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try putting your post in the overseas deals section of this web site as this is mainly an Australian investor website
If you want a better hope of getting a response you want to interest someone looking for an overseas deal.The real problem is that for the last 15 years University has been sprouted as the best thing since sliced bread while our technical schools were closed down and the government did nothing to provide incentives for apprenticeships for the last 15 years.
Now that there is a massive shortage of skilled trade people the government has just started to re-open technical schools and encourge over forty year old to do apprenticeships in trades. Also a lot of the already skilled tradespeople will be retiring soon!If you want skilled trades people you have to have training provided and trade businesses willing to take on apprentices.
Also another wonderful event was the privatisation or selling of of government commissions that use to train apprentices like the gas and fuel , secv, Telstra, the Met, ect
Have you tried service central – I have heard this being advertised on the radio.Ex Telstra Tech. and unemployed university graduate.
I got 893 although I put an annual salary of $60,000 as I do not have an annual salary of 60,000 due to looking after my two kids so I can't work full time or invest / develop full time.
The Bad news is I will lose my tenant this month ..The good news is I will be able to charge the market rent now for the future new tenant and pay off my investment loan faster as the rental demand has gone crazy lately.
If they introduce such a fiscal policy it will give investors a buying opportunity as the market price drops and rents sky rocket upwards.
The confusion probably stems from the fact that some of the mortgages already held by RAMS have used funds sourced from Global money Markets. As the sub-prime fallout was affecting the interest rate charged to RAMS for the Global Funds existing mortgages either have to have their interest rates increased or RAMS has to decrease their small profit margin made from charging a small percentage of interest (their margin) plus the wholesale rate to its customers. Why because it would loss competitiveness if it increases its interest rate to it's existing customers as they could refinance to an other bank.
When RAMS said it sources the funds from St George it is referring to a wholesale market where St George lends large sums of money (wholesale) at a lower interest rate than it would lend to retail (small loans) customers.
You need to investigate if RAMS have large deferred establishment fees on their loans that are waived if you have the Loan for a certain time period.
So if you refinance to another bank you may incur the establishment fee.
You are probably referring to the RAMS Easy Start Home Loan
You will notice the statement from http://www.rams.com.au/default.asp?page=/our+home+loans/all+our+products/rams+easy+start
Option to apply to switch to another RAMS home loan after only two years (from RAMS Web site)This means you have to apply for another RAMS home loan not the Easy Start Loan again.
What are the other RAMS home loans you can apply for?
They will not be on the honeymoon interest rate but something else.
Ask what fees are payable or deferred at the two year point if you take this option and see if you can get documentation that states what the fees are.I have a portfolio loan that can be split into multiple accounts with St George. I was paying account fees for each account until I recently visited my loan manager and he offered me an annual fee payment that covers the accounts and is cheaper.
I have an LOC so I can isolate my share trading loan from my investment property loan for tax purposes.
An LOC is like an elastic band you can have a pre-approved borrowing limit that you can borrow up to and have a much smaller amount actually borrowed. Then in the future you can borrow more as long as you do not exceed the limit.You have to be careful to factor in what the interest cost is on the money borrowed and set up a transfer of money into the LOC to cover the interest or to also pay off the LOC if desired. Also you do not what to mix personal use with investment use in the same LOC account as mentioned in the last post.
Once you re-finance with another bank I am sure your bank's special retention division will fire up into action to try and save your business.
It is a bit like mobile phone contracts once you are on a pre paid mobile they offer you the world but if you are on a contract you never get any special deals until the contract is near ending.Get a copy of Australian Property Investor Magazine. It comes out every month and has a Sydney suburb profile in the back of the magazine.
In my opinion your best plan of attack would be to start out with a small apartment or flat and stay in it 12 – 24 months and try to pay off as much of the loan as possible. Why I am saying this is your starting wage as a graduate will be low and in 2 years time it will be much higher as you gain experience. I expect your salary would be $35,000 – $42,000 and this sounds like a lot but when superannuation and tax comes out of it , you are paid less.Also you didn't mention the first home buyers grant which you might be eligible to receive.
The 1990 recession was caused by the then Government Floating the Aussie Dollar for the first time. This caused money to flow into Australia and cause inflation. The reserve bank raised the cash rate to 17% which caused people with mortgages to sell their houses as the interest costs sky rocketed. Also the 17% affected business as they also borrow money and had to cut staff to stay in business.
