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are two of the better ones I know of – better = free from spammers and trolls [blush2]
Simon Macks
Residential and Commercial Finance Broker
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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.
It all hinges on what your contract says. Have a read of that and see where you stand.
Simon Macks
Residential and Commercial Finance 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.
There may be a happy medium in which you utilise all available funds to decrease LMI instead of borrowing less and paying more.
A broker should help find this balance and suggest new options.
Have you considered buying this property as a PPOR to use the FHOG and Stamp Duty Exemption provisions? You only have to live in it for 6 months to satify the provisions of the FHOG. During this time you can take in boarders to help with your costs [blush2]
Simon Macks
Residential and Commercial Finance 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 looked into it – the big spectre was always deregulation of the industry.
Simon Macks
Residential and Commercial Finance 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.
What if you borrow the $7000 from your parents and go in with a $17K deposit?
Personally I would prefer to use a higher deposit which is then usable equity and “give” $7K or $9K to some bank johnny…
Simon Macks
Residential and Commercial Finance 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.
Why can’t you afford to buy a $385K house with strong rental growth? Has a banker or broker told you that or is it a belief you hold?
Simon Macks
Residential and Commercial Finance Broker
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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.
Why don’t you just buy it yourself?
Simon Macks
Residential and Commercial Finance Broker
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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.
Time will reduce your principal.
I use the example of my parents home bought in the mid 70’s for $47000 on waterfront in Sydney. Had they paid IO all through the term of the loan then they would now have a debt of $47K against a $3M valuation.
Had that been an IP then they would have been able to free cashflow to buy additional property.
I use an analogy of explaining multiple IPs.
Imagine a property is an empty glass. The water represents your share. A new IP with a 5% deposit will be a new glass with a splash of water in the bottom.
Each year as the value grows the level of water will increase slightly.
Every now and then there is a storm and the level rises fast. That is a boom like we experienced recently.
Now in order to make best use of the boom we should have as many glasses out there as possible to catch this water. Going IO allows us to maximise the number of glasses.
We all have a mindset of paying down a loan when we buy a home. Many of us carry that into the IP game. We understand that debt is bad and we should pay it out ASAP.
This is not the case with deductible debt or good debt. By all means pay down your personal debt (non deductible) car loans, home loans, credit cards etc. But consider leaving the Good debt to run and using the principal to buy more investments.
Hope this helps explain things a little.
Simon Macks
Residential and Commercial Finance 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.
How did you do that to yourself?
Simon Macks
Residential and Commercial Finance 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 it was secure then I would park cash there.
Funny thing is that I believe in a direct relationship between risk and reward.
Simon Macks
Residential and Commercial Finance 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 am a huge fan of Peter Thornhills book and have recommended it to many clients. My copy has been lent so often that it is very tatty – I should buy another copy.
Simon Macks
Residential and Commercial Finance 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 lived i n Malaysia for a couple of years and investigated buying a property whilst there.
They don’t have PMs as such. A PM will find a tenant for you but ongoing rent collection is your responsibility.
The standard of construction is very variable. Every day there are newspaper articles of government inspectors being paid off to ignore major issues. Concrete is mixed with less cement in it than is legal to save money. Paint is diluted with water to save money.
The whole system over there is corrupt and as a “wealthy” westerner you are fair game to be ripped off by everyone you deal with. Paying bribes is commonplace. Police expect it just for pulling you over. We even had a bank teller ask for RM50 to ignore the waiting period on a cheque we wanted cashed.
The Asian Currency crisis of the 90’s saw a lot of money lost by investors. With a less stable economy something similar could easily happen again.
I personally wouldn’t even consider buying there after having lived there. Same with any SEA country with the possible exception of Singapore.
Simon Macks
Residential and Commercial Finance 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.
Terry is spot on. I would use the offset before a LOC for the reasons he outlined.
Simply – an offset gives you maximum flexibility whilst keeping costs down.
Cheers,
Simon Macks
Residential and Commercial Finance 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.depreciator.com.au is the one I use. He isn’t too expensive either.
Simon Macks
Residential and Commercial Finance 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.
Why not both in your portfolio?
Thats what I do.
Simon Macks
Residential and Commercial Finance 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.
No. As a couple you can only use it once.
If she leaves you she will still be deemed as having “owned” a home – even if her name wasn’t on title.
Simon Macks
Residential and Commercial Finance 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.
Six months. It has to start within the first 12 months of your ownership.
This allows you to honour an existing tenancy if you buy a property with a tenant.
Cheers,
Simon Macks
Residential and Commercial Finance 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.
yes and no.
only one of you can salary sacrifice a dollar. But if your mortgage costs $20K then you could each sacrifice $10K.
I am really not an expert and you should contact the workplace expert or organisation – my wife’s employer outsourced it to a local FP company.
Simon Macks
Residential and Commercial Finance 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.
no advantage insalary sacrificing IP repayments – you cannot then claim them against tax.
Salary sacrifice PPOR costs, vehicle costs, credit card repayments, education etc etc.
Your salary sacrifice rep will advise you.
Simon Macks
Residential and Commercial Finance 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.
your punt = fraud hence the fine.
Normally, a person that repays the FHOG due to a change in plans can reapply when they do buy another PPOR.
I don’t know what the options are in your situation where you were caught defrauding the Commonwealth.
I think you need to talk to the FHOG people – the contact details should be on the letters you have had.
Out of interest can you post the result and also let us know the sort of fine imposed by them for this?
Cheers,
Simon Macks
Residential and Commercial Finance 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.
