Investors Direct Cash Flow Mortgage TM

[asdf]

Anyone heard of Investor's Direct new Cash Flow Mortgage where interest is capitalised into the loan over 5 years? Comments?

http://www.investorsdirect.com.au/newsletters/082006/august06invite2bp.htm

 

[Rixter]

I went to his seminar and listened to Bill explaining it. It's another financial tool an investor has to work with should the investor have a use for this tool.

Have you been to his seminar, if not, do yourself a favour and book yourself in and get the facts first hand for yourself.

If you have, what is your oppinion of it? Would it allow you to tune your wealth vehicle more effiiciently?

 

[Twitch]

Hi, there was a recent thread on this product
http://www.somersoft.com/forums/showthread.php?t=26633

Good luck

 

[redwing]

I've heard that a good Mortgage Broker may be able to suggest alternative ways to achieve same results, though have not seen anything concrete yet..

 

[Rixter]

I've heard that a good Mortgage Broker may be able to suggest alternative ways to achieve same results, though have not seen anything concrete yet..

Redwing, its basically a hybrid form of capitalising interest except its capitalised in the IP loan preserving the need to erode LOC equity instead.

 

[plgwa]

Went to the Melbourne launch of this product.

I think its a great product however it should only be used to finance properties that have stong capital growth. The borrower really needs to refinance every 2 years to maintain positive cash flow.

ie You wouldn't want the market to go flat for 5 years because you'll be paying very high interest.

I wouldn't use it to finance a property in Perth given our position in the cycle.

If you where looking in Brisbane or Melbourne though.....

 

[Rolf Latham]

Hiya

Another mortgage manager has brought out a clone product backed by the same funder, just last week. That makes at least 3 obvious sources without doing any further chasing.

Id suspect while the rate wont change much, the more general availability of the product may mean some squeezing of the fees and charges.

ta
rolf

 

[redwing]

Has anyone here taken it up yet or had a one on one with Investors Direct?

 

[Medine]

One of my clients had a one on one about this product. They found that they needed to very carefully check the fees and charges.

Cheers, Medine

 

[asdf]

If you where looking in Brisbane or Melbourne though.....

What makes you say that?

 

[alexlee]

I assume plgwa is saying given that this is an interest capitalisation product you'd want something with strong capital growth. Given Perth's position in the cycle (at or near the top - my opinion only) will there be strong capital gains in the short to medium term? Is using this product an issue if there is low capital growth in the next 5 years?

Brisbane and Melbourne might offer better capital gains because of where they are in the cycle.
Alex

 

[man of action!]

Choice

Hi guys,

Don't forget that this is nt a "trade marked" loan, and it is available thorugh a number of brokers, not just Bill.