Forum Replies Created
There is not that much detail to them – just ask me or any broker. Spend your time researching the important stuff. The type of loan is not a war winner. Focus on what and where rather than how. Let your broker earn his mony doing that for you.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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,
this is a problem even when using different lenders if the mortgage Insurer has sen the application before. Thats why it is good to have LODOCS with both insurers on your panel.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
Originally posted by mathewc73:Dont want to put a dampner on this, but the way I understand it the credit card is not the vehicle to save the money. It just defers 1 month of interest in the credit card balance.
Eg if you spend:
Jan 1000
Feb 1000
Mar 1000You could pay directly from your LOC, or put on the card.
If on the card, you LOC will feel it something like:
Jan’s 1000 in Feb
Feb’s 1000 in Mar
Mar’s 1000 in Apr.So you have not really saved much (IR = say $1000 at 7%pa divide by 12). However you have increased the risk of paying a rediculously high IR on the card if you miss the payment due date.
I hope this makes sense!
MatMatt what you have missed is the effect of keeping every spare cent in the LOC and just transferring your monthly expenses from the LOC to the credit card.
You cannot hand the LOC to the guy at Coles and buy the weeks groceries or arrange to have your electricity bill come out of it. A credit card lets you do this, gives you interest freee period and points towards whatever you choose to buy.
The major effect on the LOC is not the deferring of some interest but the accumulation of your savings in it.
If over the year you can save $20K then this cuts the daily interest on the LOC considerably. No point being paid a taxable 6% in an online acount when you can save 7.5% on your LOC tax free.
Don’t fight it – this really does work and is ideal for the family who have bought their dream home and wants to pay it off ASAP and not buy IPs.
There are other strategies out there. Perhaps accumulating 3 IPs in 5 years and then using the growth to kill the PPOR loan is one that is faster and less painful then a strict budget but only if you pick a growth market!
The main thing is to think about it and learn what is possible.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
Originally posted by Zorge:I have an IDEA
Lets organise a Credit Card borrowing club.
1. Club will have 10 credit cards 20 000 each200 000 all together.
A person can borrow this money for 55 days – interest free period and return them back at the end of the period. Club will take comission of 30-50% of saved money. [biggrin][biggrin][biggrin][biggrin][biggrin][biggrin]Wont work.
No credit cards will let you transfer cash on 55 interest free. Interest will be charged from day one and will be higher than your home loan rate.
The credit cards make money from the Merchant fees which is why they give the 55 day interest free – after this time they make money from you.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
Me too – I am looking for my next buy atm in that area.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
Originally posted by lyndon_g:Hi Shrimpo,
If you were to receive your first home owners grant, you need to live in your home for 6 months, within the first 12 months of owning the home. there are further details at http://www.firsthome.gov.au/
Hope this helps.
Cheers
LyndonAlmost – just to explain it a bit tighter is that the 6 months residency needs to start within the first 12 months. ie you can buy in Jan and move in the following December through to June and still get to keep the FHOG.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
Originally posted by DraconisV:Ah i get it now. So my income will be working full time to reduce my interest that i pay, while i use the banks money to fund my lifestyle(though i will have to keep to strict spending regimes as that credit can become bad if it is not paid off).
This seems like common sense, why is no one i know doing it. Hmm, they might just not like talking about their debt and instead chat about their ultra-depreciative vehicle they have sitting in the front yard(dollars rotting in front of your eyes).It does take a certain degree of organisation. To turbo charge it you need to have a strict budget and lifestyle. This is not the choice of most people I suspect, although I do not know your friends!
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
In NSW lease packages can be bought at the Newsagents for under $10. They include a booklet for the tenant on their rights and responsibilities too.
Not sure if the other states are the same but worth checking.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
Originally posted by DraconisV:hmm, so this is how I see it.
You grab a credit card and max it out by transferring the money to an 100% offset account, reducing your monthly repayments but also remembering to take that money back when you need to(free-days expire).
I feel I am on the wrong track to you guys.Christopher.
Not quite.
You have all your incoming funds go into your PPOR mortgage. Rent, dividends, pay etc.
