Forum Replies Created
Summer,
An offset account is simply your transaction/savings account whose balance is applied against your loan account for the purposes of calculating interest payable.
If you have a LOC/redraw facility on your loan and have the available funds to use as a deposit, then, this would be a clean and legitimate way of placing a deposit on another IP.
Bear in mind, if you make the IP a PPOR, you will not be entitled to claim the interest on the funds you advanced from your LOC, from that date.
The reason I ask is that some lenders ignore default payments under $500 if they are paid, although they sometimes need to be at least 6 months old.
With an outstanding debt, I think you will find it difficult. The MB’s on this site can confirm that a non-conforming lender may be able to assist. Although I would have thought, you would need to have paid the debt off (?)
Otherwise I would go back to the bank and try and explain, cajole, sob (cry if you need to) what had happened. Maybe a hardship story and that you will enter into an agreement with them to pay off the debt, and endeavour to have them wipe this off your credit history….
Not sure if anyone else has done the same thing and what their success was?
Retire40,
How much are we talking about?
Is your agreement with the financial institution that issued the CC in writing and implemented?
I heard a rumour that wages were going up across the board so that people can afford to buy overpriced shoe boxes.Because they might be able to, doesn’t mean they will……There are too many other more significant influences in the current market that clearly over shadow any potential rise in wages/salaries.
Few friends call Fox News, the real Comedy Channel. It is good for a laugh.
Funnily enough tonight, they were expousing the triumph of the Iraqi elections and analysing the reaction of foreign press headlines and whether they were pro or anti Coalition/US.
The last time I was up there (November), most of the subdivision (except for townhouse development) for houses were in Coomera Waters, which were a pretty penny.
Despite the amount of development, I think it is a solid area to invest in. (I need to disclose that I do have a 3br townhouse in Coomera as well!)
John,
Currently own a 2br apartment IP in South Melbourne (bordering Southbank) and rent a 1br apartment in the same area.
From a prospective purchaser, I think you could do better elsewhere for the moment. Although most media & other investors lump CBD, Docklands, Southbank & St Kilda Rd as one homogeneous group. Which is definitely incorrect. At the same time, the amount of stock available (even though it is still early in the year) is pretty light on from a quality point of view.
From a rental propsective, there is definitely upwards pressure & know from my personal experience in both renting and renting out my property that despite what some commentary about inner city (Docklands & CBD aside), there is good rental demand. (Again this time of year is the busiest for rentals).
IMO, at least wait for another 12 months and review the market then.
James
HG,
I think it might to wise to look at diversifying your investments. So maybe shares & property.
With regards to an IP purchase(s), I actually think time is on your side and don’t believe you should rush. You have time to do your due diligence without worrying that the bargains will vanish.
Alternatively, I think development or renovating older property in the current environment is a good option. With CG limited, anything you can do to create value independent of general market price changes is a solid choice.
Good luck with it.
Initially, I would consider at least, setting up a LOC against your PPOR with an offset account and park at least initially, the money in the account, which effectively reduces your non-deductible payments to zero.
The LOC then can be utilised to purchase shares, property etc and the interest is then deductible.
James
Philip10,
Photographic misrepresentation is a practice that has definitely occurred, however with both the ACCC & REIA involved to address this and other issues, any breach is now potentially subject to breaches under the Trade Practices Act
for misleading & deceptive conduct as well as code of conduct breaches under the state RE bodies.http://www.reia.com.au/documents/Guidelines_Photographic_representations.pdf
Thanks Michael, will head down to the newsagency this afternoon.
In the instances where you purchased (on behalf of your clients), how long is it envisioned before the vendors actually commence construction of their development sites?
Hard to add value to a storage unit. Can do that to other property through reno or re-development.
A caveat could be placed on title to protect your interests (in addition to the contract between yourself and the purchaser), as many banks do not give permission for registered 2nd mortgages.
Is this a residential property?
Is there a current lease on the property?Michael,
These sites in Frankston are they for development within the next 12-18 months? Or are they intended for a longer hold period before development?
Have heard some commentary that whilst good size blocks are available in Frankston in the price range you mention, the numbers re development do not quite stack up in the next 18 months given current valuations of the new dwellings, but beyond that are much better. Is this a fair comment?
Jamie1au,
Should we set up a trust, if so what type?A unit trust allows each individual to purchase units in line with the % ownership you have all decided upon.
Are you planning to invest togther in the future or is this just a one-off?
Should we all put in the same amount equallyAre you aware of the detailed financial position of each of the other two individuals? Do you trust them? Is there an agreement on how to deal with ongoing repairs & maintenance issues? If there agreement on this, then each should be able to confirm what share is going to be comfortable for each.
Great idea.. Thanks Hutch.
Andycasey,
http://www.ato.gov.au/individuals/content.asp?doc=/content/43486.htm&page=19#P2951_293192
If a CGT asset, including a share of a jointly owned asset, was transferred to you because of the breakdown of your marriage and it was acquired by the transferor before 20 September 1985, you are also taken to have acquired the asset before that date. Any capital gain or capital loss you make when you later dispose of the asset will be disregarded.Giddo,
This doesn’t answer your question directly, however I think you will find that the mortgage insurers have a significant influence on bank’s lending policies regarding small towns.The link will give you a guide as to what PMI (one of the MI’s) deems what location is eligible for mortgage insurance and therefore what LVR ratios can be lent.
1. Are you happy with your family living in a rented premises instead of owning your own home? This is mroe a lifestyle/philiosphical judgement, which IMO, there is no right or wrong answer.
2. If you have no objections to renting, then is this premises ie rent costing you less than that premises you would consider purchasing ie loan payments.
Of course, that does not take into account other expenses eg rates, depreciation, which would also skew the financial analysis towards renting. Nor does renting your own premises through a trust structure which you could also do…..
3. Are you confident that you want to be investing in property (versus shares or bonds), and more specifically what geographical area of Australia given where we are in the property cycle.
