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I guess everyone has a price for their castle it would be interesting to know if any offers at all have been knocked back over such a period
I like some of the Colonial products however, as most brokers do I steer clear if I can as their service 99% of the time causes problems.
I assume you are referring to Cross collateralisation and some lenders do have a policy to do this, but others can be negotiated with.
Yep the property manager is the way to go, I have had a couple of tenants and hardly a whinge and when they do its not to me anyway. The property manager often says it is time to up the rent and I just let her handle it, they know all the laws etc so it is easy for them to deal with the tenant also it removes the emotion.
However you do have to find a good one as many are a little lazy and want to take the easy way. For example my first tenant was always a bit late with the rent but always came up with the cash. The manager suggested to turf him out at the end of the lease to find someone more regular. I asked well how much trouble this is and she complained she had to send a reminder letter, I said well your doing a great job keep sending the letters out and keep the tennant. I mean appart from being a week behind every now and then they were no trouble so why kick them out. I figure sending a letter here and there was what I was paying her to do.
Marc I think Joel is hoping to consolidate dept on a mortgage that is maxed out eg taking on a mortgage with little or no deposit and wanting to consolidate is this correct ? if so no it cannot be done, and as Simon mentioned you would be better to keep the car loan seperate anyway.
Joel you have to have equity in the property to start with this is achieved through capital growth and or paying of the loan, without equity you cannot consolidate.
http://www.liv.asn.au/public/finda/ this site may help
Say I have a property worth 200k with an IO loan of 100k and then decide to refinance up to 80%, That would take my loan to 160k and I would have 60k to spend elsewhere. Now say later I decide to sell. Does the tax man consider my profit BEFORE i refinanced OR would he simply say:her profit is 40k, we tax her on 50% of that?
Is the property an investment property or owner occupied?? If you are taking the money out of an owner occupied to purchase an investment you need to be sure you structure the loan properly so that you can demonstrate which portion is for what purpose. The same goes for visa versa, however if an owner occupied and you are increasing the loan for general use would not matter
From what I gather you are asking is if you take out the 80% loan and then the borrower takes another loan backed onto the same title for 20% as well as the 80% you are lending them. Is this what you are asking
HI it was not advice it was suggestion of a possibility and it seems as though you have explored that possibility and is not an option
Loan value ratio = LVR the value of the property according to your post is 420k the amount you are buying it for being 340k is just about the 80% to be more precise 81% therefore you have almost 20% equity from the start if the valuations are correct, you would need to kick in 4k to avoid mortgage insurance.
You could choose to pay the 68k as a deposit to reduce this even further, reducing what you own on your own property, then create a split in your loan for an increase. This new loan is accessing the equity in your property which can be used for purchasing your investment/s. Or you could keep most of that money in the fund if you chose
Wow what a great start 80% LVR before kicking in your deposit so plenty of room for investment. Not sure about renting the rooms out as some times can be an infringement on your own privacy but guess its up to whether you are comfortable with that.
As has been stated fixing the loan can provide the reasuance of what your repayments are going to be, no one can forcast what interest rates are going to be in the future, it would only be speculation.
Some do a balance of fixed and variable loans to hedge their bets, and I guess it all comes down to personal choice. Fixing for too long can make it expensive to get out if the need arises, however if rates go up enough the lender may let you out of the deal so that they can re lend the money at a higher rate. However there is no assurance of this.
Have you thought about keeping the place you have and accessing the equity to purchase your investments?
Well what can ya say to that? many inovative ways, some even leading to a free paid holiday, mind you the room with ensuite and all would be a little cramped and unhomely, and I am not sure the wages are that crash hot either maybe a dollar a day or something.
You may be able to increase the rent by having a few improvements eg air conditioning, heating security etc, I know I would pay a little more for such luxuries if I was a tenant. I know this has nothing to do with natural increase
Hi Rod I would suggest contacting the Brisbane City Council for this information
Sorry Marc my humour I really have no idea myself, and could not think of another comment at the time
A noise made by a cow!
Hi Louie I would contact the office of state revenue your state, you will find the links on our site here http://www.alphamortgagesolutions.com.au/Tools.htm as you have not lived in the place as yet , you may just get away with it so it is worth checking with them. Of course if you have claimed it that may complicate it even further, but a phone call is worth your while.
If they do agree to let you just change it to the investment you should be able to claim the Fhog at a later time when you buy a first home owner property.
Good post Art
