Forum Replies Created
Smsaustralia,
Might I suggest you give Picja a call. A ten minute phone chat asking him all the questions you need and giving him all the info he needs will take you a long way closer to seeing where you actually stand.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
quote:
Mel Bear i know what most of the terms are when talking realestate investing but i just cant work out the LOC one , its probably so simple and in my face but i just cant seem to think of it.[
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Could you please enlighten me [:0)]LOC = Line Of Credit.
The bank advances you a line of credit against which you have a chequebook or credit card. You may draw as much or as little of it as you wish. Interest is charged on what you have drawn and you may pay into it whatever you like. ie the minimum interest owed or pay it off in any timeframe you choose.
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Before you leap in and sacrifice your deposit saving ability (6 months is usually required by most lenders) to pay our your debts you need to understand whether it is the lack of deposit (savings) or lack of income (monthly comittment to the debts) that is the biggest factor is not being able to get finance.
In some circumstances you might be better advised to pay the minimum off the debts and get a 6 month saved deposit started.
Now if you are to have some decent incomes in May 04 then I would consider starting to save that 6 month deposit now and using the future earnings to chip away at those debts.
Remember the bottom line is that if you work hard to eliminate those debts before you start to save then you will be postponing starting the 6 month savings history normally required – unless you have a 20% + deposit.
Hope this is some more food for thought.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
All depends on the time frame involved.
One idea is to have a property revalued after 3 months or so and borrow the additional funds then to repay the reno fund source – often the credit card!
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hey guys,
Depending on the defaults and how old theyare you might have little trouble – or maybe a lot!
Best to find a broker who has experience with this type of lending and get some direction.
Your deposit will help as well. If you have over 20% plus costs then it should be OK. The lower the deposit the harder it will be as the mortgage Insurers are the ones who say no in these situations and they get involved at 80%+ loans! 90% with some lenders.
All the best,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
You can do either.
Easiest and the banks preferred solution is to put up your house as security.
In some circumstances it is better to draw the deposit and costs from the current loan and buy the new place with a stand alone loan – perhaps with another lender. try to keep both loans under 80% to save on LMI if possiblt.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
http://www.whiteknightpaints.com.au/s05_creative_concepts/concepts.asp?conID=40
cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I too have heard all of the horror stories about tenants and squatters in the UK. Whilst our system favours the poor disadvantaged tenant over the greedy wealthy landlord it is nowhere near as difficult as the UK system.
Contact the PM and ask what the tenant is like. Worst case is you will be stuck with a difficult tenant through the eviction process – which shouldn’t take longer than a few months.
If you purchase landlords insurance you shouldn’t even be out of pocket if the worst happened.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
If the total loan to valuation ratio is lower than 95% then it may be OK. Will depend on other factors too such as income, loc of properties etc.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Try Nick Moustacas of Strategic Wealth.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Dave,
Redraw wont help you unless you draw the money for a income producing asset.
It is the purpose of the loan that counts.
A redraw is viewed as another loan and if you use it for another home it aint deductible.
This is where offset is handy. It preserves the original loan.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Matt,
Just a quick example to put IO and never paying the loan off into perspective.
30+ years ago my parents bought a waterfont house in Sydney.
If they still owned it and had paid IO they would today owe under $100K on it. Probably worth well in excess of $1.5M today.
Thats the magic of growth!
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Don’t forget that LMI will let you take the LVR up to 95% if required.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Buying a 1/4 share in a property will be tough.
I am allergic myself. I was tested and found to be allergic to about nine different allergens inc cockroaches, horses, cats, grasses etc etc
I went thru the desensitising program which was a course of injections over a year. Subcutaneous only so not too painful.
It didn’t work for me.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Steve,
Allan and I have explored that one at the start and the property he is in is not an attractive proposition.
Whilst I have helped a few Government tenants into their rental homes, inc one yet to settle where she paid $150K for a conservative valuation with the bank at $210K (my guess would be closer to $240K), the deal Allan can get is nowhere near as attractive. Correct me if I am wrong Allan.
The more I think about it the more I think that there must be some short term pain in getting ahead. To do nothing means that nothing will improve – except perhaps his savings. I figure we all went through a similar agony of decision buying our first homes/IPs.
To buy means that he needs to surrender his subsidised accomodation. This might hurt his saving ability but I am confident that inflation and capital growth will work together to make this a great solution – given time.
Building equity means he may be able to do this all over again with a +ve cashflow property further down the track – provided we can find the finance! Allan has an amazing ability to save esp given his limited income – makes me realise how much better off my family might be if we could adopt some of his habits.
Just remember Allan that even the most avid collector of IP’s buys them one at a time!
Happy New Year to you all and sorry to get all philosophical – must be the season,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Unless you have a personal reason for moving you might find it more tax efective to borrow 110% against the new property, secured by the old one, and rent that one. That means staying where you are.
Whether you will get the finance depends on the numbers which you haven’t provided.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
quote:
Mccollins.I believe more is achieved if one teaches a hungry person to fish, rather then give them a fish. that way they have food for ever , not just one feed!
Or Light a man a fire and he is warm for a day – set him on fire and he is warm for life!
Happy New Year Folks.
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I have found that the good deals don’t make it to the internet. Anything that is a great buy usually goes pretty quickly – although the market is showing signs of slowing.
I would strongly recommend that you develop a close relationship with several agents. You want to be on the list of folks they call when they list something good.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
weekly rent x 52 divided by purchase price x 100.
ie $200 x 52 divided by $180 000 x 100 = 5.77%.
Hope this helps.
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Luke,
I have brokered these deals in the past.
If you would like some assistance please contact me by email.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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