Forum Replies Created
I find CHEMDRY is more expensive but gives a much better result. They use a different process.
Cheers,
Wow, Thats impressive.
Well done mate – glad you didn't die.
ANZ Breakfree is a good product and there are similar products with other lenders.
Definately use a good broker as he will know each lender and also how they are travelling at that time with approvals and processing times. Sometimes banks fall behind others causing delays.
Cheers,
How much lazy equity do you have?
One strategy a number of my contacts use is to get their lazy equity working to gear into an income fund which covers the negative gearing shortfall.
This is not for beginners but works well in the right hands. I can send you some links if interested – just email. I am not selling anything here nor making any money. Just info.
I believe your accountant is right.
Have you asked for a copy of your credit report? This is your first step.
I reckon that you will be able to do something if you use a decent broker. I doubt going to NZ will help much as I believe Aus and NZ share credit info now – but I may be wrong??
Cheers,
Sounds like a nightmare to me.
Putting up with other shareholders, keeping all informed and trying to get decisions made – then split the profit.
Who decides when to get out? What happens when one gets married and wants to buy a home? How does he get out?
I reckon you are much better off buying alone.
None of you will be able to use the property to secure other properties so the property equity is useless to you all – lazy equity.
Don't do it.
Take your time mate, no need to run before you walk, the property market isn't booming at the moment so you have time to do things properly.
Doing things with a stranger doesn't speed up the process, it can even slow you down as he will want his piece of your pie at every step.
A better idea is to do something with family where they can trust you and let you use equity in their home or similar.
An even better idea is for you to get througfh uni and try to save money while you do so. Buying a property as a student with a small deposit is always going to be hard. When you start working everything will fall into place.
If you keep adding slowly to your portfolio you will be wealthy in the medium term. But I know you want wealth in the short term – every new starter does. You wil lread about all sorts of schemes and investments but they all have their downsides. Just keep investing in normal residential stuff until you have the funds to buy m,ajor commercial properties. Forget retirement homes, serviced apartments and purpose built student lodgings. They all make things harder as the banks dislike them. Stick with middle class housing if possible, apartments, villas and townhouses as second choices.
Just do what other wealthy people do. Don't try to do it better.
Read "The Richest Man in Babylon" to see how to save and buy property.
When uni is done and you are well established consider starting a business. If you are a strong worker and have good attention to detail.
If you find you are lazy then employment asnd investing might be a better idea – I don't mean that in a rude way. 50% of us are lazier than the average person – we just need to play to our own strengths.
Anyway I am getting off track. Start saving, perhaps build a stoick portfolio until you have a deposit then buy a property. Repeat this.
Keep repeating this and you will be wealthy.
The one thing I wish someone had told me when I started is this. "Never Sell a Property." I know I would be about $800K better off today had I known this,
I could go on for hours about my rules of investing but I reckon you get my drift.
Ciao,
Are you planning on building to sell or to rent out?
Speaking to agents about the end value of units vs houses and also the expected rental should help you decide. You also need some idea of costs.
Valley Homes has some terrific duplex designs and they are in our area.
Cheers,
That means he now has a fully tax deductible debt of $330K (the new mortgageis in his name).
You now have a lump sum for the new PPOR.
If you didn't change anything you would have to borrow much more for the new home and none of this debt will be tax deductible.
Is that clearer?
I would consider "selling" the property to your husband. Sell it for the full valuation price and he should borrow enough to pay you the full amount plus all of the expenses associated with the transfer.
He will now have a fully deductible loan for the whole amount.
You will have $140 000 that you can use for the new home.
I would prefer to see you use a 20% deposit only and put the spare cash into an offset account. Make the new loan IO and save your repayments in the offset.
Then should this happen again (where you move and rent out the property) you cab "redraw" your equity from the offset and have the full loan left which is deductible. Hopefully you have saved enough in the offset account for a deposit on your new home.
This is a more tax efficient setup than your current one.
other people have suggested using a trust to achieve the same result. A trust is an artificial "person" that is created to do what I proposed your husband do – buy the unit from you. It does work well and has advantages but it also introduces more costs and a layer of complexity. You should get professional advice before taking that path.
Hope this helps. Please post any questions direct here so that all of us can keep learning by following this great thread!
Cheers,
I would consider buying with a 20% deposit and taking an IO loan.
Save all you can in an offset account.
As you buy further investments use 100% IO loans and continue to save in the offset.
If you need to use offset cash then transfer it into the home loan and then redraw it via a new LOC.
This will ensure you have the most tax effective and future proof loan structure.
Make sure you use a broker who understands these concepts to set it up – too many don't really have a clue.
Cheers,
You don't need to refinance just because you are now renting your IP.
Selling into a trust does work but it adds a layer of complexity that you may not want. The same can often be achieved by selling to a spouse or selling a half share to a spouse.
I suspect you might be best sitting down with a broker and discuss your options – but be careful whom you choose. He will only make a fee if you do refinance so choose someone you believe has your best interests at heart.
Cheers,
Use all your money for your PPOR if you intend living in it for the long term, then borrow for IPs.
If you decide to buy a PPOR for a short term then it doesn't really matter.
If you buy a PPOR with the aim of it becoming an IP later then use minimal amount of your own cash but keep the remainder in an offset account.
Hope this helps
Why do you want to buy it?
What goals are you trying to achieve by doing so?
Well you need to either increase your income or decrease your expenses.
Have you done the sum on refinancing even after factoring in the break costs? It is probably not worth it but good to do the exercise.
Have you got your loan on interest only? This will reduce the outgoings until things are more comfy.
Have you any ways to increase your income to meet the shortfall? Overtime? Home business? PT Job one evening a week?
Have you varied your PAYG tax to reflect the tax deductions from the negative gearing? In effect you can spread your large tax claim over each pay.
Anyone got some more ideas??
Cheers,
A lot depends on your current loan size.
But you can probably access 80% of the growth in a seoerate LOC which you can use for investing. This may be enough to help with a deposit on a similar priced property.
If you choose the right lender they may even value it higher than you suggest. Always estimate it a little higher on the application. No point in putting a lower figure into the valuers head if he is thinking it is worth more. It is easy to just agree than try to make it higher,
I would be considering $210K – $220K esp if you can find similar sales nearby that might support this.
Cheers,
An offer is not binding.
A contract is although you can exercise your cooling off option.
You need to understand this a little more before you get to a stage of making multiple offers. I suspect that if you are making multiple offers you have either stumbled onto something really special or you are not being discriminating enough in your selection.
Cheers,
Perhaps write to your local member? Or speak to the Mayor? Or General Manager at the council.
No point talking to some low level clerk with an inflated sense of his own importance – talk to a decision maker.
Ciao,
If serviceability is a bank problem but you are happy to maintain the payments then consider a NODOC loan.
