It could take a while.

If they fail to settle, I guess you would issue a statement of claim. You have to go to court, fill out some forms, and have them served. They will be notified to attend court. If they don’t attend, you could get a default judgment. If they do attend, then the court officer will ask if you have settled the matter? If no,…[Read more]

Becareful with submitting written offers. If your offer is accepted, you could be in a binding contract. This can happen whether you use a formal contract or the back of an envelope.

Terryw
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You probably have a binding contract if you have gone that far, so the ball is in your court.

I think you have the following options:
a) You can let me off without penalty, or b) let them off with an agreed amount or c) you can insist they settle as per the contract. If they fail to settle you can sue them for breaching the contract. You had…[Read more]

I agree with Richard!

Terryw
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Macquarie are good, but they are securitised lenders which means all over their loans are mortgage insured. even LVRs of 1%. Macquarie usually pay the LMI so the client may not realise.

If you wish or need to start using No Doc loans you have to plan ahead. Virtually all No Doc (and Low Doc) loans are mortgage insured, even the ones with the big…[Read more]

Originally posted by Mortgage Hunter:
Originally posted by Dougiejg:
Mortgage Hunter
What do you think the disadvantages might be?

I can see a risk of disagreement between members down the track.
This could damage friendships.
Always a risk of losing money, but that is in any investing.
Certainly there is a great deal for us to learn, and that is…[Read more]

Originally posted by Terryw:
Originally posted by Bo_D_:
hey kuade,

you might be better off having the “negatively geared property” in you name. You’ll be on a much higher tax rate. Means you’ll get to claim a bigger percentage on the deductions. (well thats my understanding of it anyway) and if it was a pos geared investment you’d want it in…[Read more]

The person possibly suggested a LOC to enable paying interest on the investment with money from the LOC.

If you wish to extend your borrowing capacity as far as possible, I would be inclined to suggest you keep away from the likes of Macquarie for now. Try and stay with the major banks at 80% or less. Avoid the mortgage insurance companies…[Read more]

Originally posted by Bo_D_:
hey kuade,

you might be better off having the “negatively geared property” in you name. You’ll be on a much higher tax rate. Means you’ll get to claim a bigger percentage on the deductions. (well thats my understanding of it anyway) and if it was a pos geared investment you’d want it in your wifes name as she’ll pay…[Read more]

i noticed there is a full stop at the end. Try:

http://www.gal.com.au

Terryw
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You generally pay when complete, which may be years down the track.

Terryw
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Bluemist

It may be better long term to sell your existing property and buy a new one to live in. Just work out how much extra tax you would be paying, and interest on your new loan (if you will need one) and compare this to the selling costs (agents fees legals, stamp duty etc).

Terryw
Discover Home…[Read more]

I have seen a few of these groups form over the years, and can’t remember one that has actually done anything. Doesn’t mean your’s won’t, but just be aware the more people you have the harder it is to agree. Then there is the fact that some will work harder than others, some will contribute more than others and some will resent this (and other…[Read more]

You could put it up for sale and sell before settlement. Hopefully you will even make a profit – but this wouldn’t be available until it settles.

Terryw
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Maybe we could all chip in and buy it?

Terryw
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Life

I think it is up to around 45% LVR.

However, if a person had an ABN they could get a No Doc up to around 70-80% LVR at a cheaper rate too.

Terryw
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Hi Trajik

I don’t have any experience with lending for these, but heard of LVRs around 60% and commercial rates.

I am not very impressed with these sorts of investments because of the lower LVRs, higher rates, difficulty in selling and possibly high management fees.

If you borrowed to invest in one, you would probably only break even and be…[Read more]

Yes, I’ve seen it.

From what I understand it is just capitalising the interest, or a portion of it. They may only ask you to pay x% in year 1, but you are still being charged the full rate with the portion not paid being added on top.

There are many loans out there that can do this, some up to 90% LVR. Investors Direct probably can’t go past 90%…[Read more]

The good old salesperson is not known to exaggerate!

I think they must have been talking about capitalising payments during construction. Which is possible, but you have to have the equity to do it. Sometimes it is possible, it just depends on the LVRs and your serviceability.

Terryw
Discover Home…[Read more]

Originally posted by alotti:
Thanks for the advice guys. I will let him know that we will not reimburse him for 3 reasons:

1. He made the connection before seeking approval.
2. He chose an expensive option (which he required for work).
3. He demanded the reimbursement instead of asking politely, I don’t deal well with people like this.

Cheers,…[Read more]