[Robbie BMember@robbie-bJoin Date: 2004Post Count: 2,493]

December 20, 2004 - 5:10 am

Duritz, another way to secure property with $1,000 cash or less is by using deposit bonds which might cost you even less. It is not a difficult task.

Robert Bou-Hamdan
Mortgage Adviser

M: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.au

FREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm

Comments made are of a general nature and should not be construed as individual advice.

© 2004 Mortgage Packaging Pty Ltd

[Robbie BMember@robbie-bJoin Date: 2004Post Count: 2,493]

December 20, 2004 - 5:00 am

Is this a loaded question or what?

Robert Bou-Hamdan
Mortgage Adviser

M: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.au

FREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm

Comments made are of a general nature and should not be construed as individual advice.

© 2004 Mortgage Packaging Pty Ltd

[Robbie BMember@robbie-bJoin Date: 2004Post Count: 2,493]

December 20, 2004 - 4:58 am

There has to be somewhere people can go for correct advice. Surely there is a Government website that explains all this instead of palming everyone off onto “professionals” (and I use the term loosely) who seem to get it wrong A LOT!

Robert Bou-Hamdan
Mortgage Adviser

M: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.au

FREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm

Comments made are of a general nature and should not be construed as individual advice.

© 2004 Mortgage Packaging Pty Ltd

[Robbie BMember@robbie-bJoin Date: 2004Post Count: 2,493]

December 20, 2004 - 4:56 am

This is the news I also heard about CGT exemption. You were also lucky with the First Home Owners Grant as they also require six months now for eligibility.

Robert Bou-Hamdan
Mortgage Adviser

M: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.au

FREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm

Comments made are of a general nature and should not be construed as individual advice.

© 2004 Mortgage Packaging Pty Ltd

[Robbie BMember@robbie-bJoin Date: 2004Post Count: 2,493]

December 20, 2004 - 4:54 am

You would probably make more out of an ING, BankWest or Citibank account than a listed property trust.

Robert Bou-Hamdan
Mortgage Adviser

M: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.au

FREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm

Comments made are of a general nature and should not be construed as individual advice.

© 2004 Mortgage Packaging Pty Ltd

[Robbie BMember@robbie-bJoin Date: 2004Post Count: 2,493]

December 20, 2004 - 4:38 am

Originally posted by terryw:

Excel the XP version has a loan amortisation spreadsheet included for free. Just set up two of these, one for your loan to the bank and one for the ‘tenant’s’ loan to you. Then at any given time you can see their payout figure and your payout figure and hence, you will know how much cash you will receive on cashout.

If you haven’t got these calcuator in your excel, email me and i can send you a copy.

Terryw
Discover Home Loans
Mortgage Broker
Click below to email me

OR you could just set up one that does both!

Robert Bou-Hamdan
Mortgage Adviser

M: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.au

FREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm

Comments made are of a general nature and should not be construed as individual advice.

© 2004 Mortgage Packaging Pty Ltd

[Robbie BMember@robbie-bJoin Date: 2004Post Count: 2,493]

December 20, 2004 - 4:36 am

I have not read the whole thread but thought I would post my views on Tassie anyway.

I cannot bring myself to invest in Tassie any way I look at it. Economic growth is non-existent and population growth is not sustainable. The majority of people moving to Tassie are retirees. When they realise it is cold, it will be bye-bye Tassie and Hello QUEENSLAND.

My favourite area at the moment is WA. You do not need to invest only where you live. I am fortunate because I can buy properties sight unseen if the numbers are right. A lot of people can’t do this.

The only thing Tassie has going for it in my opinion is that the people are really nice. Nice does not equal profit!

Robert Bou-Hamdan
Mortgage Adviser

M: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.au

FREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm

Comments made are of a general nature and should not be construed as individual advice.

© 2004 Mortgage Packaging Pty Ltd

[Robbie BMember@robbie-bJoin Date: 2004Post Count: 2,493]

December 20, 2004 - 4:25 am

It would have to be positive cashflow or they could not make repayments. Unemployed means NO INCOME. There is no choice.

Robert Bou-Hamdan
Mortgage Adviser

M: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.au

FREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm

Comments made are of a general nature and should not be construed as individual advice.

© 2004 Mortgage Packaging Pty Ltd

[Robbie BMember@robbie-bJoin Date: 2004Post Count: 2,493]

December 20, 2004 - 4:24 am

Shackles,

Don’t sweat it. Some people know exactly what to do but rush in and do stupid things. I hold a Masters Degree in Stupidity!!!! Hardly any professionals I know (besides Steve and Dave) actually practice what they preach all the time.

It is all a learning experience and as long as you learn something you have succeeded as far as I am concerned. Money is just a bonus you get at the end of the day.

Robert Bou-Hamdan
Mortgage Adviser

M: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.au

FREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm

Comments made are of a general nature and should not be construed as individual advice.

