Hi Frank

Yep, there’s better out there in terms of interest rates (however, keep in mind that the rate is only one factor to consider when sourcing finance). Check out some of the products offered by the non-majors – ING, Adelaide Bank, AMP, Homeside, Choicelend (the last two are owned by NAB but are quite competitive at present).

Cheers

Jamie

Hi Frank

Not keeping anything secret it was just a general comment. For instance, Homeside will do 6.9% on their pro pack, the homeplus variable for deals that are sub 75% LVR and loans above $250k. Choicelend will do a little better, 6.88% but their variable product doesn’t come with an offset and the LVR will need to be less than 65%. These…[Read more]

Hi Damo

It sounds like a stretch. Even if there is a lender that’s willing to provide finance for an IP, if you anticipate that you’ll need to dip into your savings to fund your lifestyle (and you’re already worried about your current financial situation) than it might be best to hold off from placing yourself into further debt for the time…[Read more]

No worries at all. Stick around here, ask lots of questions, continue to develop your knowledge and you’ll have a strategy devised in no time.

Cheers

Jamie

Hi propertyinfo

Depends on the deal – in general, the lower the LVR the better the rate. After 5 years you can normally refinance to another interest only term – some lenders, such as Adelaide Bank, offer 10 year IO loan terms.

Cheers

Jamie

Hi Josh

Welcome to the forum

If you’re happy with your current living arrangements (and they’re happy to have you!) then purchasing an IP or two might not be a bad option.

On the flipside, you won’t be entitled to the FHOG for these properties (but that’s cool, you can get that later) and these properties won’t be exempt from CGT if you ever…[Read more]

G’day Wilso

I’d tap into the equity in property 1 for the deposit – I would take out a separate loan against it that covers the 20% deposit + costs on the next purchase. You could then apply with the same lender or another for the remaining 80%. This clean structure keeps both properties separate – ie. one is not securing the other.

I’d avoid…[Read more]

Hi Melanie

Welcome to the forum.

Perhaps you should contribute to the forum before promoting your free investor workshops. I don’t mean to sound rude but it’s not in the spirit of the forum.

Hi again twinkle

Equity is simply the properties value minus the loan amount – therefore you have $80k in equity. Who said you didn’t have any equity?

Cheers

Jamie

Hi Johann

You’ll be able to get a much lower rate than that. If you had a $300k IO loan @ 7% (for arguments sake) you’d be looking at $1750 per month. There’s also depreciation and negative gearing (as mentioned above).

On face value though, it does appear that this property will be negatively geared by quite a bit. However, the amount you’re…[Read more]

Hi Twinkle

Welcome to the forum.

How much was the property worth when you purchased it?

Hi Alsfta

Welcome to the forum!

It’s a really good question.

Could you purchase something in Muswelbrook that you could add value to? Perhaps spending your “spare” time in Muswelbrook renovating your house and adding some value – after a year or two, you could have it revalued and possibly tap into some equity, which in turn could be used to…[Read more]

Hi Wobbly

Different lenders have different methods for calculating serviceability.From the description above, it sounds like your loans are probably with CBA. There are some lenders that only stress test the loan you’re taking out with them by adding a couple of percent to the interest rate but they don’t load up the other loans you have with…[Read more]

Hi Jessebear

I personally haven’t had experience investing in this part of the world but I’d be interested to know why you’ve decided to look into Romania? I stayed with some English friends in a place they purchased on the coast in Bulgaria back in 2006 and I remember it costs them the equivalent of about 50,000 pounds and this place was a…[Read more]

In general, a fixed rate loan generally lacks the flexibility of a variable rate loan. The break costs that come with a fixed loan can also be quite hefty if you ever want to pay out the loan.

On the flipside, you’ll know what your repayments will be for the duration of the fixed rate – which can be good for budgeting.

It’s an extremely poor attempt to hide a couple of links for some dodgy looking website in the US.

Blank Frank wrote:
Interest Only can be fixed or at a variable rate.  Can you get an Interest Offset account with a fixed interest loan In Australia?

Yep, sure can.

Cheers

Jamie

No mate – these are for a Canberra property

I’d be inclined to go for the larger block – it should do better over time.

Yep, agree with the guys above. I’m pretty sure that’s also the case in the ACT.