Forum Replies Created
Hi Lindilou. FUnny thing this NZ’ers moving over here, and some of us wanting to move over to ‘Unzud’ – as I would love too…..anyway, be sure to double check, but you will find the ATO has very long arms, and I believe you will find that you will indeed pay Capital gains tax on any profit made overseas, and brought back into the country. I think there was a detailed explanation of this in Australian Property Investor Mag a few issues back. Any money you make on CF+ rent is also taxable here – and CF- offers no deductions against Aussie income, but check with ATO. Technically, CGT is not payable in NZ, but is over here. Sorry. (I’m not an accountant-just had looked into property over there… And, hey, all the best with the move. [strum]
Good on you and congratulations. All the best. [strum]
Thanks for sharing that with us Marc – learning from others mistakes is definately cheaper! [biggrin] Feel bad not offering anything back, but if i can call it a mistake, ‘rushing’ into a second property, that does need a few repairs, just so we could feel we were really ‘doing something’ and then being a bit more cautious since then, and missing out on one we should have got just over haggling a couple of grand, is the best I can come up with. ….for now! Thanks again – and all the best.[strum]
Hi Wayne. You mention you are having trouble convincing the lenders you can service the loan – you will find that your application will not even reach the LM insurer until the bank or lender confirms your ability to service the loan first, which each do by having their ‘own’ calculator. If this is ok, then they will process your application, at which point the LMI companies have a look. Stuff can still get knocked back then, and as the others have mentioned, the higher the LVR, the more ‘risk’ is perceived by them. Borrowing 85% for example is almost a no brainer for them, but 95% most want to see genuine savings, (and offer reduced mortgage insurance premiums for this) and the 100% loans are being very heavily scrutinised at present. All the best anyway with your ‘journey’.
Hi G.
A lot of what you ask will depend on whether or not you have a deposit for your planned property, or if you were planning on using existing equity in your own home. If this is the case unless you refinanced your home loan to around 90% of it’s value (and thus paid other fees etc, including a large chunk of ‘Lenders Mortgage Insurance’ – a once off charge) you have not really got much in the way of ‘equity’ to play around with based on the figures you supplied. A low doc loan, so called, is generally for self employed people/ business’s that are not able to or choose not to provide full financials. Again, generally you would require a 30% deposit to make the most of this arrangement, or at least 20%. (i know some lenders offer more – such as rams,and Wizard even offer a 95% ‘lo doc’ loan….) Lo doc loans have postcode restrictions too, so you cannot generally ‘lo doc’ a preoperty out in the middle of nowhere out in the rurals…..although your proposed budget sounds like that is not what you had in mind.
Interest rates / fees increase reflected by the higher percentage you borrow with these lo doc loans as a general rule of thumb too.
Congratulations on your excellent wage to service the loan. Again, depending on how you are situated as far as availalble deposit and equity go, some in your position may see this as a great time just to start saving some of that income – as if you were paying that ‘imaginery loan’ off, and in no time you will have a deposit. And one more pointer that may be of interest, some lenders will assess your ability to repay a lot more generously when using a ‘fixed rate ‘ loan. All helps the bottom line. Hope that has helped a bit rather than confused….And all the best. [strum]Forgot to mention, WA has a heap of other ‘laws’ for brokers we do not have – recalled that from my notes. For example the Finance Brokers Control Act 1975, the Finance brokers Code of Conduct, and the Finance Brokers COntrol regulations 1977, which I beleive apply to all finance brokers, regardless of whether the loan falls under the UCCC or not. Check them out along with the COSL and you may be in with a good shot. All the best.
hi Queen gucci (and others),
Unfortunately the UCCC does not cover any credit given for investments or business purposes. That thus includes an investment property/property rented out to a tennant etc. Just wanted to clarify that. The trade practices act, and the credit ombudsman service will likely be the avenues to pursue with this one, and of course via the MIAA if this tool is/was a member – or is representing a lender/originator that is. Keep us posted. [strum]Hi queengucci
As per what the others have said, this is a no no as far as conduct goes. While I am relatively new in the industry, I have done my Cert IV in financial services, and only yesterday did the other exam in order to becomes an Accredited Mortgage Consultant, with the MIAA – reason I mention that is because all the trade practices act, and other areas are fresh in my mind! Obviouly if your properties are investment properties, you are not covered by the UCCC legislation, but there are other laws that still apply. I honestly can’t imagine why anyone would suggest terminating a fixed loan earlier and incurring fees like that unless there was some special circumstances, but these should have been disclosed. Depending on who the lender was however, it may have been necessary to refinance in order to access new equity, but again, being still with the same lender makes this scenario seem a strange one too…Please keep us posted as to how you go.Hi. Sorry that this has not worked out for you. I am wondering if you could reach an agreement with a purchaser to ‘assign’ it to them as the last reply suggested (the seller would need to be happy with the contract being altered to show your name and ‘Or nominee’ most likely) AND as there is an apparent equity gain instantly, perhaps a further agreemtn to allow you free rent for a period of time (ie, 12 months) which would allow you time to save money for other less risky or sooner settling deals or investments perhaps? Creative idea I reckon, free rent in exchange for a 40-50 k equity gain….. I would not imagine it too hard to get something out of it. It would be interesting to see exactly what you are talking about (ie, are we talking 3 properties on seperate titles, all ready to go? new?) and suburb/area etc but I am sure there would be others ‘more liquid’ that could offer you something sooner than me. PM info if you want, but otherwiase all the best. There will be plenty more of opportunities for you down the track…..[strum]
