Exit Fees!

Viewing 6 posts - 1 through 6 (of 6 total)

PosEnterprises
Member
@posenterprises
Join Date: 2006
Post Count: 290
January 5, 2007 - 5:50 am
Hi can anyone tell me which banks have lower exit fees. If i want to buy reno and sell within 12months to build up cashflow.
If i want to reno and then sell for profit the exit fees are quite high anyway around this? Or would you keep for 12months then sell to avoid it. What are others strategy?
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
January 5, 2007 - 6:48 am
There are many lenders that do not charge excessive break costs or DEF on a variable rate loan.
It is difficult to give you an exact answer without knowing more details but happy to make some recommendations.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
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celeste
Participant
@celeste
Join Date: 2005
Post Count: 169
January 5, 2007 - 10:52 am
Hi PosEnterprises
Do the banks still do the portable loans that you can transfer from one property to another?
Celeste
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
January 5, 2007 - 2:46 pm
Hi Celeste
Yes loan portability is common however there a lot of disadvantages.
In essence the two loan amounts will need to be the same and have simultanous settlements.
Not always easy when you are trying to buy, renovate and sell.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.
Richard Taylor | Australia's leading private lender
propertypower
Member
@propertypower
Join Date: 2006
Post Count: 312
January 7, 2007 - 2:17 am
PosEnterprises,
You need to consider Capital Gains Tax as well if you plan to buy and sell within 12 months. I think the bank exit fees will be a smaller consideration compared to CGT.
My suggestion, don’t sell within 12 months. If you want to release the equity, I believe you can always get the property revalued and refinanced.
Regards
Sanjiv
â€œThere is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.â€ – Nelson Mandela
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
January 7, 2007 - 12:31 pm
Try Bankwest for low exit fees – Lite product.
Terryw
Discover Home Loans
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