Let me start by saying that a financial adviser or your bank are the people to speak with for specifics, however I can certainly offer you my opinion.
Depending on the way your loan is set up, it generally makes no difference whether you put money straight into the loan, or park it in the offset. If the offset is 100%, then the…[Read more]
A mortgage offset account reduces the amount of interest you pay on your loan. A broad example is:
Let’s say you owe $100,000
Let’s say you have $20,000 in your offset account
Let’s say the offset is a 100% offset (ie. it offsets the whole interest rate, as apposed to a portion of the interest rate)
Stamp Duty on Purchase
Stamp Suty on Loan
Loan costs (application fee)
Legal Costs (Conveyancer plus searches)
Lenders Mortgage Insurance
Building and Pest Inspection
Anything else which you need to pay out of pocket to buy a house. NAB has a really good calculator which I have played about with and found…[Read more]
I agree with Tamara, variety is the key. I know you asked for reasons why to go into property, but let me express a few flip sides;[]
One good thing about shares, you can enter the market with much less opening capital. For example a managed fund, some start with as little as $100. Try to buy real estate with that little capital.
Well the real beauty of this is the land. The intension I went with was “the building can fall around my knees, for all I care. That will even save us having to demolish”
As I said, zoned for units. The plan was to knock down and build 3 or 4 or even maybe 5 units and hock it off at a big profit.
One thing I can suggest is to look at the Comparison rate. For those who have not heard of a comparison rate, here is the speal given on the suncorp site to explain it…
“From the 1st July 2003, changes to the Uniform Consumer Credit Code (the “UCCC”) requires all Lenders to provide Comparison Rate…[Read more]
I don’t have any at the moment. Not long ago I refinanced my PPOR to pay out all my little grommity debts (car, c/c etc.) and so now I am concetrating on Saving Saving Saving… Trying to built up that illusive regular savings pattern for the darn bank…
Lots of research in the mean time… plus I have drawn up my 5 year and 10 year…[Read more]