Monthly fees are a bug bear with me. Have you thought non bank? Check out Wizard, and also have a look at ING Bank, whether via a broker or go it alone if you have nothing better to do with your time. All the best. [strum]
Hi Quantum. Half your luck….Actually good on you… Just my 4c worth. I would have thought that unless you have a ‘split’ account or loan facility, and use one split of your loan as an LOC for investment ins and outs only, and another split as an LOC for personal / household use, (ie, non tax deductable) I would think tax time would be an absolute nightmare keeping track of all the expenses and income – what is tax deductable, tax deductable interest, and what is not. Just a thought. all the best hey..[strum]
..Haven’t read McKnights Latest book, (probably won’t now…) but it sounds like Steve has around 260 + exit strategies! [fez] [strum]
Hi. I guess another option would be to respect his wishes to leave the house for his family, as that is a pretty special thing in iteself. if it ever down the track does come on the market, I’m sure you’ll find out quickly? [strum]
Hi Snowlake,
I’m with Mortgage Hunter. If you have any choice in the matter it makes much more ‘sense’ to get this done before the official change in circumstances (based on the information you have supplied.) As a sidpoint, lenders like to see job continuity from the point of the actual trade or position. Ie. If you have three jobs in two years, but all the same trade, is generally seen better that when a person has done same job for several years, and then totally changed career type. (ie.Mechanic decides to become a hairdresser or something like that). All the best with the future plans….[strum]Hi CT
Sounds like you’ve covered everything, and by the time you read this will have done your first load of washing all going well!
A lot of it depends on wording when you write the letter to Alinta, but if you keep it polite, and to the point, that all you are requesting is for reimbursement for repairs to your machine that cannot be attributed to normal wear and tear, show you have researched it, (why it is not a usually repair etc) and that the repair agent has made a comment like this on the invoice (such as replace motor, damage caused by possible power fluctuation- no other faults found) and of course make reference that you had been concerned for sometime about some of your appliances when you noticed the frequency with which your alarm clock resets at night etc. That would usually be suffice. As I mentioned, a lot depends on whether or not they acknowledge this as something that possibly occured. Hopefully they will look after you then with this. Bear in mind it may take several weeks, but keep following it up, and make sure you right down dates and names when you speak to people regarding this. All the best…….[strum]
“If you want to protect your savings and buy assets start looking at precious metals (seek advice). You can buy silver and gold bullion from a bullion exchange in your CBD. Put it in a safety deposit box and watch as the house prices drop and you retain your wealth. Granted bullion does not pay income or fixed return, but it beats the risk of a wobbly property market at the top of the greatest hyper-inflated prices of all time and PAYING for the privledge by negative gearing.”
Just a comment re this bit on gold as an example, i think if you look back at the ‘value’ of gold, early last century, and compare it to it’s ‘value; now, it is exactly the same as you feel the houses are/were. I remember clearly a detailed commentry from a couple of well known (conservative) types in the finance sector on the radio, dealing with ‘buying power’ of various asset classes a couple of years back, and this very point was made. Not quite as bad as putting money under your pillow, but about the same as interest in the bank. Just thought that should be clarified, unless there is any factual (not speculative) Info to the contrary. Definately agree about the highly inflated property prices though. [strum]Hi Ctaing. A lot will depend on whether or not you could get information as to whether there is any issue or ‘manufacturing problem’ with this part of the machine or not. For example, if the repairer says he has not seen this happen before, or it is a rare occurance, it give you a basis to make a claim. However, if there is no ‘official’ recognizing of any fluctuation in voltage, such as a brownout (where the voltage actually decreases briefly, the equipment componants try to compensate, and then when power returns to normal…..BAM!) – which can be in a split second …. I have done numerous claims for storm and power damage over the years as an office equipment technician, and there are usually no problems if it is acknowledged that there has been a power issue from the supplier. Is your area prone to this sort of thing? Finally, to expediate things, and make it fair on your repairer, you will need to pay for repairs first, and then put in a claim – but obviously pursue the discussions first with their loss assessor…. All the best.[strum]
Hi Mentee. Hearts in the throat eh? Anyway, if you are thinking of clauses for a contract, and or offer, there were some excellent ones in API magazine a few issues back…the wonderful work of Rob Balanda I think. I ended up typing them out for future reference and if it saves you 20 minutes I can eamil them to you if you wish. I think I did the due dilligence one, and the building and pest inspection one, but they can be edited obviously. Anyway, all the best with your offer.[strum]
Munno, are you using a solicitor or a conveyancer? What state are you in? That can make a difference. is it the vendor has changed there mind (which is their problem I think) or is it something you are unaware of such as their bank has dissallowed them from setling, for example if they owe the bank more than the home was going to be settled for. You will find your contract states clearly the penalties and proceedures in NSW from memory? Did you have a signed agreement for early accesss to allow rennovations? You will find some of the more experienced forum members / regulars will see your post over the weekend and offer some input. I don’t think you will find ‘option C’ takes too long, which depending on the circumstances sounds like what you are thinking. Meanwhile, a bit more info/specifics such as the questions I have asked will help others with the reply. All the best.
So what exactly might we be chopping up?
