Dazz, my intention was not to rip apart your post. I was merely presenting arguments in opposition to yours. If you noticed, the stability benefit is a very difficult one to oppose as I clearly pointed out. Don’t be so sensitive. Sarcasm is not needed.

The Mortgage Adviser
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Originally posted by Dazzling:
1. CGT free environment

Can get around this with 6 year CGT exemptions.

2. Opportunity to potter in the garden and add value that ends up in your pocket.

Can write yard maintenance into the lease to add value to the investment property.

3. Stability in your local neighbourhood.

Not much you can do here but there…[Read more]

No problem. Many people here can also help with some great advice.

Good luck with it all in the mean time.

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

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Amused, I am wondering, who are the ‘so many people’ you refer to who have a vested interest on this site?

Saying that all seminars are scams is something I would expect from less educated individuals. It comes down to the particular seminar being discussed. I agree, many seminars are scams, but I also believe many are fine. You have to weed out…[Read more]

See, I think you mean while this is ‘always’ the case, risk can be minimised by spending a lot of money, hours, days, weeks, months, etc becoming skilled in this area.

Hardly a viable solution for someone who inherited shares and no apparent previous experience dealing with them.

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Yeah it is right but it does not account for closing costs and loan expenses. In any case, I would recommend doing the loans seperately as I outlined above. It is always better to have each property standing alone rather than cross collateralised especially if they are in different names.

You will not pay double fees for the loans if you take a…[Read more]

And what about if the loan aggregate is not greater than $500,000 or the LOC portion is a poultry $50,000? What happens to the cost of the LOC then?

And as you answer, please remember that this is probably the cheapest LOC available.

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

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Thanks for the support!

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

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Even with LOC splits I am not a fan. The only time I recommend using a LOC is when it is for a business selling goods and services who uses it for purchasing etc. Even then it is a big IF.

The offset would be set up on the non-deductible portion. You do not need one on the deductible portion as only the interest payments will go to that loan and…[Read more]

Margin lending is considered a high risk strategy.

A better alternative would be to have your IP loan changed to interest loan (who knows why it is P&I) and only make interest repayments. I would then direct all additional income from work, rental income AND dividends from shares to the loan secured against your family home to pay it down…[Read more]

Terry, why do you persist????

That is one out of how many???

Also, the loan amount needs to be at a certain level before you get the same rate AND there is still an annual fee for the LOC. It still costs more!!!

Also, you keep forgetting about the issue of deductibility if using a LOC for non-deductible debt!

The Mortgage…[Read more]

To try and tidy a few things up…

If you want to avoid mortgage insurance and your fiance’s property is worth $180,000 with no loan against it, you would only borrow $144,000 against it. I would get an interest only loan for the lot but only use the minimum amount required against the new purchase (to cover deposit and closing costs). Leave the…[Read more]

Regarding reverse mortgages, check out…
http://www.mortgagepackaging.com.au/tma/index_files/reverse_mortgage.htm

I also know a guy who specialises in reverse mortgages. That is all he does!!! I would strongly suggest using him as he deals with the various lenders in the market and can direct you to the most suitable product. He is also a…[Read more]

Should we tell the story of how it was that you became a moderator in almost every section? I remember that very well!!!

hehehehehehehehe

The Mortgage Adviser
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You would be a certainty. Me on the other hand, I have just two chances…. BUCKLEYS and NONE!!!

I like getting banned too much!!!!

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

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The best wording on a signboard when selling privately is…

PRIVATE SALE
PHONE: XXXX XXXX

Say it is a 3 bedroom house, I would suggest…

PRIVATE SALE
3 BEDROOM HOME IN ??SUBURB??
PHONE: XXXX XXXX

People jump all over private sales because they think they can get a better deal. Nothing more need to be written.

The Mortgage…[Read more]

Regarding the FHOG, you are not restricted to purchase a 500k property. There are discounts up to 600k but these reduce. Check http://www.fhog.info.

Regarding the amount you are allowed to borrow, this is directly related to the property you will be buying. If you are intent on avoiding mortgage insurance (or similar fees), you would only be able to…[Read more]

Also make your PPOR loan interest only to obtain the maximum benefit if you intend moving in the future. An offset account is just a transaction account linked to your home loan. Some have fees and some don’t. Most don’t and operate very simply. You can get internet access, eftpos access, ATM access and even cheque access with some.

The Mortgage…[Read more]

LOC Advantages
– Loan is perpetual (but the average loan life is less than 4 years so who cares)
– Interest can be capitalised (but the capitalisaed interest is not deductible so who cares)

LOC Disadvantages
– Higher interest rate
– Higher ongoing fees and charges
– Repayments must go into the actual loan

Offset Advantages
– Lower interest…[Read more]

It is actually not sly. Many contracts have clauses in them allowing further credit checks if credit goes into arrears. I think people should just pay their bills on time and there would be no ‘slyness’.

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

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