I tried to check out your website at the bottom of your post but it appears to have a problem and doesn’t open.

Regards,

eeshole

In your post you stated “you can get 100% lending organised without mortgage insurance and normal lending it just takes a little creative pen work.”

Could you elaborate on this? I didn’t think this could be done. But you seem to know what you’re talking about so I’d be very interested to find out how this would…[Read more]

I haven’t bought through him yet, although I have spoken on the phone to him about a property and exchanged several emails. I have found him to be a nice guy to deal with and very knowledgeable.

eeshole

Regards,

eeshole

Most replies tended to be about what Bonnie should or shoudn’t do, but I think the question that she’s really asking is whether or not landlords can change clauses in a lease contract after making verbal representations about the agreement.

Theoretically a verbal contract is legally binding, but practically speaking…[Read more]

I noted your previous reply to Torachan, where you offered to help him (her) find a CF+ IP within 3 months, just because. And because you like a challenge.

Well if Torachan didn’t take you up on it, or you would like another challenge, can you help me?

Regards,

eeshole

That’s because it’s not a permanent gain, it’s only a deferral of tax.

Example:

You buy an IP for $100,000. You sell it for $150,000. You pay capital gains tax on the gain of $50,000.

Say…[Read more]

How about an example:

Say you buy an IP at $100k, which returns $200 a week, that’s $10,400 a year in rental revenue.

Say you financed the whole lot with an 80% investment loan, and funded the deposit of 20% and the closing costs of $5k with a redraw from your PPOR line of credit, effectively paying 7% on $105k.…[Read more]

First of all thanks for a great tool, and especially for distributing it free to all interested investors. Good on you for giving us all a helping hand!

Can I make a suggestion for something to add to it? Perhaps I should submit and SDR or SCR or something like that.

Many investors would be funding the deposit for their IP via a…[Read more]

http://www.amazon.com/exec/obidos/ASIN/0743272935/103-5202972-3403010

Haven’t read it myself. This is not an endorsement. Just the result of a curiosity search late one night.

eeshole

It’s probably a good idea to get a valuation, and also to check what similar apartments in the area are selling for. Then you have a definite idea of how much the unit is worth, and whether it’s worthwhile ditching it and losing the deposit.

How long would it take you to save the deposit again if you had to back out and lose it? In that…[Read more]

I have been to his website and read with interest the articles on it. I think he does a good job of educating the public about the corruption and dishonesty of those in the real estate industry.

I have emailed him twice about the content of his articles and both times he…[Read more]

Did not understand how it worked, the explanation was not exactly that clear.

I saw nothing that compelled me to give it a second thought. Can you give us some more detail as to how it works?

Are you able to pass on contact details for your broker? Have spoken to 3 or 4 brokers, and while all have been professional & competent, none have really impressed. Would like to find one that really understands what you are trying to achieve and actively supports it.

Regards,

eeshole

Lender 1 has no exit fees after the 1 yr intro period.

Lender 2 has $1800 in the first year, $1200 in the second year, $800 in the third year, then nil after the end of the third year.

I think Terryw made a good point. Things change. Lender 2 may not always have a lower variable rate than Lender 1. After the 1st year, I may be able to…[Read more]

You could perhaps give them a deadline to get a tenant (and also set a minimum rent) then move on to a different PM if they can’t do…[Read more]

Lender 1: $1750 up front fees, variable rate 7.7%, no ongoing fees, will lend 70% LVR

Lender 2: $820 up front fees, 1yr intro rate 6.99%, thereafter std variable 7.8%, $35/mth a/c keeping fee, will lend 66.67% LVR.

Given a lend of 66.67% in both cases, I figure you will get an…[Read more]

At the seminar there was nothing groundbreaking, just very general strategy to buy off the plan on long settlement with deposit bond, then revalue just before settlement,…[Read more]

Having said that, the market will determine the price, and even a bad property can be undervalued.

The other thing to consider is that at the end…[Read more]

Here is a link to the ATO website which explains how it all works. http://www.ato.gov.au/individuals/content.asp?doc=/content/17023.htm

Here is a link to download the form itself.
http://www.ato.gov.au/corporate/content.asp?doc=/content/43572.htm

Basically I think you fill it in, lodge it with the ATO, they send you back a document…[Read more]

How do you go about getting to speak directly to the vendors? Do you ask the agent to pass on their contact details? Just wondering how easy it is to get to the vendor, I would think the agent would try and control the whole sales process.

Regards,

eeshole

The question you have asked opens many cans of worms and cannot be adequately answered in a forum such as this. You need to speek to an accountant/lawyer to get some advice as to how the different structures will affect your particular situation.

Having said that, I and the others on this forum can provide some general…[Read more]

Can you tell me who your lender is? I’ve shopped around a bit and can’t find any fixed rates below 7.7%+. I’ve tried ING, IMB, Suncorp, Westpac, Citibank, Public Trustee NSW, and spoken to 4 different brokers. Are you getting a special deal or is that what your lender is offering to the general public?

Zippys, have you made any…[Read more]

A good property manager should be able to advise you on this.

I’m not an expert on this subject, though.

Never mind. Sorry if I did suggest it inadvertently. My wife would agree with the mental age bit.

Back to the subject, it seems Westpac has reasonable commercial fixed rates, and they…[Read more]

When I made that comment I was more thinking of families where all the kids were at least at school and therefore childcare costs…[Read more]

A broker told me apparently Suncorp will do smaller loans too. Rates are quite high though.

Monopoly, why do you think I’m only 16? That’s probably my mental age, but I can tell you it’s been a looooooong time since I was remotely close to 16.

Sometimes I wish I was 16 again.

For anyone else…[Read more]

Try doubling that and adding 3, then a wife & 3 kids.

Perhaps you have me confused with someone else?

This is from Derivex’s website:

Consumer Home Loans are not currently available in Australia.

Derivex/IFHL will not receive or process any new
applications for consumer
Interest Free Home Loansâ„¢
until an independent
expert assessment of the
new consumer home loan
product has been completed
for regulatory and public review

This “re…[Read more]

I have just had an offer accepted on my 1st IP. Now getting paperwork organised and looking for finance.

I’m a bit worried about property prices and interest rates over the next few years but this is long term so in ten years time hopefully I’ll be glad I…[Read more]

eeshole

I too am looking for a small commercial loan on a property worth 220k. I have spoken to a few brokers, and the lenders that always get mentioned are ING and IMB. Some brokers tell me that ING won’t finance anything below 300k, others say that if I refinance my home loan with them they will do the commercial loan with it. They are…[Read more]

Can you point me in the right direction re obtaining finance for a CIP:

1. At 80% LVR
2. At reasonable rates?

I have put in an offer for a commercial property and am looking around to get it financed. All the lenders I have spoken to will only lend to 65% or at most 70% LVR, and rates range from 7.3 – 8.0+%.

I would love…[Read more]

Try and get the drift of what I am trying to say FIRST.

Let me explain my “rubbish” to you. All I was…[Read more]

1. I thought you said it was valued at $82,500? Where did that figure come from? Yes, it would be a good idea to get an independent valuation.

2. Unless you exchnage contracts, it’s still on the market and may be bought by someone else. Suggest you exchange quickly but put conditions on it so you can pull out if valuation &…[Read more]

No point comparing statistics from the broader market between asset classes. When you invest in shares you invest in one or a few. You don’t invest in the whole market (unless you invest in an index fund, even then that’s…[Read more]