Couldn’t agree more, businessglobal. We think of our 2000 Daewoo Matiz as a kind of “reverse status symbol” these days. I’m not criticising those who truly value cars and have a passion for them; I think one *should* enjoy the fruits of their labours. But I think those people are a minority – most people are much more heavily influenced by what…[Read more]

Thanks, Karen, for your completely reasonable response. Thank you also for assuming that I’m raising this issue in good faith – because I am!

I guess I like accounting sheets to balance. Let’s say I have a $1M asset with an $800K debt in a Trust for which I am Trustee and a beneficiary (so I can gain control of the asset), and I am guarantor for…[Read more]

bfantastic wrote:
if you have assets that pay for themselves your actual borrowing power is unlimited.

‘taint necessarily so.

1) Banks often only allow you to count approx 75% of rental income, which often changes your positive cashflow to negative cashflow.

2) Many lenders have an absolute lending limit, ie limit their exposure per customer,…[Read more]

neilvs wrote:
After all, the problem here is that the banks only recognise somewhere between 65% and 80% of the rental income of the property… Let's be positive and assume the bank recognises 80% of the rental income. That still leaves a shortfall of the other 20% – which they're going to come looking for in one's personal income. But like i…[Read more]

Sure did – that was us in "Our Property Nightmare". I hope if I ever again appear in API, that it's in a column that's less of a dubious distinction.

Wow, you guys are all talking way lower figures than I'd anticipated. I'd planned on budgeting >$2,000/m2 for my new PPR. Are you guys talking brick and tile Tamawood-style project homes?

The main problem with investing in student accommodation – as in UniLodge etc – is that you can usually only get 60% LVR, which makes them not really stack up as an investment because you need to put too much equity in. If you mean buying a regular house and setting up as a "rent by the room", then it really depends on the particular property as…[Read more]

Yes, if they're on a fixed-term lease you must honour it. It's only if they're on periodic ("month-to-month") that you can give them notice to leave. Your best bet, if you want it vacant, is to offer the tenants an incentive to break the lease, such as assisting with their moving costs.

Welcome, Michelle and Colin! Good luck on your journey.

Like the way you think, Linar…

A normal interest-only loan has a fixed amount, say $100K, and the $100K is all paid out when the loan is settled. Interest is payable on the full $100K, whether you've spent it or not.A line of credit is more like a credit card with a $100K limit. If you don't use any of it, you don't pay any interest. You can take out $50K, then repay it, and…[Read more]

Yes, I usually would. But others may not. I'm just suggesting what their thinking might be.

JL wrote:
Buisiness will occur anyway, if you give refunds or not.

I know that even if I have enough deposit that I don't need LMI, I may choose to go for a higher LVR lend and pay LMI because it leaves my equity free to get into more deals. Knowing that if I manufacture growth – which I aim to do immediately after purchase – I can obtain a…[Read more]

Good idea, but it's not right next door, SNM. It's "next door but one" and 80m away. Good suggestion though. Perhaps Ozduke can buy all THREE

I think asking them to waive their fees for a year is a bit rich. And possibly counter-productive – what's their motivation to give you good service if you're not paying them anything? You are not going to be restored to the position of having the higher rent that you wanted and a 12-month lease, so forget that. Aim to compromise and achieve the…[Read more]

JL, if you're having difficulty grasping this concept, consider this analogy. You buy a year's worth of car insurance, but after 6 months you sell the vehicle. You can get a refund on the remaining 6 months of car insurance.LMI is like "default insurance", but because the value of the underlying asset increases, you use it up unevenly – more…[Read more]

I think that the agency realise this PM was no good and they're probably having a horrific time trying to sort out her mess. I would have thought they'd be pretty sympathetic to your situation. Were you at all understanding about the fact that the current staff had nothing to do with this stuff-up, or did you go in angry with them? If it's at all…[Read more]

I think that if the deposit is enough to cover their reasonable costs – ie at least $5 or $10K, they'll probably just take your deposit and put the property back on the market.If you got away with a tiny deposit though, eg $500, and they get wind that you're only pulling out because you're not happy with the deal that you've made (rather than due…[Read more]

I've actually had a refund previously, so I know a wee bit about this. As Richard has said, it depends on how long you've had the loan. Though the proportion isn't straight line – you lose most in the first month, and I understand that the refund drops down to zero after 12 months. Even after 6 months, you wouldn't get half back, you may get a…[Read more]

Chan & Naylor never claimed to be the cheapest. I have no idea whether they're the best or not, but I'd be willing to bet they're worth every cent they charge. I don't think that debating fees is appropriate in this forum.