Forum Replies Created
Why do you not want to refinance?
Surely that would be easier than the alternative you described?
Cheers,
Simon Macks
Finance Broker
[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.
If I have offended you with my insensitivity then please accept my apology.
I didn’t accuse you of anything nor your broker.
I asked you a question.
Please understand that this is an area of increasing fraud perpetrated by borrowers and encoraged and abetted by brokers. Unfortunately the borrower commits the offence and wil have to live with the results.
As a moderator and a professional I feel I must point this out. Everyone should also be aware that the ATO are now cross checking. People will get burnt.
It wasn’t to make myself look good either – need a plastic surgeon for that [blink]
Can you advise how a LODOC will improve servicability? I am here to learn too.
Cheers,
Simon Macks
Finance Broker
[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.
Generally a LODOC or a NODOC wil have a higher rate than the standard variable. Some lenders have a LODOC method of entry into a normal oan but these sometimes aren’t a true LODOC.
A LODOC will usually lend up to 80%. They require that you certify your income. ie make a legal statement as to what your income is.
A NODOC is similar except they lend 65% and you don’t need to provide any info re income, employment etc.
The company I generally prefer has rates of 6.85% for both but these will rise by 0.25% soon if not already.
These loans have penalties for early discharge so will not suit everyone and may not suit your situation. They are not generally a short term solution.
This is by no means an exhaustive description and I would suggest people get professional advice before making a decision.
All the best,
Simon Macks
Finance Broker
[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.
Consolidating is not always the optimum solution.
It is sometimes a case of pushing a 3 year debt out to a 25 year timeframe resulting with you paying many times the interest you would be normally paying.
One strategy is to focus on the smallest debt and pay the minimum off the others. Pay out the smallest as fast as possible then choose the next smallest with now an extra repayment to go towards it. Continue in this fashion until you are back under control.
Of course along with this is the need to revaluate the behaviour that resulted in this problem in the first plce. I have seen too many peope who consolidated, cut up the credit cards then got a new one and maxed it out too resulting in double the liability!
All the best,
Simon Macks
Finance Broker
[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 crusher:Cathnniv,
I think there may be some confusion here. The main purpose of accessing equity in an existing property is to use it as a deposit on a new property so you don’t have to come up with the cash or have to pay mortgage lenders insurance. If I understand your situation correctly, you should have heaps of equity to get a $200K to $230K property. If the bank will not lend money based on your income then you may have to look at a low doc loan.
I will inform my mortgage broker that you may decide to contact her and then I will email her contact details to you. She will assess your situation in more detail and let you know what is possible and what is not.
God Bless
ToddTood,
How does a LODOC loan improve serviceability? Except perhaps where the self employed individual does not have the tax returns finalised to supposrt his income estimates.
Are you suggesting that Cath commit bank fraud by overstating her income?
I suggest that a broker who would be a party to this would not be one I would consider recommending or using.
There are other ways but it is hard to advise without knowing the full story.
Cheers,
Simon Macks
Finance Broker
[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.
There wont be an ASIC announcement – that is not how ASIC works.
I suggest you call ASIC or Derivex for an answer to your questions.
In the meantime without anything new being discussed I am locking this topic.
Simon Macks
Finance Broker
[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 Mortgage Hunter:
You are either trolling for an argument or are an idiot Hardly fair, simply because Jason is questioning the validity of a legistlation that ultimately could impact on his (and others) investments???.Do you not understand what I wrote Josie? I thought you were a little brighter than you are coming across.
My point was that encouraging people to be under insured and exposed is idiotic. I spend a lot of time editing posts that have dangerous or ill thought out advice in them.
Time to lock this as no useful info is forthcoming.
I hope you have a lovely weekend.
Simon Macks
Finance Broker
[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 a rising market or where the investor can add value or even buy under valued it is this increase in equity that allows them to buy more.
