Forum Replies Created
A few quick points.
If none of the partners live in the property then it wont affect FHOG.
IMO it is detrimental to go into partnerships other than a spouse. Affects your borrowing ability as you are jointly responsile for the whole debt.
The trust can get a mortgage but each member will guarantor the loan. Therefore when each member goes for another loan the entire revious debt will be a liability.
There is also the fact you are depending on three other people.
I would prefer to go it alone, by all means help each other out and work together.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Well of course it can be done.
But…..
Not for tax deductibility. Unfortunately unless the ownership of the house changes then the tax deductibility of the debt doesn’t.
You can take your current mortgage up to 100% to buy a new home but only the first $170K will be deductible as it was used to buy what is now an IP.
Hope this makes sense,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Yes just the same.
It is the same loan. Just that you don’t need to pay any principal for the first five years.
So you apply for a variable loan and tick the bos saying IO and write how long you choose the IO period to be. Total loan term will still be 20-30 years as you choose.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
This always raises debate.
I suggest it is your net worth less your liabilties equalling $1M or more.
However I read recently that to be a millionaire in the classic sense of the word you need to be worth about $20M in todays dollars.
Food for thought!
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Having never done this before I don’t know. However I would consider the following:
Advertising
Lease agreement inc bond?
Repairs needed – esp if they happen out on the road somewhere in the night!
Insurance
ABN, GST, Taxation and accounting software.
Hope this gets you thinking,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
No reason why you cannot hold off.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I mean that it isn’t a real estate investment. It is a depreciating asset that is generating an income. Much like hiring our any form of equipment.
An IP must be real estate that apreciates over time and may also provides an income.
It is the same as my mortgage broking business generates income yet is not an IP. It helps me buy them though.
Thats why I suggested if you owned the land then it could be an IP.
I don’t mean to rain on your parade. If it will make an income stream then go for it. But treat it as a business rather than as an P – it is two different styles of management with very different techniques..
Hope this makes sense.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Blade,
It depends on how much you want to borrow.
But you will certainly be easily able to borrow enough for an IP of some description.
Without knowing other financial detail I am speculating that you could buy something up to around the $250-300K mark.
However I cannot be accurate without knowing more.
All the bes,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hiya Ali,
As there would be no capital growth in a caravan I would treat it as a business rather than a property investment.
Unless, of course, you bought a block of land,
If you did buy a block the a little rent from a van should mean you can claim the interest and other expenses.
Cheers mate,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
NAB has similar too.
Must be the new industry standard and reflects what they are fixing money at. Bodes well for likelihood of massive increases.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Assuming no other debts I cant see that you will have any problems buying an IP for that money. Don’t forget the rent is also added to your income as well.
As suggested by the others just call a broker.
Ask family and friends for a referral or choose someone from here that sounds good.
All the best,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Basically an account with the bank. It doesn’t pay interest on funds within however the funds held in it “offset” your mortgage.
Interest is then charged on the difference.
So if your mortgage is $100 000 and you have an account holding $20 000 which is an offset account.
Interest on your mortgage will only be charged on the $80 000.
The mortgage is still $100 000.
Hope this helps.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I don’t think the 11 sec solution is designed to give you a shortfall – just used as a broad brush disrciminator.
To work out the actual figures you need something a little more sophisticated. Many different spreadsheets out there and some folks make their own.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
My first suggestion would be for you to take 20% deposits + costs from your investment loan and then take out new 80% loans against each new property.
I personally would prefer one $100K place against 2 x $50K places but that is purely personal opinion.
If you are concerned about interest rate rises there are some very good fixed rates available at the moment. 6.57% for three years is the same as todays variable rate – but with the certainity of three years.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Why would you care if a real estate agent thinks you are nosy or pushy? I think these guys are pretty thick skinned. Some might even suggest they are pushy too [biggrin]
Just get in their face and ask everything you want to know – if they think you are a buyer the they will be only too happy to help.
I would make calls. Agents seem to be a little lax in replying to emails in my experience although this is a generalisation. At least with a call you can ask all you want without emails going back and forth forever. Does your deafness make calling difficult?
All the best,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
My offer was as an investor rather than a broker, although I do have some finance knowledge to offer too. [blink]
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Live OS…….not love OS.
All makes sense now.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Happy to answer your insane questions where I can.
Post them here or email.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
What do you think Kelvin? That is the main thing.
[biggrin]
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
At settlement you will be required to coe up with the remaining funds.
This would be the 80% from the lender and the 10% from yourself.
Don’t forget to consider all the buying costs.
If you buy at auction the contract will be unconditional so ensure you have all of your finance approved.
Can you explain why you think you need to stay at 80% lend?
All the best,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
