Hi All
Great discussion.
Unfortunately there are a lot of people out there with a victim mentality and the first thing they do is run to the newspapers or those trashy current affairs programs.
I have not finalised my first vendor financing deal yet so I am no where as experienced as some people on the board.
What I have been doing so far is to…[Read more]

Hi Bernie
I have heard good reports by an agent call Rentals by Leanne. They only do rentals no selling. Sorry don’t no there number.
Kerwyn

Thanks everyone for your impute.
Looks like I am stuck with a P&I at this time, although this may not be to bad in the long run. I don’t think there is any proplem with refinancing later, I ask my broker if there was penalties and he said there was not.
Again thanks for your help.
Kerwyn

Hi All
Just got the reply from M/broker the MI have said because it is the first time we have bought and the LVR is 95% they want to see some of the principle being paid. The MI is GE.

Now another question, as I don’t like being held to ransom and told what to do by the MI. Is it possible once I have done a bit of a Reno on the place to have it…[Read more]

Thanks everyone for the reply.
My broker is going to contact the MI tomorrow and find out why they require a P&I.
The lender is NAB and my broker said they were happy with a I/O loan. The amount of loan is $209000 rate 6.51% repayments $1133.80 month with I/O.
My rent income $285 = $1235 month gives me $101.20 cash+.
With P&I 1322.40
Rent 1235
$…[Read more]

Hi Jumbo 123
You must remember that there are two parts to a L/O one is the lease the other the option.
The buyer although they have agreed to buy the property are still technically a tenant at first so there are two ways to deal with rate rises. As Terryw has said you can simply have a clause that says they will pay interest increases. The other…[Read more]

Hi Jumbo123
I am 100% sure that your buyer does not pay stamp duty up front.Stamp duty is only triggered by an exchange of contracts and as you are not actually exchanging at first the buyer is only leasing the property as any tennant does. If the buyer takes up your option at a later date then they pay stamp duty when they exchange contracts.
The…[Read more]

Hi Jumbo123
I am relatively new to L/O and am doing my first at the moment. What I have found is you decide the amount of money you want as an upfront option payment. This can be whatever you think the buyer can comfortably afford. It also depends on the cost of the property you have and its condition. I have talked to people who have charged…[Read more]

Hi Nadrob
I am in an area also that does not come anywhere near Steve’s 11 second rule, but don’t let that stop you. I just changed tactics and looked for houses that needed a bit of attention, not over the top repairs but cosmetic ones. Bargain hard with the re/agents point out all the faults tell them its going to cost heaps to bring up to…[Read more]

Thanks everyone for the answers.
What I was going to do with the L/O if he give it to me was on sell it to another buyer at a higher rate. The other buyer would have the CG so it would be hard for me to share it with the owner. What I needed was some kind of an incentive to offer the owner so he took up my suggestion. I think he was a bit…[Read more]