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  • Profile photo of mickyhonmickyhon
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    @mickyhon
    Join Date: 2014
    Post Count: 6
    January 28, 2014 - 8:27 pm

    Hi Alphrz.

    The only thing i noticed is that the LMI looks to be a little low…

    Check out the table on this page: http://www.homeloanexperts.com.au/lenders-mortgage-insurance/lmi-premium-rates/

    and that will show you a much higher LMI based on your numbers, id just be careful with that… there are different companies that provide LMI so the amounts can vary alot, but go get a quoted on it from your proposed lender.

    Or speak to a broker about which lender will suite your needs.

    Most lenders capitalise the LMI

    The rest of the calculations looks pretty good.

    Check out http://www.loansource.com.au and enter your details into the comprehensive calculator, go into the 'breakdown' section and everything will be calculated for you, you can also compare 2-5 different loan scenarios side by side to see how how they play out.

    Hope that helps ! :)

    Micky

    Profile photo of mickyhonmickyhon
    Member
    @mickyhon
    Join Date: 2014
    Post Count: 6
    January 26, 2014 - 5:37 am

    I know somebody that was in the same situation as yourself.

    He actively approached mortgage brokers and explained that they want to pursue a career in broking… His response was quite good, it all depends on what you can bring to their business.

    For example if you are fairly young you will be able to tap into a very large network of new professionals that they will find hard to break into (show them how many facebook friends you have!!)

    The only problem is you wont get much money for a few years while you build up your reputation… but that's the reality of the industry!

    This person did get a job fairly quickly and starting making good money after about 2.5 years.

    Hope that helps!!

    Profile photo of mickyhonmickyhon
    Member
    @mickyhon
    Join Date: 2014
    Post Count: 6
    January 26, 2014 - 5:32 am

    Hi Jacob.

    This is tool i recently discovered on other forums.

    http://www.loansource.com.au

    It allows you to do a range of things including adding extra repayments at any time in the loan, fixed interest terms, interest only, offset accounts.

    It calculates your balances, interest paid, equity etc. at any point and also uses capital growth data specific to the suburb you purchase in.

    By far the best calculator i have come across.

    Hope that helps!

    Profile photo of mickyhonmickyhon
    Member
    @mickyhon
    Join Date: 2014
    Post Count: 6
    January 25, 2014 - 9:50 am

    Hi Anc111…

    This is a calculator that i came across in another forum and i think you will find it very useful

    http://www.loansource.com.au

    It will let you add your purchase price, deposit and calculate your stamp duty, lmi, grants etc. then will work out how much your loan amount will be and use that figure for calculations.

    you also enter your purchase suburb and will use capital growth data to help you calculate equity, and in your case a fixed/interest only period and how much money you will save into your offset account.

    once youve added everything it will give you heaps of calculation results and you can find out when you are likely to have enough equity to fund your next purchase.

    takes a good 10 mins to get your head around it, but i found it very helpful and listening to your situation i think you will also.

    Profile photo of mickyhonmickyhon
    Member
    @mickyhon
    Join Date: 2014
    Post Count: 6
    January 24, 2014 - 2:15 pm

    hey anc111.

    The replies you are getting are generally spot on.

    But just to address your statement "However, the whole interest only suggestion is confusing to me to say the least"

    It took me a while to get my head around the Interest Only concept to begin with also.

    I kept thinking… 'But, i WANT to pay the loan off eventually!! "

    Interest Only options are great if you are looking to BUILD UP a portfolio, and will be needing money for another purchase.

    The benefits to Interest Only are based around these concepts:

    1. Lets say the difference in repayments between Principal & Interest, and Interest Only is $500 a month… 

    All that money you are paying onto the Loan is saving you interest sure.. but when you want to borrow for your PPOR, and you borrow against that equity you have paid off, that new balance will not be tax deductible. If you had selected an Interest Only loan and paid that extra $500 a month into the offset account, you can just take it out whenever you want…. and that balance is still tax deductible.

    2. Second concept is, it free's up cash flow, which allows you to invest the cash somewhere else (ie another property)… when interest rates are low as they are currently, interest only is fantastic because you can probably get a better return sticking your cash somewhere else :)

    I am not qualified to give financial advice, this is just my response to your topic through my property investment experiences.

    Hope that helps!

    Profile photo of mickyhonmickyhon
    Member
    @mickyhon
    Join Date: 2014
    Post Count: 6
    January 24, 2014 - 1:51 pm

    I over-insured my life for $1.5m.

    If something bad happens you would want things to be as easy as possible for your family would you not?!

Viewing 6 posts - 1 through 6 (of 6 total)