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take a look at this company
http://www.depositpower.com.au/
This is who I would recommend to my clientsDuckster Financial Services
http://www.ducksterfinancial.com
Helping to make the great Australian Dream come true !Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Consider the effect if the investment is positively geared. Not everyone is after negative gearing .
Duckster Financial Services
http://www.ducksterfinancial.com
Helping to make the great Australian Dream come true !Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
You may be confused due to another concept
The other main difference is the purpose of the loan
If the loan is for an investment you will have end up with more income earned from the investment property as the interest charged is less. due to the offset effect.
Income = rental income – interest – expenses
The increase in income means more tax will need to be paid or less tax deduction will be received if you are doing negative gearing.
As most investment loans are IO this may have caused confusion as the loans may have been all Interest Only rather than split with P&I and IO
If the loan is PPOR (Principal Place of residence)
The non deductible interest bill is now reduced by the offset.
As the PPOR doesn’t earn income and the interest is non deductible you do not pay tax but will save money on your home loan and thus pay the loan off quicker.
You might need to talk to a financial planner to explain and match the offset strategy with your needs if this doesn’t make sense to you.Duckster Financial Services
http://www.ducksterfinancial.com
Helping to make the great Australian Dream come true !Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Check with the bank/ lender if on the P&I loan the offset balance cannot be more than the loan balance amount. IO loans will have a restriction on the amount you can offset or repay. If the interest is fixed you should be concentrating on getting the variable P& I loan down by using an offset. The reason for having a split loan is to have the advantage of the variable P & I
which allows you to be able to make extra repayments or offset the loan and thus reduce the overall loan amount.
Example $30,000 P & I loan , $30,000 Offset and say $300,000 IO. Interest P & I works out to 30K * 8% =
$2400 minus offset 30,000 = 0 interest charged on P & I
$200 a month extra would be paid off loan
$300k IO * 8% = 24k minus 30k * 8% = $2400 same saving of $2400 if allowed.
Check with lender or broker if the offset has to be less or equal to P & I loan amount !!
If P & I interest rate is greater than the IO rate you could save more interest on P & I and have the repayments flexibiltyI Am assuming the interest only is also a fixed interest rate
Duckster Financial Services
http://www.ducksterfinancial.com
Helping to make the great Australian Dream come true !Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
The idea of an offset account is to reduce the interest you would pay on your loan. There are two methods of offset. One method is that the interest you would have earned on the offset is subtracted from the interest you would have paid on the loan for the same amount invested
Example $10K * 4% = $400 earned interest.
$10K * 8% = $800 to pay The interest payable is $400 on the 10k in loan, saving $400
The other method is the 10k is subtracted from the loan amount and reduces the interest by $10k * 8% = $800 saving in loan interest.Duckster Financial Services
http://www.ducksterfinancial.com
Helping to make the great Australian Dream come true !Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Christian, You need to keep track of each agent and what a property sells for so you know what 300,000 + really means to a particular agent. Especially if reserve prices at auction .
A Better approach would be to know what the median price for property is in the suburb and what similair houses sell for in suburb.
Median prices are published in API magazine each month.
By knowing the prices you can offer what you think the property is worth with the attitude to walk away if the price is too expensive.Duckster Financial Services
http://www.ducksterfinancial.com
Helping to make the great Australian Dream come true !Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
If you are after a deposit bond check out this company
http://www.depositpower.com.au/
If you use a bond the real estate agent will be paid regardless of what happens and the Vendor. Then Deposit Power will ask you to paid the deposit bond amount in this scenario of the sale falling through.Duckster Financial Services
http://www.ducksterfinancial.com
Helping to make the great Australian Dream come true !Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
You may have to investigate if Latrobe has done an adverse report on your credit rating because you are past your loan term.
Your credit report can be requested at http://www.mycreditfile.com.au
if you encounter problems Blue Stone will be able to assist you in this situation.Duckster Financial Services
http://www.ducksterfinancial.com
Helping to make the great Australian Dream come true !Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Brendan spoke about the state of mind you need to have as a property investor.
Results mentor program participants spoke about what they have been doing with developments.
Renovator Tool Kit was mentioned.You could purchase the $20 Video that is available if you missed the meeting.
I attended the meeting..
Duckster Financial Services
http://www.ducksterfinancial.com
Helping to make the great Australian Dream come true !Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
If you are going to be living in this house you might consider if you are going to purchase furniture when you move in.