The high interest rate is what caused the recession. Recessions can be bad if you owe money, but uncontrolled inflation is much worse.
A recession could last up to 2 years. Recover of prices can take up to 5 years.
What you need to be aware of is the notion of removing negative gearing (LABOR did this) which caused a property slump and caused rents to increase dramatically.
What you need to look out for is Strong growth that causes inflation which causes interest rates to rise.
I feel that Labor may have learned from the last recession it caused and would be trying to avoid this occurring again.
If housing slumps all other follow on industries suffer like carpet, timber, tiles, floor tiles, building materials, paint, lighting, landscaping, bathroom fittings, ectroi is return on investment – yield -expenses / investment property cost at purchase * 100 is percentage
ROE is return on equity
It is useful to compare the ROI against the share market or a high interest deposit account or other property dealsFinding out market price. – look at other similair properties on the market.
look in back of
Australian Property Investor magazine for median prices of properties in market. RPDATA is another source but you pay for itYour other question is a bit of a paradox.
you will discover that High yields usually go with low capital gain growth suburbs
and that low yields go with high capital growth suburbs.
Costs to consider
are Land Lords Insurance $800 p/a plus, Council Rates $400 – $1300 p/a, Water rates $600 p/a, repairs $2000 p/a should be budgeted in case you have to fix something in a hurry. real estate property management is a percentage of the rent .
If you can manage it a $3000 saved buffer fund is a good idea to cover unexpected repair costs or unexpected vacancies.PM me if you would like me to create a spreadsheet and email it to you as I am pretty good with computers.
Property investing is just as risky.
- You have to tie up $200,000 on one property investment
- You have to pay stamp duty
- You have to pay cgt on large gain
- You could get land tax charged
- You have rates,insurance,water charges, maintanance, tentant damage
- low liquidity – cannot sell in a down turn quickly
Share trading
- You pay gst on low brokerage fee
- you pay low brokerage fee
- you can buy small parcels of $2000
- you can sell and time capital gains in small parcels
- you can own 100 different shares with $200,000
- you can diversify your portfolio
- You can sell your shares fast in a down turn and buy shares for a bargain after downturn
- No repair costs, rates, insurance,
- Yield can have 30% tax already paid. meaning you pay less tax on earning dividend.
- No vacancy periods
Burnie used to have a bad reputation due to the industrial industries and paper mill that use to pollute the air .
check if these industries still operate in Burnie.this might give some insight also
http://bell.lib.umn.edu/Products/tulips.html
it can happen in 1637 – prices cannot keep going up and up and upI reckon 2 o'clock
See
http://www.enziosclock.com/economic/clock
http://globalhouseprices.blogspot.com/2006/04/time-is-running-out-on-investment.html
http://www.startrungrow.com/information/investment/6,2983,the-investment-clock.htmI know you are going to say that real estate is rising but I feel that it is a bit like the share market
Have you every noticed a double peak in a share price chart and a down fall in price shortly afterwards.
the main point is – who borrowed the money and who owes the money (You) .
Who would lose money if they liquidate the loan. (not you)
If you were a creditor ie you gave them a loan / money then you lose if liquidation occurs!
Usually the loans are on sold to another lending company and your lender changes.you may need to look for a commercial loan broker as normal broker's lender panel want residential property as security.
I am 39 years old and I was 27 when we had to have the recession we had to have. Property prices fell when interest rates rose to 19% if the rates keep going up in the future the first home buyer or first property investors are going to be under financial stress.
With loans being so much larger than in 1995 I think we will see a lot of pain and foreclosures of loans in the future.
Even our leaders were discussing it in parliament yesterday about how families will cope with rising child care costs, rising petrol costs, rising food costs and rising mortgage costs.Hopefully the value of the house goes up in value over time where as the loan balance remains the same.
Try asking the broker if you are eligible for a no doc loan where you self certify you can afford the loan rather than having to provide evidence of income. Also get yourself an ABN number if you are running a business. Because after 2 years you can use it for helping to get loans.
Fixing the interest rate fixes your costs. So if you look at it this way it doesn't hurt so much if interest rates go down.
I think that you should look at the trend of interest rate alterations. At the moment the trend is for rates to go up so fixing is a good idea. If the trend was down then fixing is not so important.I myself have a low debt amount and could pay it off tomorrow if interest rates climb to much.