Use a 55 day interest free credit card for everything.
Each month (or 55th day for the well organised) pay out the credit card from the home loan.
Theory is that every cent you have reduces your daily interest bill and hence the life of the loan.
Package this up with some budgeting tips and you have a Mortgage reduction company able to fleece people for thousands.
It does work but it isn’t worth spending money on when you or a broker can organise it for free.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
Not a market where valuers will go out on a limb and revalue significantly higher within 12 months unless there is a concrete reason – ie new building etc.
Might be easier to refinance with a lender with a more flexible valuation approach and claim the LMI back after the loan is redone.
Not worth it if the costs outweigh the refund and the rate is any higher.
LMI refunds are possible but not common. many bankers will tell you it cannot be done but only because it is rare and many have no experience of it. If they baulk then invoke the name of the Banking Ombudsman to get them moving [biggrin]
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
The cheapest way to sell is the way that gets you the best price in the timeframe you need.
You can sell yourself for no fee and advertising costs. You may sell it immediately or it may spend ages with a sign out the front.
For the 8% the agent may well get you a price from his clients that you may not get on your own.
What rent will you expect to pay for the place if sold? What is the land content. What else is on the market in the area?
$40K does seem a cheap property but if the rent is low and rates are high it may be a terrible investment to make.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
In NSW Primary and High Schools have Zones. If you live in the zone then they must take your childeren. If you live out of zone you can try for a vacant slot.
Sought after schools tend to be in areas where property holds value well. I would certainly check out the local school if buying 3-4 bedroom family homes.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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 had a quote for floor tiling once that would have made a dentist blush!
I went to Bunnnings and the guy showed me what to do. Armed with all the gear, a mate and a carton of beer we did a fantastic job.
Had trouble getting decent cutting done so I left all the bits that needed smaller pieces. I marked the cuts and took them to a tile place who cut them for me for about $20.
Was an IP that didn’t need a spectacular job,
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
Mate,
Get on the phone and call some lenders inc banks and credit unions. Aim for a decent personal loan.
After you get the rate under control you can start cleaning up the CRA.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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 right – no way to double dip on the same property.
If the property is in two titles and you buy one each and you are not defacto or married then it is treated as two seperate transactions – ie you buy each side of a duplex say.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
Originally posted by lstreet:Who would be a good financier to go to?????
Woul they still give me a loan to lower the interest rate if i have a bad credit?????
Regards
lstreet
Depends on how bad it all is – why don’t you ring a few banks and see if they will take it on. I don’t work in the personal loan area so cannot be of much help.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
Get a personal loan for the Hire Purchase loan or even both.
You will pay less than half the 24% interest rate.
Keep paying it back at the current rate.
What is your goal? If it is to buy a property then let me suggest something unusual.
Pay the minimum off the personal loan and start saving a deposit.
You will not be able to get a decent home loan with zero debt and zero deposit. Most decent home loans want to see that you have established a savings pattern. Start this now in an INGDirect account or the like.
Depending on the figures, you may well be able to afford a rental property and the current debt repayments together.
Whether or not this is the right move in this current climate is anyone’s guess
[biggrin]
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
Originally posted by Josh-Prestigeloans:To better assist, can you please advise which state you are in?
every FHBG differs from every state.
and also listen to Terry
Regards
Joshua McEwen
Finance Broker – WAhttp://www.prestigeloans.com.au
Brokers Lic 1297
Licensee Brett ChristieWhat do you think are the most significant differences between states Josh? Esp the differences that might affect this example.
I see it all based upon the same legislation.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
In Australia the law requires the lender to achieve a fair market price for a mortgage foreclosure.
Selling at a well advertised auction is the simplest way to acheive this and is the usual method of sale.
All those theories on courthouse step auctions and other ways of getting bargains through foreclosures are not applicable here.
Thank goodness.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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’m with Scott. They hear of an extreme example and make a story suggesting it is the norm.
Media has so much influence on the markets that they should be more responsible – we all saw how the lifestyle shows about property kept the boom running and running. Now they are doing the opposite and panic mongering.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
