Forum Replies Created
Heya, Standard loan features should include;
1) Lump sum payments option (no fee)
2) Early payout with no fees.
3) Fortnightly payment option
(things you should not care about are things like Maternity leave – reducing payments when partner is pregnant) You really should get these features as you dont know when your circumstances will change.
Westpac may be your best option. (Considering it has all the features above) Their Premuim Package (which has the $300 yearly fee) and a .07% discount for amounts over 250K (off the standard variable) is a good package. Lots of features and fair competitve rate.
IMHO (whoever you decide on) shouldnt be using the other property as collateral. Even if you have to pay the $1000 or so dollars for Mortgage Insurance, I wouldnt let them use it as security.You can use the equity in this property later on if you like to purchse more Investment Properties.
If the old driveway is cracked and unsightly, then a buyer may use this as leverage to lower the offer. If however the property itself is “as bad as the driveway” then they already know they are in for renovations.
You wont get the money back.
Have you asked them why the are delaying settlement? I would, on one hand, be approaching their solicitor and getting accurate information on why they are delaying, and as “politely” as possible state that you are eager to complete the sale, and would like a confirmed date of completion. On the other hand I would be doing my due deligence on whats possible as far as penalties are concerned, and once that next deadline is passed, slap them with penalties.
UPDATE – Now they want to claim through the Car Insurance but want landlord to pay the the excess. Sounds dodgey??
Yes, this means be back to one. But I will have the opportunity to buy when the right propertieS arise. I have a unconditional loan approved as is (and have had for 3 months) and still cant find a property worth my time.
Interesting comments on the child welfare/payments thing. Anyone have an experience in this?? In know you get $3119 payment for chiuld birth regardless of assets, but does this affect any thing else???
yeah, I certainly get your point… its just a tough decision, i know i make it sound like Im selling to buy a car, but the main reasons to sell are (in order)
1) reduce payments on PPoR
2) ensure wife and baby have safe motor vehicle
3) Make good CAp Gain (and the vehicle is a gift for the hard work i had to do to make to CG)
Note I owned the preoperties before getting hitched. I want something to show for it!!
This property is never going to make me a fortune except for the Cap growth so i feel now is a good a time as any to cash in. I know Im making the right decision here, and like I said earlier, I think Im in a win/win situation. But hey, thanks fo rthe feedback, sometimes it others opinions that allow you to ensure your making the best decision for youHell Yes, show me my ten bangers. But your not getting a receipt!
Hell Yes, show me my ten bangers. But your not getting a receipt!
was looking at fixing half mortgage as was lower rate than variable, but by the time i got off my butt, the fixed had a gain gone back over variable rate.
Well had for my fanancier.
I would think .5% by year endThanks for the responses. Agree on the new car/2nd hand thing. Did I mention the missus is up the duff and her 92 Holden Nova doesnt have air co etc. Ill give her my car, and I get the newby/2nd hand car.
Also need to reduce payments on PPoR as wont have second income.
Your right, think im in win/win situation here. (Was my 1st IP so little bit in love with it)
Rent at present is market value for area. So I would only increase rent in order to get in and do renos. If he stays at higher rent, then re-assess situation later down trackI once rang then Banking Ombudsman about this issue (especially on P and I payments) and the bank doesnt even have to tell you the formula to work out your monthly repayments. So long as you have signed the mortgage agreement agreeing to the specific repayment amount.
There pathetic, computer programs are written by humans, what if there is a typo!
20c to me is different to 20c X number of customers to them!!Thanks for the prompt response. Justed wanted to get one under the belt when purchased this IP. Def needs to go though, its at its maximum potential (well at least for the next few years) and I love the saying “Would you buy the property now for the price I want to sell for, and if the answer is no, then sell it”
I called my bank a few weeks back and asked numerous staff how my monthly repayments are calculated. None of them could tell me. I raised a complaint and had one of there senior analysts call back, whim, still couldnt tell me. (down to the cent. Im pretty anal) Most recommended I use calculators on their website, which are inaccurate. (Especially the ones that show how much you could possibly borrow) I called the banking Ombudsman, and he advised me the bank dont even have to tell me. Once you have signed the mortgage agreement stating how much you are repaying per month, thats where the liability ends. Im not stupid and know how to work out interest only repayments, but i have given up trying to get down to the cent my monthly repayment (that the bank deducts) from my account
How do I work it out [blink]
I can also confirm that the CG “is” added to your taxable income, which in most cases (well if you invested wisely) will put you into a higher tax bracket. Damn it.. Whats this I hear about only paying 30% CGT regardless of your taxable income..anyone point me to a forum re: this??
Go with a conveyancer. They specialise in the area. I once had a bad experience with a solicitor, because he palmed off the work to his 20 year old secretary becuase he was to busy to do the work himself.
What suburb/state? [
]The equity in the two properties has been used to purchase the third property. Owner occupied. Paid $325K, but borrowed $340K for all purchasing expenses (stamp duty). This house is valued at $390K. Last years profit and loss was a loss of $2500 (rates/strata)
I guess my question is, should I hang on to these two investment properties given there capital gain is not going to appreciate much more in then next few years, (but rental rate could) or as Steve says” Get out of your comfort zone” and go for something more cash flow positive?I recently refinanced two existing props into one loan (3 umbrella accounts)when buying a new property (3rd property). I went with a completely different lender. Not only did I better the ridiculous rate I had from the other two lenders (obtained 1 – 4 years earlier) but because I consolidated all loans into one loans (but three account numbers to keep the ATO happy)I recieved a professional package with added benefits and a rate that will remain .7% below the standard variable for the life of the loan.(currently at 5.87%) Obviously many things to take in to consideration including if you have an early termination clause in your current contracts, not to mention the hassle of refinancing. But in the end, if you get a good broker, and an even better solicitor to take care of your refinancing, you will no doubt be better off in the end. Most other lenders will try to come to the party on your third property, just to get the business of your other two loans. A good, fee free broker, should be able to sort this for you.
]
