Originally posted by MortgageHunter:
Some very attractive rates under 6.5% are available with 100% offset accounts.

Cheers,

Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a…[Read more]

The benefits is the direct reduction of the principle with the amount in the account. To look at this closer it would be the same as having the same amount in another account that got paid the interest rate of the loan, say for example 7%, but instead of being hit with tax on the interest there is no tax on it. So for every $ offset through the…[Read more]

You seem transfixed on the “technical” definition for which you are CORRECT, are you an accountant?

No, I don’t mind dealing with numbers and did bookkeeping as a subject in my junior highschool component for two years but hardly ‘an accountant’. The terminology when talking to newbies or when newbies are involved in a forum is important. They…[Read more]

Originally posted by Sibo:
Sorry for that previous botched quote. I agree with RussH regards asset definition. If it costs you money its a liability. That way, accruing assets means becoming more financially secure. A person with a moderate income and running ten cars may not be secure due to enourmous maintenance costs. this definition makes…[Read more]

LOL….. yr non blinkered ideas have basically been covered by the people with blinkers on.

I would agree with Russ (which is Rich Dads definition) of what an asset and a liability are.

So someone suggested building a new building and then selling? Sorry, I didn’t read that anywhere. Or in fact subdividing and creating multiple rentals using…[Read more]

Originally posted by RussH:
Land is not an asset but a liability.If something costs you money and has no return then it isa liability.
Sell the land and invest the nmoney on a +cf property.
An asset is something that makes you money.i.e a cash flow + property.
Russ

An asset is anything you own, regardless of whether it makes you money or not.…[Read more]

Would certain types of Trust Funds work in this situation? Since the person isn’t gaining an income from the two IPs I was thinking of rolling the properties into a trust. Of course this might be quite nasty to start with since there will be plenty of fees involved in this situation and I am not sure of the assets test of those with trusts, but is…[Read more]

I thought the whole idea behind LOC is that you pay the amount back at your own leasure? Interest will always be charged and added to the full amount of the loan.

I can’t see how the bank can ask for ‘arrears’ when the dynamic nature of the loan would continually show interest accruing on it.

CG or capital growth is one of the things people look at with a -ve geared property. Also if built after a certain date (1986?) you get depreciation back as well as other tax deductable components. So what may initially look like a -ve could manage to be neutral or +ve.

Just make sure that you have done your research before doing either.

Originally posted by HHH:
I assume you meant “+ 15000” in your example?[cap]

Maths has a law called BOMDAS (or BODMSA, it doesn’t matter much the MD and SA components of the law whichever appears first in the list in an equation) Brackets of Multiplication, Division, Addition and Subtraction. Your offset account in my example is used to reduce…[Read more]

culclations

Hmmmm, almost a word. [eh]

https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=8801

This thread might be helpful for you. One of the forumers has a site which does most of the culclations for you.

In this case HHH:

Equity = Value of house – (loan – offset)

An example would be a offset loan with a current balance of 120,000 and 15,000 in the offset account. The house was valued at 250,000.

Equity = 250,000 – (120,000 – 15,000) = 145,000

Just remember the money in the offset account is basically money that would otherwise be in a Savings Account.

The exact ‘process’ would be best followed up with the executor of the estate or another that deals directly with deceased estates and wills.

From what I could find on the QLD Office of State Revenue, if you were a person given the land in a will or for example a child of the deceased then no Transfer Duty would usually apply when it comes time…[Read more]

How long ago did you deal with ANZ? Generally when using a broker they have a department dealing with the client, its called Originator Services I believe. Not the best way of dealing with a bank but I was never told to deal with the firm that brokered the loan to start with.

I ended up dealing with a local Branch Manager who was extremely…[Read more]

Originally posted by abhjf11642:
This is my first time on the forum and I’m a bit nervous about how silly I could make myself look!!

That would be hard considering you didn’t start off like:

“HI I AM NEW HERE AND I WOULD LIKE SUM ADVISE”

The rest of your post sounds fairly close to the 11 second rule as discussed. Still do your research though.

Even though you say you are selling two places, the terminology suggests you haven’t done so. Do you know how much equity is available to you in those places and if that would be enough to keep you ‘travelling happy’?

Without actually having the figures in front of you and working out whether the 3 or so IPs you seem to have will be a +ve geared…[Read more]

Firstly, if you plan to live in the house in the long term and not trying to use it for immediate equity then why worry about what it is worth in 12 months time? Your PPOR has to be affordable and a nice place to live for you. If the house meets that rule and you are not looking for equity in it immediately then think if it will be worth more in…[Read more]

Originally posted by redwing:
Wish FHOG was around when i Purchased..[angry2]

And I suppose you wish GST was around when you first purchased your house as well? [evil4]

Originally posted by Rugbyfan:
Knowing how greedy both the WA and QLD state governments are, I dare say it will spread in time.

Depends if ‘Hollywood’ Beattie wants to spend hundreds of millions of dollars on another football stadium again or not…

This new tax is NSW’s method of playing ‘catch-up’ to other states since the tax will take $…[Read more]