Sorry, thought you were talking about ‘saving’ a file you had already received, not ‘downloading’ a new file.

TMA

I think all the supporters of living off equty are totally missing the point. It must be assumed that to draw down on equity to ‘live on’ (non-deductible) occurs only when the person borrowing ‘NEEDS the extra money’. There is no other reason to do it. I am referring to LIVING off equity and NOT INVESTING off equity. It may also be assumed that these people do not have sufficient income from alternate sources.

A good example is the current climate. Regardless of how careful anyone has been and only drawing down ‘in arrears’, how does the person who NEEDS money to live get money in times of zero or negative growth???

Let’s assume they don’t have access to any more funds from anywhere else… the question now turns to how are they supposed to make the repayments on all the borrowings that have been increasing at the rate of equity growth each year when they run out of the last draw down?

Living off equity is the most ridiculoue thing I have ever heard of for people who actually need the money to live on.

Investing off equity is much more sensible and generating a healthy ongoing income that will maintain or even increase quality of life is far more beneficial and sustainable with a much lower level of risk!

TMA

Your brother will definately need to sign for any loan application you submit but you may be able to have the loan in your name only. You can submit with just your own details if his finances are not the best.

TMA

Wizard, you make it sound sooooo easy!

You should never assume anything. Many people start investing at retirement age.

Also, how would your example stand up with a 20% drop in property value for a couple of years and interest rates trending upwards???

Also, the 10 year doubling average is across the country. Specific areas move up and down. In any case, historical returns do not guarantee future returns.

TMA

Permanent part time is what I was referring to. Casual is very difficult unless there is two years consistent history. Even then, they may only use 50% of the income.

TMA

There is nothing special about refinancing a wrap. All lenders will do it under normal lending criteria. The problem lies with the initial funding to offer a property as a wrap.

TMA

That’s right EZ!!! It is very common to have interest only loans with offset.

TMA

I have never used them but heard they are ok.

TMA

If the broker told you a specific amount for mortgage insurance and you relied on it and then were forced to pay more when you were committed, you should be able to recover. If it was a bank, see the bankingomudsman. If a broker, see the Credit Ombudsman Service Limited.

By the way, mortgage insurance will always apply to the total loan amount(s) on each individual property. LMI is a risk premium for the possibility of default. You may only be borrowing a small amount but the risk is still all money owing on that property so a premium is set on all debt.

TMA