If you are definately paying out and selling in a year or two, then view your loan as a means to an end, and you will need to look at the app fee, interest rate, and the deferrered charges, and discharge fees. Taking advantage of deals with lower or zero application fees, making the most of specials is a good place to start. Any loan that has a 1.5 or 2.5 % fee as a 'def' is going to cost you, but weigh that up against how much you will save on interest during the loan term if it is a cheaper interest rate. Most with higher fees want you to stay for a few years at least, so you get offered a lower rate to attract you, and the DEF fees to keep you. A lot will depend on your loan size, but it sounds like you would possibly be better off getting a deal with a flat rate discharge fee (ie regardless of loan size) but also be careful – because others also have hefty loan discharge fees as well. For example, some banks have a flat charge of $750 regadless of now many years the loan is for. Most will have some sort of fees for payout in the first year, but after that will be reduced or not apply any early fee . Check first, and do the sums. All the best with your project – sounds good.

Thats funny – I'm the opposite. Drove an HQ Monaro years ago when I had a fairly new VK Dunnydoor, and I remember wondering how did I ever drive one of the things 'back in the days'. Dove a VL Com when I had a new VT 2 (prior to seeing the light and switching to the blue oval brigade ) and wondered how I ever thought my old VL Turbo handled (went though – heh heh) and I think if you have a nicer car it is good to jump in an old one occassionally so you remember to appreciate what you have worked hard for over the years. IMHO.

You may be better off suggesting rather than this loan your pa goes for Rams new loan that is being promoted next week…….nationally…….very hard to beat, no app fee, no annual fee, and better then the best bank loan as rated by cannex at this time. Keep your eyes out.  It seems odd to talk about 'buying and selling money' but that is essentially what happens with most lenders. Instituitions like credit unions and banks get a lot of their lending funds from over the counter deposits – other lenders are literally 'selling' their loans as bundled packages to other investors, who of course expect a return. Ever seen a super fund or financial planner talk about 'fixed interest and mortgages' as a 'sector' of an investment? This is an example of that also….money from returnes on …mortgages from a variety of sources/lenders. While that is a simplistic explanation that is generalised, I hope it gives you an idea. The link Foundation posted above refers to as where some of the funds come from, and at the point in time of the 'scare/panic/etc etc the last couple of weeks, rams appears to have been more relaint on raising funds via that source than most other 'non bank' lenders'. So while everyone is affected across the board,  Rams was hit the hardest. The result? Forecast profits will be done some for the year. All the best.

Hi somewhere over there. A good lender will be able to choose which mortgage insurer to direct the loan too – most credit unions are a bit namby pamby with this sort of thing, and the odd bank will be obstinate – it is no secret or magic science like appears to be alluded to here…..there are two mortgage insurers most have access to one is called Genworth, the other PMI. PMI usually are better for higher lends in obscure postcodes-with the coniditon that you have at least 3% of the purchase price in deposit – which you do. As an exception Rams homeloans also have acees to a third mortgage insurer, called prime, and in their case, and in the case of flexible lenders, the loan assessors job is to direct your loan via the mortgage insurance compnay more likely to be successful first time.  SOme lenders do there own MI, but this can be more selective as far as postcode restriciton go. If you want an idea of what I am talking about, visit  http://www.genworth.com.au/index.htm and click on location guide. THis will give you an idea what I am talking about. Public info, free education………All the best.

He wrote a thought provoking couple of books, and is/has been a great advocate in many ways for the underdog, and in helping eliminate or expose a lot of shonky practices – particularly as far as real estate agents go. Like anyone that gets publicity, that can go to the head and make someone self important, or even alter the original goals or 'mission' that person may have had. While Neil is not afraid to speak out, and use that lack of fear to help with people that have been ripped of etc in real estate, he appears to have got to the stage where he enjoys tearing down, without offering anything to replace what he has torn down. For example, anyone that has achieved any sort of success or 'wealth' from investing, unless it was buy and hold or by accident during the last boom MUST have done it by ripping others off is the idea that he seems to convey. Each to their own, but when you are in the public spotlight, and critisising so many others, even resorting to name calling and persoanl attacks rather than constructive critisim or helpful facts it wears very thin, and seems 'tabloidy' rather than anything else. He has a few ideas that have alienated real estate agents, and others have embraced them. However, that number is rapidly diminishing, and appears to be now that unless you pay him what is essentially a very high franchise fee to prove you are an 'honest agent' you are not one……..the high fees and what can at times be fanatical bull at the gate approach to things is now turning many away in droves. THERE…..that's a brief sidelines synopsis for you. Draw your own conclusions!…

Firstly…welcome to the forum…..

