Yep

ferdinandch -you should only cross if it has a benefit to you and not to simply make the bank happy – note crossing your loans means you are not risking ONE property but 2+

Example of when cross MAY be worthwhile:

1. Reduce LMI significantly!
2. Only way to service/ pass the loan through and another banks are not an option.
3. Commercial…[Read more]

Ossi89 wrote:
Thanks for the great info everyone!!Does anyone know how I would go about getting finance to purchase property in New Zealand? I have noticed that there is lots of positively geared property over there!I don't plan on doing this until I have a few Aus properties under the belt but would still like to know how it is done. I have…[Read more]

As often as you like- but generally i tell clients to wait 3 month –as prices won’t change for any time frame shorter then 3 month.

Some banks will only allow a Max of 2 equity release per year; after your 2nd one they will start to ask a LOT of questions and it does get harder.

Regards
Michael

Jameswood wrote:
Great thanks for that. That has answered my question. So I assume the line of credit it also paid off over 30years as if it was shorter the repatments would be higher and affect your cash flow..??? is that correct???

Beware LOC is a evergreen account- meaning it does NOT have a “life” on the loan….can have it running for…[Read more]

Don’t top up what ever you do.
you will have to:

1. Draw this equity $20k as a SEPARATE loan ( also called a split loan) or LOC ( the choose is yours) – the money needs to be parked into a new separate ( normal or offset) account.

In any Mortgage/homeloans – the bank allows you to have up to 3-5 splits

Regards
Michael

I still live at home

Not yet married…and im very asian ahha

When the time comes for a PPOR, i will transfer all offset account $$ into the PPOR no question ask- partner/wife can complain as much as she wants ( i guess im going to have to buy a MASSSSSIVE rock to silence her — if only a ring can be considered as an investment with the ATO…[Read more]

that’s one of the big misinterpretation ppl have with CF properties….
you have the EXACT same property! but slightly different loan set up- so how can you say one is a CF property and the another is not??

Remember the end result if it’s CF or Negative replies within the deal/ property it self.

I can buy a property for $500,0000 and only rents…[Read more]

Yes it was a 50:50 split…
Ie- loan of $500,000 —- instead of $500,000 I/O with offset—
it was
$250,000 – P/I —offset
$250,000 -I/O — offset ( i don’t transfer money into this one though)

I’ts a good thing that the bank has placed your valuation price the same as your purchase price- it means that the valuation was either:
1. HIGHER then…[Read more]

Really make a NEW offset account for EVERY new mortgage split- UNLESS the funds is going direct into a cheque or as a redraw on the new mortgage account.

Regards
Michael

ferdinandch wrote:

What you were saying is if I buy IPs and make it IO, don’t use an offset account attached to it ?

If say it I get it topped up, and free up 30k and use it as the 10 percent of the IP, as a separate loan, will the interest on it also fully deductible?

As long as it’s for IP purpose- yes it is.

HI Ferdinand,

I was in a simliar position as you 4 years ago; my partner also didn’t like the idea that i had a huge investment mortgage and a lot of “free cash “in the offset lying around.

Financially it made sense to do I/O with offset for my 6 IP- but at the same time i wanted my partner to sleep peacefully and to stop complaining … so i…[Read more]

As long as his registered, have ABN and not black listed by the banks etc, NOT on the loan docs or title- that’s fine.

Regards
Michael

ferdinandch wrote:
I don’t quite understand with this contract works. It is said, the settlement takes place 42 days after exchanging the contract. So it is binding or not ?

Vendor needs to give 30 days notice to tenant, it is binding or not ?

I am actually really frustrated with my current place I am living. One bedroom for one couple to live…[Read more]

ferdinandch wrote:
I believe the notice has been given to tenant on 13 July when the cooling off period lapsed. I am pretty sure about that, I think I need to check with the solicitor whether he has the copy of the notice or not. 30 days from 13 July will be 12 August, which I am fine.

So theoretically, the tenant can only refuse to leave…[Read more]

ferdinandch wrote:

Shape wrote:
The other side would agree 90% of the time…but if you move in early;
1. the “pro-rated” rent and council rate etc needs to be re calculated and re-done
2. Can’t force tenant out

So not sure if it’s worth the hassle JUST to bring settlement 7 days forward.

In case, after 11/08, tenant won’t move out, what…[Read more]

The property is only yours at settlement ( NSW anyway) – so once it’s yours the tenant would have to sign a new lease with you – which is not going to happen because you want to move in….so hence it only becomes your problem AFTER settlement.

But your solicitor is right- you just won’t settle IF the condition of the contract was for vacant…[Read more]

The other side would agree 90% of the time…but if you move in early;
1. the “pro-rated” rent and council rate etc needs to be re calculated and re-done
2. Can’t force tenant out

So not sure if it’s worth the hassle JUST to bring settlement 7 days forward.

Regards
Michael

Hi,

Nathan B has bought about this style of investing to reality, it’s not easy and takes a lot of risk; but it has paid off well for Nathan ( Maybe Nathan can post n comment on some hints)

Here are some answers to the above posters—>

—How equity release works( basic)—-

Say you have a current home loan of $300,000 and the LVR was 80% (…[Read more]

Correct way is for bank to send out the the valuers to do initial valuation; should you jump this step- it’s ok but you should let the bank know BEFORE you place the 5% else it will delay the process…also note the bank will NOT pay you back directly….they are only allowed to pay the “invoice” / builder direct.

But if your read your loan…[Read more]