Try some of the links at this page…

http://www.mortgagepackaging.com.au/index_files/hot_links.htm

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

Depending on your required LVR, low doc loan rates can be the same as full doc loan rates. The maximum LVR for these cheaper rates is 80%. Unfortunately, you may be required to pay mortgage insurance as banks are now required to mortgage insure all low docs over 60% LVR.

You sound like you are a doctor who recently completed their education.…[Read more]

I have never heard Steve speak of the benefit of P&I loans nor can I think why he would advocate this. I personally prefer and advise others to utilise interest only loans if they can control their spending.

Benefits include reduced ongoing liability should things get tough, greater flexibility, maximising deductibility (where necessary),…[Read more]

60 years is the minimum now. I would probably steer clear of these as they just eat into your assets so less is available for your estate. Also, the younger you are, the less you can get. For example, at age 60, the maximum LVR would be around 10%.

Also, age limits relate to the youngest person living in the home.

Robert Bou-Hamdan
Mortgage…[Read more]

Hi Byron,

Why would you say that?

Do you not consider this a good conservative investment for a less experienced investor?

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

If serviceability was not the issue, refinancing to the maximum would certainly be a viable option. I would avoid going over 80% though to stay away from mortgage insurance unless you knew you could cover this expense through your investments.

The PPOR is almost maxed out anyway and has fixed rates which may incur break costs if moved. There is…[Read more]

Thanks Antonio,

That is a great example of more conservative calculations. I agree that taking the inflation rate out of the capital growth as it accrues is more prudent and the correct way to do it. I was going to do the calculation this way in the 4% growth example. It makes a MASSIVE difference.

I was also going to include something about the…[Read more]

The tax implications will be that you have to pay tax on the rental income if it is more than what the property costs you to maintain.

I do not consider this as a problem as the more tax you pay, the more you earn. I wish I received a million dollar tax bill each year as it would mean I am earning at least 2 million in my hand.

A good accountant…[Read more]

Hi Lea,

I wish you all the best with the offer you made.

Regarding your questions, the funds in the offset does not technically increase your equity. It just provides you with the equivalent amount of equity in cash. If you prefer the actual equity and don’t need the cash, you just transfer the funds to your loan. With investment properties…[Read more]

$20k is more than enough. You can get 100%, 97%, 95% and lower finance. If I was you, I would be speaking with Simon Macks (Mortgage Hunter). He is a moderator on this forum, a mortgage broker and a good bloke. His specialty is defence grants and loans for defence personnel.

Check his website at http://www.mortgagehunter.com.au

Robert…[Read more]

Share dividends will not be considered as a stable income especially for a beginner. A company can cease to pay dividends at any time. You will need a job and/or rental income.

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

You sign a contract subject to DA with the vendor. Anyone can apply for a DA on any property whether they own it or not as long as the owner (vendor) signs the application. It would follow that the vendor will sign if they want you to buy the property so you submit the DA application to Council to get a written response. Verbal advice is not worth…[Read more]

Hey SIS,

You certainly love the gearing to maximum levels!!!

There is a much simpler way to magnify returns from this investment by using an offset account when you consider the income earned being relatively high.

Couple this with your plan to gear as much as you can when equity presents itself and you can purchase additional properties in a…[Read more]

I think it is a good idea to set a date of expiry for offers. If you sign the contract of sale and attach a cheque for the deposit as part of your offer, the vendor can sit on it for as long as they like if you don’t set an expiry date. Exchange takes place once the vendor and purchaser sign the contract. You may end up with a property you don’t…[Read more]

So you are David looking for a 4 bedroom home on the NORTHERN BEACHES then?

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

No lender can legally prevent you from borrowing money based on age alone. If you meet all other requirements, you are eligible for exactly the same loan as a comparable 30 year old (ie: 30 year loan term). I would use a broker so they can go to bat for you if the lender tries to decline your loan on other grounds as an excuse. They usually look…[Read more]

Scenario – Return on Investment Property

Jack is in the highest marginal tax bracket earning $80,000 per annum and decides to buy an investment property in NSW for $100,000. He borrows $105,000 at 6.75% per annum to complete the purchase and to pay all closing costs (assume costs total 5% of purchase price). His interest only repayments tota…[Read more]

Hey Kerry,

Those damn Bourbon and Cokes hey?????

There is nothing you said in that post that would get you banned. You know the ONLY ONE who gets banned around here is yours truly. I can teach you how if you like.

I also specialise in ball-busting to get back in (Poor Steve)!!! This is an art form.

Anyway, your post is spot on. I personally…[Read more]

My ideal place to live, and hopefully it will happen in about two years, is on a 40 foot sailing catamaran cruising wherever I feel like it. If I get sick of the view, I just have to pull up anchor and move on.

As long as I have access to satellite internet and phone connectivity and a cashflow solid enough to maintain the boat and lifestyle, I…[Read more]

I have seen a few developer fire sales sell for well below market price or for what is owed to their lender. This is usually done by the developer though. The problem with determining market price is difficult in the current economic climate.

The difficulty financing a partially completed development also makes these properties less…[Read more]