Originally posted by foundation:

F.

Thanks that was fantastic information.

I notice in your figures you did not mention compulsory super, which will in the long run add something back and even now is making a difference in the markets.

I would also add that it is Australians love of property that is helping to keep its population…[Read more]

Normally when purchasing the costs including stamp duty, etc equate to approximately 5%. Therefore for each property you need 105% of the purchase price.

In the case of a First Home Buyer the costs are lower because of reduced stamp duty. As a guide approximaely 2%. Therefore 102% of purchase price is needed.

200,000 x 102% = 204,000 less loan…[Read more]

We can’t give advice on what to do, but…..

2 Major purchases in a persons life are a house, and a car.

One normally increases in value.
The other normally decreases in value.

Only you can answer if a car may be needed for income producing activities like work.

On the other hand, your low deposit plus baycorp default will limit your…[Read more]

Well there are some relative figures that need to be used here.

Back in those days average debt was a hell of a lot lower. People had loans of 50K to 150K

Now – 250k to 500k

Payments on 300K @ 7.5% are same as payments on 150K @ 15%

Yes over that time wages have increased, so that has to be taken into account, but so has inflation, therefore…[Read more]

Terry covered that well.

Just to add –

The worse the default the more you end up paying in rate.

The fact you are addressing it, definitely helps. From what you have written, where default is paid off by end of year 2007, it sounds like you may be paying it off. If so approach them to ask if they can remove it now. If you are paying it off,…[Read more]

Assad

Under Financial Services Reform laws we can’t advise you whether to sell or hold, unless we hold the correct license.

A finance broker can summarise your position and advise if you can afford to purchase the properties you intend to purchase based on serviceability.

If the properties are positive cash flow, then there is a good chance…[Read more]

You should think about educating yourself in property investing first. There are quite a few courses around, and some are better that others.

Be careful of the ones where there is little education, a lot of hype, and a lot more selling of their own developments.

Educating yourself beforehand could save you thousands from potential…[Read more]

Celeste

When a Trust gets a loan, the borrower is actually the Trustee, and if the Trustee is a Company, then the Director/s guarantee the loan to the Company.

If you are the Trustee and you are borrowing the money for the Trust from NAB then you are on the application form, and therefore under their loan documentation, it is in essence cross…[Read more]

Celeste and anybody else using a normal bank whether that is Big C or NAB

Check your loan documentation – they can do what they did to lorric33 anytime they want, plus a hell of a lot more. I have seen many stories like that.

Investors should look at some of the non-bank lenders, where the loan can not be adjusted, unless you are in default and…[Read more]

That is correct. It is from the date you signed the purchase contract to the date you sign the sale contract.

Whether there are conditions within the contract does not make any difference – normally they will be conditions to get you out of the contract anyway.

and like Celeste said make sure you have a buffer. Personally I prefer to sign the…[Read more]

Novo

To give you some idea here are some rates you may expect to pay
Lo Doc (2 Years+)
90% 9.55%
95% 9.70%
You may also find other fees and PostCode restrictions.

In other words the costs are quite high, so take that into account.

Go to any property spruiking seminar and they always bring up money down deals. There are different ways to do…[Read more]