Hi Brad

Welcome aboard.

Sounds a bit suss – I don't know of a lender that will fund a deal no money required because the val came in higher than the contract price unless its a favourable purchase between relatives or something.

There's also purchase costs such as stamps, legals, etc that need to be covered.

Tread carefully with one stop…[Read more]

Yep interest on the LOC is charged daily so the monthly repayment will fluctuate depending on the number of days in the month. For instance, I have a $40k Cba LOC with repayments of around $250 p.m (sometimes more, sometimes less). 

CBA down 25 points.

Cheers

Jamie

Is the property in a growth area? Do you think there are any indications of it going up in value over the long term? 

If the property isn't costing you anything to hold on to and you think it will continue to grow in value, then I'd consider holding onto it. I'd also revisit the need to spend $25k on external works – seems like a lot. Is it all…[Read more]

NAB have already announced a 25 point drop. CBA and WBC are reviewing and ANZ will announce on Friday.

Cheers

Jamie

s0805 wrote:

god_of_money wrote:
CBA will come into full functional "offset"  account in August.. 

CBA is the leading lender in Australia… not sure why so many people choose CBA?

I am with ANZ Breakfree.. and they charge me A$ 10/month for > 1 offset account

god_of_ money,  can you pls confirm if ANZ is charging this 10/month for > 1…[Read more]

Most lenders will take somewhere between 75% to 80% of the gross rent for servicing. Therefore, the higher the rent, the better your servicing. The only caveat being certain postcodes/areas where lenders have placed restrictions on the percentage of rent they'll consider.

Jamie

Yep – it's the daily interest calculations and fluctuations in the number of days in the month that will cause variations in your monthly repayments. That's why Feb repayments are usually lower than other months.

Cheers

Jamie

Hi maloose and welcome aboard.

Personally, I'm a fan of leveraging LMI and using smaller deposits to get ahead. It's not a strategy for everyone – but it can work well. I wrote this article on the subject.

Cheers

Jamie

I can't see how it would – it's a private agreement between a family member that you're not profiting on. Ask your accountant.

Cheers

Jamie

Hi sbarka

Try Richard Taylor – QLD007 on this forum.

Cheers

Jamie

Hi Sinders

Not a legal eagle (Terry W will probably advise) but I assume you can have something written up by a solicitor.

If the funds are being used by your son to secure a property, the lender may request that you sign a letter or stat dec declaring that the funds are non repayable – may or may not come into play here but thought it was worth…[Read more]

Hi Brad

I just use an excel spreadsheet that's updated monthly.

There's a seperate worksheet for each IP with a summay page at the front that shows the total income/expenses for each.

You can use an app like Camscanner to scan and store your receipts.

You can also use an app like dropbox to save them over multiple devices (ipad, iphone, pc,…[Read more]

Hi Pagey

I don't like the sound of it – 6 x 95% non-gen loans. I personally can't see it happening.

Cheers

Jamie

Yep, so805 is on the money. That's what I was thinking of.

Cheers

Jamie

I've never tried but would assume they'd have to be in the mortgage holders name.

Cheers

Jamie

Agree with Jac M – if solid rental yields are part of the game plan for you then perhaps Melbourne is not the best place to be looking.

Cheers

Jamie

I remember a post ages ago about a software program that audits bank statements for this sort of stuff. If you do a search you may be able to find it.

Cheers

Jamie

Hi and welcome aboard.

Deductibility is determined by purpose – not what the debt is securing.

If you have taken out a loan for the purpose of investing in property then it should be deductible. That loan needs to be set up as a stand alone facility and not mixed up with your owner occupied loan.

Cheers

Jamie

Munz wrote:
Thank you for your responses. If I only knew this before I purchased this property. I will take this on board for my next purchase as I eventually want to turn my next purchase into an investment property. The property is held in NSW and solely in my name. My spouse is on the lowest marginal tax rate.   

Hi Munz

At least you…[Read more]