A) That is obvious, I should have been clearer. I was only referring to the $50,000 EFM portion of the loan. Of course the remainder is a standard loan.

Could you please clarify the EFM / Rismark portion. Say I buy a house and never sell it???? What happens then??? Does Rismark force you to sell the property 25 years after the…[Read more]

I would like to know how Adelaide Bank or Rismark profit from this?

From their point of view they give you say $50,000 and then have to cop all the interest on top of that.

I could buy a property and sell it 50 years later. The loan will sit idly on their books for all that time.

So whats in it for them????

Terry,

I think this is a rare…[Read more]

If not there are plenty of fish in the sea.

Cheers

Yes the building inspection was a condition of the contract. That is property purchasing 101. So I can legally stop the contract easily.

Does anyone have any experiences with this sort of issue?

Thanks!

Unfortunately if a person goes bankrupt the any transaction he/she did in the last 2 years can be reversed by the bankruptcy court. (I think its 2 years, might even be 5). This is to stop Christopher Skase selling everything to his distant relative two days before official bankruptcy, leaving nothing to the creditors. Well thats the…[Read more]

If I go to Melb or Syd I will have to post the info and hope the accountant doesn’t leave it sitting around for a year or so. I have heard bad stories of that happening!

Anyway at this rate it looks…[Read more]

“No Land” is actually wrong. For example you may have 10 units on 800sqm of land. So your unit has 80sqm of “real” land. Units do have some land content, obviously not nearly as good as a house though.

If you look at historical data units have gone up in price (thats a gross generalisation – specific places have their own…[Read more]

Congratulations Peter. Now that it has settled and you own the property…[Read more]

.025% is NOT one quarter of a percent.

It should be .25% (or 0.25%).

Just to add to the intrigue of this message. Who really wrote it??? Surely Steve wouldn’t make such an obvious error?

The only catch is the interest accrues and they will have to sell the property when they pass away. I guess they can give their children “first option” to buy the property, but I’m not really sure.

I do want the title deed in my grubby hands with no mortgage over it. Then I can apply for a line of credit at a different bank; permanently ensuring the properties are never cross-collaterised again.

I have mailed a written complaint hopefully they provide a…[Read more]

If that is the case…. why do they say “NO external refinances.”????

What does “external refinance” mean?

Thanks

Why don’t you ask if ATMs are safe?

Someone could stand behind you with a gun and steal all your money.

An ATM could have “problems” and forget to dispense all your money.

I’m sure you use an ATM despite these risks…..

Why is is slander to state a fact?

If you say “person x at bank y advised me their may be tax implications regarding cross-collaterisation”, that is a simple fact.

We live in a sad world where people are afraid to speak the truth. You let large companies rule over you which is rather hopeless.

IMHO the lender is lying to you. They prefer cross-collaterisation so will make up any story to keep you from changing it. If you could tell us the name of this lender I would greatly appreciate it.

Tax in simple terms is based on your income (in the broadest definition ie including capital gains etc). Tax is not based on what security…[Read more]

Could you please explain the “trust register”? Is it something special or just the trust’s minutes piled into a folder?

Thank you for answering the questions provided. However, could you possibly please provide some reasons behind the answers?

Eg it is apparently better to have a company as a trustee, not yourself…. why is this so?

Thanks

If I buy one of these books can I claim it as a deduction on my tax return?

And if I can which specific section of the Tax Pack applies (assume I’m doing my own return)?

What happens if I loan money to the trust, and someone sues me?

Should I lose litigation and am declared bankrupt, can the creditors “demand” the loan be repaid?

When a person goes bankrupt, I understand that the creditor can “undo” transactions in the last 5 years if they were designed to avoid paying debts. Could that…[Read more]

Or course if you are buying interstate its not so easy to walk up to the power box and check the date.

But very handy for local purchases.

Thanks for your advice. However excuse my ignorance, could you explain a little further?

What exactly do you mean by a “real estate company”. Is that just another way of saying real estate agency?

Also if I go to any old real estate company (say LJ Hooker) and ask for info from rpdata – I presume they would want to charge me a fee or…[Read more]

Could you please explain this a bit further!? I would like to hear exactly you “lean” on bad tenants…. would be great advice!

Its good to see you are treading carefully and learning about property before you buy it.

Unlike some people who have posted on this forum heheh.

It is true, probably 99% of residential property is negative geared. That means you lose money, the outgoings are higher than the income.

Why would anyone put up with that? There are many…[Read more]

I personally fail to understand how people would “love” property investing (except maybe it massages their ego).

I guess Steve is at the stage where he pays people to do all the hard work so its easy for him.

However I don’t find the hard yards very enjoyable at all. You have to research the town. Research the property. Check out the…[Read more]

Pretend you are a buyer and see which agents do their best to sell a property to you.

You then know who should be selling your property.

Thanks for that.

Here is an easy question for you:

When do you plan to stop buying investment properties?

We know you have bought over 150. Surely you have an income now that allows you to forget about investment and to “retire” eg move onto more enjoyable things?

If you answer along the lines of “oh I enjoy property investing” I would argue you…[Read more]

Here is a Guru that is supposedly an expert. Yet he is still buying, buying and buying.

Shouldn’t he be living off all the brilliant decisions that he has already made?

If he has to keep on buying property then really investment is just another job since apparently you never stop.

Also it makes it harder…[Read more]

They replied and thanked me. They forgot to renew the domain name apparently.

The website is back up and running now. So not quite RIP!

I’m very disappointed, was hoping to change my PPOR over to 0% (and lock in current property valuation), not much I can do obviously. Oh well….

ASIC were acting unfairly according to Derivex. ASIC wouldn’t even say what they were investigating, or who raised the complaint.

Apparently ASIC are to blame for the end of Derivex?

Exception – if you have children thats not true, you want your kids to have the best future possible. If I have children I will ensure any life insurance payout goes into a trust fund for them only.

If you don’t have children I see absolutely no point to life insurance. Your partner might want a big fat pay…[Read more]

My understanding of the terminology is:

Cash flow positive: The rental income exceeds all the expenses, you get $$$$ in your pocket each week

Positive geared: The total income (including deductions etc) at end of year exceed expenses

Negative geared: The total income is less than the expenses

Some people accidently or deliberately…[Read more]

Surely if a tenant breaks their lease they say goodbye to the bond, and thats 4 weeks rent which should cover any problems. Plus you had insurance as you mentioned.

If I ever decided to kick out tenants who are doing the right thing, I would offer them $$$ as compensation.

I could be wrong but generally you can’t force the tenants out after you have signed a lease.

In simple terms its unfair on the tenants. How would you like it if you were in their shoes?

If you really want them out they could always be convinced with some monetary compensation. However they are entitled to name any amount they want.

Maybe…[Read more]

Inflation in the last few years would have forced interest rates to hit 20% and made the Aussie $ look like the Lira!

I guess there are lies, damned lies, and the CPI.

When did you find out the vendor had to sell at all costs? It would have put a big smile on your face.

Does BIR = Built In Robes or something else?

Also it would be only common sense to ensure the contract had escape clauses for you to cancel the deal. If not you would have been in deep sh@#$t.

How did you end up with $10,000 after NOT buying the property? I could understand if you bought at a cheaper price and saved $10,000. But you didn’t…[Read more]