Other costs you may have to consider* Property Manager costs, unless you manage it yourself.* Landlord insurance* Land Tax if relevant* Rent you have to pay, because you cant live there

Nucopia wrote:
with 49K owing – I could pay this off with cash and use both to  finance more I.P purchases, figure @ 80% I could use them to borrow 200K and would need maybe 35K cash to cover deposits and settlements. 

 sorry Maybe I am missing something, but do remember that the majority of the loans will be against the new properties, and yo…[Read more]

ruk wrote:
am i smart or stupid

 Not to state the obvious – here you are asking this question, about some solution you have devised, instead of visiting an accountant and asking the right question, and having them devise the right answer.<br /:)” title=”>:)” class=”bbcode_smiley” />

You investigated subdivision, but would they allow adding a second house without subdivision, or a large extension hint hint

Nucopia wrote:
If I have a mortgage over the I.P or the PPoR (both R tax deductible) for investing it does not worry me, and its just a choice of which gives me the most advantage later when I do decide to draw down equity ..I suppose I just don't like the feeling of doing nothing when I have  untapped equity  and cash coupled with my de…[Read more]

Best to talk to your accountantExtra Deductions gained on $X amount (over and above current deductions) LESSStamp duty and other associated costs for selling to a trustVsNot selling

Also be careful if you are buying in a trust I had to teach them how a hybrid trust worked and your morgage choice guy is just not going to do that for you.Also if you do relook at larger banks, be careful of Professional Pack Fees. The real interest rate can be quite high if  loan value is low.

JustinA non-bank lender normally will only allow the wife to go guarantor, as she is not on title. In fact some will not allow her to be on the loan documents at all or allow her income to be used, as she has no beneficial interest.The larger banks, who have much open clauses in their loan documents ensuring they catch you many ways, alwasy try to…[Read more]

Justin1) Consider asking your bank to add an offset account, and place extra funds in there. Why – a) You save the same amount of interest you would save by paying down the loan. b) You maintain the deductibility of the underlying debt, so if ever you use the cash in the offset for a non-income producing purpose, all of the interest on the loan is…[Read more]

I know Helen personally – Helen comes from an education angle and everything is based on Education only, although she does have advanced groups, where people get together to buy property, which she also participates. What I mean by participates, is she will look to buy as well, but it is not her property she is selling!Helen is very genuine and…[Read more]

Originally posted by ctaing:

* Is it available on standard loan product or is it an extra feature in premium products?

Normally the more functionality the more you pay – but there are some reasonable rates out the for Offset accounts. Close to or just more expensive that a simple loan with redraw

* And is the method of interest calculation…[Read more]

I would have to disagree with both Terry and Simon.

Banks
Do use mortgage insurers when they need to.

The banks will normally self insure, but under capital adequacy requirements they have to set aside a certain amount of capital. If they are short cash at any stage they quite often grab a whole lot of mortgages and take them to the insurer.…[Read more]

Financing is only 60-65% from memory. and they only allow a certain percentage of the rent.

Regards
John

Inspired Finance
(02) 9944 7776

[email protected]
http://www.inspiredfinance.com.au

or you can’t borrow at all if it is too small.

Be wary of anything smaller than 35 SQM. Avoid anything under 25Sqm

Not saying you may not get some specialist finance, but remember one day you may want to sell, and all the buyers will have the same problem.

Regards
John

Inspired Finance
(02) 9944…[Read more]

Also they were not able to get the volumes, and now the CashFlow mortgage product is apprearing all over the place.

Regards
John

Inspired Finance
(02) 9944 7776

[email protected]
http://www.inspiredfinance.com.au

It should be cheap with all that negative goodwill [biggrin]

Regards
John

Inspired Finance
(02) 9944 7776

[email protected]
http://www.inspiredfinance.com.au

The LVR depends on your age

if 60 then it is 15% and add 1% for every one year age after that. So if 61 then 16%. Up to 90 at 50%

That is if you take out the lump sum. You can get supplementary payments each month.

You can also ask for a certain amount of equity to be guaranteed left at the end of the loan. I won’t go into exactly how they do…[Read more]

Originally posted by stargazer:
Should i also contact my insurance company or see what the builder has to say.

As per the previous response by the person that is a Structural Engineer – Contact Your Insurer.

I would add
– that your insurer will work to make sure that is is the builders fault !
– the builder will work to prove it was not…[Read more]

You have total debt of $695,000

So a 80% Lo Doc loan on both would cover it

IP1 Loan 360,000 Value 450,000

IP2 Loan 360,000 Value 450,000

and should release your other title.

If both are with the same bank, tell them that is what you want to do, or take your business elsewhere.

If different banks, do a variation on the loan on IP1 and get…[Read more]

What about Satellite ?
With the dish you only need a normal phone line.

On another note.
Optus once put a lovely form in my mailbox, with my address on it offering cable to my battle-axe block.

So I rang them and said “yes”. They said “no” I was too far from the road. I said I had a letter from them adressed to me, it did not say anything about…[Read more]