Catalyst wrote:
 

Because if you do you will be paying non deductible interest on the new home. The thing is you never know when you might need that excess money. If you lose your job or need the money then you will be withdrawing money which is non deductible? The thing is you don't know what the future holds
.

Spot on – it's about maximum…[Read more]

brmiau wrote:
Why does that concern you? It's only to find out how much we can use to invest through equity etc… Then we'll make the call on what we are going to do.

Bad idea?

Hi brmiau

I'm obviously a broker – so this will come across as biased but a lot of bankers (and brokers for that matter) don't know the first thing when it comes to…[Read more]

Congrats Steve – looking forward to it.

Cheers

Jamie

You're welcome – glad it helped

Cheers

Jamie

bullet46 wrote:
Woah, Jamie M – You have me thinking now…

We are about to move into one of our units upon completion. We'll own it outright, so does that mean I should have all my other Investment properties as P&I due to no longer having non-deductible debt?

Not necessarily. Some people take comfort in paying down debt. Personally, if it…[Read more]

kirbonavich wrote:
So when do you exactly pay the principle back on a "interest only" loan….  After all a debt must be paid back at some point right?

A good time to pay it down is after you've paid off all non-deductible debt.

Cheers

Jamie

Hi Kylie

It seems to be heating up a bit now. My understanding from dealing with clients buying in the area and talking to other professionals on the ground is that there's a lack of quality stock on the market – so the supply isn't meeting the demand.

Cheers

Jamie

Hi Donna

It's quite common. I've had two clients in the same situation as you in the last week. If there's no competition for the property then I'd give it a go. It's a legitimate request.

Cheers

Jamie

kylieandronnie wrote:
And if you can't get refinance, you lose your house. I don't understand, what if your house has not gone up in value?

No doesn't work like that. That would only apply in repayment defaults – different situation completely.

WillisP wrote:

Would you mind if I sent you a PM with further information? I appreciate the information that you have provided and I believe that a broker would most likely be able to negotiate a better deal.

Regards,

Will

No worries at all – would love to help. 

Cheers

Jamie

kylieandronnie wrote:
What happens though when  say 30 year loan reverts to p and I in 5-10 years and your payments go thru the roof as they are worked out on only 10-15 years to pay off

normally try and extend the IO term with current lender or refinance to another.

Hi brmiau

You're right. Generally speaking – properties that are truly cash flow positive are usually found in regional/rural and/or mining areas. There are exceptions of course.

Personally, I look for properties that aren't overly burdensome too hold (so have a decent yield) but are usually slightly CF- (or close to neutral after tax) but are…[Read more]

Nope – I don't.

Some people do. There's usually a few main reasons. Firstly, they're unaware that their finances can be structured in a better way. Secondly, there's a mental barrier (sometimes an older school way of thinking) that all debt is bad and must be paid down as soon as possible. Lastly – they might not have any personal debt and are in…[Read more]

WillisP wrote:
Hi Jamie,

For the foreseeable future we will not be owner occupying. The current plan is to purchase another IP as soon as we can build up another deposit, however the three P&I mortgages seem to be a bit it restrictive, I am thinking that I approach the bank and explore the option of refinancing two of the mortgages into…[Read more]

dangermouse99 wrote:
Should I consider this new product if Im suing a MISA account currently?
Cheers
DM

I would. The $95 is a pain but the longer term benefits of a transactional offset will outweigh the upfront costs.

Are you utilising the MISA a fair bit at the moment?

You can arrange to have your salary and other income paid into the new…[Read more]

Hi there

House of Wealth are in Bayswater – not sure if that fits in with the area that you're looking at.

Cheers

Jamie

WillisP wrote:
Hi Jamie,

Thank you for the information. The only nondeductible debt we have is a small personal loan, we will stop paying extra into the mortgages until it is finalised. Right now I believe that I need to seek some structuring advice in order to keep moving forward.

Cheers,

Will

Hi Will

Is there any chance you may purchase…[Read more]

PLC wrote:
The OP must have written to Scott Pape directly as well because in todays Sunday Herald Sun here in Melbourne, in his column the same question was posted.

His reply was "if you have 20% deposit you don't need to go through a rebate broker. That's because NAB's discount brand Ubank currently offers the cheapest variable mortgage, and…[Read more]

Hi Willis

Without knowing too much of the finer details – having all IP loans set up as P&I normally means that there's room for some improvement with your current structure.

Do you have non-deductible debt such as an owner occupied mortgage? If so, you want to knock that debt on the head first – before paying down deductible debt.

Generally…[Read more]

Terryw wrote:
Are you for real? How long is your piece of string.

Agreed. If you're after the lowest rate possible head to google and take a loan out with an online cheapie. Hopefully they remain in business during your loan term and don't jack up rates when times get tough.

Cheers

Jamie