Would like to get a copy of the info you mentioned.

Many thanks,

Nathan

ashgrove@bigpond.net.au

To narrow down the selection criteria, I like to look at the comparison rates for each loan that I am considering. Comparison rate legislation came in here in Qld this financial year. If you don’t know what a comparison rate is it would be worth while having a read about them. There are a lot of articles around at the moment that go into…[Read more]

If you get stuck, drop me an email at ashgrove@bigpond.net.au. I can reject/ decline you really quickly, and it won’t affect your credit rating.

What service!!

Cheers,

Nathan.

Terry is spot on!!! The premium that you pay for LMI is a scale from 80.01% to 97% +. LMI is calculated as a percentage of the loan amount. So the premium that you pay is relatively cheap in the low 80%s[] and can be very epensive at 97%!!.[] Obviously more risk to the insurer as your deposit decreases.

There is also a difference if…[Read more]

My brain is not working at full speed this time of night, but i seem to remember reading somewhere that contracting to enter into a future contract is not legally binding.

Eg if you were to draw up a contract with a potential wrapee to enter into an installment contract/ lease option agreement in the future, it would not be binding.

I…[Read more]

See you all there

cheers and happy travelling,

Nathan.[][][]

Lenders look at two main things when it comes to approving a loan. 1. Equity/ Deposit. 2. Capacity.

You may have money/ assets /equity in abundence, but if you cannot show that you are capable of repaying the loan, you will struggle.

Do you have any other sources of income other than unemployment benefits?

There are more flexibile…[Read more]

Why do you want to avoid cross collateralising your properties? What is your investment strategy?

It is hard to work out whether your scenario relates to cross collateralisation or not. Ask what the security is for your new loan. If it is only the new IP, then it should be a stand alone mortgage.

What the NAB may be doing is increasing…[Read more]

It is always handy to have the ersidex report before you start negotiating, but having said that, it you have done your due dilligence, and the cashflow looks good, I would not be overemphasising the purchase price. If you are obtaining finance, ask them to do a full valuation on the property. (Hopefully the offer is subject to…[Read more]

thank-you for the thank-you.

All the best for your investment ventures

Cheers,

Nathan.[][][]

Institutions look at two main criteria when you apply for a loan. Capacity/servicability and Equity/Deposit. These are the limiting factors when you are trying to expand your portfolio (before being maxed out & using Steve’s advice).

The capacity/servicability side of things is all about the question of what size loan can you afford…[Read more]

[][][][][][8D][]

Cheers, and keep up the good attitude

Nathan

How about “A winning strategy”

or “A win win stragegy”

or even “A winning real estate strategy”

Cheers,

Nathan.

1) The keys to property investment and passive income.

2) The master guide to property for positive cashflow

3) A formula for wealth

4) Making money with income producing properties

5) The fasttrack to real estate riches

6) Profitable real estate investment

7) Successful strategies for…[Read more]

“The positive approach to people and property”

make that 2 or 3!

“People, property and positive cash flow”

“People, property and financial freedom”

Cheers,

Nathan.

My thoughts:

“A passion for people and positive cashflow property”

or lessening the mouthful

“A passion for people and property”

I am sure my english teacher would be proud of the alliteration!

Cheers,

Nathan.

Here is to a speedy recovery,

Cheers, and happy resting,

Nathan.[]

It is amazing how much valuable information you can gain from a neighbour. Current tennants of potential investment puchases are also a great source of information. I have had a few happily give me a tour of the property pointing out everything that needs attention/ fixing. One of them did a…[Read more]

Checked out their web site. What sort of fees do they charge and how do they select investment properties for you? Brisbane is a big place!

Cheers,

Nathan.
[]

settlement is the answer!

That was quick and easy!!

Cheers, and happy investing,

Nathan.[][][]

Sounds similar to the type of facility offered in Hart’s Case (check out the post under the same name). I would also watch out for possible two teired marketing (why do they see properties in Brisbane?). Did you contact them of have they direct marketed you? How do they choose an investment property for you, and can you do just as…[Read more]

One thing to keep in mind when looking at an AAPR calculation is that it does not take into account fees that may or may not occur during the life of the loan. An example would be two idential loans, one with fees for redraw and one fee free. Both would have the same AAPR.

Also the AAPR caluclation does not take into account the…[Read more]

[][][]

Cheers,

Nathan

Not sure where I am going wrong, but I get a different answer:

11 secs

rent return 160+ 170 = 330
sight fees * 2 = 200

rent less sight fees /2 = 65 * 1000
=
$65000

[?][?][?]

Cheers, []

Nathan

The problem you are encountering is callled a third party mortgage. A few years ago this was fairly common practice, but in more recent times, institutions have moved away from them.

If you are responsible for the loan repayments institutions also want to see you have your fair share of the ownership of the property.

The…[Read more]

You got a good deal. Westpac were very compeditive there for a while, but to get the highest reduction in the variable rate the now ask for your combined borrowings to be 500K or over. There are still pro-packs out there with a curent variable rate of 5.97 around though. It seems to go in cycles.

Cheers, and happy borrowing!

Nathan

Your mortgage broker should be able to give you a clear answer on the specifics of why you were told no. This is important if you are still seeking finance. If your husband works for your Dad he should be able to provide legitimate documentation to prove his income level (payslips) and possibly group certificates to show duration of…[Read more]

Thanks for your posts. The common sense and clarity of the next day has kicked in. I hope to be in the position of providing Win Win deals for a while to come yet, so I will stick with my 15,000 plus population rule.