© 2004 Mortgage Packaging Pty Ltd

[Robbie BMember@robbie-bJoin Date: 2004Post Count: 2,493]

December 20, 2004 - 4:15 am

Regarding lending for different investment types, if you are using the equity you already have, it is not an issue. You can invest in whatever you like.

If you are talking about the 80% you would borrow on the new property, well this would be part of the opportunity cost calculation because you might not be able to get the same amount of money or the same level of gearing with other investments so you might decide to stick with the property if the returns are better. This is all part of determining which route to take.

Just egarding your comments about shares, I just bought $100,000 worth of shares and I did not put in one cent. I could have taken up to $500,000 worth before I would have to prove some sort of income. I think it is possible to gear up a lot easier on shares these days than it is to do on property. By the way, I could have taken up to $500,000 per application with the different providers. This is pretty scary stuff!!!!!

Robert Bou-Hamdan
Mortgage Adviser

M: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.au

FREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm

Comments made are of a general nature and should not be construed as individual advice.

© 2004 Mortgage Packaging Pty Ltd

[Robbie BMember@robbie-bJoin Date: 2004Post Count: 2,493]

December 20, 2004 - 4:07 am

Female, school is not the only education a person needs. You can fully educate yourself now about your chosen area – in this case, PROPERTY INVESTING. As everyone always says, keep reading and reading and reading. Before you know it, you will have the knowledge and will be looking for the experience.

Low Doc does not need tax returns. They just need to see an ABN for 2 years in many cases or one day in others. Some will even to PAYE (employed) Low Doc. A broker can go through all this with you.

Rental income is always counted in loan applications as it improves your serviceability. Again, the broker will discuss this all with you.

Regarding Full Doc and being employed, they really only need to see that the applicant is not in a probation period before approving the loan on their current income. This is usually a period of three months. If you borrow more than 80%, things get a little more difficult as the Mortgage Insurers rear their ugly heads and take control.

Make a couple of appointments with different mortgage advisers / brokers. You will see their different styles and the way they advise you differently. You will learn a lot about what you can and cannot do and how to achieve the things you want to achieve. Maybe even speak with a financial planner or two to learn even more.

Remember, there is no obligation if you meet with these people and it should cost you NOTHING unless you proceed with a financial planner or never in the case of a mortgage broker.

Don’t forget, READ – READ – READ

….and TALK!

Robert Bou-Hamdan
Mortgage Adviser

M: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.au

FREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm

Comments made are of a general nature and should not be construed as individual advice.

© 2004 Mortgage Packaging Pty Ltd

[Robbie BMember@robbie-bJoin Date: 2004Post Count: 2,493]

December 20, 2004 - 3:58 am

I understand not wanting to burn bridges or ruining relationships but it is the only way I see them being accepted as fully disclosed. You have built the bridges and created those relationships but I would guess that your first, second and maybe even fifth wrap deal was not fully disclosed. You are now considered professional so it is a different ball-game for you.

Regarding the lenders working on protecting the wrappee in the wrap deal, it seems to contravene the UCCC and other legislative requirements governing lenders. The legislative environment is always getting tighter and such a move would require a relaxation of the legislation which I can’t see happening any time soon. Any sale after taking possession ‘MUST BE’ an on-market transaction. A sale to a wrappee is not on-market so I can not see how they can do this or, if they did, how they would not be liable to the vendor.

The wrappee can always buy it on-market but this would be difficult for them or they would not be a wrappee.

Time will tell I guess.

Robert Bou-Hamdan
Mortgage Adviser

M: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.au

FREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm

Comments made are of a general nature and should not be construed as individual advice.

© 2004 Mortgage Packaging Pty Ltd

[Robbie BMember@robbie-bJoin Date: 2004Post Count: 2,493]

December 20, 2004 - 3:51 am

Duritz, where do you go to buy them???

Robert Bou-Hamdan
Mortgage Adviser

M: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.au

FREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm

Comments made are of a general nature and should not be construed as individual advice.

© 2004 Mortgage Packaging Pty Ltd

[Robbie BMember@robbie-bJoin Date: 2004Post Count: 2,493]

December 20, 2004 - 3:49 am

That is right Monopoly. It is about manipulating a basic formula to determine different results. If the results look good, you proceed and vice versa.

Steve really needs to explain this one as it gets a bit tricky.

Robert Bou-Hamdan
Mortgage Adviser

M: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.au

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Comments made are of a general nature and should not be construed as individual advice.

© 2004 Mortgage Packaging Pty Ltd

[Robbie BMember@robbie-bJoin Date: 2004Post Count: 2,493]

December 20, 2004 - 3:45 am

I understand that Terry. They can do the same thing with an Interest Only loan and an Offset Account and make whatever decisions they need to when their equity position is where they want it – ie: do I take the cash out of the Offset Account to buy something else and save myself the hassle of getting another loan or do I wipe out the debt by moving the money from the Offset Account to the Loan Account.

