HI all,Just a couple of points re Jac's post – the special trust accounts that agents have to use for deposits do not pay interest to the agent – and the reason they like the higher amounts is more often than not so they can get the commission amounts 'released early' not for interest.And if your bank (or if you broker tells you this) takes 5…[Read more]

Without straying off the track too much, a few of the comments remind me of a time I lost out on an $88k property, by haggling over a few grand, and having $84k as my final offer, and the owner coming back and wanting $85k as a compromise.Other issues arose at the time, but 4 years later that type of place was worth around $180 – $190k….so…[Read more]

Hi Jademao,Looks good, except for the 2 weeks letting fee. If you could get this reduced to one you would have a great deal if they are a good agent.Cheers

Hi Ediot,These guys, Pittard, are the offshoot (lovechild?) of what used to be a 'jenman agent', which was started by Neil Jenman, and then on sold.They do seem to offer good pay structures, unlike some of the commission only agents, but of course you do have to do the training and eat meanwhile. I think some of their roles are door to door…[Read more]

Hi Badlee – welcome to the forum too.No problems at all. The simple rule to remember is you can borrow against any property you like regardless of whether it is your investment property/ies or your PPOR/family home. It is what you use the money for that determines whether it is tax deductable or not.This means you simply must keep your borrowings…[Read more]

Hi Jazz,The reason LMI applies on loans over 80% LVR, is because 80% of the property purchase price is considered the acceptable risk for a lender to be able to sell the property at, and recoup the loan. Any higher is simply put, too risky to assume a sale within a reasonable time frame.You will also find that by the time a property goes to…[Read more]

Hi Old china. Are you talking Freehold or Leasehold?Cheers

Hi Andrew,Highly recommended to use the solicitor or conveyancer from the state you buy in, as well as cheaper. If you decide to use one you know or use already, they will only end up subbing the task out to someone in the state you buy in, and then add their cut.Cheers

Derek wrote:
in effect, interest rates only have an immediate impact on 30% of the population. Clearly there is some psychological impact even on those without home mortgages. Not saying it is easy, palatable etc but sometimes I wonder if GST manipulation would be a better economic lever.Of course this then brings into question farienss of…[Read more]

Hi Paulie,While you can have either individaul trustees or a corporate trustee for the SMSF, you would always have a corporate trsutee for the security or bare trust. As mentioned, you would normally only form the bare trust once you are 'ready to go' with the loan and property, and one other trap to beware of is that the SMSF has to pay the…[Read more]

Hi wilko,As mentioned, you will find YES to be the resounding answer from most if not all here.Take a step back and look at your options…….managed funds? Direct shares? Likely if you are very clever or lucky you may find the share option works but 'bricks 'n mortar; is a winner hands down in my opinion – and as long as you allow for the…[Read more]

Hi Morgstar,Some of these expenses occur whether buying in an SMSF or not (ie inspections solicitor etc)Generally, you may find $100k as the min loan size, you will need around a 30% deposit, and allow around $2500 in fees from the lender – it's mainly legals and certainly no different to legal fees in general. I would normally suggest around the…[Read more]

Sorry – forgot to add, that while as others have said, the answer is essentially 'no', it is the bank that is the lender, and the broker is just that -a broker……banks appreciate that a large % of new business comes via the broker channel, which means that if a broker has a better relationship with a certain lender than another broker; perhaps…[Read more]

$10,000 for a mentoring program? Boy the word mentor is bantered around a lot nowadays. So, what are you getting for the $10k course/training? One on one I would assume? Cheers

Rams? They will try and sell you their own product before 'broking' you anything else, but in answer to your question, make sure you have comfortable joggers or shoes, and plenty of water before….running!Cheers

Just an additional thought with fixing rates that you need to be aware of, and I must admit has been a gripe of mine for a while. You may do the shrewd thing, hedge your bets, and fix your rates for a year or two, BUT what you need to remember is tha in most cases you rate will revert to the standard variable rate afterwards – not any discounted…[Read more]

Hi W8up,As you mention, it is critical you don't 'cross contaminate' .As you mention, either split accordingly and keep totally separate or you could keep one, use it for personal, clear it completely, and then start fresh again from a $0 balance and it will then become your 'investment' LOC. Cheers

yup…..I feel your pain.A few years back I went to the Dale Beumont 'Secrets of Property Millionarires' one day conference, because as it had a star studded line up, and speakers that had a diverse range of backgrounds and techniques, I thought it would have to be pretty good.Much the same as I have heard from yours and most others….it is just…[Read more]

Terryw wrote:
sorry about my poor grammar – i type fast

It's also late too Terry – and you could have been indulging in the 'product of the vine' perhaps???????

I think it is not so much that rates may go up, but that they may not come down a lot more. Ass uming that to be the case, every lender that I am aware of has 1 to 3 years rates more competitive than their discounted variable rates at the moment – some by more than 50 basis points. Thus it is more likely a case of not offering discounted fixed…[Read more]