Forum Replies Created
Let me tell you what they will do for your $400.
They will write a plan as a result of putting your figures into their software.
They will then advise you to refinance into a LOC and direct all income into it. Live off your credit card as frugally as possible and sweep funds from the LOC onto the card every month before the interest free period is up.
They will make a commission from this loan and an ongoing monthly fee. More than likely they will also charge you an additional $3000 or so to cover their costs to arrange this and monitor it. Clearly their comissions from the lender aren’t enough to cover their advertising and cold calling campaigns.
A bit cynical? I don’t know the Geyer Group but have seen many mortgage minimisation companies and in my opinion they are the bottom feeders in our industry.
There – I just saved you between $400 and $3400. Have a great New Year [biggrin]
By the way – any of the brokers here or most in general can give you this advice for free and chances are you will not even need to refinance.
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.
You will find it a truism that high returns and low risk rarely go hand in hand.
Obviously they cannot get the funds cheaper – so ask yourself why? Banks are fighting to give money away to quality borrowers.
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.
Originally posted by mkc:Think l have an idea – all feedback welcome .
What about buying an industrial building , they sell very cheap but they rent out for top dollar – l think !!!!
Atleast my brother owns a factory [ just a big shed really ] in Melbourne and said he can get $700 pw for it . He only paid around $ 250 . Seems like a pretty good margin to me .
Anyone got any pros and cons to this idea ?
Cheers
Mkc.Can be a terrific investment but it is different to residential investments.
Main diff are:
Can not borrow as much LVR typically 70%
Rate is higher
CG is different and usually based on rent.
Vacancies can be longer
Leases are longer
Bottom line is that you need a bigger deposit. Not the 5% min as with residential property!
I suggest you do some searches on commercial property and see what you come up with. Talk to your brother – he obviously knows more than most people!
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 stand corrected.
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 a lease kit from a newsagent for about $7. It has everything you need in it.
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.
Alistair is right as always. But there are a few little strategies one can employ to get the best of both worlds.
If the property is tenanted then you can allow that tenancy to finish. The bank will take the rent into account. But if you then change your mind and move in within the first 12 months then it is now a home and you can apply for the FHOG directly. You need to remain there for at least 6 months. The bank has no interest in your moving in post settlement.
If you have a “friend” stay with you and chip in some money for electricity and water then this isn’t considered renting. You will not have to apportion CG and pay tax on a proportion of it. However a lender will not accept this for serviceability purposes. Either the whole place is leased or it isn’t although I have had some lenders waive this requirement but cannot guarantee it in the future
As Alistair suggests you should speak to an accountant. These are just general ideas and certainly not advice for 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.
Well you are doing the right thing in looking for a new accountant.
There are also some great books you can read as well as this forum.
There are also investing groups in Melb that you can join. They are generally like minded individuals sharing info. Don’t go to any run by property marketing groups as they are onbviously just trying to sell you stuff – and usually stuff that cannot sell itself!
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 best way is to ask friends and family for a referral to someone they trusted and were impressed with. There are some cowboys in this industry and others with little real knowledge of the industry.
If you have trouble I can suggest one in your area that I have known for a long time.
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 know both MY and PA and would be happy to recoomend them to my clients unreservedly. They both know their biz back to front and I have no doubt their clients are very satisfied with the results and the fees charged.
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.
Susan,
These properties appeal to the inexperienced because the numbers are good.
In general I would advise caution. APerry has some great points however the key is resale. You will have to sell to another investor and generally growth on these isn’t good.
Whereas a unit or house can be sold to the homeowner as well and demand is always solid.
I suggest you stick to the tried and proven residential market before branching into something new.
Sorry to be a wet blanket.
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.
Focus your research on the long term prospects for population growth in the town. This is what will drive prices up.
Also find out about industry and the rental demand.
When you have done enough research your answer will be clear.
But basically try to reason why rents are high in relation to property prices. Is all about supply and demand.
Sorry to be cryptic but there is no right or wrong answer. Just what is right and wrong for 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.
Originally posted by ozsparky200319117:Just another recommendation for Richard he has performed very large miracles for us over the last few months!
Sparky
You can’t ask for better 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.
Why don’t you talk to Michael Yardney on this forum. They have a Melbourne PM service and I hear it is very good. I am sure that, if he doesn’t cover your area, he will be able to suggest someone.
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.
You can access the equity without selling.
My regret over an investing life is that I have sold properties.
If I had never sold I would be better off now and quite significantly so.
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.
Hernus,
What she has told you is all true enough but I question the need to spend $500K. You could do the same with a cheaper home and buy the IP’s sooner.
You can buy an IP and not lose everything. Whilst you will lose the SD exemption the FHOG will still be available when you do buy a home.
If you use ANZ then I recommend the Break Free product. But you can get the same deal through a broker at the same cost with the added comfort of knowing he has compared many loans to the ANZ one for you first.
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 amerc79:Probably the best in Australia I feel would be Allan Faint from Wizard in Tasmania. Very good.
I am sure that Allan is a wizard chap (pardon the pun) but as a Wizard franchisee/employee/agent I think you will find he is not a broker and can only suggest solutions from the Wizard range of product.
You will find both Rolf and Richard outstanding at what they can do for you.
Cheers all,
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.
Rolf is probably the second best Mortgage Broker I know. You cannot go wrong with him. [biggrin]
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 wouldn’t be surprised. Other than my more successful investor clients I know very few people who have written goals.
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.
Well here’s a thing. The commercial lending market has so many variables that quoting a rate is difficult. If you go to 80%+ then 8-9% is typical. Higher LVR is a higher rate again.
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 donaldx:Originally posted by Terryw:
eg. If someone were to use a LOC on an investment, and then have their wage deposited in to the LOC account, the ATO would class this as a repayment. If they took money out to buy food, then the interest on this would not be claimable as it would be new borrowings for domestic purposes. Over time this could lead to their deductible portion of the LOC rapdily reduce, while the non-deductible portion increases.Thanks Terry. So if I understand correctly, the problem occurs when one use one LOC account for mixed investment and personal use. On the other hand, if all transactions are related to investment, it would not cause such problems and therefore it’s clearer for tax purpose.
<br><br>
In my case, the LOC is on my own house. I draw down the account to, say, pay deposit and other fees to my initial purchase, and deposit the unused amount such as overpayment of council rate allowance. I also intend to deposit GST refund into the same account. I was told (this is my first development project so I’m learning while I go) this is ok. Will those deposits be seen as repayment, i.e., regardless where the source of the deposit is?
<br><br>Originally posted by Terryw:However, if a offset account was used, interest saved would be the same, but since its a separate account to the loan, there would be no new borrowings when money is withdrawn, and therefore, no problems in claiming interest. Certainly less messy at tax time.So one is effectively claiming the LOSS of interest earned, rather than the interest charged to the borrowing? Is this just a difference in terminology, but is in fact treated the same for tax purpose?
Thanks,
DonWhat happens if you upgrade your home and decide to keep the old one as an IP?
You may not plan to but I see people get into this mess a lot.
I would strongly advise one consider offset rather than LOC in almost all cases.
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.
