No. None that I am aware of.

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

We calculate the total cost of the loan over 3, 5 and 10 years for every client. This calculation includes all fees (including any early repayment fees) and the interest rate. This calculation means that everything is weighed up equally and it would have identified that Liberty was the best. In your situation I would have calculated the cost over…[Read more]

I can’t think of any unusual tax implications if you are paying market value (as it is an arms length transaction).

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

Hi Tryst

Your borrowing capacity is approx:

Serviceability
a) $650,000 – $780,000
b) $630,000 – $730,000

Security?
Depends on how much your mortgages are.

As you can see borrowing capacity is unlikely to be an issue.

I would just focus on the assets (as Crashy alludes too).
What is future cash flow like? As Crashy calculated… not that…[Read more]

Hi Melanie

I am certainly not going to disagree with WB.

Isn’t “three narrowly defined investment/income producing methods” diversification? I think it is.

I agree in part – don’t spead yourself too thinly. However, I strong disagree with pinning your hopes on one stratgy. In my view that is not prudent.

Cheers

Stu

Property & Finance News
at…[Read more]

Picja1 – aren’t you a broker?

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

I have an article in the recent issue of API about commercial finance (see http://www.prosolution.com.au/ps_docs/prosolution_doc081903_180049.pdf).

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

I agree with Richo.

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

I respect both views and both people (Steve & Monique).

So why choose? Investors can have a combination of positive cash flow and capital growth properties.

“Everything in Moderation”

I have never found an exception to this rule. One sided investment strategies (i.e. totally positive cash flow) are a lot weaker than a diversified investment…[Read more]

Renting a spouse would obviously relieve us (the males) of the problems associated with ownership (e.g. maintenance, remembering anniversaries etc.).

Yes, I like the idea of renting.

(I hope my wife doesn’t read this post!)

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

Wow Richo – good topic.

For the most part people around me have been very supportive. But I wouldn’t listen too them anyway.

I don’t ask my dentist for help if I have car problems. So why would I ask a poor person (for lack of a better word) for their opinion about my wealth strategy. Their opinion is not much chop because they haven’t achieved…[Read more]

Hi Fullout

You have to establish a loan against the property with a lender. The lender will probably want you to both be applicants to the loan (no real difference if he is an applicant or guarantor).

This will impact on his borrowing capacity.

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

Your total borrowings are probably going to be in the region of $480,000 if you could purchase this property ($115k + $350k + costs).

Your gross income is $550 p/week which is $23,400 after tax p.a. Rental income might be $24,000 p.a. (based on 8% yield). So perhaps that might be $20,000 after costs (at best). Therefore, total income of…[Read more]

Hi Huey

He can get a no loc loan (essentially the loan is based solely on the asset base and they don’t ask any questions about income).

HOWEVER, his interest only repayments are going to be a little less than his rental (repayments = $300, rental $340). What happens if the property is vacant? What happens if interest rates increase? He needs to…[Read more]

I think it would be deductible as the property is earning assessable income and your expense (i.e. interest) is incurred as a result of earning assessable income.

Not many people know the answer? This is an easy one. You are asking the wrong people. Speak with an accountant.

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

Hi Kristine

It must be worth refinancing.

1. Most people are not better off to refinance unless they can save at least 0.50% (as a rule of thumb).
2. In my opinion, you should be better off in the first year. That is, the costs associated with refinancing must be offset by the interest rate savings in the first 12 months.
3. It normally costs…[Read more]

The Torrens system is a normal title. The old system meant that the mortgagee actual has an equitable interest in the property. The enactment of the Torrens system in Australia (in 1870’s) changed that. Now the owner/borrower retains the equity interest and the lender (mortgagee) takes a charge over the property.

The vast majority of titles fall…[Read more]

I wouldn’t think that this would effect owner-occupiers, investors with buy and hold strategies. I think Richmond said that only 6% of the population own an investment property and of these people only 5% own more than 5 properties (therefore 0.3% of the population own more than 5 properties). Considering the number of active investors in the…[Read more]

AD, Josie and I will be there.

Cheers

Stu

Property & Finance News
at http://www.prosolution.com.au

Yes and no.

Only one lender can have the first mortgage over your property. Therefore you can:

1. Increase your existing loan with your existing lender. The increase should be sufficient to finance 20% plus costs. You can then go to any lender and arrange finance for the remaining 80% (which that loan secured by the new property).

2. Refinance…[Read more]