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September 12, 2011 - 10:59 am

Then again, what about states like VIC that have not had concessions for FHB like NSW has – they get reamed the full amount of S/D just like the rest of us in VIC, and things still plug along. Buying a house in NSW as a FHB has been an opportunity and a half that really anyone in the market should have/be taking advantage of by now!

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September 12, 2011 - 10:49 am

Brilliant Nathan…thanks.
Interesting how you can get so much more basic & practical info out of a 3 minute interview than what many of the $0000 seminars that people starting out seem keen to go to. Anyone new to investing should really take note of info like this, and someone not afraid to share real details up front.  (Unlike Mr. rich dd poor dad!)

Cheers

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September 10, 2011 - 12:47 pm

You've lost me a bit there I'm afraid.
Are you saying you started building a house and then tried to arrange finance afterwards, before you gave your lender any of the plans, etc or did your application? WHile there is not much detail there, that is a situation that can be an absolute nightmare…..especially if an 'owner builder.'
And then you say you are concerned the bank has cost you the FHOG  when you have a tenant ready to move in? Not sure how that will work – unless you are 'being creative' (?) for a few months.
The FHOG would not normally be payable until the slab goes down – stage one. SO had you applied for finance before then? IF not, why did you not do the claim yourself as you would have been eligible (and responsible really) to do so yourself.
I guess if the bank has genuinely lost the signed copy of your mortgage you could refuse to sign it……..but then again how would you repay the loan you have signed for when it is 'called in?'   That's right…..you could sell your house!

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September 10, 2011 - 2:41 am

JackFlash wrote:

Anyone who takes a considerable fortune and literally halves it in a few years is not someone anyone should follow as any sort of example whatsoever.

In reading this thread (about 3 x glasses of 'Red Truck Shiraz' worth) the above comment got me thinking about a guy I used to work for many years ago that we made a joke about that brings a smile to my face everytime…..  We'll call him 'FRANK' for the purpose of the joke….

" How to you make Frank into a successful small business person?"

" Give him a large business and let him take over…….."

Interesting info on Kiyosaki too on the website mentioned above…..I've always thought his stuff is full of shallow non specific's……….you read it for some pointers, find nothing other than some semi-sage anecdotes, and end up suicidal!…….. you would learn more from looking at some of the guys/girls here with a large property portfolio, and reading a copy of API in my humble opinion……

Enjoy your entrepreneurial spirit too Engelo……sounds like you're positioning yourself well.

Cheers

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September 7, 2011 - 10:20 am

Hi Paul,

Sorry to hear of your circumstances.
Re the loan / mortgage, unfortunately this happens all to frequently, and cannot always be resolved – the main issue I have seen is that the remaining partner has to be able to demonstrate loan serviceability without hardship and still meet all the other cost of living. THis means sometimes, even if the person has been paying all the loan, they don't actually qualify for approval on another bank loan.
That said, if all is good there, there is no dodging the fact that you need both a new mortgage, and therefore a new loan – even if staying with the same bank. For legal / court ordered settlements, you will avoid having to pay stamp duty again, but the property title (ownership) has to be changed at the land titles office, and this is when you will need a new home loan & mortgage.
It concerns me if what you mean is that the house is worth less than the loan still???? IF this is the case, unless you have substantial funds to tip in, maybe it may be best to 'walk away' – which is a personal decision. If your original loan was mortgage insured (likely was if you had less than a 20% deposit originally) then all would not be lost.

All the best with what you decide – and feel free to clarify anything or put in any other detail if that is not clear Paul.

Cheers

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September 5, 2011 - 9:41 am

Hi Sha,

You cannot claim the FHOG if you have ever lived in a property that you have owned – even if it was originally an IP.
If buying an IP, and you want to claim the FHOG on another place later, do not even think of moving into the IP at anytime in the future or you've lost the opportunity. It is all on the OSR website – osr.gov.au

Cheers

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September 5, 2011 - 9:39 am

Hi Keiko,

If you have a tenant in already, and a lease in place, they will (should!) take this into account when the commercial valuation is done. In most case they would use a professional 'panel valuer' for a commercial property, but even if not, the rental on an existing tenancy lease will be taken into account.
All the best with the refi.

Cheers

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September 5, 2011 - 9:35 am

hi Jean,

As mentioned you will find that the banks settlement are will have the exact wording that they require, and usually if they know it is being signed under POA will prepare/stamp the loan docs accordingly. Been a little while now, but from memory it used to refer to a 'Book Number' in NSW. Depending on the lender, some will also want to get your POA reviewed in some way to ensure that it is written to allow you to sign for a property transaction that you will derive benefit from.

