Gday Riffraff…
Okay, you have the floor… imaginary property and plenty of answers… Geez… your as mad as a two bob watch.
Why did I mention interest rates?
Do I hafta explain everything to ya?
Cause next month they are gunna rise another .5% Do I hafta tell ya everything? Geez I dunno!What duz all this mean to you property barrons… simple… prices r gunna come down… cheapa next year for sure.
c ya Riffrafff
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]Bill
You wanna have a side wager that we don’t get 50 basis points increase on the 3rd December.
Also you guys never heard of fixed rates of interest. Why not take out a LOC upto 80% of the current valuation on a fixed rate basis.
Cheers Richard
[email protected]
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Hi Mel,
While we’re jumping between hypothetical and reality what would you do if you had 180K in LOC from equity and a positive serviceability of 2K a month. What type of investments would you look at? Higher deposits on a few 4-5 to make strong +cash flow or smaller deposits on many 6~8 to make average cash flows. Everything is bought on a hold and not sell basis?
C2
“Is it true the more you owe the more you grow until the bank steps in?”G’day Richard…
You’re on… what odds are you offering?
We will have a .5% rise in rates in December!
Please advise asap.
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]Bill
You name the odds i will accept them.
Cheers Richard
[email protected]
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Bill
You name the odds i will accept them.
Cheers Richard
[email protected]
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Posted twice in excitement i think that means its 2-1 on
Cheers Richard
[email protected]
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Posted twice in excitement i think that means its 2-1 on
Cheers Richard
[email protected]
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Gentlemen,
WHat odds am I offered for a .25 percent rise in the rates in December.
All bets setted in fluid form of course!
There is no way i’m betting against bill and axzzy. are you nuts 007, these two know what they’re talking about!.
good luck
shaunHi C2
We’ll have our conversation in between the betting scandals that are going on
]I personally would be looking to make strong cashflow. I’ll state now that I am looking at cashflow investing at present, as I am asset rich and cash poor and want to even things out (plus I don’t want to have to work![
])I probably have said before that if you have more properties you have a chance of more gain. But I do agree with Bill on the current market, so wouldn’t rush out and buy 10 ‘just cos I could’.
Although, having just reread your question, I probably would not put down any more deposit than I had to, but I don’t really want to pay MI at the moment. So a 20% deposit would be where I’m at. If that enables me to buy more or less, than that’s either good or ‘the way it goes’. I would not look to overextend myself, and would be planning on further rate increases when looking at my serviceabilty.
My whole strategy has been to buy and not sell, but recently we’ve sold a couple of dogs to alleviate some of our cash poor problem.
Cheers
MelG’day Richard…
You’re going to let me bet at “any odds” ?
I won’t take advantage of you mate…
But I think that if you give me 10/1
you are being let off lightly.A .5% rate increase in December 2003..
If you lose… you sponsor my bike ride $100
If you win…. you don’t have to sponsor me.Cheers
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]Nice odds Bill![
]Cheers
Melhi all
well this post has moved on since my contribution days ago.
one thing for sure is there is no need to lift rates by .5%.
Bill sorry for causing you confusion, i can feel the stress my response caused you.
i actually asked my wife if she understood my post and she did, so i assumed you guys would. Especially with your financial background. Bill it is possible to increase the mortagage by simply refinancing the property, getting approval for the extra cash and then putting the money straight back into the loan and then redraw the money if needed, (no not off set account i didn’t even mention that, you did). what i’m suggesting is almost the same as a LOC except a lot lot cheaper. melbear understands fully what i am trying to say. Mel clearly stated LOC can be very expensive and a big financial risk. there is a lot of hype about them, it is clever techniques to sell the product.
Even some people selling them believe the story of the wonders of LOC’s. i have a LOC but got into it with no application fees and use it carefully and sensibly. Bill if you are still struggling to understand this i am more than happy to give an example how this stategy will save you and others money.
alf get a second opinion on the loc you are being encouraged to go for, i can put you in touch with a bank who will give you a full 1% off the interest rate of a LOC, no establishment fees, no monthly account fees, small discharge fees, and a very small redraw charge, if that helps
regards westanG’day Westan…
Wit or sarcasm Wes?… I’ll let the Forum decide.
One thing we do agree on… a.5% increase is not necessary as the market is jittery enough… but imagine what’s going to happen when they do increase rates by another .5% next month….
you won’t be wrapping anylonger Wes… then again you might.Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]hi bill
just for the record
i don’t wrap and have no intention of wrapping. ( actually i don’t like it). But perhaps wrapping is a good strategy in a sidewards/dropping market. one of the downsides with wrapping is there is no Capital growth (which for the record is where i’ve made my $$). So in a market not expected to move forward wrapping may be the best property option. Why do you say this about wrapping?
Also for the record i have not hidden the fact that i’ve been selling some of my Australian properties, i’ve sold 11 and have 3 more on the market. but i’m not getting out completely i will keep at least 10 properties.
regards westanHi all,
westan, I’m the one who struggles to understand your strategy I must admit.
Mind to give an example and further info?Congragulations to westan …. he’ll have some charles ash! it WILLbe king
G’day Benny…(Westan too)
Did you really have to ask Westan that? you’ll get a correct answer… he’s pretty cluey… But it’ll take about 12 inches of space to tell you… G’night Benny.. G’night Westan and I apologise mate I thought you Wrapped… pleased you don’t like it either… my mistake Westan.
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]Mel said:
“…but recently we’ve sold a couple of dogs to alleviate some of our cash poor problem.”
Hope they were some kind of european designer dogs- I can’t imagine your average hound would raise much for a deposit :o)
Mel- you’ve said you are asset rich and cash poor. I know banks loan on seriveability and don’t want people to be too “rent relian”. What’s your opinion on how much banks will loan people? What’s the limit? Even if your properties go up in equity via increased value, surely banks won’t loan people a million bucks on an average wage?
This may sound a naive question to some, but with oincreasing values of houses, a million bucks worth of houses isn’t that much these days. And how do you repay that kind of money?
kay henry
]
])
]
The topic ‘What Would You Do?!’ is closed to new replies.
