Jamie,

I must have got one of the sober ones. Had one earlier this week in a not so nice suburb of metropolitan Melbourne which I and the client thought was going to be way low that the client would be hit up for a tidy LMI sum. Surprisingly enough, the valuation came back at a value that not only avoided LMI but put the deal into a lower LVR…[Read more]

Now you know what to do with future renos. Can contribute to the reno costs.

Cheers

Tom

True what you say Richard in terms of the bank not taking into account the purchasers proposed settlement date.

I know it is silly season and skeleton staff over the Christmas period, but over a month away and delaying it for almost a week seems strange if finance has been fully approved. There are some lenders that are still allowing documents…[Read more]

Are the loans stand alone or cross collaterised?

If cross collaterised, she may not see a cent of the 50K as the bank might divert it all to House 2.

Cheers

Tom

Hi CeeKay,

As others have mentioned, get your solicitor involved as soon as possible to find out what can be done.

It seems weird the bank gave you the go ahead and is now taking a step back?

Cheers

Tom

if you intend on doing a whole kitchen or bathroom, it would suggest a capital improvement instead of a repair, which would mean it can't be claimed in the one hit but is depreciable and also would form part of the cost base for CGT purposes.

Your accountant can confirm this.

Cheers

Tom

In that case, it doesn't matter which loan is linked to the offset account, as overall the interest paid (and saved) is the same.

Edit: Terry beat me to it above.

Cheers

Tom

Hi dvestate,

Would be advisable to do the maths accurately to make an informed decision. Is there a loan on the current PPOR which is deductible? Depreciation, all expenses to be offset against the generated rental income. Then you would get a better idea of whether the property is draining money.

If so, you also need to factor whether there is…[Read more]

Joe, Wayne knows it's not that simple, but you won't hear him saying that, that's why he never goes into details.

He just spins it so much and hopes that the electorate fall for it knowing full well most of them won't even bother trying to refinance.

I would like to see a journalist pull him up on it and ask him the following, "Mr Swan, can you…[Read more]

HomeLoanExperts wrote:
Macquarie pulled out of the mortgage market a few years ago however their existing customers were always on relatively good interest rates. The exception being their customers with low doc loans who did have their interest rates increased.

My dealings with Macquarie recently have been good and it really looks like they…[Read more]

Recently discharged bankrupts are able to obtain loans with specialist lenders, however will be at higher interest rates than the norm.

Cheers

Tom

Think they will drop tomorrow, only reason is that the next meeting is in Feb, so they cannot react in January if crap hits the fan with the US fiscal cliff, etc.

Also despite being an independent body, there is a lot of political and retail pressure on them to drop rates for Christmas.

But hey, might be totally wrong and nothing…[Read more]

Think there is a very good chance that the agent will contact you in about a week saying the original deal fell through due to the party (that never existed in the first place) not being able to obtain finance.

Cheers

Tom

The only way you can claim any deductions of your current PPOR is if you "buy" all or part of the property from your wife via a spousal transfer and become registered on the title. Different states have different rules governing costs involved in doing this. You would need to run the numbers overall to see if it's works out to your…[Read more]

Hi Aussieguy,

Just a question. Why weren't you able to do as two standalone loans and pull the equity out of the PPOR and use as a deposit for the IP instead of cross-collateralise?

Cheers

Tom

Hi mjm,

As Jamie said, you can't increase the loan just for the sake of it and expect it to be tax deductible unless the funds were being directly used for investment purposes.

Just to expand on his point about spousal transfer, since you are from Victoria you would be exempt from stamp duty if you went via that route though there might be CGT…[Read more]

Good to see the witch doctor worked Joe.

As JacM said, a good PM who is willing to work for you and go that extra mile is worth their fee.

However don't let them rest on their laurels. Last thing you need now is for the PM to think they have done their job and can sit back and relax. Make sure they do their regular inspections (worst case every…[Read more]

Mick,

It would be there in the contract of sale, most likely under a section titled default.

Comes into play when the purchaser delays settlement. Can be quite expensive.

Cheers

Tom

Hi Matt,

The eligibility requirements for FHOG state that you cannot have purchased any property pre-GST (1st July 2000), nor purchased any property after that date in which you have resided in for at least 6 months (which basically are your investment properties).

If you meet the above criteria, plus the other eligibility requirements for your…[Read more]

TYU,

If you pass servicing without the need of your wife's income then it is fine. If you don't pass then you have the option of using her income for servicing purposes.

Technically, as long as you have any net surplus within a lenders guideline, it will count. In saying that serviceability is only one part of the overall picture from a lenders…[Read more]