Hi Zehra- 6.59% is quite a high interest rate to be paying.I would think that you should be able to refinance to another bank and pay 5.7% – 5.9% on a variable rate (depending on your loan amount). There are good brokers on this forum that can help you- try Richard Taylor or Jamie M.Cheers,Luke

Hi David- it looks like you are pretty heavily geared and with little in the way of savings, and at 90-95% LVR there is little room for setting up a line of credit.I would start saving more money so you have a buffer in case interest rates rise or you have any other unexpected expenses. A income tax variation would help with that.And due to this I…[Read more]

Yes, it is all politics. I am not convinced that the government was actually trying to implement change. I think they were mostly concerned with trying to look like they were looking after the average battler and going after the big greedy banks. And the reason for doing this was so they can win votes.

Michael- I dont think you can win on this 'battle' with the banks. If banks can't charge break fees (or exit fees if you want to call it that- lets not debate semantics) then they would not be able to offer fixed interest rates. Otherwise, everytime the variable rate drops below the fixed rate, everyone would just break their fixed rate contract…[Read more]

I thionk the Perth market is one of the best in the country, along with Sydney. The population growth in Perth is the highest out of any capital city, and with lots of mining activity there is quite a bit of money floating around.However Perth does not have the geographical supply problems that Sydney does so I think that while the inner areas of…[Read more]

Hi Amit- Correct me if I am wrong but you are looking for a scheme where you can make large amounts of money without using any of your own money and without any experience?If you have some equity in your home then you can use this to obtain a line of credit to use for investing. You could start by doing a small subdivision project or small…[Read more]

Sounds like you pay it. It is not the tenants fault that there was a water leak as it was due to general wear and tear on the property. Cheers,Luke

He has recently done interviews for the past 2 iclub packs, but dont think he is doing any tours or anything again as yet. I think he spoke at the Mega (sales pitch) Conference so maybe someone who went to that would know more.Cheers,Luke

There is also lots of things to look into with the wide range of sales. g. Dlwich Hill in Sydney has a wide range of sale prices, but the expensive units are art deco units and the cheaper properties are in 1980's brick apartment buildings. No matter how well you renovate a property in this market, you will not be able to sell a unit in a 1980's…[Read more]

Sorry I should have said break fee not exit fee when I was talking about the fixed rates.Break Fee is to break a fixed rate contract that you had with a bank. Because you are breaking a legal contract, you need to pay the break fee that you agreed to when you signed up.Cheers,Luke

Agree with Richard- the banks will make their money one way or another so I dont see how abolishing exit fees will reduce the costs for the consumer. The banks will either charge higher interest rates or just charge up front application fees. I couldnt see anything wrong with the deferred loan establishment fee as it was pretty clear what it was…[Read more]

I have no knowledge on the area but would be surprised if a small regional town with a population of less than 5000 had capital gains this large in the past year. Has a new mine opened in the area or some other major industry? Or were the statsitics based on a very small sample of sales and skewed by unusually high sales?Would be interesting to…[Read more]

Hi Eric-it is whose names are on the title that gets the tax treatment and rental income from properties. So if you and your wife each own a 50% share in the properties and the loan is in 100% your name, the rental income and tax deductions get split 50/50 between you and your wife.You may be able to transfer the ownership of the properties with…[Read more]

Hi Marie- it depends on a lot of things. Standard of finishes, one story vs two story, where the property is being build (i.e. inner city vs outer suburbs of a capital city vs small regional centre), etc all have a big impact.Cheers,Luke

Better asset protection in trusts and also a better tax structure.If you held in your own name and you sold, all of the capital gains would be declared on your tax return and you would pay tax based on your marginal rate. But if you held in a discretionary trust you could distribute some to yourself, some to your wife, some to your parents, some…[Read more]

scha9799 wrote:
Put under trust is a safe way to go as far as asset protection goes.just check up your land tax threshold, if you buy under your and your partners name, the land tax will be treated as differently as you hold under trust.eg if the threshold is 200,000 then under your and your partner ( as family) you can have 200,000 + 200,000 =…[Read more]

Hi,If you are building a complex of 5-6 units on these blocks of land and you have enough equity/cash to put into the project, then I douct that you will need presales to get finance. As long as there is a solid exit strategy at the end (i.e. either refinance to hold or sell some and refinance the rest or sll all of them) and you can either…[Read more]

Wow I got really confused trying to read that.I think you are asking do you determine whether a project is feasable based on either a % return target or a cash profit target. You probably should work on a combination of both, but instead of just basing all your figures on one set of sell prices and build costs, base your calcs on a number of…[Read more]

And sorry in answer to your question- I saved approx $30k to purchase my first property. I also used the $14k first home owners grant to put towards the deposit and claimed the stamp duty expemtion for first home buyers. I am now living in a rented unit and have rented this apartment out to a nice tenant who pays her rent on time.Luke.

Hi Wannagetthere,Along the same lines as the above posts- Most people I know who own propetry have had $20k – $80k lying around to get themselves started. Unless you have a friendly family member who can put up equity as security or lend you money, then you will need to save a deposit.Also, without the money management skills to save money,…[Read more]