Cheers

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September 2, 2011 - 1:13 pm

HI Johann,

Good on you for doing some trimming with the expenses. Actual cashflow is one of the biggest challenges for small business, and plenty of skilled business people/tradesmen run into all sorts of trouble as a result of this…..and the fact that many of their customers try and use them as a bank, rather than paying them when they should, and have agreed to. Derek's comments ring true with regard to seeking assistance.
Good business banks now offer a huge range of free resources for small businesses – none of which was available when I was involved with start up businesses in the past; which would have been so handy.
THe best information I have found anywhere (which an accountant or business coach would charge (and why not???) you $$ for is on the nab small business website. Everything from starting a business, growing a business, running a business,  and even selling a business. Can I encourage you to check the selling a business bit out at http://www.nab.com.au/wps/wcm/connect/nab/nab/home/business_solutions/11/small+business?WT.mc_id=SBAAA&WT.mc_ev=click
You will find heaps of calculators and spreadsheets there to that will help, as well as details other places (inc state govt) where you can find other info.
I'm sure you can appreciate no lender wants to through good money after bad – none of us would in our business either – and that fees & interest are to be expected if we go over an agree contracted loan facility limit. And as you have already seen, it is not in anyone's interest to see a good business 'go under'.
Check out some of the info on the nab small business site, and I hope all goes well with both your business sale, and your future investing.
Cheers

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August 24, 2011 - 12:19 pm

hi Macca,

Firstly, not sure if you were thinking of buying in Canada based on that post after yours??
Seriously though, it is good to avoid selling an asset that is performing well unless you have to.
You have plenty of borrowing capacity, and of course rental (or proposed rental) you get from the new or proposed property is used as income when assessing your borrowing capacity.
Without running any figures, assuming you are looking at doing something similar to your second property, or a basic buy and hold like your first one, you will not have to sell your first place.
Either via 'releasing equity' via a separate loan (such as a line of credit) or using the collatoral equity in the place with your current lender to allow you to fund the deposit and purchase costs and buy the place you will maximize your tax deductions as well as making the next step for number 3. (Called cross securitisation or cross collatorisation)  Selling is almost as expensive as buying, so avoid unless you have to or need to, or want to 'lock in' some profit.Out of interest, what was the purchase price on your Hobart unit 7 years ago?
You have plenty of options, and I am inclined to think borrowing against this place via a line of credit will give you the best flexibility to move forward.
All the best.

Cheers

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August 24, 2011 - 12:03 pm

Yep, it is no different to getting any other type of loan. That said, if you are looking at restructuring any of your home loans, often you can get a 'pre-approved' credit card as part of the process, and a good bank package will allow you to pay no aanual or rewards fees on the cards either. Makes sens to do it at the same time if you can.

Cheers

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August 24, 2011 - 12:00 pm

Hi Rob,

Get as much protein & carbs into you as you can …..and then run and don't look back.!!!
If you are really cashed up and have some good contacts, as well as a suitable aggregation group to be part of as already mentioned, and you don't think you will need any money for 6 – 12 months it may be worthwhile.
Marty's comment about having to use your time for no reward also is very true. It's great to have a warm fuzzy feeling, and helping others in any way you can is truly a good thing – BUT it does not put food on the table.
Probably the wrong time to enter the industry too. IF it helps, I listened to several 'promises' from aggregation groups, and also from brokers who " wanted finance professionals to earn in excess of $100k per year" (small time ones as it were) several years back, and slashed my net worth by about 80% in the process……..so IF you mus….don't jump in mate without plenty of due diligence and tens of thousands of dollars worth of capital.

Cheers

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August 24, 2011 - 11:34 am

…and don't list it with an agent that has  the words FIRST or NATIONAL in it's name in any way shape or form  

Cheers

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August 24, 2011 - 11:33 am

Hi teds01

A residex report on its own is a bit like a vegetarian being given an uncooked rump steak. Seriously though, why do they want to do anything, what do they want to do, what are they trying to achieve?
Is it rented out with a stable tennant or is it empty? Are they trying to release equity or use it to by another place?
BIt more info and someone will be able to assist.

Cheers

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August 21, 2011 - 12:59 pm

Hi Kane – you're spot on.
It is an absolute joke. The only guarantee out of the whole farce is that choice will make a lot of commission – as for any lender that 'wins' there is no g'tee they would get one of them, and each one has to be done individually anyway. I think CHoice have finally confirmed what most people knew all along……they are hypocrites, and will only recommend a product or service that makes them money…..which results in some interesting reading at them moment if you google them.

