Originally posted by gmh454:
Originally posted by kinkso0o0o:

Ok, so what if the interest rates rise and the property market softens or bursts.

2. Rents rise

Damon

Damon I will ask you WHY.

Have asked that on this site before, without answer.

Why will rents rise in a slump, …

Building industry slides…
people stop…[Read more]

I’d be keen to join the party, er, club

I’m 28, live in Adelaide and have a ppor and 1 ip.

happy to discuss anything investment related/experiences.

Cheers,

Damon

In theory, there is no difference between practice and theory, in practice, there is….

Hi All, been ahwile since ive posted.

Ok, so what if the interest rates rise and the property market softens or bursts.

1. Housing becomes cheaper
2. Rents rise

Which means the following for exisitng investors:

1. LVR increases

But this doesnt matter if you have a semi-secure income to manage the debt.

2. Yield increases

As more people…[Read more]

And mustard!

Sorry, couldnt help it

kinks

In theory, there is no difference between practice and theory, in practice, there is….

Originally posted by stargazer:

You keep the 90000 and purchase another PPOR.
or
You purchase another IP

Just to followup from Simon, if you use the 90K to purchase another PPOR, No, you cannot claim the interest.
However if you use the 90K to purchase a IP, Yes, you can claim the interest.

I had the same problem unfortunetly and have a fair…[Read more]

Well, as promised I thought I’d let you know the outcome of my negotiations.

ANZ came to the party and gave me a further 0.5% discount off my variable loan part of my PPOR ($98000) for the life of the loan! This is without obligation as well!!

This brings it down from 7.07% to 6.57%, saving me about $15,000 interest.

It doesnt match St. George,…[Read more]

Originally posted by Ty:

3. or would i be better to wait till i have the $15,000 and then have all the money that we get in rent for myself.

Save the money. Dont borrow if you dont have to (as you said, you dont need the money immediately).

Definately get you name on the title/deed of the house.

Cheers

Damon

In theory, there is no…[Read more]

Just spoke to ANZ and they seem to be willing to negotiate on the variable interest loans, after mentioning the stgeorge package. Waiting on a call back.

In theory, there is no difference between practice and theory, in practice, there is….

Hi Sansue6, it all depends on the measured risks.

The higher the measured risks, the higher your expected return and vice versa.

What are the risks of the project?

In theory, there is no difference between practice and theory, in practice, there is….

Yea, I thought as much re: fixed rate loans.

Will let you know how I go re: the other loans.

Cheers

Damon

In theory, there is no difference between practice and theory, in practice, there is….

ANZ’s current 5 year fixed rate is now lower at 6.95%.

I wasnt sure how much negotiating I could do on the fixed rate loan, since after all, i fixed it at 7.2% 10 months ago.

Hmmm, I wonder if anyone has had any luck with negotiating a better rate on a fixed rate loan with their lender?

I’ll give it a shot anyway when i ring them Monday!

In…[Read more]

Just had a look at the st george package.

Correct me if I’m wrong, but if ANZ agree to match it my new scenario will be:

ANZ Breakfree Package

PPOR
Split Loan – Variable @ 6.37% $97,953.38
– Fixed (5 years) @ 7.20% $183,248.34

IP
Interest Only Variable @ 6.37% $100,000.00

Not bad at all, time to give them a call!

Cheers,

Damon

In theory,…[Read more]

Paying $300/year for the package. No other fees that i can recall.

In theory, there is no difference between practice and theory, in practice, there is….

Update IE to the latest version, IE 6 SP2(goto windowsupdate.microsoft.com), it contains a pop up blocker under the Tools menu.

Cheers,

Damon

In theory, there is no difference between practice and theory, in practice, there is….

Its more of an obsession for me…Ive definately got the bug…

But, if your starting out, I’d recommend Steve’s books as well as some general wealth creation books (ala Paul Clitheroe, Robert Kiyoski)…

Putting a dedicated time figure on it would be hard to do as some hours are more productive than others…I guess do what your comfortable…[Read more]

muchas graciaus

Cheers,

Damon

In theory, there is no difference between practice and theory, in practice, there is….

Maybe i see it too simply, but back 2000-2001 when i bought my first house (ppor) everyone was going nuts saying “oh, its so cheap to borrow money atm” etc etc. That was the major driving force back then…

The same type of first home owners, mums and dads etc would be the same people swept up into the craze once again…

So i guess with that…[Read more]

Hi Derek,

Yea I know, I can choose an avatar, but the problem is i cant update my profile to save the avatar

So, I would if i could

Cheers,

Damon

In theory, there is no difference between practice and theory, in practice, there is….

same deal here…

basically when i go to edit my profile and even if i dont change a thing and hit submit I get the error “Username already exists….”

What i guess its trying to do is create a new user when updating the profile and it fails as the username already exists

i need an avatar, please fix

In theory, there is no difference between…[Read more]

Not a huge amount ($195 to $200 last month), but they do seem to be increasing slowly…

seyeidde, if interest rates rise significantly it is probable that the reaction will be to increase rents to cover the extra costs. However, this will also force the potential tenants to be way more choosey on what bang they get for their buck. This is where…[Read more]