Booboo I had a 14% mortgage myself – but don’t forget when making those comparisons that the average loan was a hell of a lot smaller in the 80’s than it is today. And incomes and rents haven’t risen accordingly.

So my 14% on that $50K mortgage (purchase price $52K – Still can’t figure how I got that loan through back then?) was way cheaper than if I was buying that same property today!

Cheers,

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Same here in Newcastle Cecilia. Ours has doubled in the last valuation.

Merry Christmas,

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Noel came up with the idea of paying a loan fortnightly instead of monthly which gave huge savings – premise was 26 fortnights = an extra months payment unnoticed. This was a big step in the 80’s.

His Making Money Made Simple book was my first investing book in 1987 and I went out and bought my first IP immediately after it did.

I will be always thankful to him for this. There are better books out there now but his was the first Australian one that I saw.

Met him a few times and he is a great bloke.

Cheers,

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Terry,

Just to add that that 6 month overlap is for while you are selling the first PPOR. You can’t just overlap it without the sale happening within the 6 months!

Cheers,

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

That would be Cashflow 101. Do a search on it and you should find a heap of info.

Maybe Santa will bring it?

Cheers,

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

The hitch is that he wont be able to use the FHOG and he will also not get any CGT exemption on sale of the property.

There may be issues with the ATO if everything is not at arms length. Ask a taxation professional for advice here.

You will also realise an extra stamp duty payment than if he purchased his own home. This may well be in the order of $10K or so.

There may be other ways you can help him into his first property. It depends what his situation is.

Cheers,

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Redwing,

Thats basically right. But don’t forget they employ a load of experts to make those predictions – some better qualified than you and I. I used to liken it to a casino. Some people walk out winners but the casino stays open because most don’t.

So I normally don’t advise people to fix unless they are the type who derive substantial comfort from the added security that a certain rate brings – and are willing to pay for that privilege!

Another downside is the lack of flexibility fixing brings. Not so difficult for the buy and hold brigade but for those willing to take profits when they appear there could be additional costs in selling.

Having said that there was a period several months back where I pushed fixed rates pretty hard. I was doing three year fixed deals at 5.89% and five years for not much more. We could all see the way rates were headed and I took advantage of a lag period there. I even fixed myself!

Now I am not so keen on them with the three year rate now over 7% and the forecast for the interest rate divided between those who say up and down. Who knows what the future holds.

But basically when you fix you are taking a position against the banks advisors!

Good Luck,

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

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 can refer you to someone in Melbourne who has done some great work for me in the past.

30 000 is a decent sized town so that is good news.

Drop me an email.

Cheers,

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Contact a broker who has experience with these sorts of loans!

A lot will depend on how rural the property is. There is a big difference between say Wagga Wagga and Lightning Ridge!

Without more info I can’t give you any more specific info.

Merry Christmas!

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

atm = at the moment

beers all round sounds good to me.

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.