1. You are no different to 90 of the population at present – does not disqualify you from a loan
2. Great stuff!

3. With your criteria, either a broker, or your local Rams franchise would be the best bets. Other than one almost major bank and a couple of smaller ones you will be treated by a leper asking for a 100% lend.

4. Depends on your eventual savings etc. SOme investor loans at 100% are possible, but would be principal and interest or have some other conditions . 95% is no drama.

5. With many lenders yes – if you can get someone to use their property as security for the 20% plus costs you will avoid LMI
6. WIth Rams Homeloans you can – not sure if anyone else will do it. Rams call it their 'Fast track' feature-it is availalbe on nearly all of the Rams loans, as it is a flexible feature, rather than a specific loan product as such.
7. A lot of people hedge their bets now. If you do not belive it likely that you would be able to make any additional repayments in the first few years, my 'gut' (currently digesting Fine Sirloin with the aid of a SHiraz…) says split it 50/50 or go the fixed…..but that's not me, just my gut…..

And…..as a sidpoint you are in the one profeesion that is considered by a lot of lenders to be 'the' high demand one, thus mininimu employment periods/casual hours etc are not frowned upon as such. …so congrats!   All the best with your investment journey…..

NEWS FLASH – Good news…there are now some great LPG kits for late model V8 Ford's and Holdens – don't belive it can't be done! So we can all run out and get those 'real cars' again……..Downside is the price…..around $4500-5000.  Gotta start saving.   

THat is correct Opportunity…..not sure about all states, but in NSW you need a clause, which is quite acceptable,  and in Tas too my PM assured me it can be done,  but you would normally look at doing this if the tennant required a longer lease, as if they wanted 18 mths, 2 years or more and you and or the agent were prepared to do this, you need to be able to increase the rent to CPI and or market rent over this period of time. I certainly cannot imagine sticking a tennant with an increase during a 6 or 12 month fixed lease.  An interesting trend I have noticed is many seem to keep the rent low, and then it gets jacked up significantly when a new tennant goes in – confirms cpi is not a big enough increase for sure, and that some property managers must be a bit rediscent to increase rents to market or what they should be at times…..  Cheers

HI. In a similar situation with one loan. We were going to use the time when the fixed interest period runs out to do some improvements, and then refinance, and grab some equity and use it for another property all going well. After what has happened in the last week or two on the financial markets, it helps see that NO ONE can predict what rates or situations will be like in wo years time – so don't strees over what you have no say over. Rather, enjoy that low rate for another couple of years, and I would imagine you will of course enjoy some growth to your property in that time. I would only be paying extra off the loan if you had no non tax deductable debt to clear up first, and if there was no penalty for doing so. Some banks in particualr still will not let you pay extra offf a fixed interest loan without sticking it to you in fees for the priveledge…..
All the best.

Hey Sharif. Burnie has been ok for us. It is still quite possible to get close to CF neutral for a reasonable house, that will have a steady increase in value each year. Property has conservatively gone up median wise around 8-15% in the last 18 mths or so depending on suburb. Pro's are there are no whiteant problems! Depending on the type of property you are looking at, I would suggest making sure it has had windows replaced, and roof and wiring are ok. There are some nice houses, but with the older weatherboard ones some are rotting where they stand, and watch for 'unofficial' additions underneath them such as extra rooms after whacking out half a dozen or so piers without bothering to replace!  You will find seaviews come with many, and like anywhere there are bad areas. Shorewell Park seems to be the 'bad' part, but that said, I notice it has experienced significant capital growth in the last 2 years, so you never can trust those agents eh? Rental returns are good, around 5-7 % depending on property/tennant/area/agent, but if you have something goingup in value annually slowly but surely, that's better than most of oz except for mining areas. The whole of the Nth West Coast, Devonport, Burnie, U;verstone,and Penguin (boy I wish we had bought there a year or two ago) is nice and 'solid'. All the best with your journey!