Forum Replies Created
Hi Bronte have you thought of visiting the local library or two you may find some good books there that will not cost you
Who would get stuck with paying for the subdivision as i am sure they are not going to agree having your house on their title
You may be able to get the seller to accept a Deposit Guarantee for a small outlay then you do not have to come up with the cash. Eg for 10k deposit it would cost around the $120 for upto six months guarantee
Be aware sometimes the rates maybe cheaper but there can be other hidden fees i am not familiar with those lenders you mentioned so not commenting on them in particluar. Further the rate is often not the most important feature to a loan, sometimes can save more by having the correct structure. Eg if they have an offset account attached which they probably do not; is it functioal whilst the loan is in a fixed term?
Hi Nigel348
That is where a broker can come in handy, just because one lender knocks you back it does not necessarily mean the others will. Providing the full circumstances a broker may know which lender may take it on. I would be happy to help or any of the other brokers here feel free to contact us
It sounds a bit like the investors club, there are quite a few posts in here on them. If you do your own due diligence you will save but if you cant be bothered then i guess you pay for it
Hi Cameron yes you could have done a split on the Owner occupied (thus keeping the finances seperate for accounting purposes) and raised the deposit by way of increase to save on the mortgage insurance.
Yes as long as what has been drawn down has not been for personal use, living expenses i would say would come into that teritory, you can always ring the tax office and make an anonymous call or speak with an accountant to be certain
Success regardless
I would think Terry's idea would only work if you had the equity to borrow more than the probperty being purchased is worth however you have stated you are already negatively geared to the "eye balls" which may suggest there is not much equity available either??
I am surprised your M.B. did not at least provide you with an estimate prior to the application but agree with Richard re the Rams LMI
I agree with Simon, if you have a loan on an owner occupied then this is the loan you should have the offset on but if you do not then you have it correct
I have included the state revenue for each state on this site, for any further info of the home owners grant it is easily found there. http://www.alphamortgagesolutions.com.au/Tools.htm
I agree with Richard Cross collateralising can be ok for 1 or 2 properties however if you want to grow your portfolio at some stage you will need to bring in other lenders and this can be an expensive exercise if the have been crossed. Keeping them as individual properties from the start is the better way.
There are very few properties that are cash flow positive unless in a mining town it would pay to do your home work and see what comparitive properties have sold for in the area, as although it may not be cash flow positive it may still be a good buy. Then you would have to work out whether you are prepared to foot the difference, it would probably be worth your while discussing with your accountant to see if tax relief etc would help to make it a better cash flow
Why not speak to some of the property manager in the area they should be able to give you an idea of rental prospects, contact the local council for information of incomming infrastructure etc, there are some useful sites on our useful sites page see below
It seems as though you have already done the sums, no one can say if interest rates will go up or not so if you were concerned you could fix or do a split part fixed part variable. Further to know if the rent would is stable it may pay to a property manager in the area
I suggest you speak with your accountant however I would assume your marginal loan is tax effective where as your PPR loan is not. If this be the case it should not be too hard to work out
A recent valuation shortfall recently won one of my customers a better deal by 15k as we organised another valuation that came in short too. The client was then able to negotiate with a strong argument with the seller that it was over priced and won.
Another time the place was extremely undervalued and as we chose again to organise and independant valuation we were able to get the lender to review their initial valuation and the loan was processed. We used a valuer from the lenders panel so that it would hold more weight.
An independant valuation can be a small outlay if you are sure there is good value. If you organise through your broker you may even get the valuation a bit cheaper
Hi; 95% LVR is the general rule for land however if it is regional this may be reduced somewhat depending on the post code. On land stamp duty is charged at a higher rate as is charged as investment as you cannot live on a block of land, when you build the building will be as owner occupied and stamp duty charged accordingly, providing you intend to live in it.