Cheers,

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August 15, 2011 - 1:11 pm

If you are a very busy person, and not prepared to do any research, a good (empahisis on good) broker can definately be a good idea – and it does/should cost you nothing. That said, a broker is simply an intermediary, and unless in the minority that has a special relationship with someone at a major bank, usually via a dedicated Broker manager or business banker, is quite simply put, another link in the chain. To put things in perspective, the two main arguments 'pro broker' are:-
1 – Bank staff will not recommend any product other than their own.
   … Sheesh, what would you think if your CBA guy suggested you get a NAB loan – unless of course they were being very helpful 'off the record' if the CBA had declined your loan.  May I also point out, a broker will never recommend a loan via a provider that does not pay commission, and very frequently the lower paying commission lenders are only recommended as a 'last resort'. AND on that point would a broker continually provide advice & recommendations for no commission, or rebate all their commission as part of their service? Of course not; and why should they. Bank staff, all lenders, and mortgage brokers have to eat.

2- Brokers have access to 'over 10 banks & 50+lenders'……
  ….mmmm how many can you name of each?   Yeah, I thought so. Post GFC these days are well & truly over. Stick to a good major, which is what most good brokers generally recommend anyway as statistics form the MFAA confirm.

And as for the perceived problem of shopping around yourself can result in numerous credit checks being done, I thoroughly dispute this. True, if you sign a home loan application at every bank & lender you go to….yeah, it can & will happen. However, time and time again I see CRA's that show four or five enquiries that customers claim to know nothing about….'but I never went to those banks"….., that a bit of careful questioning reveals were all done via the broker they 'saw recently'. Very frequent occurrence once they sign the all encompassing paperwork the broker has asked them to for blanket consent.

Just adding a bit of balance……without taking anything away from experienced brokers regularly posting here. All the best with whatever you decide.

Cheers

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August 15, 2011 - 1:06 pm

Good stuff……..

" It's hard to arrive at your destination if you don't know where you are going''  (unsure of source)
 
" If it doesn't kill you it makes you stronger"  (me & others!)

" If you love money you will never be satisfied; if you long to be rich you will never get all you want" (Ecclesiastes 5:10 – Today's English Version)

"The best thing that I myself have seen…….is that one should eat & drink and see good for all his hard work with which he works hard under the sun for the number of days of life that the True God has given him…. (Ecclesiastes 5:18 New World Translation)

"Follow your dreams" (Plenty)

"Don't step on the flowers while you're reaching for the stars"
<br /:-)” title=”>:-)” class=”bbcode_smiley” />

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August 15, 2011 - 12:45 pm

Hi John,

Yep, credit unions simply don't cut the mustard on anything other than bread & butter one or two loans if you're game and you use a bank for all your transactional stuff.
Re packages, absolutely great value for money – assuming you use the lender for the majority or all of your other banking including rewards credit cards in order to maximise the annual fees. Even more value if you have couple of loans, and in the future will be restructuring, or evn buying more property, so as to benefit from no other application or swtich fees.
As already mentioned, NAB is a good one (choice) and the ANZ is ok too, although I can appreciate you would run a mile if that has happened.

Cheers

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August 15, 2011 - 12:20 pm

Shape wrote:

It sound like your using your own cash for the 10%…. then your applying for a 100% finance from equity release/X-cross etc.. If that's the case, then No you won't get your money back as the bank will not subsidize you for your part….they will only finance the purchase directly Regards Michael

HI,

If you have paid the deposit (10% if using a DB, and whatever you negotiate if using your own funds 'temporarily') if you have done a 100% loan, as in the case where you do this by using existing security, the bank will in fact pay the 90 % as directed at settlement, and the 10% back to you – reimbursing you as such. I have done it for customers plenty of times. As a side point, if you have sufficient equity  preferably via a line of credit, or if you are cross collatorising with other existing property you have with the lender, borrowing the 100%plus costs (likely 105%+) is even better for tax purposes. All the best with your purchase.

Cheers

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August 8, 2011 - 1:13 pm

Please John also be very careful with the building and pest report clauses – many agents insert (to keep purchasers happy) "subject to building inspection" but that is not worth a cracker. You must make these reports "satisfactory to purchaser" or similar. Some agents take the liberty of 'looking after you' by adding 'subject to building inspection with no major structual defects' but that is not much better, and very open to interpretation.
All the best other than that!

Cheers