yes- is national legislation administered by the states.

Theoretically the loan will never be reduced unless you make the additional repayments – in practice the Io period is usually from 5-10 years so the loan reduces after that.I don't have any chart you can use but the IO loan will always cost you less each week than the P&I loan.  Money which can be used for additional investments.

lilyhutch wrote:
Thanks Simon – like houses I suppose you can go for yield v growth? Just tossing up as I work out my investing strategy.

Yep – exactly.

Besides dividends?  Dividends are important.That is like claiming that, besides rent, how does an IP help you?Don't dismiss dividends.  Some shares pay more than the rent on a Sydney property.  Dividends can be fully franked to which makes the value jump.Some managed funds paid in excess of 50% in distributions last year alone!Besides – shares do…[Read more]

Are you positive about your borrowing capacity?Give Richard a call and ask him to run your figures.  A good broker like him will have access to all sorts of products and might well have something up his sleeve to get you into a two bedder.Worth a call anyway.

Xenia wrote:

Mortgage Hunter wrote:
Yes I do. I have a terrific relationship with my students and I like the good ones to come back.I do allow them to lock their room and leave it over the summer for half price, the ones that wish to move out I relet their room.On the odd occasion when I haven't really wanted one back I have simply told them…[Read more]

rejoice wrote:
Pro – party central!Con – we don't care!As a uni student and recently moved out ofa manic share house… I must say that rentwas always paid late if there was money leftover after constant drinking sessions, theplace was never cleaned, but hey it wasgood times and we didn't break anything.

Yep – there are student houses like that…[Read more]

In NSW the contract has already been written by the vendor.  You just check that you are happy with it and insert the agreed price and sign.

Ask here.Talk to a broker.Talk to a lender.

Colin Gowan wrote:
OK folks I am looking for an extra income stream. Anyone who has one that actually works please let me know about it. No doubt I will be inundated and will have to sift through many. In about a month I will get back with the ones I have tried and those that actually worked. colingowan@bigpond.com Your friend Colin, Email…[Read more]

Yes I do. I have a terrific relationship with my students and I like the good ones to come back.I do allow them to lock their room and leave it over the summer for half price, the ones that wish to move out I relet their room.On the odd occasion when I haven't really wanted one back I have simply told them so. Think this has happened twice in…[Read more]

What is your longer term plan for the funds?If you need it back from the redraw you can get it.  But if you get it back for personal expenses then the new part of the loan wont be deductible.You will not get much advantage having it in a redraw anyway.Offset is better in all cases I believe.Perhaps you could invest the money somewhere?

Real2 wrote:
Theres a number of reasons why I don't like managed funds:1/ You have bugger all control over your money.2/ The overall value of your investment can fall, and yet you still have to pay tax on it ! Example Opening Balance $300,000Add: Net Income $10,000 (This is what you pay tax…[Read more]

Novo30 wrote:
Thanks Xenia for the information I will check out the website.What about buying a house and renting it as a tenant lease, to uni students though. All my friends say to me there is a risk of them leaving around xmas and leaving me with a empty house. I guess this is same with all tenants right? Novo30

I have 5 students.   Some l…[Read more]

I saw a presentation last night about a 100% loan for managed funds. Supplied by Macquarie Bank at a reasonable rate. The portfolio is capital protected too so that at the end of the term your funds can be cashed in for current value or original purchase price – whichever is higher.As for funds which have historically returned a high amount…[Read more]

Committing fraud will count against her more…

If your spouse has had the FHOG or owned a home before or owned any IPs prior to July 2000 then you do not get the FHOG regardless of guarantor.

You can buy an IP without jeopardising your FHOG entitlement.So you should be fine.But double check it.  My website has links to each state's legislation.A lot of well meaning people still believe that buying an IP means no FHOG ever – that is just wrong now.Cheers,

yes.As long as he doesn't own another home in the meantime.At the end of 6 years he can resume living there then move out for a further 6 years.Good eh…

happyjack72 wrote:
Hi Simon,Thanks for that.Yes, I think having an offset would be a great addition.Can the offset have a redraw facility?Or does it depend on the lender?

Off set is just an account that you store money in.You can deposit and draw as often as you want for no cost.