Yes Kye, additional repayments can be made to the I/O loan (assuming it is variable, not fixed).BUTA better strategy might be to place the funds into the 100% offset account against this loan. This way the funds are available whenever needed, and you pay the same amount of interest as if you had paid the funds off the loan directly.This advice…[Read more]

Hi Ben, A couple of things to consider: 1. What is your current income, and what total loan amount do you think the bank will allow you for the next property? This can be determined by simply asking the banks or mortgage brokers. 2. The bank may not consider the value of the property to be the same as your estimate – Make sure you have some…[Read more]

Kye, Have a look around the site for info on interest only vs principal and interest loans. It is generally accepted that I/O loans are more effective because they provide maximum cash flow advantages and flexibility for future changes of plan. Also ensure that you get a 100% offset account with each of the loans. This will allow you to build up a…[Read more]

Hahaha – I'll have to wear one next time Nice to meet you D, and all the others of course. Sorry to those who I missed (my fault for rocking up late!)Thanks for organising Adam – great work! By the way… I shall now be referring to you as aabbcc at all times (or until you tell me it's annoying!)Look forward to catching up again!Cheers,Steve.

Hahaha – I'll have to wear one next time Nice to meet you D, and all the others of course. Sorry to those who I missed (my fault for rocking up late!)Thanks for organising Adam – great work! By the way… I shall now be referring to you as "Adam Dot Risborg" at all times (or until you tell me it's annoying!)Look forward to catching up…[Read more]

Hi Rich, I wasn't going to go into too much detail (hence the request to PM for more info), but I did one last week without PG's. They are assessed on a case by case basis, and the PG requirement can be waived in certain circumstances. Regards,Steve.

Depending on serviceability and LVR, I might be able to do a SMSF lend without PG's. PM me if you are still interested.Regards,Steve.

How good was the NAB's comments about "We will limit any rate increases to the same amount as the RBA". They got all the good press and didn't even have to make good on the promise when rates stayed stagnant – haha. Although I do worry about the reduced profitability of NAB, and wonder if the amount of increased business will outweigh the cut in…[Read more]

Thanks Rich. The flat decision could perhaps also be due to some banks passing on more than the previous 25 point RBA rate rises last year. This generally cools the jets of the microeconomy for a while – It's almost like the banks doing the RBA's job as the majority of 'interest rate' related transactions for average families are through the bank…[Read more]

It's okay to borrow maximum for an IP as long as u have an IO loan and an offset account (and some discipline!)I think a lot of the younger couples have difficulty leaving their cash in the offset account and not spending it, so I have recommended P&I loans to a few people I know. Better to have untouchable equity at the expense of a tax…[Read more]

Also there is a chance that one of the properties was overvalued before… This would cause one to go up (which was probably correct before), and the other to go down. Not saying that this is what happened, but i've seen a few property valuation decreases in the last couple of years.

I believe NAB uses PMI now.Not sure if they are related to QBE in any way, but still.

Someone quite close to me got ripped off by a scam like this… Despite how amusing these scams are, I can't even bare to laugh at the guy considering making the payment. On the offchance that this comment actually makes a difference… PLEASE DON'T DO IT!

GOM – Perhaps shahabr knows something the bank doesn't? Okay…maybe not, but I have seen many people re-sell property for much more than the bank valuation only a short time after settlement. By nature, the bank valuers are conservative and are becoming more so due to audit requirements. They aren't always wrong, but if there aren't many…[Read more]

Not spam mate – just interested. Used to learn a lot from certain people a few years back and just wonder where they are. Why so cynical?

I can make it there too…

I can make it there too…

Hi Sarah, When they say you "can't refinance for an increased mortgage" to pay for an investment property, they are most likely referring to tax deductibility. As the veterans on this forum are often quoting, tax deductibility depends upon the "use of the funds" eg: If you borrow $300k to purchase an IP, the full amount is deductible. If you then…[Read more]

Full points for trying though…

Sounds about right – My sums showed around $6,360 off the home loan based on $100k LOC… I suppose it depends what interest rate you use in your calcs.