I tell you I have heard some terrible stories over land lords holding people to contracts.

A friend of mine works for a realestate doing rentals. A guy came in and signed a lease and paid deposit in the morning, said his wife was coming over to life with him from NZ. Later that day he came back all distressed saying his wife had died in a car…[Read more]

Always calculate it yourself, don’t let the banks tell you. Otherwise they just give you 30 year loans so the payments are as small as possible and you pay as much interest as possible.

I have seen people pay near 55% of their GROSS income. After tax that leaves them with about 20% I don’t know how they did it but they do. Most people who are…[Read more]

I don’t work for them

I have however spent weeks going over every loan trying to find the best ones. A friend of mine who still works ANZ was trying to get me to take a loan with them. The best they could do for us (despite the fact that we are both professional earning $110k+) was 7.6% with 100% offset. They couldn’t even match virgin moneys…[Read more]

What I mean is that if people have debts already they struggle really badly.

$39k per year is about $576 per week. $200 rent. $125 car payment. $80 other car costs (fuel, insurnace, rego). $40 bills (elec. phone. etc). Food $100. HECS $30. That leaves $0. Maybe $100 if you used share accomidation and paid $100 a week rent. Either way a loan…[Read more]

I am not surprised by the responses here at all as I have heard this all before.

I used to sell ANZ loans, we were taught customer service and low fees are what people want, not low rates. Every time we were asked to match rates we were told to show all the features we had etc. and how easy it was to get out of the loan and trade later one etc.…[Read more]

We cannot answer unless you tell us what your loan repayments will be. This is because the only thing to weigh up here is the interest you will pay on the $550k and the income from rent and the value increase in the $350k house compared to just loaning $200k.

Firstly if you have $300 per week in rent, after tax you probably will end up recieving…[Read more]

Don’t be fooled by all these people claiming ‘no right or wrong answer’ or some such rubbish.

The right answer is always the LOWEST interest right with low escape fees. The best right now is clearly http://www.ratebusters.com.au. The variable rate is just 6.92%. on a $300k loan that is $50 PER WEEK cheaper than ANZ and other big banks who are at 8% or…[Read more]

I would be careful.

If it isn’t a long time investment then its a risk because these houses never value. I have seen houses on the railway line sell for $220k around salisbury in QLD where the average is now up around $400-$500. Rent didnt seem to be affected though.

Firstly the best way is always to get a cheap house and pay it down massively.

If you are both on $50k per year you should be able to scape together $750 per week in payments. Don’t even bother looking to invest until you have paid of the house. This is because the investment property will not return more money than that saved by paying off…[Read more]

You want to buy a $700k – $1000k house on $90k per year?

interest on $700,000k is going to be $50,000 per year. The $300 per week rent will be taxed so you probably won’t end up with more than $10,000 or less from that house per year. So you still need $40,000 just to cover the interest.

I think the bank would loan you the money just because of…[Read more]

If its valued at $380k and you have $58k im equity, how much are you in debt? $300? More?

The point is if you loan another $300, then you are $600k in debt and paying essentially paying $300k at 16%. Where as the houses only make about 8%. So the values of the 600k would have to increase in value 8% per year. There is no way this is going to…[Read more]

TOTAL COSTS $491 pw

RENT $260 pw (probably more)

I don’t know about your tax return calculations. From that the weekly loss is $231, which means you get back 45% * 231 = 104$, so the net weekly loss is $127, or $6604 per year.

The definatly increase in value of the house is 3% of $295,000 = 8850. Minus 25% capital gains results in 6637.50…[Read more]

Firstly, I can’t wait until property prices fall over and every interest only investor is instantly bankrupt. It would be a good day for justice and a wake up for the goverment. Giving ‘investors’ tax deductable interest while struggling home buyers don’t get that is a complete injustice. Most investors would not be in the market if it weren’t for…[Read more]