Forum Replies Created
By the way, lease options can be used there can’t they?
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE 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
DOCEP!!!! I HATE those guys!!!
Minister Kobelke (Minister for Consumer and Employment Protection) has absolutely NO IDEA!!!
GRRRRRRRRRRRRRRRRRRR
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE 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
Sorry Monopoly,
I was assuming the gross figures everyone was talking about was before tax. Why would they state a figure before expenses?
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE 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
Being self-employed enables you to apply for various low doc loans. Low Doc just means income does not need to be proven. As long as you can service the debt, you can borrow what you can afford.
Note:
The ATO checks people who overstate their income. Talk to your adviser if you decide to go low doc.Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE 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
Good luck with it all.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE 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
Regarding NET figures, it is not hard to work out the worst case scenario. Just take the gross figure and take away 48.5%. The sceptics should be happy that they have a NET figure then.
I met the mappers and I think they did a great thing!!! They are doing an even better thing now by motivating many more people.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE 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
Hey, good info.
One question, why are there two websites for the same thing or did I miss something?
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE 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
10% deposit is not a hard and fast rule. It is just a standard unless you ask for a different amount. Deposit BONDS tend to be written for 10% of the purchase price for simplicity in most cases.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE 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
I find it interesting that all the wrappers I see on here go on about all these deals with “A BIG BANK” but never tell anyone the names of the bank they deal with. Unless you are an experienced wrapper, I highly doubt any of the major 5 will permit a loan to go through as a wrap deal.
Regarding getting a bank to put it in writing that they will sell a property to a wrappee in the event of the wrapper defaulting, IT WON’T HAPPEN!!!
There are rules about taking possession of property and mortgagee sales to maximise the amount received from a sale. Auctions are often used as the lender has a requirement to obtain as much as they can to cover their costs and leave something extra for the borrower who defaulted. I can’t see the lender honouring an agreement to sell a property to a wrappee especially if the property value has surpassed the agreed purchase price in the wrap contract.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE 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
It has nothing to do with the buyer’s broker either. They send an unsigned bond to their client. The client signs it and hands it to the real estate agent or sends it to the vendors solicitor or even gives it to the vendor.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE 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
May I ask the principal and interest loan advocates to outline one situation where setting the loan up as P&i is more beneficial than setting it up as Interest Only?
Please disregard the obvious argument that some people are bad with money.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE 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
I like to make offers with “subject to acceptance by a certain date” or contract with “subject to settlement on a set date”. I use these to speed up the process or reduce the offer if the time passes. They are great to use with new cars as they are always late to be delivered.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE 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
I think crj means renovate to increase your rental income but sell to someone who is happy to develop the block – ie strata the units if you don’t want to.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE 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
Investors from overseas need FIRB approval. Go to http://www.firb.gov.au/content/default.asp
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE 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
I would not consider Aussie Home Loans a product of Network Marketing but more so Direct Marketing and excellent timing.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE 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
crj, my comments are from a financing point of view to keep growing. Lenders look at saleability in their valuations. Rental return is only looked at for serviceability with them. They consider blocks like this as commercial and less saleable than if they were strata units.
There is definately a lot to consider.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE 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
Regarding your added comment about the more cash you put in, the more cashflow positive your investment becomes, consider that the more cash you put in, the less cash flow properties you can acquire as your deposit for further purchases is being eaten up buy an earlier purchase.
I believe it is all about controlling more property and gearing up properly so they are not a burden.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE 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
If you agree with Lucifer, you should not use the CoCR formula as you are not calculating CASH on CASH RETURN. You are looking at Gross Return which is totally different. The injection of cash or not is totally relevant for the CoCR formula. It is the basis of it.
Your comments about the locking up of equity go to the Opportunity Cost of having that equity available for something else or invested in something else which would be looked at in your second question.
Regarding your ROI being infinite, it is if you can keep buying property using equity. This is what is known as Gearing and, if used properly, can result in infinite returns or infinite growth.
Regarding cash flow on purchase day, I consider that simply being all income – all expenses = cash flow. This does not take into account the cash injected as that goes back to the CoCR formula.
On sale day, there is no cash flow calculation. It is more of a capital gain / loss calculation as the cash flow will cease. This calculation involves sale price – sale costs – loan – cash in = net gain / loss.
There is not one formula you can use from start to finish when you invest as you are looking at different figures at each step of the way. Your CoCR return is a formula that will help you answer the following question:
If I put my cash into this investment, what will my return be?
Comparing this figure with other possible investments will provide you with opportunity cost figures.
I hope this clears it up.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE 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
If buying in the trust name, you just use the trust name. If you are not sure, using ‘or nominee’ just means you can work it out later. Talk to your solicitor or accountant to see what is best for you.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE 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
The benefits of an interest only loan far outweigh ever using a principal and interest loan. This comment also holds true regarding your owner occupied (PPOR) home. You have outlined the downside of never owning your property but now for the upside…
Interest only allows you to make smaller payments to control a property. This means less ongoing expense which is a huge benefit if you are investing for a capital gain. It leaves your money freed up for further investment.
On investment properties, only the interest is deductible (regarding the loan) so there is no need to pay off the principal except to reduce debt levels. This is more true for positively geared properties where you would have no deductions.
What I consider the largest benefit and the reason why I convince all my clients to set up their loans as interest only, if something goes wrong, you are only required to pay the interest and this is what the lender will be chasing you for. Your ongoing ‘commitment’ is lower.
With all the above being said, interest only loans do not prevent a borrower from paying as much as they like to reduce the principal and, thus, their ongoing interest expense. Utilisiing offset accounts or free redraw facilities also allow you to park large chunks of money in your loan which will also reduce your ongoing interest expense but also provides full access to these funds as and when you need them.
INTEREST ONLY IS THE WAY TO GO!!!
Obviously, someone who is terrible with money may not benefit from interest only but you can only please some of the people some of the time.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE 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
