Forum Replies Created
Also do you know the trick about the 55 day inteterest free credit cards and having it lincked to a LOC account?What trick is that?
I think he is talking about having your mortgage account set up as a line of credit account. which means that you deposit all of your income into this account and then use a credit card (hopefully with 55 days interest free) to pay for all(or most )of your expenses and then at the due date use money from you LOC loan to pay off the credit card in full.. No interest on your credit card and maximum benefit from having all your money paying of your laon until the cc bill falls due.
Other options to this is A home loan saver account where your money is deposited into a separate account and the total of this account is taken into account when calculating interet on your home loan ie
home loan $100000
home loan interest saver $15000
interest on home loan is calculated on $85000 only.Most financial institutions offer some sort of account along this line which to me is preferrable than a LOC loan because if you blow your budget you will actually be increasing your loan.
We have been operating a Homeloan interest savings account with ANZ for about 10 yrs and have saved lots of money of our home loan with this set up at one stage we were not paying any interest on home loan as we had money parked in HLIS waiting to be invesfted elsewhere. With internet banking you can regulate all your payments and check on your balances.Then again I know someone with a LOC loan and she has made great inroads into her loan
LOC usually on fees for “redrawing” whereas a HLIS has fees for redraws (makes you think twice about pulling money out of your loan
?LOC loans could also have higher interest rates
We find HLIS good for depositing all our rent into and the bank withdraws 4 loans from this account. And all the rent goes to paying off our home loan until it is needed for the other loans.
The above is what I understand about these type of accounts.
I have paid no banking account fees for 10 years using this set up.
Debra [
]Hi sunshine.
We’ve been thru this when we purchased a share in a property that my parents owned. We had to get a valuation and that is what we had to pay the stampduty on. We have explained this to the young-uns
Debra[]Thanks Bill
Had already thought of that. His aunt is a solicitor so I have told them that we need to get something drawn up to finalise details like what happens if they don’t take up lease-option(have decided that this might be the go) ie redistribution of money etc and also splitting of property if something does happen.They would be paying our interest only repayments which is approx $55/wk more than what we are getting now (yes neg geared) This would allow us to pay off our house a bit quicker.
So yes I realise that there is alot to look at and put contingency plans in place.Any other drawbacks people can see, let me know.
Debra [
]Thanks Mel
good idea them paying our interest free loan. It would cost them a bit more than just rent and we could probably put a cap on the final purchase price this way.
His personal loan is actually against his IP(2nd mortgage). She needed a car, which he paid for and he HAD to have a quad bike (boys and their toys) But they are paying this loan of quicker.Getting some good ideas.
Thanks
Debra[]Thanks Mel
He already has an IP. And any extra they get goes on the Personal loan
And yes we had already thought of them renting it Current rental is $190/wk(very cheap) to their friends (the ones moving out)
Would just like to help them with out it costing us toooooo much of a loss. The only way I can see it at the moment is that they buy for roughly our original price and pay what they can. With maybe an increase in repayments when she earns more.
But this would mean that the “loan ” would actually increase Like the old government loans did a few years ago.Thanks for your suggestions. Keep them coming please
Debra []Simon
At the moment
No deposit.
Unsure of what her earnings will be.
This came up at a bad time we were hoping for a few more months with the tenants.
Am realy trying to see if there was any way we could arrange something now may be lease option with the chance they could purchase later once finances are more settled.
He claimed FHOG on IP(lived in it till they moved back home)
We would probably sell for between $200-$240000 depending on what valuation was. Lowest price houses around here are now $270000.
Thanks again for your time
Debra[]Simon
She only works casual with the prospect of some steady full time work for at least three months ? leading to full time employment (has just completed diploma in child care)
He earns $600 net /wk. IP nearly pays for itself small contribution needed (but hey it made him $63000 at least in 18mths not bad for $130000 loan)Property now worht approx $210000. Personal loan at 5.97% on $27000. And no we are not looking to actually wrap it we just want to onsell it to them with a benifit to all of us. They are living in her single bedroom downstairs at the moment.
Thanks for you reply
Debra []We have gone up to QLD the past two years Once we flew only to Brisbane claimed airfares, meals and accomodation, car hire petrol etc parking fees at airprt and milage to and from airport.(100ks eachway for us). Drove once to Noosa s[pent a day coming back to Brisbane for inspection, Accountant claimed most of our total milage and meals and accomadation there and back. nice weeks holiday and mostly tax deductable.
Keep all receipts.
I have been told usually only 1 long distance trip with a PM but creative accounting can work wonders.
PMs shold offer you a letter stating that you have been for an inspectionEnjoy your break
Debra [
]Hope you,ve got a Quantity Surveyors report and are depreciating items in that IP you own now.
Steve also says that negitive gearing is OK whan there is the likelyhood of high capital gains. So, yes one looses and the other makes money but the one that looses increases in value. At the moment we have several properties, some of which are rapidly gaining (last one bought gained $40-50K in four months with only $1000 down as deposit)This is negatively geared but our positive geared propertied off set this.
You need to choose which way you want to go. But on 5-6 properties you probably wont be living off the rent and Queried as to whether this will impact on any Gov benefits you might be able to receive if you don’t have another source of income.
I’m not a financial expert or property expert but it is all up to what you feel comfortable with.
Debra []Know the feeling. We,ve just found two properties that aren’t quite cashflow positive but the rental demand in the town is not being meet and so we feel that the rental returns will increase. None of the seaside towns will get good returns anymore. We had to look 5-6hrs inland from Sydney. Even Mudgee was on a comparison to Souther Wollongong with costs and returns.Some of the smaller towns outside lrger ones have some good prices, but even the properties I’ve looked at in Junee aren’t returning well. Good luck in your search. I’ll think of you as I look.
Debra[]I would love to receive a copy
Thanks
Debra []
[email protected]Thanks Dino
I actually looked at the basic spreadsheet again and worked out that I only needed to relate to the cells with the interest rate and the amount borrowed.
Thanks Debra [
]Mr InvestIT
ANZ have a package that used to be called a premier package. You pay about $300/yr and receive a gold credit card(fee free) up to at least 5 loans fee free. ANZ One account fee free as well as a percentage off a variable home loan (.5% I think) As well as other benefits.
Debra[
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