michaelandre70 wrote:
good bargain from $700  to only $18.are the lease fees always a percentage of the rent or are there companies who charges a fixed amount no matter what the rent is?

The $700 represented one weeks rent.You wouldn't believe it,but after all this the tenants decided to move out.All worked out well as we had 25 groups through…[Read more]

Good news!The agency has agreed to waive the weeks rent fee for the renewal and just charge $18- for lease prep.I am glad they responded to my concerns

Its $700,thats why I am questioning value for money when it takes very little work to renew a lease

Scott No Mates wrote:
yes. Some DO charge as it is 'over & above' collecting rent , administration of maintenance & paying outgoings. There is a negotiation & lease preparation as well.

Limited Recourse wrote:
[Sounds like you've done well.One question is- do you think that paying off as much of the priciple early on (or any time) cost you money in the big picture?. I say this because this money can be used as a deposit for an additional property.30% LVR's seems very consevative and a very low risk tolerance.I was told that a…[Read more]

Limited Recourse wrote:
Hi; We just capitalised our interest in advace for 12 months 100K + for one property. But we also are cross collateralised and also have properties in our SMSF of which we have paid out with good cash flow so the bank is happy to accomodate us.I would also say that the days of securitised loans are over and if you do not…[Read more]

P.S I forgot to mention I was with Wizard as well.I got out as soon as possible as they were'nt competative. Uncompetative lenders need to lose business as it helps everyone.

I would definately refinance if you can.As you are variable you can change lenders without a payout. The cost of selling and rebuying is huge,especially if you like the property and it is doing well.Ita a no brainer for me

I can't work out why you cant buy more.I have 4 IP's worth around 3 mil (loans 2.3) and am a bus driver.We were earning around 150k for a year or two with my wife but mostly under 100k combined for most of the last 5-10 years.You may need to see a better mortgage broker as this seems very strange. I would love to have your income as I know I…[Read more]

I garentee that you will look back in 10 years and be very glad.Especially when you look at your friends who will probably waste their money until they are around 30 and then wish they had bought earlier.With a joint venture-just make sure that you have every situation covered as peoples circumstances change e.g marriage,death,financial…[Read more]

I wonder if  'capatilizing interest' is viewed as investment or consumer spending by the banks. Up to this point,I have only used my LOC for paying shortfalls on mortgage payments.I prefer to do this rather use my wage money.I know this is only good if property prices increase.

Thanks for your in depth answer 'euro73'.I want banks to be responsible with their lending as that protects my property values as it lessens the chance of a bubble through less defaults,but I also hope that restrictions on what I can spend my equity on,loosen a little.I would hate to have to sell a property to access the equity to be able to use…[Read more]

Thanks.It would be the scenerio that you mentioned i.e borrowing during the construction for progress payments. I wonder if this is a common form of finacing a new build? (borrow on the future value).

number 8 wrote:

Benjamin Csikos wrote:
Anyone can live off equity right now if they really wanted to.  It's all relative to what level of lifestyle you wanted. Move to india. They live on 500 bucks a year over there. …I'm just sayin'.

I live off $500 a year in Australia, and there is nothing wrong with my lifestyle………. join me on a…[Read more]

Hi everyone.I am the origonal poster of this topic question and have been watching with interest all the different opinions.An update for me as I have experienced things is-its definately harder to borrow money and tap into equity. I even had banks wanting me to sign documents stating exactly what "investment'  purposes I was going to use my LOC…[Read more]

Terryw wrote:
Lenders would not like to hear that you will be borrowing to pay interest. They probably wouldn't like to hear you will be using the money for personal use either – such as a holiday etc. Once you spend it it is gone. Whereas if you were to buy shares you would be increasing your net worth.

I wonder if they would think this about…[Read more]

I noticed that when I applied for a LOC the other day,they asked what the funds were going to be used for.They also wanted me to sign a peice of paper to state it was going to be used for investment purposes..I wonder if they would allow ANY of the LOC to be used for personal use and also whether they consider capatilising interest as 'investment…[Read more]

euro73 wrote:
shanematt, you're going to have a really tough time getting any lender to let you do this anymore. Cash Out is pretty heavily policed these days. The LOC you have in place is fine- you got that set up in the past where cash out wasnt scrutinised so closely, but when your LOC hits its limit (and it will eventually) and you go…[Read more]

number 8 wrote:
It is all about the strategy, Terryw,  I like that you are thinking, but, Taking money out with the intention of margin loans has a large element of risk : Margin loan interest rate of 8%, not likely and it will only get worse with the years to come….. A drop in the stock market like the GFC – do you sell or sit and wait only…[Read more]

I like your train of thought. I hope the 'Henry tax review' doesn't recommend any messing around with tax deductability in regards to property or shares.Having a large loan of non deductable debt (after years of using LOC for living expenses) is a valid concern. This means that the size of your LOC must be substantial enough to withstand this…[Read more]