Forum Replies Created
HI there
I got the exit fee quote in June this year ……$13 000 and I have 2 yrs left.
The only way to avoid paying the exit fees is if I bought another property and changed the security of the loan from the investment property to the new property.
Even if I wanted to change the payment period, ie: annual to monthly payments the banks would still slug me with the penalty…**#$^**. I can't complain too much because I fixed the rate just before the interest rate shot up-to 9% so I have had a good run. The banks just want their money back.The wrap sounds interesting and I would need to investigate this further….not sure how to set that up (it sounds complicated)
Thanx Guys
TCHI All
Thanx for the comments…..
Once I wrote down the problem in black and white, it made more sense and there wouldn't be much advantage in selling and only realising a small "profit". I guess the mistake to avoid is to buy well in the first instance and having a clear investment plan to structure the finance accordingly.Regards
TC
Hi Terry
Thanks for the reply…I’m making +-3k-4k cash loss per year however after depreciation and tax I get that back so it’s breaking about even. So I’m not really losing anything at the moment.I think the capital growth is probably driven by the 1st home buyers grant and listening to commentary it looks like that market will correct next year. The property is in outer Melbourne among other new developments and I don’t think that there will be much scope for growth for a few years to come….who knows….
My strategy is to become an active property developer and I’m only now learning that negative gearing isn’t such a clever idea after all. $12k in my pocket doesn't really make much of a difference either…
Regards
TC
