[jacqui_03Participant@jacqui_03Join Date: 2010Post Count: 142]

June 18, 2010 - 9:11 am

Thanks for all the helpful advice.

I will do my due diligence when it comes to researching reputable companies and ensuring I get independent rental appraisals/valuations also.

Dazz do you mind telling me which company you used and are you happy with the end result?

[jacqui_03Participant@jacqui_03Join Date: 2010Post Count: 142]

June 17, 2010 - 8:18 pm

Just a normal residential house. I would arrange for my own valuation etc to assess before I bought. Are u better just to by one off the plan without the guarantee?

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June 14, 2010 - 9:35 am

Thanks for your advice Terry.. Do u ever deal with St George or Bankwest? Are there any benefits around those portfolio loans where u have sub accounts, I noticed a few banks offering these for investors?

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June 14, 2010 - 8:55 am

Hi Terry and Richard. Have either of u had much experience with westpac rocket investment loan and offset ac? I can get discounts with them and I was trying to compare with anz and nab? Do all offset accounts offset every dollar in the account daily? I don’t like the idea of paying monthly service fees on the offset account either. Thanks in advance, Jacqui

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June 13, 2010 - 9:16 am

So can u not purchase in individual names with this scheme? Does it have to be through a non personal entity such as a trust? Clovermoore are u able to advise what bank u got finance through and if u had any issues?

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June 9, 2010 - 10:37 am

Yeah not good. Not many first home buyers in the market at the moment.

[jacqui_03Participant@jacqui_03Join Date: 2010Post Count: 142]

June 9, 2010 - 10:35 am

I have looked at the ballarat area. House and land packages seem so cheap there. I would eventually like to get a positive cash flow property. Is anyone aware of any future infrastructure plans?

Pwinne are your IPs old or newly built houses? Any recomendations on suburbs which are good for rentals. I don’t live in VIC and haven’t done alot of research on the areas.

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June 9, 2010 - 10:22 am

So Rick the zero stamp duty on off the plan purchases up to $600k is only in NSW? What’s everyones opinions on off the plan? I have heard it’s quite risky however I would still do my usual due diligence around independant valuer, independant real estate agent for rental appraisal etc. Is VIC 50% off stamp duty on new homes?

[jacqui_03Participant@jacqui_03Join Date: 2010Post Count: 142]

June 9, 2010 - 9:37 am

Can anyone advise the details of the new budget as at 1st July around no stamp duty on properties bought off the plan? Is that correct?

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June 6, 2010 - 11:45 am

Hello All,

Does anyone know if it is possible to find neutral/positive cashflow properties in the Canberra area? If anyone knows of any suburbs with high rental yields I would love to know as I am looking at buying an IP there in 6 mths or so.

Thanks

Jac

[jacqui_03Participant@jacqui_03Join Date: 2010Post Count: 142]

June 3, 2010 - 1:08 pm

Thanks Richard, will check it out. CBA are meant to be bringing out a fully transactional 100% offset account but its been put on hold til April 2012. Can you get better deals than if I was go into the ANZ branch?

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June 3, 2010 - 11:00 am

Hey Richard what lender do you write most of your business through?

[jacqui_03Participant@jacqui_03Join Date: 2010Post Count: 142]

June 1, 2010 - 9:42 am

Hi Terry – I looked into other banks offset accounts and they are different to what I am used too and all alot more flexible. I will go with your way of structuring now I am aware of how I can use them more effectively. I actually emailed the General Manager at Mortgage Wealth at CBA who look after the new products and they are bringing one out but not until April 2012 as they are also implementing major changes with the home loans and loan packages available. This actually works in perfectly as my fixed HL rate comes off in April 2012. The reason I was never a big fan off the offset option was not being fully aware of what was out there in the market so I am really glad you gave me your opinion.

Appreciate all your help Terry.
<br /:)” title=”>:)” class=”bbcode_smiley” />

Jacqui

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May 31, 2010 - 12:14 pm

Yeah im not completely sure about that – definately would need to suss out with an accountant. Can you please advise if you can have your repayment deducted from the offset account?

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May 31, 2010 - 11:18 am

Yeah if I was ever to move out of the house I am living in I would stop my salary/rent from going into the loan and have it going into a normal transactional account or new personal mortgage. I will check out what other banks have to offer in regards to offset accounts as they might offer more flexibility than the one I am comparing it too.

Thanks for your time Terry, I really appreciate it.

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May 31, 2010 - 11:03 am

CANT ** direct debit.

[jacqui_03Participant@jacqui_03Join Date: 2010Post Count: 142]

May 31, 2010 - 11:01 am

No I was going to draw a new LOC up to 80% of the value of my owner occupied home for the 20% deposit on the IP so I can still claim tax benefits due to the purpose being for an investment property. I will check out other banks offset accounts to see how they differ. The one I have looked into sounds difficult to use. You can direct debit the offset account for the monthly repayment on the one I have.

Thanks for putting up with me Terry. I like to hear your opinion when it comes to finance matters!

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May 31, 2010 - 10:27 am

I wasnt planning on having my salary or rent paid into the IP LOC. The way I have been instructed is to have my salary/rental income all credited into my personal LOC to reduce my personal HL as it is non tax deductable. Then set up a direct debit to come out of my personal LOC to pay the IP LOC once a month to cover the interest. There shouldnt be any tax implications as long as I dont make personal drawings off the IP LOC's. I have read of this method from Margaret Lomas's books and some other authors on property investment.

What bank do you recommend has the best Offset Accounts so I can compare?

[jacqui_03Participant@jacqui_03Join Date: 2010Post Count: 142]

May 31, 2010 - 10:00 am

Thanks for your help Terry. I'm sorry to be drilling you with so many questions but this topic is doing my head in!! I keep contemplating the pros/cons of both options.

What term do you suggest your clients  take out when going IO? If i was to sell prior to the maturity date of the IO period would there be a ERA if I took out a standalone SVR IO loan?

When using the 100% offset – the bank I am with at the moment your MISA account has the same BSB and AC no as your HL so how do third party transfers differentiate between the 2? There is also restrictions on minimum deposits of $500 and a minimum of $1000 to be in the acc prior to it offsetting any interest – where all funds deposited into a LOC offset the interest.

I was swaying towards the LOC due to other successful investors recommending it but also due to the flexibility it has- the ability to be able to take out a slightly higher limit to work as a buffer for any expected emergencies – untenanted periods/repairs etc. The interest is all tax deductable so I wasnt too fazed on paying an extra 0.10% above the SVR.  I also wanted to keep things as simple as possible and I am a little turned off getting a MISA + HL every IP rather an just one HL. I was only planning on drawing on the LOC for IP expenses – repayments/insurances/rates etc. I would also get stung with DEF of $700 if loan was repaid /refinanced within the first 4 yrs where there is no penalities with a LOC.

The main issue I'm worried about is what kind of difference it would have on my servicing compared to a 5 or 10 year IO loan?  
I plan on building a large property portfolio and I dont want to be restricted by the loan I chose. I might speak with my accountant regarding tax implications to find out what she recommends also.

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May 30, 2010 - 1:15 pm

Ok Terry I take it your pretty against LOCs, any reason in particular why you prefer not to use them? Why would a 100% offset be a better option?