Forum Replies Created
Hi Bali,
I agree with Steve. There seems to be no need to cross collaterlise your properties.
Regarding your question about some direction, you can do both depending on your loan structure. Using interest only loans and an offset account will allow you to reduce the expense of your non-deductible PPOR expense while still leaving funds available to unertake further investments when something pops up.
You should have a split interest only loan attached to your IP to the maximum LVR so when you do find the right investment property, you can just draw down on equity for deposit and costs and get another 80% LVR loan on the new investment and nothing much else will change. Your non-deductible loan will still be costing you less.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksA reason behind asking to only put down $1 is because the buyer may not have funds available but plenty of equity. If this is explained to the vendor, there is no reason why it should not be accepted.
A deposit bond may stem the problem but it would cost more than $1 (a few hundred actually).
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksHey Bandit,
I am just wondering if you are using an offset facility on your non deductible debt portion. This would certainly help improve your cash flow position if used properly with all your other loans.
Also, are all your loans set as interest only?
Being able to afford to keep going sometimes requires some slight adjustment to your existing portfolio and a change in direction. As you have found out, negative gearing results in your income going backwards. It is good to see you looking at positive investments into the future.
I look forward to hearing from you.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksHi Vanessa,
It is not illegal at all if you structure the ownership properly. If you buy a home in a company or trust name, you do not own it. You can live in it and rent it from the company or trust. The company or trust then repays the mortgage. The lot is deductible but you will have to pay CGT if you ever sell that home.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksHi Danny.
I would certainly not be using redraw on an IP unless I knew every cent of the excess funds would only be used for investment purposes. Regaring redraw, you also need to watch out for redraw fees. These are usually in the vicinity of $30 – $50 each redraw with those lenders who charge.
In my opinion, there is really no need to use a LOC at any time. I can’t think of a single LOC facility that does not charge an annual fee or ongoing monthly fees. Why throw money away when you don’t need to???
The structuring with offset accounts does sound complicated but it is very easy through a mortgage adviser / broker to set it all up and a breeze to maintain. Everything can be automated and accessing funds is a simple matter of making a withdrawal or transferring funds via online banking.
If anyone can think of a time to use a LOC where it is more advantageous than a standard loan, please let me know.
A final point… many LOCs are also subject to annual review. This can become even more costly.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksThey go on about something to do with online surveys and focus groups as well. I would be interested in doing these for many reasons. Everything I have looked at seems to be selling the get rich quick crap though.
Oh well, just an idea. I am looking at a lot of stuff because of this internet cafe idea. Anything to keep bums on seats in the cafe!!!
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksThis link to his Rent To Own Pack might help with info…
…or his Wrap Pack.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksA lot of them will do it with no problems. Some don’t like it. They may charge you a few hundred extra in the application fee to read the trust documents.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksThe problems were in an old version. I have not seen the newer versions because I do not want to be marketed by Peach. Somehow they already dug up my email and regularly send out a newsletter which, while I remember, had an incorrect link to the new software so they sent me another email!
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksIt is not you I have the problem with. It is impartiality of the forum. If you are allowed to market something commercial, why can’t all members? That is what I am getting at.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksIt depends if you want to make money out of them or just pass them on. Search for ‘bird dog’ or ‘spotter’ and you will find a lot of info.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksOriginally posted by ez-rent:Right now however, it takes an investment in time and effort that I receive very little compensation for.
Interesting… You seem to think that everyone else here providing information, tools and documents gets compensated for their efforts helping others. In most cases, it costs money when people ask to be contacted by phone or request a fax, etc.
Your venture is clearly commercial and I object to you being allowed to advertise it in this forum when everyone else is shut down or deleted immediately!
It seems the moderators do not agree or they are asleep.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksI remember when you first started doing it. You could go to the website and download it free without having to fill out forms and receiving marketing from a broker.
I am disappointed in the new structure. If something is free, that means there are no conditions. As far as I am concerned, this is not free software. It is a gift in return for your personal details and allowing Peach Home Loans the opportunity to market you and secure your business.
I guess we will see what happens when I replicate the structure in a few days.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksI would like to know why you are allowed to offer your software on this forum when it is blatant marketing for Peach Home Loans? I do not recall anyone from Peach, including ‘Dr Peach’ himself, spending time providing free advice in this forum.
If it was being offered without a requirement to provide personal details to Peach Home Loans in return for the software, then this would be admirable, but why is it that Peach Home Loans can so blatantly advertise here under the guise of free EZ Rent software??????????
I might post some ads myself in the near future offering free information in return for private details so I can market members of the forum in direct competition with the owners of the forum and other brokers on the site who put a lot of time in helping everyone without any expectations.
Yet another example of one rule for one and another for everyone else.
Personlly, I don’t like the software anyway. The version I initially looked at was full of errors.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksI hope the number all work out for you and you kick a few more goals… Good luck!
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksYou also lose all capital gains tax benefits. This does not bother me at all.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksNat, I would much prefer having no dialogue with you whatsoever. I don’t think a sensible level of discussion can be maintained. I am happy never to address you in any of my posts and I would appreciate the same in return.
Have a nice life.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksYou can do whatever you want regarding offers. This does not mean it will be accepted.
Agents only get paid if they introduce the buyer so if you ask for the contract from them, they will get paid.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksAndre, many banks have no problem lending to a foreigner. LVRs are a bit lower. Serviceability is pretty much the same.
With regards to a foreigner being a ‘classic case’ for a wrap contract, I don’t think so!!! Most of these are done on properties which an overseas investor would never be allowed to purchase.
I would not bother running around for the purchaser. It is highly unlikely they would be able to buy the property anyway.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksJust block each IP address he keeps appearing under. This should stem the problem.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential Links
