I think it can be made by ensuring that one is prepared to do the due diligence on the following (not in any particular order):
* Structure the business setup of property purchase to maximise wealth
* Buy under market value (getting the market comparables on recent sales prices in a particular area)
* Add value sticking with strict budget to meet market demand
* Have a point of difference to set your property apart from the rest
* Use tax advantages to reduce costs – via timely rebates from negative gearing and depreciation.Then you have to maintain great ‘customer service’ focus to keep the tenant that bring in your cashflow.
I know easy said then done[guilty].
Cheers
CTAccording to the experts, which I’m happy to regurgitate, when
there is no more land left (all sold), before
driving scarcity of land to meet ‘pent up’ demand, if any.A year or two if you’re patient. Maybe looking at the demand of renters would be a good judge.
I have to reluctantly agree with arrowsmith. There are creative ways to come out in front to invest in properties (residencial) like LifeX managed to. It still seems too much hard work (plus risks) for novices to learn the rope fast enough to get a grip on the best way forward.
With current tax regime and super changes, it makes sense to cast your sight wide enough to capture the opportunities available in the current climate to suit one’s appetite for income and/or growth with justifiable level of risk tolerance.
Don’t forget the forum is about properties, not many would stick their heads out to counter the suggestions. If it doesn’t sit right with your plan, it will not work.
CT
Interesting post, Kim. I’m working through the maze of government new and proposed policies changes while getting appropriate advices on general investing issues to maximise returns.
My accountant and I finally had a open minded discussion to come to a amicable solution in event he couldn’t meet my requirement with a set plan mapped out.
He has accepted that he may have to work along side with another accountant of my choice if I choose to select property as our next vehicle in investment. If anything, he is much relieved of the decision to ‘outsource’ the service.
There should not be any discomfort in having two accountants with different expertise; as long as there is an understanding among all of you to arrive at your plan of wealth creation. Their jobs are distinctly independent of one another, and you have the duty of doing your due diligence in the best way to proceed according to your needs and risk your ready to take for making a calculated decision based on their advices.
CT
Finally, the pennies started to drop. Thanks Terry.[lmao]
CT
Without a sustainable future there will be nothing to look forward to, let alone building wealth. I hear the message and try hard to our bit to make a difference.
At home we recycle, reuse, reduce waste, installed twin 4500L tanks to flush toilets and water our vege patch, do way with lawn, looking closely at harnessing solar energy as the cost has come down over time.
Some schools are better than others and have put sustainabilty issues as a core of their studies – environmentally, physically, emotionally, and spiritually. Instead of the general apathy I used to feel towards their future, kids are definitely learning skills appropriate for their time and creating jobs of the future evolving around the issue.
This discussion would hopefully bring about awareness amongst us on available innovative, resourceful recyclable building materials to lessen the impact on emission, and create interests enough to bring about changes to our ‘throw away’ mentality just because it is habitual and easy.
I agree it’s high time we think globally and act locally.
CT
Hey fernfurn
Why only the first home buyers get the discount of 1% stamp duty? Looks like we’re all missing something.
At the end of the day, the price will catch up with demand increases – government intervention (though welcomed) usually defeats its purpose.
CT
Thanks for your reply Terry to my questions on LMI:
LMI is generally only paid if the LVR exceeds 80%. However, you may have to pay it on some low docs at lower LVRs.
So if you can borrow the 20% deposit from equity in another property (eg a LOC), then you can avoid LMI. Having a trust doesn’t change this.
My query relates to a unit holder of a HDT, using a company setup, borrowing the full amout to invest in an IP. Assuming I have an LOC against PPOR and put up a 20% plus costs towards a deposit, I need to seek another 80% finance from another institution (full doc). Then,
1. Is this a legitimate way of avoiding LMI? (the loan application would involve disclosing all liabilities including LOC)
2. If so, would it not cost me more in terms of higher interest rate, or upfront costs, as the bank perceive it as a risky lend?Sorry about my ignorance. Your input is much appreciated.
CT
Hi all
I’ve done a search on the forum, one post maybe of interest along this line;
Urgent Help Needed – Title and Loan in Different Names.
Sorry as I tend to jump in and get off the topic at times.[wink]
CT
