I'm sure more posts will follow. This is possibly a unique market at present, as far as property prices, sharemarket, and interest rates go, and then strong inflation and a strong aussie $.  While the media has been negative, and 'bank bashing' (as you do ) people tend to have overlooked that several non bank lenders(Rams being the first and…[Read more]

hi Hybrid.  Sorry to hear. Valuations may be getting done a bit on the conservative side it may seem, and yes there will be differences between some lenders/valuers, although usually not that major. What you may not be aware of, is that some similar properties nearby may have sold cheaply, or been 'firesaled'. It always amuses me when people say,…[Read more]

Hi Elka,I/O loans work slightly differently (in general) from a P&I loan, in that the interest is automatically deducted from your nominated account once each month, it is not a payment 'you make' as such, or a direct debit as such. So all that is charged essentially is interest. In most cases you can indeed make a lump repayment off the loan (via…[Read more]

Yup, you can use the funds in a term deposit sometimes as security no drama, although I must confess I am not sure how many do it for a fixed IR loan. more importantly, you should get some insurance NOW if that is you on the bike……..

Boy it's getting interesting is'nt it? I don't think anyone would have guessed this type of flow on/results a year or two ago. i wonder how long it will be before all the lo-doc rates reflect this as well, as some lenders are offering quite good rates still on the lo-doc loans, whereas no doc was/is a smaller market obviously. I…[Read more]

Ahh – nothing like a 'cleansing 240v' to get the blood circulating!   unless you are of very poor health, cop a beauty (more than 240v ;or some serious current, rather than voltage) or a complete klutz don't worry – I'm sure your boy will be fine. Give him some encouragement, and look forward to discounted electrical work at home or on theos I…[Read more]

bardon wrote:
At Melton West, a mortgagee sale of a six-bedroom house passed in at $200,000 — $255,000 had been offered in November. 

Actually that one sounds like a good buy – any more info?   

Hi annie Q – and welcome to the forum. it's funny that reading a contract like that is certainly enough to put anyone off that's for sure. Some contracts are worse than that – ie 'we can cancel it anytime we feel like' – and 'we reserve the right to review annually and cancel the facility ….' come to mind.That said lets go one step at a…[Read more]

True – you can learn a lot more from talking to like minded people, the odd cluey broker, real estate agent, or odd bod that has an interest and some experience in property investment, and just 'feeding' on a variety of opinions. I have only ever been to one 'seminar' – and it was a 'special price' one – and I can tell you you only got…[Read more]

duckster wrote:
If you buy an investment property you do not live in it and it can be in an area where you can afford the loan repayments.You will have to weigh it up with losing the first home owners grant.

Re the above, I know in NSW that you will not lose the FHOG if you buy an investment property prior, as long as you don't live in it – I…[Read more]

Jaffasoft wrote:
Is an offset account something that the banks (in my case NAB negotiations) know they make a lesser profit on? As i suggested it to my bank and the guy talked me out of it. But this is a simple little P&I. I want to and probably will pay a 6 month loan repayment to secure a buffer up front.

You are spot on – a loan with 100%…[Read more]

rgupta78 wrote:
Richard and other finance brokers out there, can you guys offer a similar product? What info can you provide? The concept is quite logical, we put all our income in the Offset account and not spend a penny out of it for the month )which we DO at the moment), so we offset the Principal with that amount and save on interest…[Read more]

Would have been terrific back in 1998 – but for now it is soooo outdated, no matter what you are told. Very similar concept to the '11 second solution' – great in it's time. Invest the $2.5k in some real estate!all the best.

Any of the major banks (as they balance sheet lend) will lend you 80% of 'their' valuation. The only reason you would be getting a no, is if you do not have the income to 'service' the loan, or if you are self employed, and do not have the necessary documentation /profit/income to do the same. Without more detail, it is hard to say.All the…

No – and I deliberately refused to look at their weblink. Look, each to their own, but if a 'lender' can con $7k out of someone to sign up, then they are that good they must deserve every cent! Man alive – it sounds worse than the crack head 'mortgage reduction specialists' that use south australian named banks to provide expensive 'lines of…[Read more]

The main difference will be on an LOC you will pay nothing until you use the funds – on the loan with 100% offset you will be paying loan repayments still, as soon as the loan draws down! …… it is just that they would all be paying off the principal, rather than interest if you had the same amount 'offset'. . Based on what info you have…[Read more]

Sorry V71 – unless you edited your question, I misread it and Terry's reply  is correct – your actual borrowing 'power'/how you are assessed is essentially no differernt whether you are P&I or interest only – but as mentioned, you can borrow interest only without being for 'investment'. All the best.

Yes, interest only loans are avialable for owner occupiers and investors. Remember rental you receive (or estimeate of what you will receive) goes towards your assessment as income (approx 80% of it). All the best.

Hi Meakin. Good on you for making a start. Teachers income is highly regarded (ie stability/security etc) and unless you have a lot of personal debt, or live in an expensive area, I'm sure you will be able to make a start. Are you familiar with the first home owners grant? This will make a huge difference if you have never lived in an owned home…[Read more]

Hi Anrobel,Visit the ATo website – everything you need is there. I suggest the NAT1729 Rental properties guide (se page 9) and also ther is plenty of other help, rulings, and info on repairs, what is and is not deductable etc. I think you will get a pleasant surprise. All the best.