That is why I stated “in most cases”. Some situations are very difficult.

I am wondering, when the broker told you about the 100% finance, did he know about the bankruptcy and the minimal savings?

Also, how long ago were you bankrupt and how long ago were you discharged?

Why do you have no savings if you have no debt and a good paying…[Read more]

No, I was referring to the people you over-heard. Maybe they were just jealous.

The Mortgage Adviser
http://www.themortgageadviser.com.au

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I think someone buying 14 properties would be a little bit smarter than a few people chatting near by who you have no knowledge of. Many of the same conversations were heard in many regional areas prior to prices becoming unaffordable for locals. People always put down what they cannot do themselves.

The Mortgage…[Read more]

For a fully documented loan, the maximum interest rate should be no more than 6.75%. You can get down to 6.62% with package discounts for higher loan amount totals.

This disregards intro rates which revert to higher rates after the discount period.

The Mortgage Adviser
http://www.themortgageadviser.com.au

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Regarding Geraldton, I bought there myself and I will tell you some of the reasons why…

* One of the largest cities in WA
* Harbourside city with excellent boating facilities
* Extremely cheap prices in comparison to similar areas
* Strong population numbers with large tourist turnover
* Housing commission areas being distributed so there are…[Read more]

No they cannot and will not give you the vendor’s details. You can knock on the door if they live there or do a title search at the Land Titles Office and find out yourself.

The Mortgage Adviser
http://www.themortgageadviser.com.au

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Luke, it is nice to use figures from the local Council who have a vested interest in making the area appear to be much better than it actually is. I am far more content with using impartial figures from the ABS (even though a little old) which indicate:

‘In the June quarter 2002, the room occupancy rate for total accommodation types was 56.4% in…[Read more]

More links here…

http://www.mortgagepackaging.com.au/tma/index_files/essential_links.htm

The Mortgage Adviser
http://www.themortgageadviser.com.au

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Speaking in riddles does not answer the simple questions put forward. Not everyone can easily identify a ‘snake oil salesman’ nor do all the high cost seminar presenters deserve their fee.

In one breath, you are saying we should be able to identify the shonks while in the next you are saying we should stop whinging about the shonks. If we do the…[Read more]

Yes, there is a form to get your employer to pay you more each week (tax you less) if you have a deductible investment property. I never remember the form number but I am sure someone will pop up with a link to it. It is very commonly used.

The Mortgage Adviser
http://www.themortgageadviser.com.au

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Marc,

I am very interested in your opinion as to seminars that present themselves as providing the ‘secret to success’ or educational content and. when you get there, they just want to sell you property or some ridiculous ‘system’ that will ‘guarantee success’.

The Mortgage Adviser
http://www.themortgageadviser.com.au

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Dazz, I think you are missing the point. Regardless of experience, commercial property is a riskier investment when compared to residential. Experience and knowledge just helps an individual control that risk better than others as I outlined regarding shares.

If you believe my opinion as the sole judge is an issue, pick someone you trust to make…[Read more]

Dazz, regarding risk profiles, these are not only a reality but they are entrenched in various legislative documents.

If you are seriously telling me that commercial investment property is lesk risky than residential investment property, I would say you need to go back and learn more. The yields are higher for a reason. Higher yields do not…[Read more]

I would probably up miscellaneous expenses a bit and lower the interest rate (on current rates) but otherwise seems pretty spot on.

Don’t forget to allow for tax deductions against your income and it will look even better especially if you get the benefit each week with your income.

The Mortgage Adviser
http://www.themortgageadviser.com.au

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Try the How Much Can I Borrow calculator…

http://www.mortgagepackaging.com.au/tma/index_files/tools_and_calculators.htm

The Mortgage Adviser
http://www.themortgageadviser.com.au

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An offset account is a seperate account. It operates just as a normal transaction account. The difference is that the offset account is attached to the loan. Whatever is sitting in this account will have the same effect as you putting the money into the loan.

The reason why it is better to use an offset is as Simon has outlined. If you make the…[Read more]

Not at all Dazz but I thought it would explain it sufficiently to you.

Why to you think I am suggesting using an expert in the field of Reverse Mortgages. The guy I know does regular presentations (not seminars!!!) to the elderly so they have a better understanding of the product.

To explain it in layman’s terms would go something like…[Read more]

You need to look at margin lending for those units in a trust or use other equity in a property you already hold.

The Mortgage Adviser
http://www.themortgageadviser.com.au

Essential Links

This is exactly why it is important to use someone experienced with dealing with the elderly. They often freak out.

The problem is, not all nice kids can afford to repay a loan for their parents.

A reverse mortgage, when explained properly, does not freak them out. It does not require repayment while they are alive or living in the home and the…[Read more]

It would be two seperate loans in whatever names you and your accountant suggest is most suitable.

The 44k is put into the offset even though you will not be able to deduct the interest on any loan if it was used for and is being used to offset non-deductible debt (ie: while you are living in the new property). Once you move into your rental, the…[Read more]