Forum Replies Created
Do you know something that you would like to share???
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksJohn, the problem with just securing a deal in some States is that ‘subject to finance’ clauses are not standard. I always write them in where required.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksI don’t think the equitable interest rule applies to all States. Does anyone know the answer to this for sure?
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksThere is low doc at 6.76% for 80% LVR and slightly lower for 60% LVR if you borrow more than 250k.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksWhich CBD? Hopefully not Sydney… there are plenty vacant!
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksIn defence of agents, if they waited for everyone who said they will get back to them when finance is approved, they would never sell anything. Why did you not just put in an offer subject to finance approval?
As for the agent not telling you who bought the unit, I would be disappointed if she did. It is a breach of the Privacy Act to divulge this information.
If I was her, I would not have told the vendors about your interest either. Without a firm offer, your interest may never amount to anything. When buying property, if it is not in writing, it is nothing!
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksOriginally posted by Dazzling:My Banker is very prompt and attentive, fantastic on the small details on the loans and is able to swing me better rates than what any broker can do.
Why don’t you test us and tell us the lender and interest rate. Anyone can offer a great rate when your lending is substantial and low risk.
As everyone knows, the most stressful thing with brokers and banks is getting the various people you talk to up to speed with your particular details. Rather than a 2 minute convo, you end up going thru the painful “What’s your name, address and phone no.”You only need to do this once unless you keep changing.
Each to their own.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksThey used to have this and also allow images to be placed in posts before they took them away because I used them and, as usual, people complained. Hopefully, they will come back. I would much prefer some colour in my life than boring black text all the time.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksI have done various calculated scenarios. It only works with large equity positions and low LVRs unless the funds are for investment. You won’t live long if you ‘live off equity’.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksDon’t worry about a bank relationship. The market is too competitive and you will find yourself moving around a lot as they beat each other’s products.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksWell, one would assume it is at settlement seeing it is a tax on the sale price. This may change during the term of a wrap if the wrappee does not buy sooner rather than later.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksWatch out for that Simon bloke. I think he took a bullet or two to the head. He is a bit loopy!!!!
)))PS: Give us a cuddle!!!
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksThe idea behind putting the money in the offset is to offer a good return on this money. If investment is intended, the idea is to obtain another interest only loan against the available equity in the property and use that. The cash would still be sitting in offset for a rainy day.
Also, leaving it in your offset would mean your deductions can be increased if you change your PPOR. Unless you can get a return better than the tax free benefit of leaving the funds in your offset account, I would put it there.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksClick on ‘search’ in the ‘forum boards’ menu at the top left of the screen and type in “bird dog” or “spotter”. You will find a lot of information.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksOptions are certainly not common and many vendors are unsophisticated investors who will not want to know about them. You will also need to consider being licensed in some States to onsell real estate if it is not your own.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksSounds familiar!
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential Linkscute, why do you not contact one of the many mortgage brokers here and give them your figures so they can advise you properly. Everything you are being told is not worth anything without the figures. You might need a low doc or you might not. Who can tell without the numbers???
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksOriginally posted by Ibuycashflow:Rob, the example we are discussing specified 10% growth and that is all I am explaining.
The question put to you had changed to tougher times and I found your “I am good and pick investments that will continue to grow at sustainable levels” response as inadequate.
In reality you would not draw down anything on negative growth, by the same token, when you have those peak years with say 50% growth you should only draw down what you need to live – the balance being rainy day stuff.And how are you supposed to know what to save for a rainy day? What if it was negative straight away because you made a mistake or got ripped off (eg: bought through The Investors Club)?
What you have accumulated from your early years of growth. If you haven’t had those years then you are not ready to use this strategy for any length of time.But this ‘strategy’ is your plan. You have nothing else to live on and no equity to draw down. What do you do?
Then perhaps if one doesn’t understand how to spot value in a property and how to add value to a property then this game is not for them and they should persue another course towards retirementThere is that response again. Some people make mistakes. This ‘strategy’ does not allow for any error whatsoever. You need to invest with the equity, not live off it!
At this stage you would have to sell part of your portfolio ($310k) to eliminate the debt and interest bill. This would then leave you with the original $2.0m to start again.How do you think you can sell only the growth you obtained? You have to sell the property or properties that that growth is linked to. If you are lucky to still be left with 2M worth of property, you would still have your initial debt and less property to utilise. Your options are getting tighter.
given different interest rates and growth rates then different amounts of capital and different configurations of the strategy maybe required.You can’t say this ‘strategy’ works if you use this rate and that rate. Things move and you have no control over them. To remedy an unexpected problem using this ‘strategy’ can result in disaster. There are many more ‘cons’ than ‘pros’.
Why is everyone assuming you can just keep borrowing 50% of capital growth when you have a negative rental income position and no job while you still have substantial debts on your properties???
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksIf you purchase before the US Dollar increases, your purchase price will be less and rental return will be greater in Australian dollars so, if it is positively geared, your net position will be better (if you transfer funds to AUS). This also works in reverse. Transferring funds also costs money.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksThink of the bright side chris…
If it keeps dropping in value and the rent stays the same, it may become positive cashflow!!!!!
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential Links
)))
