Forum Replies Created
Prop16,
Based on this information I can see you comfortable borrowing up to $350 000.
Wise to borrow 100%. Take a 20% deposit from your home and an 80% against the new property. The 100% loan – even more if you borrow for the purchase costs too – will be fully deductable.
However there is no real problem with you choosing to use your savings as well.
I would only 100% recommend the 100% option if there was a PPOR debt to be reduced as well.
I just bought a pos cashflow property for $315 000. No real reason why they have to be cheapies!
All the best,
Simon Macks
Mortgage Hunter
[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.
Kristine,
Check out ANZ Break free package.
You will have all your loans at 5.97% which is a similar rate but the fees will be $275 pa with no application, valuation or monthly fees. This $275 should also be deductable.
Contact them direct, go through your broker or give me an email.
Cheers,
Simon Macks
Mortgage Hunter
[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.
Micheled,
It is there on the website just buried at the bottom somewhere. It is one of those websites where the URL doesn’t change when you change pages so I can’t cut and paste the link to you.
They basically need a signed letter faxed or mailed to them asking for the credit report. This gets around the privacy legislation.
Cheers,
Simon Macks
Mortgage Hunter
[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.
Kristine,
With what you told me you will get it no problems.
What rate are you currently paying with Aussie?
It might be worth thinking of a refinance into a pro package.
Cheers,
Simon Macks
Mortgage Hunter
[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.
When you apply for a loan, and I mean apply not just chat to a bank or a broker, your credit reference will record an enquiry.
This will not be a black mark, but lots of them wont help.
If this worries you just approach a broker or your lender and ask them for advice re your situation. This wont be recorded.
Depending on your exact situation and the rental income from the next property I feel you can lend up to $300 000 comfortably. Perhaps a little more.
Hope this helps.
Simon Macks
Mortgage Hunter
[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.
Sue,
That is a terrible story. I don’t know what to say to you. Sixty days is a very long settlement too.
I have heard similar stories about some of these franchised brokers or MacBrokers as I call them.
I have taken all those points on board and trust that I never put anyone in a situation remotely like that.
Thanks for sharing that with me.
Simon Macks
Mortgage Hunter
[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 do it.
Any broker here can set up an LOC. I do it for free and I am sure all the others do too.
We get paid a commission from the lender so I suspect these guys are double dipping.
Cheers,
Simon Macks
Mortgage Hunter
[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.
Patricia,
You will have deductions from commercial property. I suggest you use a Quantity Surveyor to draw you up a dep[reciation schedule and if the property is reasonable modern it might be quite good.
Remember to record all your expenses and mileage incurred as these will also help reduce the tax bill.
Perhaps a quick visit to your accountant might be in order.
Cheers,
Simon Macks
Mortgage Hunter
[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.
Income is classed as income regardless of which account is goes into. Offset makes no diffeence but will reduce your interest bill – will actually raise your income!
Isn’t the aim of this forum to create cashflow?
Cheers,
Simon Macks
Mortgage Hunter
[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.
Sue,
Can you tell us the about your mortgage broker story? I have a professional interest and I am sure many forumites would appreciate knowing the pitfalls out there.
Cheers,
Simon Macks
Mortgage Hunter
[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.
Mark,
Given your expectations I think you should consider contacting Mel on this forum. I am sure she will give what you need and more. She is in your area as well.
Whichever broker you choose remember that communications goes both ways. The broker needs to know your expectations and what you need in your finance to be able to meet your needs.
Best of luck in your search.
Simon Macks
Mortgage Hunter
[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 borrow against it. Simply draw a 20% deposit from the mortgage and then purchase your next IP with it’s own loan. Do this as often as you can or want.
When you sell the property the bank will take enough from the settlement to payout the loan leaving you with independent lends against the subsequent properties,
Hope this makes sense.
Cheers,
Simon Macks
Mortgage Hunter
[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.
Fixed rates are going up in the next week.
This tells us that the banks don’t believe that the official rate will be coming down in the short term.
No one can really predict whether and by how much the official rate will rise but certainly sentiment seems to be that they are heading up.
If you do want to fix cheaply then get an application in with a free rate lock asap. Even if just for a pre approval.
Cheers,
Simon Macks
Mortgage Hunter
[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.
Maria is spot on. Mortgage Insurers are nearly always the reason why a submitted deal is rejected.
Some lenders have the responsibility for making the LMI decision up to 90%. These guys are quite accepting of nearly all postcodes up to this level.
Find the deal then get an expert like Maria to find the finance!
Simon Macks
Mortgage Hunter
[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 would suggest you get a quote to see what a local builder will charge to build something similar.
It might not be much more and you will have much less financial trouble, lower risk, better warranty and also probably a better home with better prospects for CG.
Something to think about.
Cheers,
Simon Macks
Mortgage Hunter
[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.
Are you asking if buying a property in a hot area for 72% of the market value is a good idea?
It puts you into an excellent position to start purchasing additional IPs – finance wise.
Cheers
Simon Macks
Mortgage Hunter
[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 don’t pay CGT on your home.
Cheers,
Simon Macks
Mortgage Hunter
[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.
Any night but Wed or Thu and I would be there.
How did it go tonight?
Cheers
Simon Macks
Mortgage Hunter
[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.
Provided you have the income to service the debt you can buy it now.
Rule of thumb is to allow 20% equity, so your total portfolio of $130K plus $50K will be $180K. You may have up to $144K debt against these properties.
This may be increased to $171K with the payment of mortgage insurance.
Hope this helps,
Simon Macks
Mortgage Hunter
[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.
A Line Of Credit is similar to a secured credit card. The loan is approved and you are able to draw on it and pay it off as you see fit. Interest rate is a little higher but it does allow a lot of flexibility.
It is not always necessary for an investor to have one in place.
Cheers,
Simon Macks
Mortgage Hunter
[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.
