Forum Replies Created
Excellent wilko1 makes sense
Thank youPaullie wrote:blocka wrote:Stick to variable for now !What makes you say that ?
well i believe rates will still come down some more lets see what next tueday brings
Shape wrote:blocka wrote:if the banks lend at lets say variable 6.5% and fixed 6.0% and people choose fixed, and rates go up 0.5 % the bank looses by 1.0% BUT if rates go down the bank wins or the losses are less,
so if rates are going up which i dont think they will why would they banks lock people in so low ? makes no sense unless they know they will be dropping rates soon and if they can lock people in at higher then variable they win……..just my thoughtsThe bank will ALWAYS win….when they fix your rate, they will also secure the funding with their funding line at a set rate for a set period of time- They will always maintain their profit margin. The only risk they take is YOU defaulting on the loan….interest going up or down is not a major risk factor for the bank to consider; as they migrate this change into their business and variable residential loans
Bank loses when they have poor management , risk control or bad funding source/business model.
If your a share holder of one of the big 4, you could access their annual report which provides a break down on their profit – it wont tell you how much their funding cost are etc…BUT Generally speaking the banks makes a larger profit from variable then from fixed,..even if the rate does up or down..Regards
MichaelBUT does history not show us that when fixed is lower than variable rates are on the way down !
Also i recently rang my lender (westpac) and told them i could get a better deal else were and they swiftly dropped my rate by 1.0% it was quite a shock at how easy it was…
RING YOUR LENDERStick to variable for now !
if the banks lend at lets say variable 6.5% and fixed 6.0% and people choose fixed, and rates go up 0.5 % the bank looses by 1.0% BUT if rates go down the bank wins or the losses are less,
so if rates are going up which i dont think they will why would they banks lock people in so low ? makes no sense unless they know they will be dropping rates soon and if they can lock people in at higher then variable they win……..just my thoughtswait for the for sale contract to end, (usually 3 months) and then the vendor can do what they like.
lets say i inherited $250,000 i could bye one property worth $250,000 and enjoy the rental return of lets say about $280 per week and wait for capital growth of say 4% per year =$10,000 per year, or i could bye four properties of total p/p of aprox $1,000,000 and use my $250,000 as the deposit to borrow the rest. i would not have a rental return every week as rents would go toward the repayments of loans and they would found themselves and if i got 4% per year capital growth on $1,000,000 = $40,000 per year
hi rachael
ive been using a similar company called whitehouse securities for about 10 years, they dont ask for a management fee however they do offer a rental garentee and maintanance for approx $30 per week, recently we had a tenant move out and left behind a trail of damage like drawing on walls, holes in walls and stains in carpet, the list goes on, they were also three weeks behind in rent, however with our rental / maintanace garentee, we continued to recieve our rent as usual and damages were repaired for next tanent. we are happy with this arrangement as we dont need to worry about anything…
happy investing…
jason mortimer…HEY PEOPLE JUST ANSWER THE QUESTION GGGRRRRR
Do you have any idea of costs to her to get it to an investors help stage ?
Thanks JASOh and similar land of approximate 2.5 ac in next suberb is approximate $300000
Well my friend tells me she believes it to be subdevidable and once her mother gifts her land for accsess road, I’m guessing it would be very attractive ?? Yes ? And the next step would be to contact council. Yes?
Not sure of your question but if this is how I understand it …
Ip in question put 10% in your name and you claim that part and 90% in husbands name and he claims that part…!!!Go girl ….. We’ll all get there !!
Hi karmark
Go to google and type in…. the investors club
There you will find all kinds of answers,
Not sure where you live but they have a seminar on this weekend on this subject
on the central coast and it’s all freemy plan is to bye something negatively geared and when it gains enough capital gains sell it and use the equity to purchase something positively geared and then use its equity to purchase another negatively geared property and repeat this process over and over again
assuming you have your own home to use as security…..
using an investment company is OK some offer a rental and maintenance guarantee which can be peace of mind, you will pay for this service but is a tax deduction but remember they have to make a profit as-well ie sale price ,,,,,,,,, i use a company called
WHITE HOUSE FINANCIAL SERVICES 1300363738
GOOD LUCKOops borrowing $700k io for another home to live in but keeping original ppor as ppor
Hey guys
Need your thoughts on another option:
Ip is valued at $550k and owe $530k
Ppor is valued at $650k and owe $400
My question is what are your thoughts on
borrowing up to say $700k io and turning
ppor into ip earning $650p/w rentp.s sorry i couldnt get pics to load
