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Caston, I am extremely familiar with the workings of shares and margin lending. My comment was regarding risk. Shares are far more volatile than property. Even Bank shares… look at their prices since 9/11.
TMA
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First Home Buyer Website… what Tools said!
By the way, my name is Robert, not Richard.
))TMA
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First Home Buyer WebsiteOriginally posted by Terryw:It is not lying on the contract. Stacking the contract may be a way to get a higher valuation after settlement.
Can you define “stacking”?
I take it as putting a misleading amount on the contract. Misleading referring to NOT the true purchase price. How does this differ from lying? I believe this is also prohibited in legislation hence the advantageous purchase requirements most lenders have when a contract is below market price. I am sure this would also work the other way.
Can you outline the process you mentioned above please? How does this “stacking” etc generate a useable income for serviceability and not lose you thousands in additional stamp duty and tax?
TMA
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First Home Buyer WebsiteLocation and tenant will be very important. Is it a shop, office, factory unit?????
TMA
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First Home Buyer WebsiteI would say yes seeing a company pays their own tax whereas and employee is paid in after tax dollars.
TMA
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First Home Buyer WebsiteBefore trying for more finance, look closely at your serviceability. You do not want unsuccessful hits appearing on your credit history.
TMA
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First Home Buyer WebsiteA pimple-faced research assistant who trolls the Internet and steals most of the information from Cannex, filters it, adjusts it and dolls it up.
Go to:
http://www.themortgageadviser.com.au/index_files/essential_links.htm
Click the Cannex link (second choice in the list under Property Research). Select ‘Rates’ on the cannex site.
The information is available FREE plus a lot more additional information…
The comparisons in magazines do not always compare apples with apples. I have not seen the article but I would bet that it does not discuss hidden fees and charges associated with each loan.
TMA
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First Home Buyer WebsiteI don’t know… maybe declare bankruptcy!!!
Seriously though, I am looking for a career position in something interesting but I am being fussy. It has to be within a large company so I have options. Considering travel industry at the moment because I can’t get into the banks as they say I am “too qualified” (rubbish) for entry-level stuff and I keep refusing positions in mortgage lending dealing with the public which they keep offering me. I have screwed myself with my level of education and knowledge in this area.
Playing around with a lot of online stuff at the same time and this will continue if I ever find a suitable company that wants my services. I am just totally sick of being self-employed and need the team environment.
Who knows really… any suggestions???
TMA
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First Home Buyer WebsiteMore income always pays debt down quicker. I would be looking at my structure to ensure the fastest possible debt reduction program you can implement.
You seem very highly geared across a lot of your properties. Buying additional properties (good ones) will certainly decrease your overall risk through diversification but buying poorly may see a collapse.
If you feel comfortable at the repayment levels you will incur by buying additional properties, talk to your accountant and a mortgage broker and do it. If you are concerned about such high debt levels, which I think you are from your post, pay it down as quickly as possible and look at more properties at a later date.
Retirement from paid employment does not mean retirement from investing!!!
TMA
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First Home Buyer WebsiteDrop the rent more and/or get a new agent!
TMA
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First Home Buyer WebsiteShares are far more risky than using equity in an existing property.
TMA
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First Home Buyer WebsiteOriginally posted by Terryw:One possiblitiy is to lend your money to your trust and then to buy a property for cash. Buy only bargins and Stack the contract up higher with a rebate on settlement.
Then after settlement apply for a loan to release your funds. If you have purchased well, the valuation should come up higher and you may be able to get a loan close to 100% of what you paid for.
Repeat the process.
Can you explain this further? What is the point of lying on the contract? Won’t you pay more stamp duty????
If this generates an income somehow, then there is tax on that income isn’t there?. I don’t see how giving away thousands to demonstrate a fake income benefits someone without any real income.
TMA
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First Home Buyer WebsiteI almost forgot…
The interest would not be considered if you were using the funds to buy a property as it would cease on settlement of the property. That would leave you with ONLY the rental income. Rental income is not very certain. Income from established employment is far more certain.
TMA
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First Home Buyer WebsiteWhen you apply for a loan, you have to state your assets and liabilities as well as your income and expenditure. The interest on your money as presented by Magellan would only just cover your living expenses for a single person with no children and no other expenses at all. This is highly improbable for anyone.
The rental income will be used for serviceability but most lenders will only look at 70-80% of it. There are also many expenses involved with property as well as vacancies. In any case, you would need a very very positive cashflow property to cover your loan repayments, your living expenses and any other expenses you may have (eg: car, phone, electricity, rent, credit card, etc). Living expenses are only in relation to food, clothes and personal items.
TMA
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First Home Buyer WebsiteLenders have maximum exposure limits in place to cap their risk with any single client. These kick in for many different reasons but usually apply when the dollar amount gets too high. Other reasons may include type or location of your property investments are too restrictive or, most commonly, your serviceability is no longer evident if you have been buying some negatively geared propertes.
TMA
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First Home Buyer WebsiteDo you know where that information usually comes from???
TMA
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First Home Buyer WebsiteLMI refunds are optional and up to the mortgage insurer. They usually only apply within one year and only if using the same mortgage insurer for the same property for the same loan amount.
TMA
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First Home Buyer WebsiteSo where are you putting your extra funds until you are ready to purchase your next investment or personal item?
TMA
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First Home Buyer WebsiteDid you get a P&I loan or I/O???
Is it PPOR or IP?
TMA
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First Home Buyer Website