Simon Macks
Finance Broker
[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 Monopoly:I’m sorry but after reading the information of the provided link, repeatedly, I STILL cannot fathom the correlation between the need for Workers Comp insurance and residential property owners cover for tenants!!!
The ONLY section that even HINTS to have some merit is:
Example 3.
A sub-contract paver who happens to be a working director repairs the paving of a rental property owned and rented out by an investor. The investor, in this instance called the principal, would be required to cover the working director because the working director performs the work and the work is for the purpose of the principal’s trade or business – the investor is in the business of maintaining and renting out residential properties.However, as a “CONTRACTOR” this tradie would have to have his/her own insurance cover to safeguard against injury, based on the fact that they are indeed a “contractor” and not an “employee”.
Jason, I agree wholeheartedly, this claim does not hold water, well not on the surface anyway. Thus I too, would like to hear from those who can verify its legitimacy!!!
Cheers,
Jo
I am the first to admit I know nothing about this WA requirement. I hope you are correct Josie as it seems an onerous requirementforthe landlord and a double up of insurances already in place.
One might need to consider what cover you have for a friend or famly member working on your property for you though?
Simon Macks
Finance Broker
[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 JasonBourne:Monopoly got it right, I’m questioning why landlords need it, when it is for the protection of employees.
This question has still not been answered, so it still sounds like BS to me.[V]
Can you change it…yep…just don’t pay it. I can’t believe people would blindly pay this without any explanation of why they were paying it!!!![blink][dazed][dazed]
Anyone care to explain why IP owners would need to take out workers compensation insurance, or shall we dodge the explanation in true Derivex style??[devilish]
cheers,
Jason.Are you suggesting that people not pay an insurance they seem to be legally required to have?
You are either trolling for an argument or are an idiot.
If people want to make a issue of it I suggest there are safer ways to do so than to leave yourself open to losing everything you may own.
Simon Macks
Finance Broker
[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.
Can you change it?
If the answer is no then pay it or don’t own property in this state.
Why waste emotional energy fighting it or complaining? Turn your effort to something a little more productive.
If the answer is yes then change it and everyone will be happy [biggrin]
Simon Macks
Finance Broker
[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.
Sounds like a reaction born of fear. It will rent. Maybe at a lower price.
Keep sight of your original plans and goals.
Remember to learn stuff as you go along and keep cheerful regardless!
Simon Macks
Finance Broker
[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.
Perhaps the rental market is quiet in your area.
I think I would be speaking to some other PMs to see what they think is possible. Check the advertising and also have a look at what is available for similar money.
Remember that to let it for less can often be smarter than having it empty for an extended period.
I hope it all resolves shortly for you.
Kindest regards,
Simon Macks
Finance Broker
[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 JasonBourne:Why would residential IP owners need workers compensation insurance? Sounds like BS to me.
What are you saying Jason? That having an insurance that may be a legal requirement is something you wouldn’t do?
Simon Macks
Finance Broker
[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.
Broome,
Why are they the best and what is techhowse looking for?
Cheers,
Simon Macks
Finance Broker
[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.
All accounts are compound if you let the interest ride in the account.
Simon Macks
Finance Broker
[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 not sure about the deductibility of interest on a primary residence (because it would still be a primary residence vis-a-vis the ATO).
To the best of my knowledge and experience it can be done.
Best to speak to an accountant or the ATO.
Simon Macks
Finance Broker
[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.
Aaah but if you occupy the dwelling then rent it and reoccupy it you can neg gear it for up to 6 years without losing the exemption. As long as you do not own another PPOR.
Simon Macks
Finance Broker
[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 claim tax deductions for the period the propery is available to be rented.
Simon Macks
Finance Broker
[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.
If you occupy it within the first year and stay in it for 6 months minimum then you are entitled.
You will have a CGT liability for the period it was a rental property unless you occupy it after you buy it.
Cheers,
Simon Macks
Finance Broker
[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.
