Forum Replies Created
- 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 rates that will come back to bite the lender.
As a very general rule of thumb, for the major banks, fixed rate loans are sourced from the money markets, and variable rate loans use deposit funds (I said very general…) Look at the spread now between what the mainstream lenders offer now between term dpeosit special rates or on line saver accounts, and a good discounted homeloan. I don't think many investors would settle for a return that low…..including any of us. Without digressing too much, makes me laugh when people (like Mark Bouris…..spare me please) talk about needing more competetion and that 'Japenese banks will come in and make rates more competitive and force 'the big four to drop their rates' absolutely hilarious. THere are plenty on the forum that have been involved with finance a lot longer than me….but I don't recall seeing the home loan market as competitive as this in a long time – if ever.
And…………back to the original question; if you can get a fixed rate in the high '5's% and have a med/long term purchase or investment strategy it would be hard to go wrong I think.Cheers
Hi House Call,
NAB appear to be the most popular as a lot of the others, especially for enquiries made via 'branch land' put it in the too hard basket. I understand St'George also are OK. Bear in mind whoever you go with it is a lot more involved than buying a house – or in fact any property as an individual. You will indeed need to allow anything between $2500 and $3500 depending on what you have set up to date. Not sure if you are aware, but it involves legal fees, establishing another trust (usually called a security trust or bare trust) tripartite agreement paperwork, and you will need a corporate trustee for the bare trust, meaning you will need to establish a Pty LTd company as well. So you can appreciate there are a few costs. However I suspect the CBA line is code for 'not sure we know what we're doing and the financial planner is busy so we hope this will put you off'……..seems to work for them the majority of the time!!!!!
All the best with your purchase though. I'm sure some of the other guys/girls will have some suggestions too. 60% shoudl be fine, so with the LVR you are proposing as long as the rental income and current (not proposed or speculative) super contributions cover the repayments etc it should be a walk in the park.Cheers
Hi Mrs C,
This does seem to happen, but as Jamie said, this info should be available from your outgoing lender on your final statement – the new lender pays what the old one asks. Bear in mind, some of this could be interest – as it is charged in arrears, and you could have almost a full months interest added onto what the actual loan balance was when you looked last.
Cheers
Hi,
In answer to one of your original questions, you will generally find the % listed on the property title search once you have purchased the property too – so anyone who did a search on the property would see this also, as it shows the ownership structure in this information.
Cheers
Hi Yulia,
To add a bit of balance, if your husband works for a lender that waives LMI up to a certain LVR, or altogether, this can save ou thousands of dollars. This will also allow you to use a smaller deposit, which in turn you can the use to get into the next property, or pay down your non tax deductible debt instead. While many will disagree, for that sort of savings, and if you only plan to have a couple of properties with that particular bank, I wouldn't even be to worried if 'cross securing ' your loans was a condition either – you can always sort it out later if you refi. You would likely find more than a few houses withe the one lender you eventually run out of 'servicing' with them and have to go elsewhere anyway. Enjoy the savings you get – they are hard to come by with many places. That said, while some banks claim they 'have to' cross secure loans, if it does not suit I would be very surprised if you do not have a choice to do so.
Plenty of options. And while lenders are fighting for new good quality business at the moment, based on your comments I would be extremely surprised if anyone good find you a truly better deal with a mainstream lender if you are looking at rate and set up costs only.All the best with the next purchase too!
Cheers
HI – Havent posted for a while, but after reading this I'm not sure whether I am up too late, have lost my touch, or had one to many glasses of 'Tenet Cabernet Savignon' to chase done the Heinekin's after a hard day at work – could be a combination of all but too deep for me this time of night!
Cheers
Hi Johann,
It does work – so good idea.
I just reached another of mine last week – but I need to add, while not changing your goals, assuming they are still current, don't be afraid to advance the date by which you plan to achieve them, or how you plan to do so. I've advanced my 'lose 10kg' goal 3 times before realising I need to change my strategy!!!
Seriously, make a genuine list, give yourself some dates, and reward yourslef when you reach them if reaching them is not reward enough itself. It genuinely feels good when you can put a tick next to one.All the best!
As already mentioned, the offset option wins hands down every time. And unless your property is almost geared neutral, or you have an obscene amount of cash to offset, you'll still get tax/gearing benefits………………..and as I always say, is paying tax a bad thing? Must mean you're actually making money
Cheers
Hi Energy4.
As has been mentioned, the rental history is a pretty good indicator that she is stable, and as long as you have it managed a nd a proper leas in place and insurance you can't do much more.
I will disagree a little with some of the comments re 'not subsidizing' tennants. One house I have, that I was getting market rent in (and 'managed') I had to repaint, and re carpet when she /it vacated. $5k allowing fo time, travel etc.
The current tennant is paying marginally less when you take everything into account, as yes, being an elderly widowed pensioner my soft side came into action. I recently signed her up for another 2 year lease, and winced when I did not put the rent up again, but really, when you inspect the house she treats it liek her own, has spent her own money on improvements, gardening etc, and while I could get another $10-$30 a week extra 'at market' I think to have & keep a stable tennant that looks after a place is worth a few bucks a month under 'market' if you weigh up the pros and cons. Sounds like you've reached a happy medium, so hope it all works out, and congrats on what sounds like a good deal,As a sidepoint re insurance, a lot of the mainstream insurers only cover $10k as the max for deliberate tennant damage. Again, another trade of between premiums, risk, and price.
