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Mortgage Hunter
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September 24, 2003 - 4:34 am
Not true of all lenders mate.
Simon Macks
Mortgage Hunter
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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.
Mortgage Hunter
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September 24, 2003 - 1:44 am
Sounds like all the professional packages offered by the major lenders.
Any broker in here will easily match that.
Methinks clever marketing []
Cheers,
Simon Macks
Mortgage Hunter
[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.
Mortgage Hunter
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September 24, 2003 - 1:00 am
What discount do the brokers give? Most offer a free service anyway so they must be giving a discount on rates or fees?
I am not trying to give you or them a hard time – just professional curiosity!
Cheers,
Simon Macks
Mortgage Hunter
[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.
Mortgage Hunter
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September 23, 2003 - 10:46 pm
Alan,
Build the deposit. I am sure you know this but you need to focus on 5% of the purchase price. This is your goal atm.
I am no expert with housing commission although I did speak to a very helpful girl from the RT office last year for an hour or so about an client I had out there in the same position. Unfortunately she has moved on now. hopefully you will find someone as good.
She was a property investor herself and she thought that the housing comission places were a steal at the valuations they were getting.
I also seem to recall that they would adjust the price downwards if there was outstanding repairs required – be best if you were there to point out every single defect to the valuer! Make it seem a terrible place to live!
I think you can only buy the one you are in. They do sell them to the public occassionally but via auction so you will pay market price.
I emailed you the prices in the surrounding streets for the past 12 months. As I said, take a look at the houses and see which ones closest match yours. This should help give you a feel for the market. Also ask a real estate agent for a market appraisal – even over the phone they will give you an idea of value.
Cheers,
Simon Macks
Mortgage Hunter
[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.
Mortgage Hunter
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Post Count: 3,781
September 23, 2003 - 9:27 pm
Allen,
I have had two clients in Newcastle in the past 12 months who were offered very favourable prices from the Housing Commission to purchase the house they were renting. One was at Elemore Vale and the price was $80K – that was a year ago and we have had much growth since.
The houses are only sold to the tenant for two reasons. It gets rid of an older house whilst also getting rid of a requirement for that house.
I am in New Lambton myself – in fact we are having a bit of a get together tonight at the Blackbutt Hotel with some people from this forum – why don’t you come along?
Lastly, if you email me a street name and suburb I can look up all the sales prices in the area around it in the last 12 months and send that to you. You can then walk around and compare similar houses and get a feel for the value.
You didn’t mention whether you had a deposit saved? This is your biggest challenge. If family can help with a deposit that is great – but you need to have a 6 month savings history for 5% with most lenders so sooner it is trickled into your account the better! If you have at least 10% maybe even 20% then we can usually get around this requirement.
Cheers,
Simon Macks
Mortgage Hunter
[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.
Mortgage Hunter
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September 23, 2003 - 8:48 am
Here in NSW Housing Commission tenants are able to negotiate good discounts on the property they are in.
Is this available to you?
Find out tomorrow and get a rough idea of the price range.
With a small deposit plus the FHOG and that savings ability there might ber an opportunity.
Cheers,
Simon Macks
Mortgage Hunter
[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.
Mortgage Hunter
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September 23, 2003 - 6:59 am
What is the benefit of Advantage Edge? Do they offer a product unavailable elsewhere?
If they are normal brokers then it sounds like clever marketing to have you call them because you work allows access.
Maybe I should do this![]
Cheers
Simon Macks
Mortgage Hunter
[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.
Mortgage Hunter
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September 23, 2003 - 1:51 am
I think a new forum would be ideal.
Beware of all the sharks it will attract though!
Cheers,
Simon Macks
Mortgage Hunter
[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.
Mortgage Hunter
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September 23, 2003 - 1:46 am
Neo,
Nothing wrong with that idea.
If you redraw money for non investment purposes then this portion will need to be split off at tax time as the interest on it wont be deductible.
If you have an offset then use that instead.
Cheers,
Simon Macks
Mortgage Hunter
[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.
