Forum Replies Created
Thanks for the advice guys. I think we will get a joint loan with a contract. Which ever way it is structured , if one defaults the other has to take over, so the JV mortgage seems to be the easiest way!
Thanks DK!
Which do you think would be the best loan structure?
THE CHANGES
Under the new laws:
Residential tenancy agreements will be standardised with the option to add any specific clauses to the agreement as long as they don't counteract those in the act.
Property condition reports must be completed at the start and end of a tenancy.
Security bonds must be lodged with the Department of Commerce's Bond Administrator.
Pet Bonds will now include any pet capable of carrying parasites that could affect humans where previously they only included cats and dogs. Like before, Pet bonds may only be used to fumigate.
Landlords will only be able to inspect their property a maximum of four times in a year and must notify the tenant whether the inspection will be before or after noon.
Inspections must be between 8am and 6pm on a weekday, 9am and 5pm on a Saturday or at any other time agreed by both parties.
Landlords will be required to contact a repairer within 24 hours for an essential repair or within 48 hours for other urgent repairs, with repairs to be completed as soon as possible.
A new minimum level of home security, yet to be finalised by the Department of Commerce, will be compulsory for all rentals and must be put in place within two years of the new laws commencing.
A tenancy will not automatically end when a fixed term tenancy agreement ends unless the owner or tenant gives the other party 30 days notice.
Option fees will be capped at either $50 or $100 dollars depending on the rent.
Only tenants who have breached their lease can now be placed on tenant databases and landlords must inform tenants of which databases they will be checking. If a landlord finds a tenant on a database they must inform the tenant in writing of ways they can get themselves removed from the database.
Thanks Jamie,
I am in WA. It just seems like alot of effort to send back an already signed lease for a new formatted version.
cheers
Dave
Ok great Thanks Derek!
Sorry guys, I may have told a little porkie!
My rate is 6.08 not 6.68 whoops… So pretty reasonable I guess.
Yes both my loans are IP's now with offsets and I rent where I live.
So if I refinance my loan on a longer term to bring the interest down, will it make it more difficult to access the equity later on down the track? Is there fees for doing these sorts of things?
Also I'm tossing up my options with with 300k equity, is this just like taking another loan out? Will it affect me at all if I sell one of the IP's that it came from? Anyone got any ideas what I can do with the equity? I'm a bit nervous as will put me in quite a lot of debt?
Thanks
Dave
Jamie, is sub 6 with offsets? I had a bit of a look around and anything that low didn't seem to have 100% offset. Come to think about it, I'm not really sure if I am 100 %
Cheers
Dave
Hi Shahin, I'm in debt about $700 k , approx value $1m +.
Terry I didn't want to refinance to use the equity, I wanted to refinance at the same principle but over a longer period? I don't know where I heard this or if it even works?
Eg I borrowed $300 k to be paid back over 25 years. If I refinance my loan now of $240 k over 25 years, my repayments should be less?
Thanks guys
Dave
Hi Pat,
I'm also from Perth. I have a couple of IP's now and I have found so far the most effective way is have and I/O loan with an offset account. I have an offset on both of my loans which doesn't cost any extra. I have my credit card set up with an autopay and live of this. This way the 30 days interest free you have on your credit card , you are saving (roughly 7% depending) with your money staying put in your offset and hence coming off your principle. NOTE: you need to have a buffer amount in your account to cover the CC repayments.
If you ever want to buy a PPOR you can use your money in these offsets, taking full advantage of the tax benefits.
Buy the first IP, give it 6 months until it settles down, you get tenants and you get used to your expenses, then look at purchasing another. You definitely don't want your IP's to be too negative and after reading steves book, have to come to agree with.
If you plan on getting a solid portfolio running, I suggest reading Steve McKnight's book 0-130 properties in 3.5 years. I rushed in to my first two IP's and really wish I had read this book before hand. It really got me thinking along the right track and now have a much better understanding of the property game!
I also agree with Jamie, get a mortgage broker at least for your first one, and they will set you up properly.
Sorry I can't recommend anyone good for you as I am also still looking!!
Good luck
DaveMc
