Forum Replies Created
Re should you fix – depends on a number of factors, but if you a)want/need absolute certainty re repayments, b)know what you will do with the property (keep/sell) for the forseeable future, c)don’t intend to pay the loan down much if any, d)believe the rate is going to be competative over the fixed period, then yes, maybe you should fix.
theloanarranger
Why not buy it 99% his name, 1% yours?
Voila! He gets 99% of the income/deductions, etc but you both would control the loan/asset. (He can kiss the FHOG goodbye tho..)
theloanarranger
Hey Derek,
Sounds like they’re offering a managed mortage reduction/investment programme. My company offers similar sevices – for people who want it all done for them.. Nothing you can’t do yourself with a hands on attitude and a lttle education – for a fraction of the cost..
theloanarranger
Hey SRE,
I am biased, but a)you can’t live in your shares,
b)can’t add value to them, c)pay tax on your profits, and d)will find it pretty hard to get a flatmate to help you buy them..Depends where you live and what your R/E market is doing re timing your purchase, but try working out the diff between what you pay in rent and what it would cost to own (interest, rates,etc) if you buy something you can afford and still have a life..
Your own place IS a good thing for the most part –
paying someone else’s mortgage generally isn’t..theloanarranger
Hey Stingray,
My 2 cents worth.. Your break costs will probably be chunky – check to see if your potential savings justify doing it to start with..
It’s my belief that lenders set their fixed rates with a view to making a quid, and with 3 + 5 year fixed rates sub 7% available from a few lenders (and the rest not that far away) their crystal balls are indicating their belief/s it’ll be reasonably steady as she goes for the next few years – then again, 5 years is a long way ahead..
Re the St George option, maybe consider their intro rates (5.89%V 5.99%F), after 12 months, pay their switch fee ($1k)and into their pro pack – >$500k u should get 0.7% discount on their SVR. Haven’t done the sums but might be an option.
Cheers
theloanarranger
Does sound a bit excessive – I’d also contact at least 2 – 3 others by way of comparison. Standard ’round here (Sydney Metro) is 1 weeks rent to find a tenant, 7% + GST man. fee for 1 property, 5-6% 2 + properties.
PS choose your property manager with care..
theloanarranger
