From memory the ATO website has some fairly detailed advice on the issue.I also recollect from some recent PR that it is one of the things they will be looking at pretty closely this cycle.

Ozboy wrote:
I hope so, cause I will feel all intelligent if its legitimate I am just finishing off renovating my own place with plans to move out, rent it out & buy another dump to live in & renovate that, using the equity from the re-valuation of my place.Here is my complicated question:Let's say the available equity allows me to buy ONLY…[Read more]

vockie wrote:
A significant amount of professional people attend 'seminars' to gain further knowlege and inspiration that you simply cant get from a book.  Think about how a university course is run for example.  It is generally someone in front of you guiding your education. If books were the answer, all schooling would be done via co…[Read more]

Hmmmm….all websites run by right-wing conspiracy theorists, One Nation and League of RIghts fronts, and assorted nutters.Must be on the money. That said, a little surprised how the legal fratentity and their learned journals managed to miss the coup d eta  that is occuring under our noses, Clearly the most astute constitutional lawyers are bui…[Read more]

Stuart Wemyss wrote:
Yossarian, that is a silly comment. If you knew how mortgage brokers got paid you would know that majority of lenders claw back commissions if vast majority of LOC is not utilised within a certain time. Therefore, setting up LOC which aren't used does not generate revenue in most circumstances. 

Most but not all, Stuart.I…[Read more]

Fairly common approach taken by mortgage brokers to maximise ciommission. Some lenders will pay on the drawn-down amount or a fixed % of the LOC limit, whichever is the larger. By drawing the whole lot at settlement and then immediately paying it back in, they get the bigger amount.Slowly becoming harder to get away with…

"Accessing your equity" always sounds better than "increasing your loan" It's prudent to consider them the same thing.

NikkiBlu wrote:
Hello all,thank you for those with nice comments yes i too am extremely happy with were i have come from and were i am heading in the future. As for my post above it is 100% true, i did get the DVD when i was earning $11 an hour working in a juice bar, i used one of Jamie's strategies OPM (Other People Money) and i asked my mum…[Read more]

Worth reminding anyone who comes across this thread that the Equity Finance Mortgage through Adelaide is for owner occupiers only , so not a solution for someone looking to use directly for an IP. Of course, you could refinance your PPOR into one to reduce your repayments and use the freed up surplus income to service said IP.

A rare example of when I dislike being proved correct…..Record trade deficit4 December 2007Australia's trade deficit blew out from $1.92 billion in September to $2.98 billion in October, the worst result in the 36 years that records have been kept. Total exports fell by 3.6 per cent with an unexpected fall in mining exports of 11.6 per cent and…[Read more]

Clearly the comments on Kevin's Blog remind us what happens when you leave your password around for your 11 year old to find.Yossarian

Rus D wrote:
How can I borrow so much? It's because some lenders will look at the value and type of property owned and count a percentage of capital growth as income. That's how confident the lenders are that property is a good investment.

Hi Russ,Care to name the lender that counts potential capital growth as "income"?Yossarian 

foundation wrote:
Keep an eye out for the sucker. If you can't work out who it is, it's you.

A gem.

Scott No Mates wrote:
It may not be a direct correlation however it is closer than any relationship between wages, cpi and rent. That is, as an investor would you be happy that ROI is dropping? (regardless of whether you consider rent in isolation or as part of the combined capital & rental returns)

I might have the wrong end of the stick…[Read more]

wezwaz wrote:
So Yossarian, you believe, given time, Rudd will turn the current account deficit into a surplus?He's going to bring interest rates below 5% and make it so everyone can afford the house they want. I'm looking forward to this. I'll hold off buying my townhouse for the time being then.

Far from it.  That particular cat is out of t…[Read more]

Scott No Mates wrote:
Have I missed some basic prinicple here? Rent tracks wages. What happened to the arguments of ROI & yield ie rent reflected as a % of the property price – whose growth far outstrips CPI or wages growth.

Are you saying that movement in rent is a direct function of movement in the property price?

I'll happily deliver a touch of reality:*in spite of a huge mining boom, Australia is running a current account deficit the largest in its history (funny how that particular measure has gone out of favour). In other words, when in the best position in a lifetime to sell more than we buy, Howard has ignored addressing the fact that we are…[Read more]

dreaming wrote:
All of the technical analysis doesn't calculate human emotion and the fact people want their own home and piece of dirt and will do anything to achieve this.

This is closer to theology than to economics. Make no mistake, the capacity of the punter to buy property is a function of the preparedness of someone else to lend the…[Read more]

Big correction has already occured in chunks of Western Sydney (I have seen buyers dropping 20-30% on properties purchased in 2004) but is easing back, leaving a trail of broken bodies behindShort version of my view: *the boom is largely a function of  (a) massively increased levels of debt, (b) made possible by lenders increasing LVRs and…[Read more]

foundation wrote:

Yossarian wrote:
Nix,The question I would ask is whether you are looking to invest or speculate. That is, is your expectation a quick return your goal or a longer term hold. If the former, I wouldn't consider it an appropriate first time play.

Now thatis good advice! You got a license for that Yossarian?

Hi…[Read more]