I still see not a single benefit other than choice or bad with money. I am talking about ‘FINANCIAL BENEFIT’.

Robert Bou-Hamdan
Mortgage Adviser

M: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.au

FREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm

Comments made are of a general nature and should not be construed as individual advice.

© 2004 Mortgage Packaging Pty Ltd

[Robbie BMember@robbie-bJoin Date: 2004Post Count: 2,493]

December 20, 2004 - 3:41 am

I never implied it was Terry but the cheaper loans today with all the bells and whistles provide as much, if not more, flexibility than a lot of the more expensive products I have seen of late.

Thanks for your comments Stuart. Do you have a link to any of the studies. I am intrigued by it.

Robert Bou-Hamdan
Mortgage Adviser

M: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.au

FREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm

Comments made are of a general nature and should not be construed as individual advice.

© 2004 Mortgage Packaging Pty Ltd

[Robbie BMember@robbie-bJoin Date: 2004Post Count: 2,493]

December 19, 2004 - 4:49 pm

Gearing up properly just refers to doing it at sustainable levels. It will look at such things as interest rate risk (increases, etc), return on investments, vacancy rates of investment properties, opportunity cost of paying of more debt rather than using funds elsewhere, etc…

Don’t just do it because it is there but because it is part of a researched plan that will improve your position.

Robert Bou-Hamdan
Mortgage Adviser

M: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.au

FREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm

Comments made are of a general nature and should not be construed as individual advice.

© 2004 Mortgage Packaging Pty Ltd

[Robbie BMember@robbie-bJoin Date: 2004Post Count: 2,493]

December 19, 2004 - 4:42 pm

I think the full product disclosure statement should be read before making a decision.

I would be looking to see if the company running the carpark is asset backed, do they have other carparks, do they own the one you are investing in or are they leasing it, etc…

I would be specifically asking why they are forecasting the huge change in growth in a 3 year period. After all, it is a carpark with limited spaces and no room to grow. Are they counting on increasing parking fees? This might reduce their customer base.

Look to the PDS and common sense for the answers.

By the way, 81 out of 100 is only a ‘credit’. I want 85 plus which is a ‘distinction’!!!

Robert Bou-Hamdan
Mortgage Adviser

M: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.au

FREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm

Comments made are of a general nature and should not be construed as individual advice.

© 2004 Mortgage Packaging Pty Ltd

[Robbie BMember@robbie-bJoin Date: 2004Post Count: 2,493]

December 19, 2004 - 4:30 pm

CBA / Colonial are not that bad if you know how to deal with them. They are one of the only lenders who charge a single annual fee of only $300 for multiple property investors which provides you with your home or investment loan, an offset account (which has only recently become half decent to use) and a credit card. All this with no other fees or charges for the offset account, the credit card or the loan. The annual fee gets you huge discounts on their standard variable rate so your loan should be between 6.37% and 6.57% depending on the total borrowings.

Above this, they provide unlimited accounts. This means you can have 100 loans with them for no extra charge – no valuation fee, no application fee for new loans, etc… They may get a little nervous though when their exposure gets in the millions but if you are well diversified by location and show them you are professional, you should have no problem.

The best of all, you do NOT need to cross collateralise any of the properties and you can have a seperate statement for each portion of your loans (still no charges).

BUT WAIT, THAT’S NOT ALL!!!

They also have a mandate to be in the top three regarding their variable and fixed rates so you can usually get one of the best deals available in the market.

BUT WAIT, THERE’S STILL MORE!!!!

They also have the most flexible servicing calculations of the majors. They allow deductibility of investment loans and are very flexible with security property types (although St George is more flexible with security types).

I think if someone is having major problems with CBA / Colonial, they should look at their broker because of poor structuring or poor submission quality. They just do what they are instructed to do. Their services are in house and they are happy to escalate things to get them to settlement so I do not see the problem.

Robert Bou-Hamdan
Mortgage Adviser

M: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.au

FREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm

Comments made are of a general nature and should not be construed as individual advice.

© 2004 Mortgage Packaging Pty Ltd

[Robbie BMember@robbie-bJoin Date: 2004Post Count: 2,493]

December 19, 2004 - 4:11 pm

I learn so much on this site about trusts. This is good stuff but it just tells me I need to sack my team and start again. I think my new accountant is decided. If nothing else, the cost of the seminar was worth it just meeting up with Mark Unwin. I just need to sort out how to get all the paper work together and down to Melbourne so it can all be sorted out.

Steve, would you like to recommend a good solicitor??? (Hint hint!!)

Robert Bou-Hamdan
Mortgage Adviser

M: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.au

FREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm

Comments made are of a general nature and should not be construed as individual advice.

© 2004 Mortgage Packaging Pty Ltd