Forum Replies Created
Hey guys,
I checked a few times with Westpac and from what they have said it is a 100% offset account. So when I open my internet banking it is as follows:
– Westpac Choice (I have been assured this is a 100% offset account and after doing the calculations it does seem that the funds in this account do offset the interest, otherwise my interest only payments would be much higher)
– Flexi First Option Investment Property Loan with RedrawSo basically its a matter of using my offset account money to fund the deposit for another place. And just to clarify the amount I am able to borrow will also be based on my ability to service both loans as a whole? I am just wondering if this is the right way to think about it as I have read in some other posts it is best to split these debts up into different accounts and avoid cross collateral?
Again, thanks for the responses to all my queries!
Hi Richard,
I do have a redraw facility with my Flex First loan, although it also has a 100% offset account as well (where all my money is currently). My plan was to study full time for 1 year and hopefully graduate at the end of 2011. At that point I should have around 40-50k in my offset account ready to go. If I can I would like to buy another place (positively geared if possible) and then move to Japan to teach for a year or so. This means I won’t use the new place as a PPOR, but just as another IP.
Although exactly how to best set up the finance structure and how equity will work (if at all) in this situation is what I am a bit confused about. While in Japan I’d have subsidised or free accommodation so I’d be able to put a significant part of my wage towards paying off my debt.
Any ideas on this plan?
Hi guys,
again thanks for the responses. I don’t really need the 40k in the offset for anything like holidays because I don’t really take them. It’s pretty strange/convenient because the apartment I bought is about 60 metres from where my parents house is. This means because I can stay in my apartment but have very few costs with my parents nearby (laundry, food and even a car).
I think other than the loan I have a HECS debt of about 20k and will be studying full time next year. And my income after tax is about 30k but I also make about 3k or so from doing odd jobs. Pretty much $500 a week goes into the offset account per week and interest only repayments are about $920 (although I hope to hammer this down more so. It was only $848 before interest rate rise)
And the loan product I have is the Flexi First Investment loan.
Please let me know if I’ve missed anything
Hi Richard,
thank you for your response. I think I phrased my first post a little incorrectly. I have an overall oustanding loan of about 180k and have close to 40k in my offset account. My loan is interest only as suggested by many posts on this forum. Also, my loan is with westpac where my repayments are about $900 a month (but I’m putting about 1k extra into the offset account per month).
What are the other considerations I need to make before choosing a course of action? sorry, as I said I’m still fairly new to the property game but am trying to do as much research as I can.
Romeo
Thanks for your reply Scott.
I don’t think the leak is coming from the HWS itself, its just that my dad tried to connect it himself but wasn’t 100% sure on how to do it. I will try to contact Aw Edwards
Thanks for the feedback guys, I've decided that I'll just take on the repairs myself.
And the idea of the exhaust fan is something I haven't thought of. I've got a lot of learning to do and looks like I'll be going to Bunnings warehouse.
Hi Sonya there is no lift. I’m avoiding lifts at the moment from the stories of extra costs if they break down or need fixing. I guess my biggest concern was the issue of heat as I was thinking the top floor would cop most of the heat. And I never thought about the idea of extra privacy so that’s another plus. Thanks for your feedback!
Thanks for the quick response Richard. I will keep those things in mind. Basically it sounds like the only issue may be a little less value if I resell compared to units in the middle and bottom floors.
Hi Kim,
I'm also looking at a similar type of apartment in the Blacktown area. I was going to start a new thread but the information here answered pretty much everything. All the best with your investment!Just out of curiousity, how much more expensive is it to have an apartment with a 1) pool 2) elevator?
And how much more in costs can I expect to pay ongoing for a large complex (30+ units) vs a smaller lot (around 8 units)?Good news!
Thank you for the feedback again guys. Especially Richard taking the time out to reply to my numerous emails. The broker I saw today suggested that I try with CBA and Westpac. In the end things looked better on the Westpac deal. The rate seems good with ongoing costs being $5 a month to maintain the secondary account (the one where the repayments are automatically deducted from). Also a one time fee of $700 for the application of the loan. If I submit the documents he'll have a preapproval for 190K ready in about a day.
Even though I'm casual PAYG he stated that 1 year at the same occupation was all I needed to be considered.
Once again cheers!
What sort of information would be required? sorry if I'm asking too many questions at once. If its easier I can email you?
If its helps I've been at the same place of employment (pharmacy assistant) in the same store for the past 3 years. And I have some decent savings records on hand too (basically all my pay goes into savings, I make money from teaching dance to pay for everyday costs).Thank you for the quick response.
This only full time work condition is killing me at the moment… are there any other options?
I keep running into these hurdles but I'm staying optimistic.
