I considered refinancing to bankwest (I think) a few years ago, purely because of the frequent flyer points program it was attached to, but after I did my sums the extra interest paid because of the higher interest rate would have bought the same amount of air travel anyway. I would rather have the cash instead of points. Ansett then went broke…[Read more]

For you or for the vendor???

You’ll be about $16,000pa in -ve cashflow, and thats before management, rates etc.

Think carefully…

Pete

Hi Michael,

The general equation for figuring out if a property will add to your servicability or detract from it is this…

Assessed annual rent – Assessed annual interest

(Rent received x 80%) minus (amount borrowed x interest rate+2%)

For example.

If you found a property returning $11,000 pa, you would have an assessed rent of $8,800pa.…[Read more]

Thanks for the encouragement Phil,

Good to know that someone with runs on the board thinks Im on the right track, and thanks for the opportunity to test your book, got your email and will start reading it tonight.

[biggrin]

Pete

Generally you can only borrow about 65% of the pp on these, and then count only 60% of the rent, if you have no cash these will be really tough to buy.

Also as it is an investment only property, FHOG’s doesnt apply, so for a $100k pp, you will need probably 45k in cash, (35k deposit and 10k to close)

Pete

Fortunatley, I really mean that, they got the whole thing first go, and I am now 100%. I put on about 30kg after the op from the steroids I was put on. That day, I won the lottery, in health terms, everything works, no ongoing sideaffects, but as you say, gets the focus real sharp, real quick.

To me, being rich is not a financial goal it is a life goal, something that you cannot attain by owning heaps of houses, it is a deep satisfaction that you what you are doing/ have done is valuable. That may come from the relationships that you have built over the years. It may come from giving to charity, it may come from buying the rainforests…[Read more]

Hi Intrinsic,

Yes a regulated loan is “regulated” by the UCCC, (Uniform Consumer Credit Code). Unregulated refers to loans for Business or Investment purposes.
There is a certain level of protection available to consumers under the UCCC, for regulated loans. If you are borrowing for business or investment purposes, it is assumed that you know…[Read more]

Thanks Julia,

Love the name, BAN TACS

Ps. Been to Beachmere, got a client there…

Hi all,

Another question for the Bird Doggers, do you only find property deals or do you also find wrap clients? or both?

In my profession I come accross potential wrapees, but dont have the ability to wrap them myself at the moment.

Anyone with suggestions on how to turn this into a deal?

[biggrin]

Thanks

Pete

Hello,

I also live in Brissy, and am interested in Wraps, but havnt done any yet. I also have access to potential wrap clients and finance.

PM me.

Pete

Hello,

I also live in Brissy, and am interested in Wraps, but havnt done any yet. I also have access to potential wrap clients and finance.

PM me.

Pete

Hi Julia,

so… If I buy my PPoR, live in it for 2 years, rent it out for 2 years, then sell, having not bought anywhere else, the gain is CGT free, is that right?

or do I need to move back into it for 12 months?

Thanks

Pete

Maybe Yack, but you have completely left out all the closing costs. Remember that the more you borrow (% LVR) the more you pay in closing costs. If you were to borrow 95% on a $250k purchase price, you are up for around 2.5% of the loan amount in LMI, which is about $6k, plus stamp duty on the LMI, plus stamp duty on the purchase (which varies…[Read more]

it is available for owner occ only,
every 1% over the purchase price equates to 10% of the growth, ie borrow 104%, you lose 40% (or keep 60% – depends on how you look at it) its definatly not for everyone, but will suit some borrowers. there is also a 100% loan where you dont forgo any of the growth, but again only for owner occ. interest rate is…[Read more]