Mortgage Hunter
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September 22, 2003 - 12:08 pm
Number one place to keep it is in your PPOR mortgae . Offset account if that PPOR might become an IP down the track.
If no PPOR then offset is OK.
Cheers,
Simon Macks
Mortgage Hunter
[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.
Mortgage Hunter
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September 22, 2003 - 10:32 am
Doogs,
Hit the nail right on the head there my friend!
Cheers,
Simon Macks
Mortgage Hunter
[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.
Mortgage Hunter
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September 22, 2003 - 10:26 am
There is a very real reason your accountant gave you the advice he did.
If you put it in redraw and draw if for any reason other than investment then you are creating a new loan which is not deductable.
It will make things very difficult come tax time.
If there is any chance you might spend $1 of it on a personal item like a car, holiday etc then put it in OFFSET!!!!!
Call me and I will explain it to you.
Cheers,
Simon Macks
Mortgage Hunter
[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.
Mortgage Hunter
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September 22, 2003 - 10:21 am
Renee,
There is no real reason why not. As long as you don’t use it for non investment purposes or you will mess up your interest for your tax return.
If you think you might spend it on personal items then offset is the one.
Cheers,
Simon Macks
Mortgage Hunter
[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.
Mortgage Hunter
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September 22, 2003 - 8:51 am
Well folks I guess there must be a reason. The deposit is good so it must be your income or credit history.
Can you tell us about them or email to me if don’t want to go public.
I need to know what you earn and how you are employed.
Cheers,
Simon Macks
Mortgage Hunter
[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.
Mortgage Hunter
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September 22, 2003 - 6:35 am
That changes it a little. If you can keep both loans below 80% then no LMI payable.
If you have had the townhouse long enough then a reval should unlock some more equity.
Cheers,
Simon Macks
Mortgage Hunter
[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.
Mortgage Hunter
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September 22, 2003 - 5:57 am
Consider putting the money into an offset account if you have that facility.
You can borrow 100% without paying LMI if there is only 80% against the new property. The other 20% can come from your offset or from your townhouse loan.
Cheers,
Simon Macks
Mortgage Hunter
[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.
Mortgage Hunter
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Post Count: 3,781
September 22, 2003 - 1:59 am
Many investors do choose IO. It usually is a matter of personal comfort. Some folks are happy to know the debt is going. They see it as an additional enforced savings program.
Cheers,
Simon Macks
Mortgage Hunter
[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.
Mortgage Hunter
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Join Date: 2003
Post Count: 3,781
September 21, 2003 - 2:40 am
Patricia,
Many banks developed a professional lending package for attractive clients.
These typically had low fees, lower interest and little extras such as free credit cards etc.
Typically one needed a loan size of $150 000 and individual income of $65 000 to qualify.
Most banks have dropped the income requirement.
The ANZ Break Free package I described above is an example.
Cheers,
Simon Macks
Mortgage Hunter
[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.
Mortgage Hunter
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September 21, 2003 - 2:27 am
Patricia,
I didn’t mention GST……..
Simon Macks
Mortgage Hunter
[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.
Mortgage Hunter
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September 21, 2003 - 2:12 am
What I don’t understand is the following: “I would only 100% recommend the 100% option if there was a PPOR debt to be reduced as well”.
Do you mind to explain this a litlle bit more?
No problems. PPOR debt isn’t tax effective as you know. So therefore if a client has a PPOR debt (which you don’t) then I usually recommend they borrow as much as 105% (inc buying costs) for the new property and pay any deposit and ongoing principal payments into the PPOR debt. I prefer to see the PPOR debt reduced to $0 before anything gets paid against the IP debt.
There are some additional minor strategies to adopt should this PPOR be only a step towards the dream home when it will become an IP as well. In this case an offset account will preserve the tax deductability of that debt when it becomes an IP and the accrued savings can be put into the new PPOR.
Confused?
Have a great Sunday afternoon!
Simon Macks
Mortgage Hunter
[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.