Thanks kp. I add to it or edit it regularly so check back…

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

Originally posted by stargazer:
I was actually going to increase the Loan to $120000 as to have a $20000 buffer also adding new pergola may need another car in the near future etc.
This would look like this:
PPOR LOAN…..120000
In offset account…..20000
This would be an interest only loan.

Sounds like a good plan to me.

The Question i guess…[Read more]

You are right there neo, I am very much against them. Only one or two in the market are cheap enough to warrant using them. Besides capitalising interest or not having to make any payments (which I think both are crazy), I see no benefit using them.

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

If you are married or defacto, her rental income will count. Most main stream lenders will not look at family benefits. This is not very much anyway.

The rent from the next property will also count but all rental income will only be used at about 70-80% of gross.

If you rent out your house, a rental figure will apply even if you live at a…[Read more]

Thanks Star. It is good to be allowed back. I missed the place.

I always try and leave any investment property at 80% LVR with an interest only loan if there is a non-deductible debt. I also try and place as little debt against the PPOR as possible.

I like that you have the $100,000 non-deductible debt and the offset account being set-up. It…[Read more]

Heaps of links to find loads of information…

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

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

I think your mortgage broker is probably telling you something that you don’t want to hear but it sounds to me like it is the right thing. It sounds like the broker is one of the few with good ethics.

Any unscrupulous broker will tell you just to state a higher income on another low doc loan and use up all your equity and get the next property.…[Read more]

Sorry, I missed that bit. My comment referred to a property that was an investment from day one.

If you convert your PPOR into an investment property, you also get the benefit of not having to pay CGT for 6 years (if I remember correctly) or until you move into another PPOR.

I think this question should be put to an accountant. Sorry I can’t be…[Read more]

Hi Freedom,

It would be important to know where (which State) you want to purchase to know how much benefit you could receive as you said you hated Melbourne. I will assume you meant the house you are in and not the city so you intend staying in VIC.

The First Home Owners Grant (FHOG) is $7,000 as most people know. In VIC, the First Home Owners…[Read more]

Only applies to purchase price.

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

I am not an accountant but I thought the loss carried over to offset any future capital gain. I didn’t think it was useable against income tax.

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

So they organise the finance as well?

I wonder how competitive the products and rates are they advise their clients to take. Can anyone attend these meetings and, if so, when and where is the next one in Sydney?

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

Whether you use a deposit bond, bridging finance or cash, if the purchase falls over after you sign the contract, you will still more than likely be up for 10% of the purchase price. Using a deposit bond does not avoid this. They pay out the 10% on your behalf and then chase you for the money.

There are some great bridging loans out there that…[Read more]

Neo, do you think your friend would be happier doing exactly the same without using a LOC and at a lower interest rate?

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

If you have a PERMANENT part-time job, you might be able to borrow some money. I would assume you earn very little and after your living and uni expenses, I can’t see you having enough income to get a loan.

Your question has been answered numerous times. You need to earn enough income to repay the amount of money you want to borrow. If you can do…[Read more]

Regarding your question as to whether to negative or positive gear, I would say positive. I do not see many valid reasons excluding seeking capital growth to use for further purchases or balancing a portfolio.

The more tax you pay, the more you earn!

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

Why don’t you pick one of the people who has been so helpful on here? Where are you based (not that it matters much these days)?

I think you also need an accountant and maybe even a solicitor to help you with some of your enquiries.

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

There are no costs associated with the investment I outlined. You only have to account for tax.

I think majoh’s goal is realistic considering he seems to have a lot of income available to reduce the gearing and compounding will do wonders to increase the cash flow. Good accounting strategies will also help increase cash flow…[Read more]

Thanks Red, I kind of made the same assumptions.

Does anyone know if their management agreements are favourable or competitive compared to standard agents?

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

Red, your figures look fine.

One thing though…

You are doing returns on the IPs based on the outstanding loan amounts. IP 1 is only returning 4% on current valuation and IP 2 is only returning 5.56%.

The figures you have done show that the properties are positively geared which is great for cashflow but not the best as an overall investment…[Read more]