Terry, I don’t understand your fixation on using a Line Of Credit. It is not needed.

Rod, you might find it difficult finding someone who will pay for your property and leave you with an unencumbered property while their house has a mortgage over it and they can lose their house if you do not pay.

To simplify it, you are not using their equity.…[Read more]

If you are looking for a return on your savings, I would use one of the online accounts because they pay higher interest and there are no fees.

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

Regarding the Australian market, mortgage brokers must provide a borrower with a comparison rate as required under the Uniform Consumer Credit Code for any home loan (excludes investment loans). The comparison rate takes into account all upfront, ongoing and closing fees and charges. It does not include pay-per-use fees like redraw or ATM…[Read more]

If you are breaking even with income, you will not qualify for a loan to buy a cash flow positive IP regardless of how cash flow positive it is. What happens if the tenant moves out?

I would considering using the 20k to reduce my expenses.

Seek professional help. It is not as easy as people lead you to believe in this forum.

Robert…[Read more]

Any Bird Doggers here specialising in WA properties? Please contact me as I have something I want to unload in Geraldton but there is a no advertising policy on this forum. I hope this message is not construed as an advertisement but feel free to delete it if it is.

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

I think Investment Detective is one of the better tools available in the market. The creator also posts here so support is readily available!

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

You would never make a profit on the rent if you set the loan up as interest only and increase it for further investments as required.

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

I do not understand why anyone would capitalise interest. It serves absolutely no benefit unless you can not afford to pay your loan. Can you please explain why you like capitalising interest?

Regarding the ANZ LOC, this is the only LOC I am aware of that offers a comparable rate to a standard loan. Having said that, they do not generally offer…[Read more]

Is anyone looking at or has any knowledge of aqua-culture? I would be also interested in hearing depreciation possibilities in this area.

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

Maybe posting the question in the Accounting section might get you a more certain response.

Sorry I am not an expert in this area.

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

Originally posted by Terryw:
If you have money in an offset account and withdraw that money, the extra interest incurred on the loan would only be deductible if the loan was already for investment or business. There would be no accounting problems as the loans/accounts are totally separate.

I was trying to point out that if you wanted to use…[Read more]

‘Listed’ simply means that the property trust is available for trade through a stock exchange and usually means the investmenet is more liquid. This just means there are usually more buyers and sellers willing to trade at any given point in time.

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

I would imagine that the local council would have these records. They usually have everything on file including the original development application for properties.

Robert Bou-Hamdan
Mortgage Adviser

http://www.mortgagepackaging.com.au

Investor Links

Not my area of expertise but would it not be of great benefit to move into a property that is in a Trust or company name and pay rent so deductibility is not loat? This assumes that the property will be held long-term and CGT would not be an issue down the track. Submitting the appropriate tax form (always forget the number) would see the benefit…[Read more]

Different information is obtained from different sources. It depends on what information you are seeking to determine where you go to get it. The best information costs money but there are always cheap or free alternatives if you know your way around. Maybe if you provide a list of what information you need, you might get some very good…[Read more]

Terry, I think you have missed the concepts of ‘purpose of funds’ and how to ‘effectively’ use an offset account. Money withdrawn from a Line Of Credit would also cause interest payments to rise. Assuming the money already owing was not deductible in the first place on both loans, this would cause all sorts of accounting difficulties. In any case,…[Read more]

One of the better ones I have used and a member of this forum….

Mark Unwin
Williams Partners Pty Ltd
Chartered Accountants
Mail to: marku@wp.com.au
90 Queensbridge Street, Southbank VIC 3006, Australia
Phone: + 61 3 9682 5288 Fax: + 61 3 9682 5877
http://www.wp.com.au

Mark is very easy to deal with Interestate as he is proficient at email…[Read more]

Thanks Steve,

Hopefully I will last more than jsut a few weeks this time. It seems I am a bad bad boy!!!

Robert Bou-Hamdan
Mortgage Adviser

Investor Links

Zonings are very annoying. What may be zoned for 1 storey development may change to 2 or more storey developments in a few years. The closest thing available to certainty these days is to be right on the waterfront but they may come up with some new invention for floating blocks of units down the track.

Robert Bou-Hamdan
Mortgage…[Read more]

An alternative to a LOC is to just get a split loan or investment loan for the amount of the deposit and closing costs you may need to purchase the new property. The remaining funds can be secured against the property you are buying.

Robert Bou-Hamdan
Mortgage Adviser

Investor Links