It’s to your benefit – just another principal payment. By pre-paying interest you will in effect always incur less than expected interest. It means that next year your interest estimate from the bank will be lower.

Any investment loan type is okay principal and interest or interest only – H/L, Margin Loan, Personal Loan for shares.

Depends on your employer. Mine offers this option and they require a letter from your finance provider showing interest to be charged for the coming year. You can then sacrifice this amount and draw it down each quarter to pay off your loan.

I think it can be gathered for free via a link from http://www.realestate.com.au

The basic breakdown of rent vs own, age groups, education, religion etc by postcode. Actual sales data is not free however.

Not positive in the sense of +ve cashflow. Remember there are other costs associated with owning property over and above repayments. Need to include rates, insurance, maintenance etc etc, which $4 a week probably won’t cover.

(I also hold my bat aloft and wave to the crowd upon reaching the ton! I want to thank my mum and dad, my fans………)

I’m not a broker but do have experience with 3rd party security and guarantor’s. It may help your case but you still need the income to support yourself and the loan. Most major banks won’t budge above 30-33% of your income towards payments.

Don’t do it via a dealer. They lowball you and charge top dollar to punters off the street. That’s their margin. Sell privately or on consignment where you tell a car yard I want x dollars and anything above that is yours.

It depends on if you actually sacrifice anythinhg as well. If (like my package) you can pay investment interest pre tax, well things can be starting to look good. Still pay your interest but it is in pre tax dollars so it costs you basically half as much as post tax dollars.

Hi Pinkster, maybe we can all go and get matching forumite tatts!

As landlords we had an interesting thing happen when a property became vacant a few weeks ago. We placed the add and arranged a rental open home for the people. Now we had 3 groups who wanted the house (4 bed w/board in nice suburb). It was let at $215 a week. We had these people openly offer above what we were asking until it got to $250 a…[Read more]

Call out the “pink”stigator
cos there’s somethin in the air
We’ve got to get it together sooner or later
Because the investolutions here

Very lame I know but it’s 9am

For f#$@’s sake what is going on in this place? Do we have to try and snipe at each other constantly or is it more profitable than investing?

I’ve gotta say – take it offline people. Not everyone will get along, we’re all different.

Perhaps my understanding of the soapbox concept is different to everyone elses. Constructive dialogue please.

In…[Read more]

I want to rule the world via my evil property empire! Did I say that out loud? Nuts.

Agree (fellow) Bear. Nowhere near as much activity. Is it due to all the conflict of late? I still don’t get it btw. I have no problems with healthy dialogue, and we don’t always have to agree.

I think there are at least 3 or 4 types of attitudes present and everyone is determined to be right rather than appreciate what others are saying.…[Read more]

Sorry for my ignorance- but where is Junee Shire?

IO loan repayments are very similar to principle and interest payments in value. For the sake of a few bucks a week (depending on mortgage size) I think IO just isn’t worth it.

I agree. Some economists are mixing their metaphors when doing comparisons, particularly with housing affordability.

My generation (X) is also into instant gratification, so building up to the property you want isn’t an option – straight to 4 br,3 bath, double garage, pool etc. Of course this type of house isn’t affordable to everyone and it…[Read more]

I have had quite a few cards over the years from many different credit providers and the best would have to be an Amex. Spend $5k a year and no annual fee, around $30-35 annual fee for rewards program and 1 for 1 points.

Not everywhere accepts but it’s still good.

Serviced apartments are a niche market and many investors won’t touch them as it can be difficult to get out of the investment. The ongoing mgmt costs can be quite steep.

IMO he would be far better off purchasing a conventional property – preferably a house.

I think this is called flipping. You still have to pay costs as you settle then immediately on settle to the next person so there needs to be a fat margin.