Forum Replies Created
So what was the outcome…..enquiring minds want to know…..did the vendor deliver vacant possession
or
did you sue them for costs for not delivering as per contract
or
did you screw up and assume vacant possession and not include it as a condition of deposit in your offer?So is what Steve has written in his book 0 to 130 Properties wrong then? He has said in his book that as long as the loan repayments are being met that you are guarantor for that your trusts can borrow from multiple lenders with you as the guarantor increasing your borrowing capacity by leveraging your income across multiple lenders with multiple loans as long as you don’t have any debt in your name only the guarantee to make the repayments.
Yep and Steve says the same thing in his 0 to 260+ properties book…….the numbers in there are way way too rubbery to take at face value which is why I wrote the amazon review I did – http://amzn.to/1BttN87
Don’t get me wrong I still think people should get serious about their future and invest more than they do HOWEVER I’m surprised no one has been more critical about what was written than what I’ve read online in previous reviews.
@jacm sure but cashflow+ properties could also have rental issues…..saying that cashflow- properties cant be relied on for capital growth is the same thing.
The issue I have with Steves book is that when doing the sums there is a total willful ignorance of inflation, yes deflation can and does happen…..but odds are over time inflation is the way governments of the world today tend to lean….
We signed up for our 2nd IP to a 4.79% 3 year fixed for $665k in October last year on a portfolio loan which I noticed if we signed today is now down to 4.64% but a 5 year fixed down to 4.64% is great.
St George obviously believe standard variables are going to drop lower than the 4.74% they are currently charging for variable portfolio loans (at least that’s what our other variable rate mortgage currently is at as have $900k in total mortgage).
With the potential for another 0.25% happening on either March 3rd or April 3rd from the RBA dropping the variable portfolio loan to 4.49% means you will be paying a premium of 0.15% to lock in a rate for the next 5 years……..unless anyone has any other feedback sounds like a good deal to me.
We’re planning to purchase our 3rd IP in June so hopefully can lock in a 5 year at that rate.
Where are you located? I have a copy of “0 to 260+ Properties in 7 years” for sale for $10 + postage from NY…..though you might want to read my amazon review first… – http://amzn.to/1BttN87
Its “ok” but for a second book I would have thought more attention would be paid to editing and critical review on the numbers…….
Good idea and deserves is own heading
RBA and the money markets seem to think otherwise at the moment.
Uhm We’re at record Dow 18,000 levels, Sydney property due to go up 10-15% this year. Apartment in NY sold for $100m (now talking about one in the Sony building listing for $150m).
The USA fed feels no need to stop throwing fuel on the fire and Europe about to start their own QE so they can balance the books…..I’d say we are in a highly inflationary period right now…….regardless of what the RBA would have you believe.
@rick Sta, I agree…..most people don’t understand that inflation is GOVERNMENTAL THEFT. Its hilarious to me when people run around saying look how much my property went up in value…..no you idiot that’s how much the government has stoel from your wallet while you were watching tv……
@don, what domestic matters are you seeing thats propping up the $A, I thought we would Have been closer to $US1 to $A1.30 by now but seems stuck in the $A1.28 range for the last few days…..should have bought when it hit 1.30 last week though I have a feeling closer to the end of the week Greece is going to “cause turmoil” again before it gets better…….
Do you think we’re going to go into an inflationary period in Australian property?
(or rather do you think we’re going to go into an even more inflationary period than we’re already in?…..)
If you can put up with their back end admin Suncorp on loans submitted before the 20/2 are at 4.49%.
Hi Richard, whats wrong with Suncorp?
I checked their site however and it looks like our loan would be 4.79% not 4.49%
Standard Variable (SVR) & Access Equity (LOC)
Home Lending $750,000 and above
Borrowings 70% to <=80% of property value 5.99% p.a. -1.20% p.a. 4.79% p.a. 5.16% p.a.**I had to check and yes you are right its $395 not $300 per year
To answer your point the advantage, as i see it, going with this loan is that “supposedly” when we want to purchase the next property its supposed to be a simple $100 fee without the need to go through the whole process to apply for “another mortgage”. Like I said we haven’t gone through this process yet so we’ll see how big a PITA St George is about the next purchase in 3-4 months.
As for your comment about us overpaying at 4.99% (4.74% after feb 20th) so far I haven’t seen anyone else quote a lower rate for a “line of credit” offering where we have no restrictions in how much we can pay down or redraw at any time without fees or minimum/maximum amounts.
The only “real” downside I see with the St George Portfolio Loan is they don’t offer an offset loan, which for us due to tax purposes we liked taking advantage of.
so what exactly makes the St George Portfolio loan sub par?
started fresh with CBA
That’s the whole reason why we chose St George in the first place so that we didn’t have the hassles/costs involved in setting up a new mortgage each time…..
The St George portfolio loan is supposed to allow us to add additional mortgages for only $100 setup fee. Each sub portfolio loan is separate and NOT cross collateralized and can be bought/sold as required (Well at least that’s the theory anyway……we’ll know in 3-4 months from now when we add the third property to the loan).
But for $300 a year so far its been a pretty good package but I’m wondering if we could have done better than 4.99% (moving to 4.74% on the 20th of Feb).
D.T. Why did you move over to CBA from Westpac?
Are you able to add additional properties with your CBA mortgage without “renegotiating” a whole new mortgage and the added expense?
What were the setup costs involved?
Hi Mick,
So about 4.69-4.79 before the 0.25% cut or about 0.25% less than we are paying now with St George (or approximately $2,250 per year better off).
I know the portfolio loan is a “more expensive” option than StGeorges regular mortgage but the reason we went with them is we are intending to purchase 1 apartment per year for the next few years and the $100 setup fee for each new property we added was the closing point.
If we could get the same functionality at a rate cheaper than St George we’d be interested in hearing however for us its important to be able to pay interest only, to pay down as much as we wanted, to add additional properties with minimal costs/fuss.
Yes it is less than 80% LTV (about 71%), one property $700k and one property $665k, we actually borrowed $965k but have paid it down to about $885k since we set it up late last year.
We’re probably in a situation hat we are going to be looking to purchase another property in about 3-4 months again around the $600k range which will push to LTV up a bit (76%). 700+665+NP600?=1.96m with a portfolio loan of around 1.5m
If you think you can get a better rate than 4.74% for a portfolio loan then I’d be interested in hearing from who and for what costs.
The one thing I really like about StGeorge is apart from the annual $300 fee there is only a $100 setup fee for each sub account for each of the properties underneath that along with the choice of fixing/variable for each of the sub accounts.
But hey….you’re the expert…..who has a better deal than 4.74% ?
The loan is portable (the article doesn’t go into any restrictions around this) but why else wouldn’t people feel comfortable locking this in? the rate doesn’t seem to be that much higher than the market average (eg on par with 3-5 year).
Seems a great way to lock in stability.
BTW good article to understand some of the issues around “good” and “bad” areas – http://www.theguardian.com/cities/2015/feb/05/detroit-city-collapsing-gentrifying
Don’t give Jerry a pat on the back….hire him for some consulting and crunching numbers :)
He’s a very approachable guy – call him and have a chat.I agree with you about Australian property management being “passive” but disagree with you about correction……..more likely going to be a flatness – I don’t see Aussie investors having the appetite risk for forex investments or USA equities with inherent tax/exchange headaches etc and Australian equities is snoozeville “big fish” in a little pond when it comes to earnings etc…….so the slosh naturally pushes property up in the only 3 cities we have.
