LOl dont know about jail.

They would just ask for a adjusted + penalty $$

Either way- get a accountant involved and get it right the first time and every time.

Regards
Michael

Wtih 10k deposit + low income and no real asset + im guessing your under 35??? to be honest seeing a Financial planner will just be a wate of your time and money- not much to work with…

1. You could borrow with 5% Deposit these days- it’s very common; most of the major banks would do it
2. 10k is not a lot, but it’s a start….
3. Depending which state your in; you could purchase a place with 11k deposit; with the use of the FHOG…ie $350k purchase- 5% = ~18k ( no stamp duty + 7k for FHOG) = around 11k to invest.— but live in for the min requirement as per FHOG then rent out if you desire OR share the place.

4. If you want a bit more buffer- place money into a high interest internet account OR buy bank shares ( 5.5-6.5% Yield + capital growth)

Regards
Michael

It’s called a PAYG adjustment.

Regards
Michael

I agree with Rahrahprincess – Depreciation and tax benefit should not be the reason to purchase a place ( tax rules changes…they are now talking about reducing the Negative gearing benefits etc – most likely not going to happen but you never know) –
Depreciation and tax benefit are bonus not the drivers of a purchase- because they can be “created” via renovations etc…

Regards
Michael

$40k at 21 is not something to look down on- it’s more savings then a lot of ppl i know who’s twice your age!

With 40k you could potential invest into 2 properties ( def 1 ) as long as you can service the debt/loan with your income+ Rent – However nice and slow wins the race…

Yes Nathan is an exception to a lot of ppl! a smart investor i have to say.

To answer your question- it’s a simple game of balancing…you dont want to sacrifice your youth and lifestyle just to make a few quick buck- because at the end of the day you make money to “enjoy a better quality of life”.
Make your first investment- see how you go…then move decide from there.

Regards
Michael

Yes his from ACT.

Most of the mortgage stuff can be done Via email/Phone or Skype etc…
It like you applying for your mortgage with the above company – Quick direct OR even ING – all done online/phone and some of them are based OVERSEAS as well

The main difference is rather then a whole CALL center looking at your loan, a broker can provide a more personalized approach

If you prefer a Face to Face broker, there are a few good ones on this forum as well.

Regards
Michael

i wont say yes or no to that question, as im a mortgage broker and the answer would most likely be basis anyway
But it comes down to our personal choice and trust in the broker- as you will be giving a lot of personal details to this person/firm- like you would to any bank staff.

Think of us as an accountant ( who’s free) , we help you structure your loan to YOUR benefit.
1. We advise
2. We do some of the check for the loan
3. We talk and negotiate with the lender on your behalf
3. Submit loan
4. We can organize and dispute the Valuation on your behalf.
5 Follow through with the conveyancer and legal work
6. Personalized approach.
7. We have access to Managers and products within the bank that the general public may not have access to.

8. + anther services ..depends on the Broker and what are quantification he/she has.

I know a lot of friends who just go direct to the bank; but when they have a problem, the first and last person they now speak to is me.

As i said, give Jamie a call and see what happens from there; you got nothing to lose beside a $0.25 call charge

Regards
Michael

I went to industry meeting/forum on Wednesday about this topic.
I can tell you now, all the banks are pushing to abolish OR decrease the function of -VE ; There were no ATO representatives at the forum but im sure they were sitting at the back listing and taking notes.

ANZ talks about how it can improve housing affordability etc…<moderator: delete language> yes it may improve housing affordability …but ANZ being a commercial business has another agenda and that is to improve it's bottom line borrowing rate and profit.

This is how -VE affects the banks:
1. Higher chance of defaulting on loans…as a lot of investors are highly -ve geared = mkaing a lost every day = high risk
2. investors with -Ve property have high borrowing cap ie 90-95%LVR's and also it's mostly IO loans…
3. When the bank go overseas to borrow money the funder will look at the bank's lending book….if they have a lot of investors on their book their debt to "equity/title deed" ratio is much lower..especially when most of the loans are IO = Higher wholesale interest rate

End of the day, the more owners occupier loans the banks get the better- No monthly lost, most are 80% LVR, and always pay off quicker, on time and condition of home/asset is much better = better selling potential.

I personally think -VE will never be abolish , but instead it will be "diminished" ie A cap amount or will have a barrier on what can be claimed. Just look back when Paul Keating was PM and the -Ve was abolished….it was bought back a few years later….

Regards
Michael

I would be very careful when going with a small and unknown ONLINE mortgage manager ( which is what Quick direct is ) they borrow the funds from a “bigger bank” and repackaged it back to the public; they tend to increase their rate on a case by case basis… meaning you could be on a 6.59% now…but in 6 month time it could go to 6.79% for no reason- as they source their funding in batch…
Another point to note:

1. High DEF ( exit) fee…this tells me they do use the “increase” slowly” method to make their margin.
2. LVR limitations

Read here for more info- this company is similar ( sorry it’s from a different forum) http://www.somersoft.com/forums/showthread.php?t=48702&highlight=Myrate

To get a more personal understanding, email jamie and he will be able to work out which product or lender may suit you…end of the day maybe Quick direct does suit you if your happy with the “unknown/gable” .

Regards
Michael

Looks awesome!!!
I like how you knock out the arch ways…def more space!
How much is the rent going up by?

I’m currently renovating my 4bedroom IP…very time consuming; will post pics at the end of the month.

Regards
Michael