Cheers
Hi Lee,
Generally the 3 options for this are a lease, a commercial hire purchase, or a Chattel Mortgage. Nearly all asset finance I do is now a Chattel mortgage, which seems to suit the majority, and most accountants seem to prefer too. The machinery is bought in your name, and the bank/lender takes a mortgage over it. You pay it out, and it is yours. A good lender will allow you to be flexible with your repayment structure (for example if you have seasonal work that affects cashflow) and generally terms from 1 to 5 years.
You can also choose to have a residual or balloon payment, or have nil – again up to you with a good lender, depending on what you want to do at the end of the term (keep? sell? update?) With asset finance I arrange, we prefer the goods to be no older than 7 years at then end of the term, although this is not 'carved in stone' for large equipment & machinery.
You will get competitive rates this way too (7.5 to 9.5% depending on what it is – car is different rate to a bulldozer) and also be able to claim back your gst, interest, and depreciation.
So……go shopping!Cheers
Hi Christina,
Depends on your state too. I'm guessing NSW? If so, your solicitor would not 'exchange' contracts until they have confirmation that the finance is in fact unconditional (ie after having the valuation done, you have singed their formal offer – which is the executred loan contract) . As far as no conditions, subject to finance is always wise unless you have 100% cash but anything other than that is up to you. For the record, the last person I saw that was dissapointed for missing out on a house when the successful offer went to a purchaser who made a less but unconditional offer, felt a whole lot better when the purchaser had to borrow some more money to have the place restumped…….All the best with whatever you decide.
Cheers
Hi Ben,
As has been mentioned by the others, and regardless of how your loan is structured, as stand alone or crossed, while the rate is not everything, on a loan that size from major bank (a good one) you should not be paying a rate that starts with a 7 in the %.
You could walk into the NAB or ANZ (ironically, probably the CBA too!) as a new customer and get a loan for under 7% as part of a package.
Get old mate broker to pull out his index and do what he/she should be doing, or do it yourself.
All the best with the purchase.
Cheers
Hey Skye,
Great to see you out on your own now. Hope everything is going well too.
Re your post though, I think the lack of communication sometimes, and the 'generic' cut'n paste type inspections would be the biggest gripe I have. Keep it personal. If I was buying over in sunny SA I'd give you a shot!Cheers
Why not? It should be a good time, but depending on your budget / price range I think. I am genuinely not sure where all the good deals are though. It still seems like the actual asking prices in the eastern states anyway, (excluding capital cities that are out of my range now) don't seem to be getting any cheaper. The figures in the latest API still show some growth to July 2011. I guess it is just lack of time to do research and get serious – and that at the moment you cannot just buy any place and hope it will go up – but need to do a bit more due diligence than in the past couple of years, and get something you can add value too.
…….Anything on acreage still seems to be through the roof and not coming down soon.
So that's why……my next deposit can stay in the offset account for a little while longer – unless it gets spent on a new Triumph of courseHi Meg,
There are plenty around, but I could not single one out – but I could advise against one. If it is a solicitor doing the conveyancing, and their first of their two word name rhymes with 'speck' run a mile. I have used a company in Horsham on two occassions I would be more than happy to recommend. They charged $550 plus the usual cost last time. Power & Bennett was the company name, and I could give you a contact name if interested. Have you sold yet out of interest?
Cheers
Thanks. I got an email saying my thread had been replied to – she's an old one……2008! Friend didnt end up using them anyway, but I see the agency does appear to be going strong, and by coincidence noticed that the head guy as mentioned above Frank is in this months API mag, and sounds like he has grown his own portfolio & business significantly since then – hopefully deals they have found for others have done just as well of course. First API mag I've bought in over a year now.
Cheers
Bear in mind, whoever you use, (if in the case of a bank) if you are transferring FX more than 20k or so, don't settle for their 'retail' rate' – but ask for a special rate or a quote first.
Cheers
No worries – that makes a bit more sense now!
If it helps, essentially once the bank has issued you a loan contract – that is their letter of offer. If they messed you around after this ……that's pretty bad and definitely something I would be expecting some sort of action over.
Unfortunately anything that happens before then (ie – yep, it's all good – contracts will be done shortly – go for it) while not a good 'customer service experience', is no committment on behalf of the lender.
If there has been a genuine cost incurred as a result of an error after you have signed the contracts, rather than using the mortgage doc being lost to raise an issue, (by all means refer to your goodwill in assisting them) put it in writing, request x about of costs are reimbursed, and keep moving it further up the chain until someone does something about it for you.
And re the FHOG, I have lost track of how many claims I lodged at slab down stage that were paid when I was involved with home loans in NSW – so unless your state is different not sure about that bit.Hope it all works out well regardless.
Cheers
Hi,
Wouldn't be too upset.
We bought our PPOR with a 2 mtr easement along the back fence – could'nt care less. We had to build the shed 2 mtrs from the fence, but other than the threat of 'if they ever have to get to the pipes (it is a Water pipes easement that runs along the fence of all the properties in our area of the street) they will cut through / dig up / trash anything you have over the easement, it is of no issues at all. Worst case scenario I would think minimal impact in your case – my opinion only of course.
Cheers
