Forum Replies Created
- FirstHomeOwner wrote:it seems pretty indisputable that recent record auction clearance rates and significant property value increases have been driven primarily by investor demand.
Investors are the primary drivers of the market usually combined with low interest rates.
In WA the government offer a shared equity scheme;
http://www.keystart.com.au/home-loans/shared
Not sure if this is on offer in other states but if I was trying got break into the market for the first time I would consider this option.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
They where going to be my first port of call. We have had mutual clients and also had a coffee with Adam a few months back.
Cheers Tom.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
Hi Tom,
Aaron Sice will be able to assist with your GF enquiries. He works out of Wangara.
http://www.aaronsice.com.au/
Ps. I will also be looking for an R40 in Wanneroo in the near future and would be interested in local REA who you found helpful in the process?
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
Mgs4 wrote:Hi All,Related questions, are banks normally waiving annual/initial fees for new loans at the moment? We recently got new loan which had an applicable annual fee but also a cash payment for new loans, some promotion offer.
Also if you rate lock for 3 years, the property goes up in value and you want to tap the equity to say buy another IP, can you easily add another loan on the property instead of initiating break fees on the 3 year fixed loan? What is the easiest way to borrow additional debt against the property in this circumstances?
NAB/Homeside have also increased thier fixed rates recently.
Most banks are waiving application fees but still charging the annual fee as the trade off is you get a discounted variable rate.
CBA are offering $700 for a refinance from another bank and St George are offering $1250.
If your loan is fixed and you get it revalued and the property has increased you will be able to access the equity &increase the loan with a separate sub account/loan split to the existing fixed loan therefore avoiding break fees.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
If you pay less than market value initially and the market remains steady or increases then you may gain some equity. Your are essentially at the mercy of the end valuation. It is common for the end val to come in less than the purchase price so you would need reserve funds to make up the difference.
The property would have to settle in your name as you would likely loose your 10% deposit if transferred to some one else. The initial deposit would be cash or equity loan from another property or a combo of the two.
My advice would be to implement a more viable strategy.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
You can go to 80 or even 90% LVR on your PPOR or IPs with some banks and access the difference (cash out) between what you currently owe, subject to serviceability.
Purpose of funds need only be for "future investment purposes" which could include overseas property as the funds from the Aussie bank are secured against your Aussie property.
Issues to be aware of would be fraud in particular to who is the property ownership. You would have to have some knowledge of the property laws and/or a trusted advisor on the ground where you are intending to purchase.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
craig123 wrote:My fiancé owns a 3rd of her current PPOR with her parents, she has a 150k mortgage with an offset of 138k. She now owes 116k on the loan. Her parents do not have a mortgage on this property. The deal is that when her parents pass she will inherit 100% of the property. Basically this strange set up is this way as her parents could not afford the house repayments anymore so she helped them out.So my question is, would it be beneficial for her to redraw that offset money and put into our own PPOR? And start again paying the loan off into the offset? I do not think her parents can afford to pay her rent of which she could claim a tax deduction. What would be a good scenario?
I would still preserve as much of the loan principal as possible as this property may become an IP in the future?
I am a bit concerned that you are confusing offset and redraw in this explanation. If you are don't feel bad as many bank staff don't know the difference either and actually think it is the same thing. It isn't.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
Well done for implementing the knowledge gained in regards to IO + Offset. It is a very simple yet effective strategy that is overlooked by ignorance more often than not.
It is to your advantage to store funds in an offset unless you can get a higher return than your current mortgage interest rate elsewhere, adjusted for tax that would normally be paid. You could place it in a term deposit at 3% and then loose a portion to tax depending on the bracket you are in or leave it in the offset and get a tax free "return" of 5+%.
If the investment offsets are costing you in fees then best to close them. If not then leave them open.
Yes. Use the cash as a deposit towards your PPOR. I would still repeat the process with your PPOR and go interest only for 5 years with a linked offset. You never know what twists and turns life will take as your PPOR may be converted into an IP down the track. If not then no harm done.
All the best. You are dong great by the sounds of it.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
Three year max imo.
Fixed rates are good for predictable repayments.
Rarely see someone beating the banks via fixed rates (usually the opposite) but in saying that they are at 30 year lows and less than variable rates which is unusual.
Some banks have already pushed up fixed rates so maybe they know something the average punter doesnt?
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
Yes you will be able to claim interest from get go if property is for investment purpose.
Always best to check with your accountant as I am not aware of your full situation.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
Care to share the name of the subscription software program Jamie?
I would be interested in exploring further.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
I pay $60/month for the privilege of accessing specialist software that tracks all the latest rates, fees, charges, policies of the 20+ lenders on my panel.
I provide any necessary or requested information in the form of PDF, spreadsheets, emails etc to assist my clients to make an informed choice.
Some want a lot, some a little and some just want the job done as efficiently as possible and I accommodate accordingly.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
Just need to make sure total loans over house A will be paid out from disbursed funds from the sale of same house. If not enough you will have to come up with the difference.
Why do you need to sell house A?
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
Your solicitor/conveyancer would be the best port of call.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
Your original LVR will need to be considered. If above 80% then LMI was payable.
If you refi elsewhere you may be up for another LMI payment where as you will get a credit if with the same bank.
Several ways to determine a valuation but will come back to LVR/LMI to determine the viability of a refi.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
I likewise treat everyone as equal. In fact some of my best referrers are people that I assisted at zero benefit to myself.
I managed to save my neighbor $2000+ in interest payments by sending a pricing request to their bank.
She gave me a thank you card with a lotto ticket enclosed. Unfortunately wasn't a winning ticket
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
This link will help;
http://www.strataman.com.au/diy.html
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
The only borrowing allowed is for the original property and once paid down can not be re accessed as far as I am aware.
An offset account is available with some SMSF loan products with interest only up to 15 years available.
This could be a better option for your next SMSF property if you wanted to preserve the funds that you would normally use to pay down the loan.
Always best to consult your accountant/financial planner to ensure you are complying with the SIS act whenever it comes to your SMSF.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
As long as the qualification fulfills the legal obligations then go for the cheapest.
All of your real learning will be "on the job" anyway.
That was my experience when attaining my Finance Brokers license.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
lachmorr wrote:Thanks Colin. I was hoping that as we were buying from our daughter we would have been ok re DIY conveyancing. But I'll take your advice & get professional help.I have seen people who represented themselves and pulled it off. They usually had a background in conveyancing.
I have also seen people do it themselves and it has become a nightmare.
It is money well spent in what can already be a stressful process.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
