Oh and the comparison rate my current variable rate is 7.11%.

Guys,need some opinions, is it now time to fix my homeloan? I paid 7% variable now with Homeside. They offer 3 year fixed for 6.54% and 2 year for 6.49%. Michael, you might know how much is the cost to fix homeside variable ? Currently my loan is IO. Can you do fix on IO ? It is noted here that the comparison rate for 3 year fixed is 7.24%, what…[Read more]

Shape wrote:
I can tell you will get the solicitor's BILL for sure hahah Regards Michael

Owh, he didn't even issue an invoice with term of payment, he direct debited from the bank's available fund for settlement.

Finally, settlement took place two days ago, I am officially a first-home owner. So far I have mixed experience. In term of inspection, property search and negotiation, I found the articles I read elsewhere are overly complicated. I did only inspection for 5 properties in one Saturday, and that's it, the first property I inspected, the one I…[Read more]

Terryw wrote:
I don't think luck had anything to do with Nathan's success. The market has also been down while he has been buying. It must be knowledge and skill then!

I agree with you Terryw, what I was saying is:

http://binvested.com.au/how-to-build-a-10-property-portfolio-in-3-5-years-realistically-on-50000pa/

Nathan Birch himself of…[Read more]

Shape wrote:
As often as you like- but generally i tell clients to wait 3 month –as prices won’t change for any time frame shorter then 3 month.

Some banks will only allow a Max of 2 equity release per year; after your 2nd one they will start to ask a LOT of questions and it does get harder.

Regards
Michael

So from what I understood…[Read more]

Shape wrote:
Hi Oz-
Yes the bank treats equity like cash; but make sure they do NOT x-cross your loan unless you really need to; so

Hi Michael,

When usually you really need to cross collateralise your property? Is it the case when you paid off your PPOR mortgage, and need money to invest ?

Shape wrote:
Regarding rent; most lenders will only…[Read more]

Shape wrote:

I’ts a good thing that the bank has placed your valuation price the same as your purchase price- it means that the valuation was either:
1. HIGHER then the purchase price- alwasy a good thing ( they alwasy take the lower of the 2)
2. The difference in valuation + – was less or more then 5%

I think I know the reason, it is…[Read more]

Shape wrote:
I still live at home

Not yet married…and im very asian ahha

No wonder, I hope my parents live here

Shape wrote:
When the time comes for a PPOR, i will transfer all offset account $$ into the PPOR no question ask- partner/wife can complain as much as she wants ( i guess im going to have to buy a MASSSSSIVE rock to silence…[Read more]

Michael,

I just realised though, with loan split for IPs like that, that means it is almost impossible to achieve positive CF, because you have to pay the principal as well on the half of the loan, means your repayment will be quite significant. So when you actually look for a property for an IP, you have to disregard the principal component for…[Read more]

Thanks Michael,

Haha, I think I need to meet you Mike, when it is about the time for me to create more wealth. That sounds a good idea, that means you can have more IPs whilst also you clearly know you are getting more equities in your properties.

I don’t 100% understand, but I got the idea. That split, must be 50:50 ?

Michael, you know that my…[Read more]

Terryw wrote:
Yes, IO loan still the way to go.But get the new top up as a separate loan, and don't have the money from the top up placed into the offset as the interest won't be fully deductible.

What you were saying is if I buy IPs and make it IO, don’t use an offset account attached to it ?

If say it I get it topped up, and free up 30k and…[Read more]

Thanks Terry,

But I still have a question, is the IO structure and offset account still good if I get the property revalued, top up the loan, and free up some equities to buy IP somewhere else ? That means I will have another loan (90% LVR probably), original loan will be getting bigger and untouched balance in the offset account (in case the…[Read more]

Hi Guys,

Now I am waiting for the settlement. The tenant has indicated to be able to move out on 13th, and settlement can take place on 15th. That means 4 days later than original expected settlement date, which I am fine.

For the time being, I am thinking about what will happen in the next 2-3 years. My loan structure is Interest Only for 5…[Read more]

The selling agent actually is helping me now, he keeps me updated with the tenant. I actually quite believe that the tenant will be able to find a place before 11/08. Only my solicitor’s response drove me mad, when he said we couldn’t do anything other than do not settle if the tenant is still there, which is quite possible.

I understand now what…[Read more]

I don’t quite understand with this contract works. It is said, the settlement takes place 42 days after exchanging the contract. So it is binding or not ?

Vendor needs to give 30 days notice to tenant, it is binding or not ?

I am actually really frustrated with my current place I am living. One bedroom for one couple to live (12 sqm). And…[Read more]

Can I let him to live there until 11/8, then force him out ?

So if the property is not vacant till September, I have to wait the settlement till September?

Shape wrote:
The other side would agree 90% of the time…but if you move in early;
1. the “pro-rated” rent and council rate etc needs to be re calculated and re-done
2. Can’t force tenant out

So not sure if it’s worth the hassle JUST to bring settlement 7 days forward.

In case, after 11/08, tenant won’t move out, what can I do, mate? My…[Read more]

Hi Terry,

I don’t sign any contract with the tenant and that property is legally mine, if settlement took place, that means if he insists to live there, I assume, it works like someone lives in your house without your approval. So I guess as a reasonable person, should I call police?

My solicitor mentioned before if the tenant couldn’t find a…[Read more]

Guys,

I want to ask a question, the scheduled settlement date is 11/08 and I really want to settle early, say it 04/08, even though there is still tenant living there, I don’t really care, I don’t mind to pay interest from 04/08 to 11//08. Is it possible to do that? The sale contract said it will be vacant at the settlement date, so I assume from…[Read more]