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I would think vendor financing would be an obvious way to go,with terms that allow your parents to keep the part pension. It may be an interest free loan with X amount paid periodically for X amount of years, or interest only loan which maybe better for tax purposes. It may be possible for your parents to pay rent to your brother and receive rent assistance from centre link. You may also want to get advice from centre link, before you see an accountant and lawyer as often they dont give the best advice.
ANZ lending criteria is ridiculous, I would question the competency of any broker who would recomend them. They would sooner lend money to some-one who relies on keeping some low paid crappy job who is struggling to pay their living expenses, and no assets , then some-one who s income is 8X the average wage,but has no job even when they hold titles for 3 unencumbered properties. Yet almost any other bank will say we will lend over 1million as you are in a very strong financial position and dont need the co-lateral the ANZ has. They also steal money from your account , increase interest rates above what is agreed when you complain they will lower it again for afew months then slowly sneak it up again in small increments, overcharge for fees promise to pay it back but never do. If you want to work at some crappy job for the rest of your life bank with ANZ, they will try to tie you up,try to put you in a barrel, make it difficult for you to move then charge you higher rates and fees. They dont understand how investing works or buisness for that matter. Any way I suppose it is hard for some-one who has to work for their income understand you dont need a job to produce income, or they wouldnt be working in the bank any way. Catch 22.
god_of_money wrote:ANZ Breakfree Package = 6.94%ANZ might have low rates, but can be very costly as they are the hardest bank to get new finance from if you want to snap up those bargains. Saving a few measly dollars in interest can cost you hunreds of thousands in lost opportunities You need a bank you can ring up and say I need X dollars to buy Such and such and get the answer the next day and honour their commitment.
Troy or Cheeves, Just wondering if you thought using the Dow Jones property Index could be the best way to invest in US property as you can get 100% finance, great leverage and at the moment I believe a yeild of 30%. Seems to me to be the easiest and most lucrative way to get in . . Troy you could assume a loan preforeclosure tho, couldnt you?
A home is the most important asset you can have. If its a liability you would sell it. It can keep you warm, it can keep you dry , you can store your stuff in it including food which you can also cook and eat in it, you can be entertained in it, you can even do buisiness in it, including buying and selling things like shares, commodities and property. If this isnt enough you can leverage of it by buying assests that make you wealthy, and at the same time give you tax deductions so you dont have to pay tax. NR if your home is a liability I will take it off your hands and there is no need to pay me.
Get a good accountant. Be wary of financial advisors most have a particular product to push and it isnt usually property you can find some good ones if you want to buy shares.
So Sri what your saying is you want to buy property that yeilds over 15% , let me know when you find some. I will take some,
I would expect you might have to lower your expectations.You have to buy the property before you travel there to claim a tax deduction., and then you can only claim a part of the travel expenses. In other words bugger all.
? What crash ??
From experience paying more doesnt mean better. With the expensive ones you will be paying for the name and their self promotion. Take Chan and Naylor as an example. Yes $ 300 does sound steep. The lower charging accontants seem to have more integrity, then those just chasing the dollar.
Proprerty Jockey, Why dont you sell your house and buy in an an areas where you can get good houses in the $ 50- 150,000 price range, and plenty of jobs. Then have $400,000 for investing or starting a buisness. You would probably find you could earn more money too if you needed to or wanted to work.
Forgot to add it is crap to say you get what you pay for , as QBE policies are at premuim prices.
STAY AWAY FROM QBE, had a claim for fire on a vehicle, the same time the final repayment was due. The finance Co wanted to be and was paid out by me. QBE 's solicitors made up a heap of lies as to why they shouldnt pay, after about 2yrs of hassles and court cases, QBE had to pay. But they refused to pay me they said they had to pay the finance company even though the loan had been paid out. The finance company said they had no authority to give the money to me and they dont know why QBE sent it to them. All QBE would say is you will get your money eventually, but do abslotely nothing. After 3 years I got a call from a new employee at the finance company saying there books dont balance and they owe me some money. Had a claim for property at the same fire with CGU . No problems. Assesor came out almost immediately asked what I thought was the cost of damage even though slightly inflated, said that sounds fair and I had the cheque in two weeks no questions asked. Yet QBE wondered why I didnt renew my policies with them.
My solar hot water systems were high maintainence and needed replacing after short life, so were replaced with electric systems.
Hi kong, You could use defered purchase agreements. You can use the Royal Bank of Scotland for a 100% loan with 3 years interest in advance. the interest rate is about 3-4 %, there will be a cost of about 1% for hedging and 1% for capital protection insurance. Total cost of loan is about 6 %. I think you have your sights set low your $20,000 savings could get you about $140,000 worth of shares now. you should also get a divedend of 4-8 % every year on the $140,000. The minimum loan is $ 50,000 if this is all you want it will cost about $7,000. After 3 years the loan will have to be repaid. it is a non recourse loan. the interest rate is low because you have insurance against your assets falling in value. All you have to lose is the interest you paid up front. Kong where are you, I may be able to point you in the right direction.
Super Slueth , you hit the nail squarely on the head, excellent post. Good to see a bit more balance on this often unbalanced forum. I went to one of Yza seminars and was very disapointed it didnt deliver what was promised in the promotion. Any second rate broker or acountant could have given the same or better info. It was just a marketing tool.
While Carly maybe relatively ethical, I find it unethical of her to promote some of the dubious speakers she has at her semminars.Well, eloi I must be foolish, but I dont see the point in worrying about something that may or may not happen. If the sky falls there is nothing I can do about it any way. Australia is having a commodity boom that will only get stronger in the next few years. The only thing holding us back is lack of workers this will cause wages to rise, and tax deductions to be sort.(investment Properties) Dont under estimate the financial revoltion in China, with land now being able to be used as colateral,resulting in millions of chinese having a huge increase in spending power. Australia has relative low debt and record high wages and record high savings. Debt can be good depends what it is used for. It is obvious why your not a financial planner , if you got you got 6% interest you would loss 2.5 in tax and 3% with inflation.
Even if there is a recession so what, I am sure most of us will survive manage to fill our tummy and have a roof over our head. And there will be lots of oppurtunities and it will pass, so bring it on. I like a challenge life is more satisfying meeting challenges. So meet it head on or go and put your head in a gas oven.Paul which bank will lend you 80% on farm land , I have never heard of any bank lending more than 65 % on farm land and trhat is if you have lots of other assets and a good income, except perhaps RFC but being a holiday home I guess that wont fit their criteria. Wont you also have to pay commercial rates of interest of 9-10%. You will also have maintaince, issues with weeds and vermin and need plant and equipment such as sprayers, tractor, mower, ploughs.
There is an old vietnamese saying which roughly translated means there is only 2 times to do something, there is yesterday if not then, than to-day.
I dont see marks name on queenslands top 100 rich list , about $ 60 m should get him on it.
