Forum Replies Created
- Originally posted by wealth4life:
Sorry Simon i disagree with you that the average loan was 80k when interest rates were 17%+ – we had a 240k debt when the rates started going crazy, i don’t know how old you are or what experience you have in going through this type of situation but it was not pleasent for us and our friends.
D
I am wrong because your loan was larger than the national average?
That argument is also fatally flawed logicwise.
Might I direct you to
http://www.aph.gov.au/library/Pubs/rn/2000-01/01RN22.htm
Which shows us that in 1990 the average NEW mortgage was just over $80K. Remembering that there would have been plenty of existing mortgages smaller than this I suggest to you that the average loan of this time was well under $80K.
As for my age – well lets just say I also owned property during this period – but I do still retain my boyish good looks [blush2]
Have a super weekend.
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.
It is a product that starts at 4% and increases over a few years to a higher rate.
The theory is that it grows as rents and valuations do.
I think it is a pure asset lend as well.
I don’t know much more than that.
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.
Fourteen days is no problem for a preapproval – most decent brokers will get one in a day or two.
PM or email me your contact details and I can get someone in Melb to call you tomorrow if you like.
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.
The $220K sounded like a good deal but it may be too late if he has listed it as he will still have to pay the agent a comission regardless. So his original offer is probably looking even less attractive.
Shame you couldn’t take his original offer without needing to complicate it for him – I can certainly see his viewpoint. He may not even be around in 12 months to collect the final payment[blush2]
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 Tizzy:Another way. We couldn’t give our teens / early twenties kids the money to help them get a start in R/E, but, we had equity in the family home. So with that as security and the combined earning capacity of all of us
(Mum Dad and 3 adult kids -2 studying full time) we borrowed to buy land, build and sell on. Works well under a family trust arrangement. And its a great interest in common. Yes I suppose there was a risk re the family home but I’m glad we took it. [suave2]Tizzy,
What you did well to minimise risk was to keep control of the entire project.
Some parents going guarantor end up exposing their home to whatever the child and his/her spouse wish to get up to.
Trust me – you did it right and had little to worry about.
Well done,
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.
You can buy an investment property secured by the home quite easily – assuming sufficient income and a clean credit record.
He should speak to a lender or a broker and get an idea of where he stands exactly and how much he can borrow.
All the best to him and yourself,
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.
Interesting point.
When rates were 17%+ the average loan was about $80K.
So whilst wages have increased somewhat the major difference today is that the average loan in larger cities is approaching $300K. Many people in Sydney have borrowed $500K+.
So a rate rise doesn’t have to be as it was in the late 80s or early 90s to really hurt.
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.
Using their funds to reno a block of units is high risk. They are right to be concerned.
I suggest you borrow a set amount from them and do a single dwelling first. If you prove you can make money then do it again or do it bigger.
But get some miles up before you tackle an entire block with your parents life savings!
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.
They appear to sell you investment properties with all the associated services thrown in – a one stop shop if you like. Have no doubt you will pay for this – either as a fee or built into the purchase price.
There are plenty of companies doing this. If you are new and wish to have your hand held or are willing to pay someone to help because you lack time then these companies can be valuable.
Many investors choose to go it alone at some point.
I am neither endorsing nor criticising this company – I haven’t heard anything about them.
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.
My strategy is to be an expert in my area and buy properties that are well priced.
I would hate to be the “Rich Guy” from Canberra who buys something the locals have left.
But any strategy can work and using a good buyers agent will reduce the risk considerably – for a price.
All the best
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.
What do they do?
Sounds like a pretty generic nondescript name that could cover all sorts of things.
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 suspect it is an American term and you may not find an answer on this Australian forum.
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.
Is it worth building on it?
Then renting or selling for a better profit?
If you hold it can you reasonably expect growth? You need decent growth to make up for the shortfall in rent and tax deductibility I think.
Land is seldom a great investment unless you can resell easily or change it by building or subdividing.
I suspect you need to write down some goals then plan some progress towards them. Asking this question wont help you achieve your goal unless you know what it is.
All the best
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 think your current “feelings” will limit what you can achieve.
How about considering this:
Buy a cheaper unit now. Get an IO loan for 80% of price.
Put all funds into an offset account and “save” a 20% deposit in there for your home purchase.
When you need it – buy the home and keep the unit as an investment.
Many people here start off nervously buying one property then catch the bug and own multiples. The only thing that will stop you is your beliefs.
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.
Plenty of people are suggesting it is now a buyers market.
If you intend holding property for the long term then I suggest that there is no wrong time to buy.
All the best
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.
Actually very few do use a rebate as part of their business model. None I know personally do so.
There are a lot left over from the halycon days of the recent boom. Time should sort out those who are worth keeping I hope.
Good pojnt.
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.
It is a pretty vague goal to determine.
How do I know when I have reached absolute happiness? Everytime I feel happy there seems to be more happiness beckoning!
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.
Quite straightforward and I am surprised your professionals are all over the shop advicewise.
You have 6 years CGT exemption up until you buy another PPOR. If your old one is for sale the periods can even overlap by 6 months.
So when you buy another PPOR you should get a valuation done, on the first one, to “lock in” any growth experienced. This will be valuable if the market remains flat. ie if you sell in 3 years with no further growth it would be sad to average out your PPOR period growth and pay tax on it. Hope that is clear enough…
By all means sell – but not just to avoid a possible CGT liability. I don’t feel this is a good reason and you will miss out big time if we have another boom down the track – as history tells us will be the case.
I hope this helps. Remember I am not a tax professional – but this is the advice I have been given and read many times.
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.
Yeah – refer me the hard ones [blink]
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.
Cars are cheap in NZ because they have less strict safety standards. Second hand Japanese vehicles have flooded the market. These vehicles are not manufactured to Australian standards and wil lrequire some modification to comply as well as duty to be paid.
it isn’t worth the effort.
Sorry to rain on your parade mate.
For cheap flights check http://www.freedomair.com.au if you buy online early enough they are quite cheap – plus they fly into some regional areas not covered by the majors.
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.
