JAMES TANNER wrote:
I am not going anywhere!

Well if i worked and lived in Bali…i def won't be going anyway as well

…oh i miss my Bali holiday …

1. Change your loan to I/O …..why would you want to pay down the loan and then ACCESS THE equity back up in 3-4  years?? might as well have access to the equity now and not pay down the loan…and STILL access any equity increase in 3-4 years time.

2. ^ Cash is king…equity is worthless if it can't be converted to cash, or in this case…[Read more]

If you pay down the LOC to a balance of $0 some banks will close this out….so your best to apply for a standard loan + get an offset account…

smartcube wrote:
thanks all.really appreciated.
so does this mean that its smart to tale 90% loan and use the funds in offset account this will reduce the interest paid and iam sure will change this into ip in year or 2 so i can claim the LMI on tax?

Ta,
Smartcube

Yes in majority of cases. Especially if your thinking of buying your PPOR in…[Read more]

Hi Smartcube.

As Jamie mentioned it does depend on your risk tolerance and future goal, so planning is key and knowing what each "purchase" would do to your cash flow and savings is helpful. 

Really need to know your personal situation to comment but giving you a general idea…

Say you did use a 20% deposit – on an $540,000 purchase the outlay…[Read more]

The equation does exist, but really need to look at other factors as well….as standard it may sound – it does depend on the area your investing.

Ie for example: A older style 2 bedroom unit in Westmead ( Sydney) rents for $400pw — it would sell for average $450,000  — the gross return is 5.2%
( years rent/ purchase price )

Now lets say we…[Read more]

"fair purchase price" doesn't always go by rental return/yield, only works for certain areas and property type.
There's a lot more to "fair purchase price" than JUST the rental return..

What are you actually looking for ?? a number/purchase price where you can break even with your rent??

Option If your overall financial strength works out and your eligible  …Buy property at 90% LVR or more. Keep rest of the cash in offset to offset the interest till it's repayable 

– This will limit how much you borrow from your frd…esp given your frd will start to charge you interest later on
– Loan is a 30 years loan at standard rate
-…[Read more]

Find out who the valuer was for your Hertiage deal; than choose a diff valuer – 
But as Jamie correctly mentioned, if it's a small town it's likely there would be probably only be 1-2 valuer servicing that area….but it doesn't hurt to try ( might cost you in terms of the valuation fee) 

Im with Connective. They charge a flat fee of $748 per month + ~ $120 per broker per month regardless of volume/deal and you take 100% commission. 

Regards 

Sorry only can apply for the loan to purchase the asset.

– No top up etc…

CBA does dual occ- i do it all the time with CBA + various other lenders…never done dual occ with Bankwest that's why i was a bit surprised your broker suggested bankwest.

The only issues you "may" have is having multiple credit hits, not sure how your credit file looks likes but CBA is very strict on credit rating and even a small $1 default…[Read more]

1. A good credited broker will give you the commission break down of each lender + a summary of the top banks he/she has submitted in the last 12 month and lastly they will def give you a reason for the recommendation. Discuss and adopt/change if required. 

2 The difference btw commission btw the highest bank and the lower bank is minimal;…[Read more]

Mgs4 wrote:
Just a general question on mortgage brokers. As you build a portfolio and provide a mortgage broker with more business, do you sometimes get other benefits like commission rebates or access to better rates than smaller clients.
Thanks.

No, 1 -10 loans we treat all clients the same. Same discounted rate and service.

Mgs4 wrote:
J…[Read more]

Di you submit an application for constriction as well? and was it with the same application…..

Will come down to the valuation and would have been a better CBA deal as you could have ordered the valuation first and look out for any negative comments + CBA would have supported this sort of security. But not sure about the rest of your financial position so maybe bankwest would have been the only fit? not sure..

tommytucker wrote:
Hi

i spoke to a buying agent recently and he spoke about a very cool strategy of building a 2 storey townhouse that is actually 2 individual dwellings. Has anyone had experience with this sort of investment and if so what are the specific zoning requirements? Is it simply the same R40 / R60 sort of requirements or is it…[Read more]

P.s One of the biggest concern and risk with block of units is bank valuation and  " comparative sales" – if the valuer can't find any decent comparative sales then the deal falls through.  http://www.shapehomeloans.com.au/finance-for-multiple-units

ajayayyar wrote:
Hi all,

* When applying for a loan, would the bank cover the loan in a similar way it would for an individual property?  For example, with individual units and houses I've purchased in the past, the bank has provided sometimes 105% of the value of the purchase (including deposit/stamp duty costs/closing costs), 95%, or 90% at…[Read more]

ummmm not much details/info to go off- but the numbers and details you have presented are not uncommon – it's an ~6,7% yield- which is common for units in some part of Sydney.
Without giving the address away; if you can provide a bit more details that would be helpful.