quote:
Who or what is the UCCC?

Hi Kirby,

UCCC stands for the Uniform Consumer Credit Code. It deals with finance predominantly for individuals or strata corporations who obtain the finance for personal domestic or household use, with the term of the finance arrangement being more than 62 days.

Happy investing [][]

Cheers,

Nathan.

Hi Quasi,

As Paul mentioned, this is a requirement! You may want to send out a statement every 3 months, as the UCCC requires one atleast every 6 months. If you send one every 3 months and there is a problem with a statement then it gives you time to correct it within the 6 month period. If you send one only every 6 months there is no room for…[Read more]

Hi Jumbo,

Mortgage insurance is payable on deals where you have 20% or less equity in the deal (aside from a few specialised lenders/ products).

What ANZ would have done is cross collaterilised your two loans. ie both properties are joint secutities for both loans. This escapes you paying LMI on the second loan as the overall equity of the two…[Read more]

Hi Steve,

I would hazard a guess that from the numbers that you have presented that:

1) Inflation is a significant portion of the increase in property prices over the last 20 years.

2) If you bought and held a property in the last 20 years you would be most happy with its performance if it was located in a) Melbourne b) Canberra and c)…[Read more]

quote:
Hi all,

We want to get the ball rolling. We have spoken with accontants who think it is a good idea. We are looking at long term investment. What areas should we look at. Should we buy units or houses ?
Any advise would be great

Hi Rick,

It is hard to answer a question as broad as yours.
What exactly is the ‘it’ that is a good…[Read more]

quote:
Hi just wondering how most of you make the offers on a lot of houses do you go and inspect all of them and then make offers or do you send out a heap and if any come back accepting then inspect the house.

Thanks Rob[8D]

Hi Bob,

I used to make heaps of offers and hope that I got one or two accepted (following the advice of some American…[Read more]

quote:

it is my understanding that once stamp duty is paid on a loan if you have it refinanced you are not liable for stamp duty a second time

Hi the B,

The awnser is yes and no! It all depends on the way your refinance is handled. This is usually in the hands of the solicitors of the new institution. Some of them will ‘transfer’ the…[Read more]

quote:
Everyone talks about refinancing when buying another property.
What is the advantage over refinance as opposed to obtaining a 2nd mortgage? I thought a second mortgage would be better as it does not increase your loan repayments – only obtains additional equity as security for deposit. OR Am I missing something altogether?

Hi Essykay,

To…[Read more]

Hi Geoff,
Unfortunetly no magic formula exists for valuations! I suppose valuers still like to eyeball the changes that have been made to the property, so see how well the kitchen has been done up!
cheers,

Nathan.

Thanks very much for you post Steve, your prompt has given me the awnser I was looking for.[][]

Cheers,

Nathan.

quote:
How is it possible to obtain information on how valuations are determined? I am interested in what valuers determine builds equity in a home. Is there a tick sheet that determines the valuation of a property?

Hi Pynecone,

I talk to a lot of valuers, improvements to kitchens, bathrooms, decks and garages tend to be at the top of the…[Read more]

Quote:
Nathan

how does this affect the Vendors tax position wrt CGT etc etc ??

the Bruce[8D]

Hi Bruce,

In the same way that stamp duty is calculated on the contract price, so would CGT i expect, this may or may not be an issue for the vendor. (Their own structuring motivation level etc) It may also provide an oportunity to hone the…[Read more]

Thanks for that Steve, sounds like a great investment – you would really have to do your reasearch though!![]

Quote:

Anyway, I think my post came across from the wrong angle. It was supposed to be a round about way of saying ‘do the banks care where the 10% deposit goes/comes from?’ ie: if you can negotiate with the vendor to ‘forgive’ or ‘refund’ your 10% deposit will the banks care if you have none of your own money in the deal if it still meets…[Read more]

Hi Ziz,

The ‘all moneys clause’ is a common clause most lending institutions use to secure the debt they have with you. For example, if you have a credit card and house loan with the same institution, and you are delinquent on your credit card repayments and up to date on your home loan payments, the institution can call in all moneys owed to…[Read more]

Hi Bella,

I like to think about using all my resources the best way I can until a better opportunity comes up. One of your stragieies seemed to be paying down your mortgage until it would be positively geared when you rent it out.

Steve uses the 11 second rule as part of selecting properties which are suitable, and give a good return on…[Read more]

Hi Belladonna,
Received the latest edition of insider, and it has inspired me to have a better look at your post.

There have been some great responses so far, but hope my two cents worth can help you out. The fixed vs variable option is an interesting one. I have had a look the rates that are offered by the banks on fixed term facilities, and…[Read more]