Property is a long term plan.

I know I will be positioning myself for the next cycle – not waiting for it to happen.

Cheers,

Simon Macks
Mortgage Broker
mortgagehunter@iinet.net.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a…[Read more]

CornelBasson,

Work out your pos/neg gearing on your purchase price. That was the cost to you. You should add the cost of the reno to that to indicate it’s true cost.

If you have lived in this place for three months as a home then you shouldn’t have too much trouble with the FHOG. There is no set timeframe required for residing in the place…[Read more]

BDM and Gracey,

Not true on the one year for the FHOG. Check it out at http://www.osr.nsw.gov.au

All states are the same legislation.

I will reply further to this post later tonight.

Cheers,

Simon Macks
Mortgage Broker
mortgagehunter@iinet.net.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any…[Read more]

Kay,

This is pretty unusual in my experience. I can only think that your valuer had little comparable sales data available to form his opinion.

Can I ask which bank it was you used? Is the property located in a rural area?

Cheers,

Simon Macks
Mortgage Broker
mortgagehunter@iinet.net.au
0425 228 985

Comments may not be relevant to individual…[Read more]

Kay,

Contrary to your opinion banks don’t fire sale value properties. In fact nine times out of ten my clients valuations come right in on the purchase price.

In the unlikely event a bank was to foreclose the property would go to auction and realise market price.

Cheers,

Simon Macks
Mortgage Broker
mortgagehunter@iinet.net.au
0425 228…[Read more]

Combine this with new door and cupboard handles esp in the bathroom and kitchen.

there are some very cool marine type steel fittings available that look very expensive.

Cheers,

Simon Macks
Mortgage Broker
mortgagehunter@iinet.net.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment,…[Read more]

As always include me on your mail list Bill.

Cheers,

Simon Macks
Mortgage Broker
mortgagehunter@iinet.net.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Agreed Westan.

Simon Macks
Mortgage Broker
mortgagehunter@iinet.net.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Doesn’t anyone pay interest if they borrow to fund their deposits?

Sooshie, My only point was referring to cashed up investors who put in a 20%, 30% or 50% deposit etc. If they calc yield based on loan size then they have three different returns for what is essentially the same deal!

Cheers,

Simon Macks
Mortgage…[Read more]

Westan,

I never suggested that yield was an absolute indication of a good deal or even a useful way to compare deals. I personally use it as a quick check on whether I look further.

I just suggested a way to keep it all a bit more straightforward esp without introducing another variable such as deposit size.

I personally run the numbers though…[Read more]

Where are you Alexander?

Simon Macks
Mortgage Broker
mortgagehunter@iinet.net.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Some people use their loan to calculate yield.

This is cheating in my eyes[]

The worth of the deal shouldn’t change according to how much cash goes in!

In this case any deal can become cash flow positive if enough deposit goes in!!

Yield is simply weekly rent times 52 divided by purchase price times 100.

ie rent x 52 / price x 100

or 220 x…[Read more]

Leonor,

Not really a type of loan but rather a decision you can make on nearly any loan.

They serve a purpose and many folks choose IO to suit their needs.

Useful when maximising deductibility or maximising cashflow.

Very useful when still paying off a loan as you are able to direct all principle payments into the non-deductible…[Read more]

Gracey,

You are half right. The loss on the property is offset against your income not your tax. So for every dollar you lose on the property you get back 31.5%, 43.5% or 48.5% depending upon your tax bracket.

Remember it is only the interest component of your loan repayment that is deductible. There are many other costs claimable including…[Read more]

Many folks will advise you not to purchase an investment for the tax write off. They will ask why you want to spend a dollar to get 34 cents back from the ATO?

If you are looking to reduce tax via negative gearing then make sure that your priority is to find a property that will show well above average capital growth.

If you are willing to…[Read more]

If you fix your rates then it isn’t too much of an issue. I fixed mine at 5.89% for three years for settlement next week. I found it does give an element of peace of mind.

Looks like fixed rates are going up accross the board on Mon by 0.25%.

Fortunate for those borrowers who have their application in and rate locked!

Cheers

Simon…[Read more]

Think back to your high school economics. Remember the laws of supply and demand?

When there are more tenants than available rentals then demand rises and prices will rise.

If there are more IPs than tenants then demand is reduced and prices will be reduced to win the available tenant.

The landlords, unless they all get together and price fix,…[Read more]

Terrible stories about brokers. These folks give us all a bad name.

I have accreditation with over 30 lenders – poss more as I use some wholesalers that are always upgrading their lists – I am sure this is the case with most of the brokers posting in here.

We do tend to use the same few banks for 80% of business. In my case it is because they…[Read more]

Mike,

Good tip – thanks.

Cheers,

Simon Macks
Mortgage Broker
mortgagehunter@iinet.net.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

You ever had a card from a real estate agent? Don’t really mean much.

After my inspections I usually leave a cake or movie tickets behind if I am happy. Not much more expensive but means a lot more.

Cheers,

Simon Macks
Mortgage Broker
mortgagehunter@iinet.net.au
0425 228 985

Comments may not be relevant to individual circumstances. If you…[Read more]