Forum Replies Created
Hi,
Redrawing will mix deductible and non deductible debt. To avoid this you can setup an interest only loan on the PPOR for 20% of the purchase.
There are many factors in regards to income. If it is negatively geared, yes it will reduce your husbands income. If you were to do small renos you may be able to increase rent ( plus rent increases over time) and this may make it CF+ and then beneficial to have more to the lower wage earner.
Regards
Gibbo
Hi,
Give Harcourts in Maylands a call. They have a pretty good reputation.
Regards
Gibbo
Hi,
If you do go the full time property manager, I also support Kristin's recommendation of Harcourt's. The manage a couple of apartments in my complex and they have worked well with the strata to remove difficult tenants.
Regards
Gibbo
I think Jamie's first comment in this thread sums up a few people's views on the current broker…run from him
Hi PF,
Yes, by reducing your P/I loan and the investment loans staying as IO this will help improve your cash flow.
The subsquent purchases can have the deposits funded by equity in both your PPOR and IP's.
Regards
Gibbo
One of the biggest problems is having a vendor selling a property that accepts credit cards. If I go to hungry jacks and buy a whooper with my credit card it’s a purchase, but if they didn’t offer eftpos and I had to take money from the ATM to buy my food, then I would be paying the higher interest rate.
Hi,
My suggestion is to spend a bit of time reading through the forums, property magazines and books. By just meeting up with one broker you will only get one view. Having done some research prior you will have a better idea of what you are comfortable with and can ask more questions of the broker.
If you want to PM me your email address I can send you a couple of resources.
Regards
Gibbo
Hi
Would also be good to provide some information on strata companies. It amazes me how many people who own apartments who have no idea what stratas do and the owners responsibilities for the tenants regarding a strata scheme
Regards
Gibbo
Hi,
You could always have a chat with a REA, if they know the property is coming up they can mention it to clients. When it comes time to list they may already have a list of a few people interested in buying.
Regards
Gibbo
sorry my crystal ball is broken this evening
Hi,
It’s very hard to provide any advice with that amount of information. Is it a PPOR or IP, what are you wanting to achieve?
Regards
Gibbo
Hi David,
Are you still in contact with the previous broker you worked for? You could look at getting them to mentor you and using their aggregator.
Regards
Gibbo
Landscaping can also help increase rental return. With this though you want very low maintenance, low water consumption gardens
Hi,
Another option is an online program such as http://www.paysonline.com.au/ There are a number of similar sites around.
Regards
Every time you make an application for credit – whether a home loan or a store credit card – there is an entry onto your credit file. Part of the paperwork you sign allows the bank access to your file and for them to report to the credit agency
There are many issues involved in employing someone. Even the simple thing of super shows how easy it is to get bad advice. If you failed to pay the super you would be having a few issues with the tax office. As Terry started to touch on – Work Safe or the name of it in your state. Work place safety is big and complicated, if not done correctly. Simple things of not providing first aid kits, toilet facilities or safety training can led to a few headaches. Then there is work place relations. Hiring, firing etc. This area is changing frequently and its one reason i have had enough of employing people.
Hi and welcome to the forum
Unfortunately for yourself but lending conditions have changed. I actually think banks are becoming more responsible in lending. Yes you only want $300K on a property you believe is worth $3 million. The bank is not only focused on the value of your asset but also the your abilitiy to repay. As a large percentage of your income is rental you must remember that banks wont take the full value of rental income as they factor in various expenses and periods of vacancy. Banks will also calculate your ability to repay at a higher percentage rate then the current rate, this ensures you can meet your obligations if rates increase in the future. Banks come under alot of pressure when they lend to people who cant afford to repay loans.
Also the property you are offering you put a value of $3 million on it but other factors come into it. If something happened to the macadamia’s what would be the effect on the value of the property. If the bank decided next year to repose the property, how easy would it be for them to sell a property of that size, in that area, of that worth in an economy that we not sure how it will be in 12 months.
Banks are here to make money and always looking for new customers. If they say no they have a reason for it. Best advice once you get your first no, find out why, make the changes or otherwise each other application will result in the same. As Richard mentioned now after 6 no’s its hard to get finance as it stands out on your credit file like a big red flag
Hi all,
I’m another thinking of taking the plunge with the US market. I have been thinking of traveling to the states for awhile. Now with the USD and my thoughts of purchasing property there, now may be the best time to do it. I will follow this thread closely. Sounds like there are quite a few Aussies out there with some good contacts.
Hi Cindy & Brian,
Do you have a specific risk of being sued, ie the profession you work in has a high risk of litigation?
If its this side of things that you are worried about then it may be worth seeking legal advice to setup your legal structure for work ie all work related deals go through a company. Also having the appropriate insurance in place like professional indemity insurance.
Also home insurance can include public liability for people tripping on your driveway, etc.
Michael,
Your still so focused just on one area of this analysis. It took numerous posts for other members to highlight the effect of time/inflation.
You are saying that if a broker rebates these fees they are more generous then Alistair. NOPE WRONG. Rebating these fees isn't done to give them a nice warm fuzzy feeling at night it is their SALES TECHNIQUE. If you watch some infomercials on morning TV about becoming one of these rebate brokers – they sell it as making heaps of money for doing very little. You speak with this franchise and they will tell you they do it to get the attention of home buyers so they go with them.
The way many of the brokers on this site operate is working with their clients to find them the best product for their present and future situations. They look at what they may want to do in the future such as using their PPOR as a spring board to purchase IP's to further increase the clients wealth. They work with different forms of asset protection models, which would confuse many of the new rebate brokers with less then a years expirience that have bought into some of these franchises going around. They ensure the finance options in the future are not complicated be setting up each property with seperate mortgages. Each of thse things if done wrong can cause mand thousands of dollars of fees in the future to fix up.
Some of these rebate brokers are getting promised incomes of $100k, after they have given half of income away. How many more loans must each broker deal with to be able to write enough business to give the majority of their income away and earn a $100k a year yet live a relaxed, layed back lifestyle that has flexible hours which these franchises promise. Now having to deal with that many loans (especially for someone new into the industry) how are they going to stay on top of each one to give the personal service that the borrower deserves. How long before a file gets misplaced, greating delays and late fee penalties.
It appears you have access to many statistics, how many mortgages that have been written in the past 10 years have been paid out early or refinanced?
All of these things have an impact on the "savings" you are claiming. I'm sure there have been situations where this type of broker has cost the borrower more then what has been saved.
Yes there is a place for both types of brokers, its the same with stockbrokers. If a consumer has the time to spend many hours doing research to find the right product of spending many hours reading books and forums to plan their future property plans then yes a rebate broker is great. Turn up on their doorstep and say I want this product with this bank for this amount and here is all of my financials. If you are a first home buyer or investor who has just signed an offer to purchase and haven't thought of how you will finance it, then it is worth going with an expirienced traditional broker to arrange finance.
If you are a journalist I believe you should have a more of an open mind. Every time someone has put something up it has been dismissed immediately. Writing for the magazine you do, you are seen as having a high level of authority that many uneducated people will take on board, the same one bank tellers give out tax advice. There is always two sides of a story, even if you don't agree with the other side you have to at least report it in a fair manner.
