Good on you Celmel,

A big congrats on the first IP (hopefully of many). Where abouts are you between Bendigo & Melbourne? Rentals are very tight in Bendigo itself at the moment, particular anything near Latrobe Uni.
Enjoy the forum – there is a lot of experience here, but also a lot of personal opinions from a wide variety of backgrounds too so don't go rushing out and spend a million $ just because of a post you read it here without checking everything out for yourself !

Cheers

You will need to go with an 'on line saver' type one to get the most $. Some lenders only offer a higher rate for 3 or 4 mths on their products. My thoughts would be to check out UBANK first, or virgins' new account, or what on line saver your own bank has.
Cheers

Hi Andy,
A lot of lender ones are a tad on the anal (general or vague may have been a better choice of word) side.
Have a crack at one from an LMI provider – you can download as an excell sheet for a play around.
Link is here http://www.qbelmi.com/pg-Nsr-Calculator.seo

FYI I reckon the best home buying cost calculator is on the NAB website. (I even discretely use that one where I am currently working (underpaid and over qualified….) because it is quick and simple) although I know that is not the caluclator you were after.

I think you will find this qbe one will be ok to give you a general idea.

All the best.

Interesting.

I recently had a bit to do with a purchase in Melb (not mine) where for about 4 mths the person was looking for somewhere, and 90 % of stuff was listed as going to auction and the agents would not accept an offer before hand! …and I kid you not, stuff listed at $450-$490 was going in the high 5's EVERY time at auction, which among other things causes a lot of inconvenience, besides being blatantly misleading – they know it will go well over the 'suggested' range.

MIght have been interesting to submit an offer in writing regardless then.

Cheers

Hi eilatan28 – and welcome to the forum.

May I start by saying this is why accountants worry me (a lot of them) SO many have so little an idea on how to grasp lending and loan basics, and of course their info gets acted on, and you/we pay for the advice!

Without knowing your full circumstances, and to keep it simple, here you go.
Firstly, if it IS definitely your goal to sell (and enjoy that lovely capital gain) then go for it. Unless you can use equity (which you have to borrow against and pay interest on anyway) there is no other way to lock in profit (tax free profit in this case) on property other than doing just that – selling it.

Secondly, if you were keen to hang onto it and or switch your loan to an interest only product as you mentioned, you would make sure the loan had an offset savings account with it – meaning you offset the interest charged on the balance of your home loan, with the balance in your savings account – effectively the net effect of this is like getting whatever interest rate your mortgage is at, from your savings. It is tax free, because no interest is actually paid to you by the bank, rather it is not charged on your homeloan.   If you were to put the savings into a high interest account as you were advised, you will get maybe 5-6 % if you hunt around on an on line style account, and then be taxed on that.

Hope that general information gives a simple explanation, and helps.

Cheers

Interesting I think is that it does sound a lot of money doesn't it? Yet…….when you look at how much employment they create, the annual turnover of the business (which is what banks are) I put to you if you had a business that only gave back that % return on investment, would you think you were loaded, or would you lock the doors and go and work for someone else? Don't get me wrong – I despise the price gouging and margin increase banks wax lyrical about as 'cost of funds increasing etc etc, (yawn) but if you look purely at the % return on their annual investment – it really is not that much.

Hi Number 8.
I'll have to wait and see. I would prefer not to return to a bank in a planner role, and would love to do the independent thing in my own business (again – but have not owned a businees in th finance industry). I like helping people, and doing loan interviews/insurance/strategy planning etc etc and there is a real buzz to helping get peiple into their 1st investment property or see them wake up and pay down some personal debt & start saving some $. If no one pays though I'm knackered I guess. I think an hourly rate makes more sense than big comms – even if the client only uses you as a 'sounding board' and discusses 'general advice; with you because there is more chance I can make a difference.

I guess we'll see how it works out. All the best.

Hi work ur money
Don't lose too much sleep over that one. The ANZ are one of the only lenders that will do I/O for 10 years – most are 5. THe idea is that after that time you either stat paying down some principal, or re – negotiate (ie refinance) the loan into another I/O one – by which time of course you should have had a major boost of between 50-120% of your property value. All standard stuff, and bear in mind a lot of people woudl have paid off half their home loan in 10 years for a PPOR.
After the five year mark (or 10 in this case) a lot have either sold, re financed, or started to pay down their loan – so 10 years I/O is the best you will get – unless you use a line of credit facility – which is not suitable and costs heaps more interest in your scenario with your lender. GO for it – and all the best.  )PS HAve you considered saving money and going for an I/O ANZ simplicity plus homeloan? Unless you plan on having a couple of ANZ credit cards and a couple of accounts as part of your package, it is cheaper.)

All the best with the 1st home too!

Hi Danny, and welcome to the forum.
Might be a good idea to have a chat with the local council….then again.
Might be a better idea to have a chat with someone who does inspections/approvals in the area to see if they can assist, as they should be well up with what the Bendigo council wants.
I'm around your area (yes, I've even bought stuff off you if your name is who I think…) and we recently built a new shed, and I used the guy at Bendigo Building Services (new business) to look after that for me – no affiliation but he seemed to be in the know, did not rip me off, and was quick. Cheaper to ask first I reckon. I believe the council have made recent changes to lands sizes etc with subdivisions.
All the best with the project.

Cheers