The Contrarian wrote:
Whatever you do DON'T sign with RAMS….They listed @ $2.50 on the share market a couple of weeks ago…their share price has dropped to 60 cents… in less than two weeks…They will need to assess their position and try to find some cash from somewhere…. ie. by increasing their fees…Much better options out…[Read more]

CEO of CBA was warning that securirised lenders funds are getting more expensive and rates may rise.I reckon I would personally be heading for one of the big four myself.

Tara30 wrote:
Great question.         If you had a loan of $300,000 (with today's interest rates) how long would it take approx to pay down the interest before you started paying principal?         Tara.

Doesn't really work that way Tara.Whatever the balance is – the interest is charged on that.

People who wish to buy multiple properties do so with IO loans to maximise cashflow and tax deductions.They aren't worried about owning them all 100% until much later.Inflation reduces the debt.  30 years ago property cost $30K – would you be upset if you owned 10 properties with $300K debt between the lot?  Sell one place on retirement and own 9…[Read more]

chilliaa wrote:
If you cannot refinance, then the banks will take reposession of your property. 

That is a huge step   .  You are saying that if you cannot get a loan then you lose the property?  Just like that?Reckon I would rather have this problem against a portfolio of property than be aiming at a old age pension with nothing.

You can even get capital protected 100% loans to buy shares.  At the end of the period if the shares are worth less you can just give them to the lender and walk away. 

foundation wrote:

mathewc73 wrote:
What is the most risky, dangerous things that poeple possibly invest/speculate in?

Naked CFDs with borrowed money. Massive upside potential, practically unlimited loss potential. Which is not to say that a calculated and informed risk, with losses fully limited and with cash to cover all potential losses…[Read more]

All your spare income could be going into your own PPOR to reduce this debt.  By all means redraw it via a new split or LOC to fund investments rather than save for deposits.  This will see your nondeductible interest become lower and lower.  This will make a small but significant difference to your situation.If you buy properties with little pr…[Read more]

blogs wrote:

Tysonboss1 wrote:
For example I found a house that I was looking at buying a few months ago, The person bought it in 2003 for $212,000,… for them to break even on the deal they would mave to sell it for over $250,000 to make back the interest they have paid, stamp duty,  maintance, neg cash flow  during that time  and the 3% sal…[Read more]

You know it wasn't aimed at you specifically.  Was more a knee jerk reaction I have to everyone who believes shares are inherently dangerous.  An atitude that is usually fostered by a well meaning parent who knew someone who speculated once out of greed and got burnt.  It is an attitude that gets reinforced daily in forums like this.  I would nev…[Read more]

Right

You know that depends on your longer term plans.  Many investors and brokers reckon xcoll is a terrible thing to be avoided at all costs.  I think it depends on your plans.  If you wish to extend yourself as far as possible then it may become an issue later on but it is nothing that can't be sorted. If you just wish to hold 2-3 properties and ca…[Read more]

Not sure what you mean by apart.  Do you mean seperate lenders or just no cross collaterised.You definately should keep deductible loans and non deductible loans on seperate loan accounts.  This can be as simple as a split loan or as seperate as different lenders.I think I need some more specifics before I make suggestions.

…. and here I am naively making hundreds of thousands of dollars on the stockmarket over the years, blissfully unaware that I am only one day away from disaster.  You reckon I should stop it?  Seriously?What about Gates and Buffett, they have so much to lose.  I better email them this thread so they can sell up and save themselves!  Maybe get…[Read more]

All their loans are an asset to the business.  They would sell these off to another lender who should continue with the same terms.Don't worry about this scenario at all.Cheers,

What are your medium term goals for your investing?

If you have any personal debt then it is worth considering reducing it.If you have a lower income spouse the investing it in their name may be useful.Offset against an IP is not really tax effective.  It will save you deductible interest as opposed to earning you taxable interest if invested elsewhere.Do you need this $300K for the properties you…[Read more]

I use http://www.depreciator.com.au

What does it do?Are you involved with the company yourself?

Time will help a lot especially as they see that the world didn't end and in fact you are financially better off with the capital growth.  Just don't overwhelm the partner by doing too much too soon.  They have as much right to their feelings as you do to yours.  Remember that if you want a situation to change then you must change.  Cannot cha…[Read more]