Hi All

The lenders have a right to invoke the Doctrine of Consolidation. However, the borrower has the common law right to object and the lender can only consolidate on limited cases (e.g. parties to mortgage have to be exactly the same). There are ways to protect yourself (e.g. wife & husband on one loan and husband only on invt loan).

Re: low…[Read more]

Hi Sue

As I am spending my Sunday writing my Australian Financial Service (“AFS”) license application I think that the broking market will change considerably. Brokers may need to be licensed (AFS) from 11 March 2004. This will mean that they will have to meet minimum training requirements, dispute resolution processes, etc. This will be…[Read more]

And… http://www.federalreserve.gov/boarddocs/press/monetary/2003/20030916/default.htm

Cheers

Stu

My understanding is that the loan is IO for 15 years but the maximum fixed period is 5 years.

ANZ, Westpac and NAB offer 10 year fixed rates (around 7%). ANZ offers interest only for years IO.

10 years is the maximum fixed period that I know about.

Cheers

Stu

No worries.

Cheers

Stu

Hi Jen

Great post. Gives us all some perspective. You don’t have to get it right the first time to be successful.

Thanks

Cheers

Stu

Hi Kev

Calc is as follows:

Historic cost * (1 + inflation rate)^ years

^ = to the power of

Therefore,

$64,000 * (1 + 0.0428)^17 = $130,496

Therefore, the present value of the property is $130,500.

Cheers

Stu

Fullout

St George is the longest IO period that I know of. Your alternative is a line of credit – they are IO indefinately (i.e. no loan terms and minimum repayments are IO).

Cheers

Stu

I agree with you Simon. To say that negative cash flow is an overall bad strategy is, in my opinion, wrong.

I agree that chasing a tax benefit is definitely the wrong investment strategy – but that doesn’t necessarily imply negative cash flow strategy.

Not everyone wants to achieve the same goals. If you have plenty of income and want to…[Read more]

What will those crazy asparagus farmers do next? I really like that one Westan.

Keep them coming.

Cheers

Stu

I think you should consider your opportunity cost (i.e. the opportunities you are missing out by holding the property).

Will you have any money if you sell? What could you do with that money (i.e. how much could you make)?

I think you need to research your options.

Your accountant’s comments are correct so long as your property definitely d…[Read more]

I would say that there are no compelling signs for any rate changes. So the question becomes: “When is something going to happen that may cause the RBA to change rates?”

Who knows? Have you got a crystal ball?

There are lots of people that forecast the result of the RBA’s next meeting – many are wrong. So if they can’t forecast 1 month ahead…[Read more]

Hi Samson

See a good accountant/financial planner because there are heaps of issue to consider:

– your strategy
– tax planning
– estate planning
– risk mitigation
– etc.

However, this topic has been discussed a lot of times so perhaps do a search (see link top of page).

Cheers

Stu

http://www.prosolution.com.au

Ok Scremin

If you are returning home and will be working in the same industry (i.e. teaching here) then here are the requirements:

If you need to borrow more than 80%– you need to be in your job for at least 6 months and not be under a probationary period.

If you borrow 80% of less– Not be in a probationary period; and
– Have at least 3 months…[Read more]

David

Properties have to be in metropolitan and major cities on eastcoast of Australia.

Application fees is 1.25% of loan plus legal and valuation fees.

I have not used this lender yet.

Cheers

Stu

http://www.prosolution.com.au

Hi David U

Here are a couple of the asset lend products:

Homeloans Ltd – 65% LVR – 7.25% interest rate.
RAMS – 65% LVR – 6.99% interest rate.
Eurofinance – 85% LVR – 9.50% interest rate.

I don’t think you can use a Low Doc because you have no income to self certify.

Fees, costs, etc. vary greatly so make sure you take these into account when…[Read more]

Hi Kim

I would suggest you contact the MIAA (www.miaa.com.au) and speak to them about educational courses. They could probably point you in the right direction of some good courses that do not cost $5,000.

Re: getting customers. This is something all new business people have to face. This is not really mortgage specific thing. Do a business plan…[Read more]

Low Doc loans are resigned for people that may not be able to substantiate their income (e.g. self employed persons). This may arise due to their tax returns not reflecting their true cash position or if they are not up to date with their records. They were not designed for PAYG earner (employed persons). Essentially, lenders are a bit suspicious…[Read more]

I’m sure Steve (and other people on this site) help people that help themselves first. So they question becomes… can pensioners and unemployed people help themselves?

Cheers

Stu

http://www.prosolution.com.au

Check out:
– Management fees.
– Restrictions on use and sale.

Cheers

Stu

http://www.prosolution.com.au