I wasn’t counting on any capital gain from the investment property, but the overflow of rental demand, from the big…[Read more]

You may want to have a look at the variable options package from Heritage. It has direct salary crediting and redraw (fees involved), with a current variable interest rate of 5.9%, and an AAPR of under 6%. It is a more basic set up than the pro packs mentioned, but is very compeditive.

Sooshie’s post has some great advice.

Hope you…[Read more]

Welcome home. It is good to be home! I have just returned from a property inspection on a positive cash flow property. I am looking to wrap it but the location is in a small town (about 500 people) that is 5 mins away from a larger town 15,000 people odd. The rental vacancy is low in the large town and hence demand is spreading…[Read more]

The quick and easy answer is that on a finance application the current market value of your assets is the only relevant one.

Cheers, and happy investing

Nathan[]

My thoughts would be that the asset is still yours until the last payment is made on the wrapped property. So on paper the LVR calculation would be exactly the same as if it was a buy and hold property.

Obviously though, the wrappees have the rights to the benefit of the increased equity, which i am sure that they are happy about (and…[Read more]

What sort of property investment strategy are you interested in, and which part of Australia? If you can drop me an email at ashgrove@bigpond.net.au, I may be able to throw you a few names.

Cheers and happy investing,

Nathan.[]

A few thoughts:

Why not pay somone to do the leg work for you to find properties; or maybe a money partner/ investor with someone who is active over here.

That way you can leverage you o/s income until it is worthwhile comming back home.

Cheers and happy investing,

Nathan.[]

It looks like a professional pack that the mortgage broker offered you. The discount on the interest rate (I am guessing .5% off the standard variable rate) isn’t too bad, but is not the most compeditive on the market. To advise you further can you tell us the total loan size involved?
This will determine what packages you qualify…[Read more]

thanks for the update!!!

Cheers,

Nathan

Checkout the wraps and vendor finance links on the home page of this sight. Then do a search on the forum for both of these terms. There is a wealth of knowlege available.

There is also a vendor finance association website which may be of help http://www.financewrapsasn.au.

Last but definetely not least check out Sooshie’s post ‘useful links’.…[Read more]

Most people on this forum are looking for ways to become financially independent through positive cashflow properties. ie after the expenses are paid on your investment property the property is putting money back into your pocket.

I appreciate the research that has been done in selecting this investment, but with negative geared…[Read more]

I always like to inspect properties myself. Not only to see the property itself, but also the location, neighbourhood, and get a feel for the area. I also like to have a chat to the neighbours if possible, and the existing tennant. It is amazing what they will tell you sometimes!

But if I had found a property that met my…[Read more]

At this stage of the game (a few days before settlment) you will find that the contract has become an unconditional contract. I would be talking to your solicitor straight away to explain the situation. Not settling (or buying the property as you put it would leave you open to losing your deposit + being sued by the vendor. You may…[Read more]

It is an old model now, but one of my friends has just picked one up (discounted because it was dicontinued) for around $40. A bargain at half price!

Cheers, and happy cashflow calculations![]

Nathan.

If you drop me an email at ashgrove@wizard.com.au and let me know where you are located I should be able to suggest someone to talk to.

Cheers and happy investing,

Nathan[]

Low/No doc type loans were designed for self employed applicants, who through the assistance of a helpful accountant etc show a low taxable income, while in actuality they can afford to repay loan amounts which would require a higher taxable income.

Usually they ask for a declaration from the borrower as to their actual earnings (not…[Read more]

quote:

The reasons now seem silly but at the time sounded like they would have helped us pay our loan off quicker and at less per month.

The reason l asked about living in our home while making it an investment property is for tax reasons. Is an invertment loan cheaper per month, if so how or who do we see about changing, can l change to an…

[Read more]

quote:
hi guys.
I think you can use the equity in the first houses you wrapped eg: if you depositted 5% for your first 4 wraps and they were all approximately the same price then you have 20% equity that you can use to buy your next property.

Hi Stonewall,

Sorry, you can’t use the equity that you have in other wrapped properties for deposit +…[Read more]

quote:
Is it common that the vendor and purchaser have the same solicitor acting on a purchase?

Hi Arnaldo,

It is not common (as not many people tend to choose the same solicitor), but it happens from time to time. It can be an advantage if there is a change in arrangements (eg settlement date) as communication is quick and easy.

Cheers and…[Read more]

quote:

This case was actually the one featured in my second (Feb 02) newsletter!

Hi Steve, Is there an archive of these older newsleters anywhere?

Thanks,

Nathan.[]

quote:
Hi Guy’s

My husband are trying to buy our own home, we have been in it for 3 yrs now, l have made three bad loan changes if we had stayed with the first loan we would have a lot of euqity in this house but with three mistakes and the fee’s that go with them we have none.

So my question is HELP. Is there any way we can make our house an…

[Read more]

quote:

I want to become financially independant in 12mths, and would like to know from you gurus out there that have achieved this, as to your frequency of buying (wrapping) houses? IE what is and isn’t realistic?

Hi Hurricane,

I am not a guru or financially independant, but I am on my way.

I think that you are the best person to answer your…[Read more]

quote:
I believe in Harts case what occured is that the whole of their interest, from both their PPOR and their investment property, was claimed as tax deductable interest whilst all incoming funds were directed at the mortgage on the PPOR. Therefore, the interest which was claimable grew and grew.

Hi Kirby,

My understanding of the case is…[Read more]