No – I'm saying that the cheapest rate often comes at a cost later on because these lender aren't often conducive to the needs of investors.CheersJamie

Regardless if it's a PPOR or an IP – interest only with offset will provide maximum flexibility in the future and achieve the same outcome of a P&I loan. If you're a lousy saver, have no other deductible debt and don't plan on ever purchasing a PPOR in the future than P&I might be suitable for you (but this is a rare…[Read more]

Hi thereHopefully this should answer your question – it's a blog entry regarding whether to opt for IO or P&I.CheersJamie

Sundance wrote:
There is an offset account against the loan.

Hi SundanceDo you have a PPOR debt or any other non-deductible debt such as a personal loan, credit card, etc? If so, knock that on the head first before placing funds into the IP offset. If you do have a PPOR loan – forget about using the IP offset and set up an offset against the…[Read more]

Hi there

Welcome aboard.

I’m a broker so the post will sound biased – so take from it what you will.

If it’s the cheapest rate and a small saving each month that you’re after than go to an online lender, select the cheapest and apply. If you’re serious about investing and growing a portfolio than seek advice from an expert, get it right from…[Read more]

Hi James

I’m not an accountant but utilising an offset account in the manner described shouldn’t cause any tax dramas.

Cheers

Jamie

You’re welcome – I started writing these blog entries for API mag on everyday questions that come up when dealing with clients. I even find myself referring clients to some of the articles – after a couple of reads, the content sinks in.

Cheers

Jamie

Hi DeanWhat are comparable properties selling for in the area?What would make it a good investment in the future?My only comment with properties that have already been renovated is that there's little (if any) scope to add value and you're usually making someone else money.You mention turning it into an IP down the track – it's important to set…[Read more]

Haha – enjoy. Feels like I'm in the Canadian rockies right now.CheersJamie

Qlds007 wrote:
Jim's they can be located anywhere. I am currently on holiday in Alaska / Canada and processing an application for a forum client in Regional Victoria. Even when I am back home in Brisbane I have clients all over Australia and expat clients all over the Workd. Most quality Brokers would be the same. Cheers Yours in…[Read more]

No, I wouldn't consider them to be less favourable – it's just that there's only a limited number of them which narrows your scope of future lenders. I wouldn't say it was a deal breaker – it all depends on your long term plans.CheersJamie

Amit Thaker wrote:

Jamie M wrote:
If a valuer didn't physically inspect the property then it was either a desktop (RP data, etc) or a kerbside.

I know lot of organisation as well government relies on RP Data but should we take RP Data on face value. Looking at your signature I would like to ask, how can I value my property like a bank?

You…[Read more]

Flashkick wrote:
The mortgage broker suggested once the property becomes a IP i should change my loan to IO. I understand that there is tax benefits regarding this. 

HiyaNot good advice.The loan should be set up as interest only with an offset now. Instead of paying down the principle – place the would be principle repayments into your offset…[Read more]

A good broker is personable, has a sound understanding of lender policy/procedures, a good working relationship with lenders, loan structuring, good attention to detail, honest, ethical and efficient. In my mind, it's something that's not provided in a course – it's experience coupled with personal attitudes/attributes.  CheersJamie

Hi thereIt's a very vague question which no one will be able to answer without some more info.CheersJamie

If a valuer didn't physically inspect the property then it was either a desktop (RP data, etc) or a kerbside.It all comes down to the security type, location and LVR – for some purchases, a contract of sale will suffice.CheersJamie

dtrump wrote:
I've heard that if you go 50/50 that when you go for a loan down the track for another property the banks will take 50% of the income but 100% of the loan repayments when calculating your borrowing capacity (i.e. they assume the other partner won’t make any repayments) – is this true? 

Correct – however there are some lenders that…[Read more]

The broker is responsible for submitting the correct information and supporting documents. It's in our best interest to get this right the first time because it can result in additional info being requested and the deal being placed back at the end of the cue (frustrating for all). Therefore, a lot of the burden should rest with the…[Read more]

Thanks for the kind words Luke.

There’s more to consider here than just rate.

What are your future plans with the property?

Is it a ppor or an ip?

What’s the current lvr?

Cheers

Jamie

Herron Todd White's month in review is fantastic – http://www.htw.com.au/Newsletter/CheersJamie