Forum Replies Created
Mr Fair Go,
Fantastic advice
Good on ya!An offset account can be really useful in saving interest and having quick access to your savings. However it appears that usually if you have a mortgage offset facility your interest rate is higher, so you need a certain amount of cash in your offset account to compensate for the higher interest rate. Some people find they are financially worse off with mortgage offset.
In regards to LMI, it is true that you normally need 20% deposit/equity to avoid LMI. I have recently borrowed 100% without LMI through a lender called Medfin. You must be a medical professional to qualify for this (I think nurses can get 90% or 95% without LMI and they might also include physiotherapists etc.). The other condition is that you must reduce the debt to 80% of the value in 5 years time, so the loan is split into a P&I loan for 20% of the purchase price and 80% interest only for the other 80%.
The Medfin loan (and maybe there's other similar loans around) are great in a booming market like there is now, it might just allow you to get that extra one property, but beware of overleveraging in case things go bad.
Hi Elka,
The property is not formally advertised as yet, and it looks like it may never need to be advertised. It is a residential property.
As far as the details are concerned, I'll send you a personal message because I have a lot of info.Cheers
ChrisHi Scott,
There is no catch. The property is in a high growth area. The building is structurally sound, we have the building reports and pest reports to satisfy this. Council has been through the property to ensure that all regulations are abided by.We do use the equity in the property as leverage for other property acquisitions.
Let me know if you are interested in the finer details Scott. There's a number of people who have shown interest and I'm happy to answer all your questions.
Cheers
ChrisThanks everyone for your interest and advice
cheers
ChrisI checked with a local solicitor and in SA there is only stamp duty payable on the deposit when onselling the contract. So a small deposit will only attract a small amount of stamp duty, and I was going to absorb this stamp duty which would cost around $50 only.
Thanks for your advice Yossarian, I did have a plan B and plan C in place. For the amount of work and financial outlay selling a contract looks very attractive to me, and a win win outcome is always good.Chris
Thanks for the great advice Hutch.
That was really helpful.
CheersChris
Thanks Jase and Flic,
Taxes sure are annoying aren't they. I thought that maybe if I sign the contract with my name "and/or nominee(s)" then the next person could be my nominee. I will take your advice and ask an expert.
CheersChris
