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3333 is definitely dodgy! Grrr for people who come and open up a long-lost thread, thus spamming all of us
Edvico_kvn wrote:Bankwest have a track record of providing very slow service and causing delayed settlements (causing heaps of stress for FH buyers who are purchasing property for the first time). This goes to show that borrowers should not think that the loan product with lowest rate is actually best for you. Consider the Lender's service, rates elasticity (see below), structure and features as well.
this is new to me. The MB assured me that bankwest was super fast (3 working days for no LMI, 5 working days for LMI).
Edvico_kvn wrote:I also agree you should make your first purchase a PPOR as it will enable you to get FHOG $7k plus exemption from Stamp Duty (NSW SD for $500k property is a whopping $18k!). Being a Sydney sider, you must have felt first-hand (or heard from friends in the same renting boat) the agony of finding decent proprerty to lease recently. Having 40 people competing for the one rental property, Landlord jacking up rent, Banks forcing tenants out because Landlord defaulted on investment loan…..etc. Nothing beats owning your own place with no external pressures associated with being a tenant.
I think we will buy a PPOR 1st. We are newly married, want to move into our 1st home, not to mention that since I was 18yo I have been saving up to buy a house. Most girls spend their money shopping but I always put my spare cash towards a deposit
and now we have saved enough to buy our place when many of our friends are still renting.Edvico_kvn wrote:Getting a loan with offset facility is probably best as you can park excess cash into the offset account (to save interest expense) and not "poison" your loan balance by making redraws (for private purposes such as paying for groceries). I geuss the Mortgage Choice guy emphasised you don't "need" an offset facility because Bankwest Rate Tracker product doesn't have one. It has a very low honeymoon rate but lacks offset facility (which is important if u plan to use equity to purchase IP down the track).The MB assured us that Bankwest had a great offset account. I've been trying to find it on the net, he was referring to this package: Lite Plus. http://www.bankwest.com.au/Personal/Home_Loans/Lite_Plus_Home_Loan/index.aspx
(although with an introductory honeymoon rate, using the Mortgage Shredder product)
Edvico_kvn wrote:Tess, it sounds like you might benefit from considering the 6 year Capital Gains tax main residence exemption rule. I've actually written a short flyer/example of how this rule works. Feel free to email me should you wish read a soft-copy of it.
Thank you very much! I will email you shortly.
ohh, I didn't even realise that a Highest Bid means the property didn't sell. How confusing. Thanks for straightening that out for me!!
And thanks for clearing it up about the Vendor Bid for me.
thanks so much for the responses. i am leaning towards buying our PPoR and then an IP maybe 2 years later.
just a few questions, let's assume we take out a mortgage for the PPoR and make 2 years worth of repayments ($3000 per month for 2 years = $72,000)
1. to avoid LMI, we'd have to stump up another 20% of the value of the IP. I doubt we'd have saved 60k-70k as we're constantly making repayments for the PPor. So, how can we "re-draw" this 60k-70k from the PPoR mortgage? Would we have to get an offset account for the PPoR? Or do we just go with the same lender and let them sort it all out (somehow?!) ?
2. If we want the IP loan to be as large as possible, do we turn that into an interest only loan while making repayments against the home?
Thanks again
still learning…
and now we have saved enough to buy our place when many of our friends are still renting.
