Forum Replies Created
it depends if you want to use the rents in the propertys as income..
in 5 years time with P&I u could have the property paid off… if you dont plan using the income for rent, why not live in that one? (depends where u live now)
you say u dont want to increase no deductible debt, sydney will have nearly no debt in 5 years time, live in that (no interest payments) and you could buy another investment property (to replace sydney) and you would have 100% deductible debt then
the would be the opportunity cost of $75 per week of the higher rent value you would lose from sydney than from what your paying now
i still see melbourne being negatively gearing in 5 years though, rent is $85 less than interest at the moment.. once retired you would lose all/most tax benefits, so you still need to fund this difference some how (plus rates, agent fees etc)… in this aspect it may be better to sell melbourne… (atleast sydney is making money for you currently)
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 me (60k), so he could borrow $340k without LMI? (Actual loan LVR of 68% but LVR of 1st mortgage of 80%)
is this right calculations??
sorry i just wanted to really clear this up so i have a good idea what im talking about when i explain it to him, cheers
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 what happens if he provides equity (ie house) and then the house sells, do i need to refinance my loan or can he then transfer his portion to the new house???
Also will the lender only be qualified on 80% serviceability or 100% for this loan?
cheers
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 be worth while in having a few loans with the same company to get a bigger discount (as long as u didnt x colaterise them)
i dont know if you would want to disclose it, but how much roughly are the annual fees each year??
sorry about all the questions, but i just want to find as much out about loans as possible so when i come see you later in the year ill have some idea of what im actually talking about…
cheers
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 wouldnt apply?
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 is it just one??
if u could get it revauled for free each year wouldnt that be great for investors looking to redraw on the loan for more properties???
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 someone could use there own property as an example if you dont mind…
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 about x-claterising loans?
I assume that these loans coz be set up with a 100% offset account to reduce interest but not minimise deductable debt..
yeh i saw the super loan, i dont think it would suit me as i could see it would hamper future re financing and if i dont sell the house and want to pay them out, it could lead me paying a valuation price, i think id prefer to take the parents option before this one unless someone can prove why not…
thanks agian richard
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 property…
i would imagine the LMI bill would be lower for the 40k redraw than taking a 20k redraw (leaving the original loan balance at 200k or 80%) and then paying LMI on the new property as it would only have a 10% deposit…
i hope this is making sense
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 make a substantial deposit on the next property?
just thinking the best way to work out general finances
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 never have enough knowledge…
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 average for all loans, but if you used LOC would it be longer as you would on re finance if the lender was un compedative with the market place??
could you have more than one property secured against the LOC, or would you just have 2 LOC in this circumstance? Also say you borrow 95% on your property, would you have to wait for the capital value to rise to a LVR ratio of below 80% before you could use a LOC?
Cheers Guys
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 from there as well couldnt you???)
what would an average interest rate for a LOC be, im guessing higher than a mortgage but lower than a personal loan but i figure could be great…
cheers, your help is brillent
you would normally set up a LOC to drawn down deposits and acquisition costssorry 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 then…
in addition further id imagine interest rates would be higher, so has good potential and atleast the government is doing something…
also will this be all states (ie federal thing) or some states???
sorry, what i meant was the stamp duty manipulation….
i imagine there could be many many units on trusts…