Duckster Financial Services
http://www.ducksterfinancial.com
Helping to make the great Australian Dream come true !Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
What you are asking falls into the category of financial advice. You should seek the answer from an accountant or financial advisor. Unless someone is FSRA licenced and knows your exact situation and risk adversion level they are not allowed by law to give you investment advice.
Duckster Financial Services
http://www.ducksterfinancial.com
Helping to make the great Australian Dream come true !Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
You could go to a mortgage broker !
However the broker would need to ask you financial questions like how much you earn and is it from a job or a business to match the right product to your circumstances and needs.
total property value = 1.02 million
loan is = 500k
LVR = 500k / 1.02 million
LVR is 49%
Your capacity to repay loan ????
rental incomes ????
employment income ????
business income ????
on 800 k property with loan of 500k is an LVR = 62%Did you have a Latrobe purchase and Construction Lite Doc Loan with a one year loan term?
Duckster Financial Services
http://www.ducksterfinancial.com
Helping to make the great Australian Dream come true !Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
wanelad is spot on – there is a lender that exists in the market place that can do this type of finance
Duckster Financial Services
http://www.ducksterfinancial.com
Helping to make the great Australian Dream come true !Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
This is on tommorow !
Duckster Financial Services
http://www.ducksterfinancial.com
Helping to make the great Australian Dream come true !Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
It is normally put into the purchase contract as a term however if there is a tenant already in the house at the time of the
PM inspection you will need to write to the Tenant asking for permission to have a different PM enter the property for the purposes of re -leasing the property.Find out who the current PM with the old Tenants is and ask the new PM to contact the old PM to ask how to proceed with obtaining access.
Your Solicitor would be the best person to ask for advice on the wording of the extra term to put into the Purchase contract.
There is a legal condition known as quiet enjoyment of the property and because of it you have to consider the Tenants rights.
Duckster Financial Services
http://www.ducksterfinancial.com
Helping to make the great Australian Dream come true !Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
You may have been recommended the Macquarie Bank – Mortgage Saver Express Construction $200,000 Loan Product.
Ask your broker to provide you with the documentation for the loan product selected. LVR of 80% ?
There are many other reasons why the broker may have selected the product being recommended to you.
Depending on your employment situation, credit rating, LVR ,length of employment or how long in business you have been and most important – what matched your needs in a loan product and features.Duckster Financial Services
http://www.ducksterfinancial.com
Helping to make the great Australian Dream come true !Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
LOC’s are like split loans and each loan is secured against the mortgage property and are all added together to work out the LVR maximum amount allowed by the bank for the whole combined borrowings versus the actual value of the property secured .
Some banks charge a fee for each LOC you set up and charge it to the LOC account plus interest.
The other problem you would face is what the bank actually markets the LOC as. Each bank will call it a different product name.
For example St George call it a portfolio loan.
Another thing to be wary of is LMI (Loan mortgage insurance) and how it will apply if the LVR increases > 80%. What amount is the LMI charged on ?
It won’t be on the LOC amount but more likely the whole borrowed amount.
You could be charged an establishment fee for the LOC also.Duckster Financial Services
http://www.ducksterfinancial.com
Helping to make the great Australian Dream come true !Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
It was a good move going to a mortgage broker as they will really have an interest in helping you achieve your goals and will work hard towards finding the right bank and product to suit your needs.
And will have access to many lenders.Duckster Financial Services
http://www.ducksterfinancial.com
Helping to make the great Australian Dream come true !Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
what state are you living in . I am in Victoria. You should be comparing the comparison rate as you should not go by the interest rate but rather the comparison rate as it takes into account fees you will get charged.
I can’t match 6.25% for a loan..Duckster Financial Services
http://www.ducksterfinancial.com
Helping to make the great Australian Dream come true !Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Wealth creation is a state of mind.
Even when people are shown how to do it , only a small
percentage will have the will power to save rather than spend.
I am amazed when people owe $20,000 to $70,000 on credit cardsA real character builder is to go without a wage for 6 years like I have as it gives you the disipline to go without and to get used to not having a steady income every week.
A good question to why wealth building is so important is –
how long can you survive without a steady wage?Duckster Financial Services
http://www.ducksterfinancial.com
Helping to make the great Australian Dream come true !Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
