Originally posted by Terryw:
In another post, Rob the mortgage broker asked me how a cashbond could improve sericeability.

Terry, your lack of attention to detail astounds me. I never asked for you to explain how a cash bond works. I asked how one works to improve serviceability using YOUR example of costing 7% per annum and returning 4%. This…[Read more]

Who cares about a “Canary in a coalmine”. There is no need to keep posting the same link over and over in the same thread. We do have the ability to read here and only need to see it once.

Why don’t you ask me how much weight I give to an article written by a North American Investment Firm as evidence of the problems faced by the Australian…[Read more]

Terry, I think my perception is fine and believe that you have tried to adjust your information to appear more suitable and expand on your initial post to include scenarios which I allowed as exceptions in my responses. I have included your initial post which I had issue with…

Originally posted by Terryw:
I beleive it is a sound practice if…[Read more]

dmichie,

I never said anything about something being a good thing. I have not looked into the allocation of resources sufficently enough to comment.

Regarding our current account deficit, I do not see it as a major problem. Everyone who gears has debts including countries. How do you figure that all debt is bad and that the current account…[Read more]

Terry, this clearly has the sole purpose of increasing the amount that can be borrowed against the property as outlined in the initial post.

Of course there are legitimate reasons. Unfortunately, this is not one of them.

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

I think the market has bottomed out already in areas where there is not an oversupply of units. I think interest rates are steady and would be very surprised to see an increase in the next 3 months.

You will want to be pretty confident that the market will head the way you need it to.

Robert Bou-Hamdan
Mortgage…[Read more]

John, some lawyers work in free legal centres and for corporations as compliance officers or in other much lesser paid roles. I think a solution to your over-billing problem might be rectified by a quick letter to the Law Society. Your lawyer is ripping you off at $1,900 (after negotiation) for a half hour phone conversation. They have to follow…[Read more]

Nat, why do you always try and discredit those who oppose you? Of course I know the rules.

Anyway, regarding having two eyes, can you please provide a single example where you have not been negative regarding an interest free home loan product and where you have not told everyone to stay away? I would put forward that you cannot do this because…[Read more]

I don’t think having one eye makes you eligible!

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

Of course the seller is willing to do this as they will be getting a good price for a property they want to sell. They will not be prosecuted if the lender finds out.

Why not ask the vendor to vendor finance the deposit to you instead of inflating the price to rort a lender? Take the maximum you can from the lender on the ‘real’ price with an…[Read more]

Hey Stu,

They don’t charge interest to the borrower because it is a ‘variable’ that does not fit their model. They do earn interest on other funds though. The cash flows are the important factor from borrowers. Charging interest also increases the risk in the model.

Surely someone can support an idea even when something is wrong with the…[Read more]

I am amazed that you guys can condone a practice whereby an agreement is made with a vendor to over-inflate the purchase price so that the purchaser can rort the lender and get finance at a higher level.

This is not about getting a rebate. This is deception and fraud. The purchase price is $108,000 and not $118,000 as seems is required to obtain…[Read more]

With most loans, there is no reason why you cannot fix your loans later if you feel worried about moving rates.

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

Terry, there is a huge difference between what you initially said and what you are saying now. Doing your scenario is not effect at the start of an investing life. It is only towards the end where it might come in useful but it would be assumed that positive gearing would well and truly have kicked in by then so there would be no need to draw on…[Read more]

The MAV does not give you the full discount if you take their intro unfortunately.

I often tell clients that an intro rate is only good if you are going to continually change your loan every year to take intro after intro. This is effective for those with high levels of borrowings but I prefer not doing it.

If it is a choice between an intro and…[Read more]

I would not use insider info. Why risk everything for a few dollars?

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

What you are doing is commonly known as FRAUD.

There are people going to jail for doing this as we speak.

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

Sounds like we have a winner. I don’t have dealings with CCU so I never knew of this product. I will have to get accredited!

Thanks for the info.

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

Originally posted by Nat R:
the uneducated and ill-informed chase products that are pure fantasy

Again with the insults…

As is clearly evident by my posts to all who read this forum, I am both educated and well-informed. So are many of the other posters who are not as quick as you to discard something which we do not as yet have access to…[Read more]

Terry, I am certainly not warming to the idea. I still think it is ridiculous. For someone starting out, this is a recipe for disaster.

Regarding deductibility on the cash bonds which you say return 4% but cost 7% to hold, what is the point? After tax, you are still losing more than half of the gap in interest expenses. How on earth does this…[Read more]