sorry richard just one more question regarding the equity part…

Say he buys a $500,000 house, uses $60,000 as equity for me for my deposit, what LVR can he have on his house with out LMI… can it be only 80% of first mortgage and then LMI

In this case, he would have 80% LVR of $400,000 on the property, minus the equity he has guarantored for…[Read more]

Originally posted by Qlds007:
Dave
All that is required is that the Guarantor must demonstrate they can support the 20% + in the way of serviceability.

Sorry, i just want to clarify this up richard,

Is it serviceability, or does he need to provide some sort of equity as part of the guarantor. If its simple serviceability that is fine,however…[Read more]

thanks richard, atleast i know he can borrow over 25 yrs…

i like the offset account coz they way the equity/cash is there to use for shares/IP deposit, however im glad theres the 2 options

cheers

well if u had 200k of loans with a them and got a .25% reduction per year thats a $500 saving on interest anyway

is there anywhere where you can do a bit of reseach on this with out being a MB, any particular good sites…

sorry for the hijack though guys

Originally posted by Terryw:
Dave,

these days just a willingness to pay the fees usually. Although there may be a min initial loan size of $150k to qualify, after that the discount depends on your overall borrowings, with the more you borrow the greater the discount.

ah great… nearly all loans would be 150k anyway…

in this case would it…[Read more]

so what would qualify you for a professional pack? certian borrowings amount, abn?, or just the willing ness to pay the fees??

i imagine MB jobs must be so difficult getting the best loan for people…

thanks terry,

i sort of imagine that could be the issue, but if you waited 3 months after settlement and refinanced i think that would be a fairly good situation..

however i imagine you would have to ensure that you signed up with a lender who offered minimal exit fees for when you refinance, or if you re finance with the same lender exit fees…[Read more]

Originally posted by Terryw:
Depending on which lender your loans are with, you might be able to get some done without charge – by a bank valuer.

Terryw
Discover Home Loans
[email protected]
Send an email to get my newsletter.

im guessing this would be apparent in slightly higher interest rates? is there a few banks who do this or…[Read more]

would it be correct in saying, + geared does not include rates and expenses except for interest.

Also if you have a negative geared property what yield would it need to be to become a cash flow + after tax on a 30% tax rate. This might be a fairly difficult question as i guess it would depend on age (therefore depreciation), and strata. Maybe…[Read more]

i thought that it was basically something like that, its good it includes borrowing of costs, means the entire amount will the tax deductable debt… is the 20% secured by a mortgage on one of my parents current house, if thats the case what happens if they sell the property, is that when the debt is called in? Is this what we mean when you talk…[Read more]

thanks richard, thats what i sort of meant…

in the above situation if i then wanted to buy another property worth 200k,

id refinance the 1st loan to 220k (88% LVR) (from 180k with a value of 250k), pay the mortgage insurance on the extra 40k and use the 40k redraw as a 20% deposit for my new 200k property and escape paying LMI on the 2nd…[Read more]

so would that be a full refund, proportinate or just like a goodwill refund? ( i think i was ready somewhere 40%)

is there like a sliding scale for mortgage insurance or is it like a set 5% of the loan or something?? would it be a better to continue to re finance on loan if it already has LMI to pay additional LMI to recieve more money to say…[Read more]

yeah i got the back issue, i can scan it if anyone wants, ill be getting started reading in the next few days so im looking forward to it

im now looking for a similar book as well to deal with benefits of companys and a bit of a step by step guide of setting them up, things which are good and things u need to be wary of…

all in all you can…[Read more]

i thought it could be similar to something like that…

would it be an additional mortgage or charge against the property to provide the LOC, and im sorta guessing its done so you dont have to keep refinancing your loans to get more money? Also with IP would you fine you would very rarely re finance your property completly? i know its a 7 year…[Read more]

thanks for that…
so how would a LOC be set up… ie would it use built up equity from other propertys or is similar to a personal loan where there is nothing attached to it?

so basically if 95% is a loan, and stamp duty and other costs are put into a LOC, basically all you need is your deposit (but if u had a large enough LOC you could take it…[Read more]

you would normally set up a LOC to drawn down deposits and acquisition costs

sorry what does loc stand for? and what do you mean by draw down from this?

thanks richard

would someone be able to explain how these equity parts would be linked between the loans? or like would they have morgages on it???

hmmm seems good however…

as a first home buyer, how many will actually have this 20% in there super, i read something last week, most baby boomers only have 60-80k in super and unless you have salary sacrificed then you wouldnt really have enough…

PPOR well what happens if you move out of your house and rent it out, what would happen…[Read more]

sorry, what i meant was the stamp duty manipulation….

i imagine there could be many many units on trusts…

so apart from this trust magic, are there any others worth reading?? is his other one about taxation good??

also what do you all thing of like the australian property investor magazine or any property magazine, are they worth while buying ( and more importantly reading) or would you learn more from sitting and reading a book instead once a…[Read more]