Hi grizzly,

Sounds similar to the type of facility offered in Hart’s Case (check out the post under the same name). I would also watch out for possible two teired marketing (why do they see properties in Brisbane?). Did you contact them of have they direct marketed you? How do they choose an investment property for you, and can you do just as…[Read more]

Hi Guys,

One thing to keep in mind when looking at an AAPR calculation is that it does not take into account fees that may or may not occur during the life of the loan. An example would be two idential loans, one with fees for redraw and one fee free. Both would have the same AAPR.

Also the AAPR caluclation does not take into account the…[Read more]

An even better story would be the applicants deciding to give him some of the 600 dollar rebate to the first broker for doing alot of the work! Or bought him a bottle of Champagne atleast. Then everyone wins!

[][][]

Cheers,

Nathan

Hi Guys,

Not sure where I am going wrong, but I get a different answer:

11 secs

rent return 160+ 170 = 330
sight fees * 2 = 200

rent less sight fees /2 = 65 * 1000
=
$65000

[?][?][?]

Cheers, []

Nathan

Hi Walkernick,

The problem you are encountering is callled a third party mortgage. A few years ago this was fairly common practice, but in more recent times, institutions have moved away from them.

If you are responsible for the loan repayments institutions also want to see you have your fair share of the ownership of the property.

The…[Read more]

Hi Roofarmer,

You got a good deal. Westpac were very compeditive there for a while, but to get the highest reduction in the variable rate the now ask for your combined borrowings to be 500K or over. There are still pro-packs out there with a curent variable rate of 5.97 around though. It seems to go in cycles.

Cheers, and happy borrowing!

Nathan

Hi Susie,

Your mortgage broker should be able to give you a clear answer on the specifics of why you were told no. This is important if you are still seeking finance. If your husband works for your Dad he should be able to provide legitimate documentation to prove his income level (payslips) and possibly group certificates to show duration of…[Read more]

Hi Guys,

Thanks for your posts. The common sense and clarity of the next day has kicked in. I hope to be in the position of providing Win Win deals for a while to come yet, so I will stick with my 15,000 plus population rule.

I wasn’t counting on any capital gain from the investment property, but the overflow of rental demand, from the big…[Read more]

Hi Nathan,

You may want to have a look at the variable options package from Heritage. It has direct salary crediting and redraw (fees involved), with a current variable interest rate of 5.9%, and an AAPR of under 6%. It is a more basic set up than the pro packs mentioned, but is very compeditive.

Sooshie’s post has some great advice.

Hope you…[Read more]

Hi AD,

Welcome home. It is good to be home! I have just returned from a property inspection on a positive cash flow property. I am looking to wrap it but the location is in a small town (about 500 people) that is 5 mins away from a larger town 15,000 people odd. The rental vacancy is low in the large town and hence demand is spreading…[Read more]

Hi David,

The quick and easy answer is that on a finance application the current market value of your assets is the only relevant one.

Cheers, and happy investing

Nathan[]

Hi David,

My thoughts would be that the asset is still yours until the last payment is made on the wrapped property. So on paper the LVR calculation would be exactly the same as if it was a buy and hold property.

Obviously though, the wrappees have the rights to the benefit of the increased equity, which i am sure that they are happy about (and…[Read more]

Hi Essykay,

What sort of property investment strategy are you interested in, and which part of Australia? If you can drop me an email at ashgrove@bigpond.net.au, I may be able to throw you a few names.

Cheers and happy investing,

Nathan.[]

Hi Essykay,

A few thoughts:

Why not pay somone to do the leg work for you to find properties; or maybe a money partner/ investor with someone who is active over here.

That way you can leverage you o/s income until it is worthwhile comming back home.

Cheers and happy investing,

Nathan.[]

Hi Nathan,

It looks like a professional pack that the mortgage broker offered you. The discount on the interest rate (I am guessing .5% off the standard variable rate) isn’t too bad, but is not the most compeditive on the market. To advise you further can you tell us the total loan size involved?
This will determine what packages you qualify…[Read more]

Less than three weeks away! Should be interesting!! Who is tipping a victory for the taxpayer??

thanks for the update!!!

Cheers,

Nathan

Hi,

Checkout the wraps and vendor finance links on the home page of this sight. Then do a search on the forum for both of these terms. There is a wealth of knowlege available.

There is also a vendor finance association website which may be of help http://www.financewrapsasn.au.

Last but definetely not least check out Sooshie’s post ‘useful links’.…[Read more]

Hi gazza,

Most people on this forum are looking for ways to become financially independent through positive cashflow properties. ie after the expenses are paid on your investment property the property is putting money back into your pocket.

I appreciate the research that has been done in selecting this investment, but with negative geared…[Read more]

Hi Arnaldo,

I always like to inspect properties myself. Not only to see the property itself, but also the location, neighbourhood, and get a feel for the area. I also like to have a chat to the neighbours if possible, and the existing tennant. It is amazing what they will tell you sometimes!

But if I had found a property that met my…[Read more]

Hi Robert,

At this stage of the game (a few days before settlment) you will find that the contract has become an unconditional contract. I would be talking to your solicitor straight away to explain the situation. Not settling (or buying the property as you put it would leave you open to losing your deposit + being sued by the vendor. You may…[Read more]