Today's Best Rate

[Nicko]

Yes I might try that, but pretty ripped off as I will have to pay EXIT fees to RHG if I TRANSFER to RAMS, even though I was with RAMS. Yes, ripped off!

 

[The Y-man]

The market's tightened up quite a bit lately, but back in the "good old days" (2001-2003) we used to have the lenders we were moving to foot the transfer costs. i.e. "I will give you my business if you make the transition costless for me"

Cheers,

The Y-man

 

[redwing]

CANNEX LOW DOCS

Still debating whther to jump ship from some McBank Low-Doc loans..Ones at 10.25% (sub $250k) and the others at around 9.5%....Break costs etc are a factor though and even a cheaper rate will take many months to get back to a happy place

Glad I sold my McBank shares when I did as well

 

[Nicko]

The market's tightened up quite a bit lately, but back in the "good old days" (2001-2003) we used to have the lenders we were moving to foot the transfer costs. i.e. "I will give you my business if you make the transition costless for me"

Cheers,

The Y-man

Bring it on!!

 

[Skye]

Members Equity have no ongoing/ minimal exit fees. Rates are consistently lowish. Don't do offset to my knowledge. I use them at present.

 

[asdf]

Anyone signed up to HSBC Premier loans?

 

[Hanabi]

HSBC Premier Loans

Anyone signed up to HSBC Premier loans?

Hi
Im considering taking HSBC Premier loan for my first home. It has good rate , ie 1.13% discount for the 1st year, and 0.75% for the remaining. However it doesnt has offset account (they said it will be available in the next few months). Im planning to rent the house out after 6months of living in it. Does anyone has any advice or experience on this loan and/or HSBC?

Also, i read alot about interests on investment loans are tax deductible, however i also read in some articles on the web that the interests are only deductible if the property is negatively geared - a bit confuse -- can someone confirm this please? Thanks alot

 

[GoAnna!]

Also, i read alot about interests on investment loans are tax deductible, however i also read in some articles on the web that the interests are only deductible if the property is negatively geared - a bit confuse -- can someone confirm this please? Thanks alot

Expenses on property investments can be offset against the rent received. This includes interest on loans. repairs, depreciation, council rates etc. If the expenses are greater than your rent then your property is "negatively geared" and this loss or "negative" can be offset against your wage and will reduce the tax you are required to pay.

If your rents are higher than your expenses then then is effectively nothing for you to "deduct" in terms of tax paid and in fact you might need to pay additional tax. I presume this is what they are referring to.

If you are looking to invest in property or have already done so and haven't yet grasped this concept I would suggest reading Jan Somer's books asap!

 

[dreaming]

I lucked into it with one loan and have sent someone else there who got knocked back but the AMP credit union is still charging less than 8% ( or there abouts) for their variable loan rate. Went to try and get a second loan with them but they said no but to try again later as I wasn't keeping any money in their account and they had come close to their limit for the year. I wound up getting a good fixed rate with St.G in the end so havn't gone back as yet but if my finances change soon, I may start looking for another IP and will try them again first.

 

[Hanabi]

If your rents are higher than your expenses then then is effectively nothing for you to "deduct" in terms of tax paid

Thanks for your reply. Sorry I'm still not clear (will try to find the book you mentioned!)... if the property is positive geared, are the interests on bank loans tax deductible? if so, I don't see any benefits of negative gearing compared to positive gearing, as the interests (& expenses) are tax deductible in both cases.. eg if interest is 9% effectively I pay only 6.3% (9*70%) .. but positive gearing gives me additional after tax income...

 

[Nicko]

"myrate" still looking good at about 8.59% with NO INGOING fees and 1% DEF reducing to 0.80% in year two and so on...

 

[D.T.]

.. if the property is positive geared, are the interests on bank loans tax deductible? if so, I don't see any benefits of negative gearing compared to positive gearing,

Yes, deductible regardess. In very general terms, investors who seek capital growth return will often sacrifice some rental return (hence making it negative).

But this is probably a discussion for another thread.

 

[Nicko]

MyRate at 8.78% comparison rate (8.74% if 600K or more) with NO INGOING fees (except solicitors, plus $220 for first val. or someting) and - the attractive bit - 1% DEF in year 1, reducing .20% annually. No ONGONG FEES either.

Any better you know of?

 

[jaycee]

Yes, deductible regardess. In very general terms, investors who seek capital growth return will often sacrifice some rental return (hence making it negative).

But this is probably a discussion for another thread.

No benefit betwen one or another. BUT, if many of us were to wait until we saved enough money to buy a place with a high enough deposit to make it cashflow positive, we would waste too much valuable time. So we borrow money from the bank knowing the rent wont cover all of the expenses... Because, we think it will grow more than what it will cost over the years etc.

All it is is claiming your expenses (interest etc) against your income (rent) so the ato can work out how much tax you should have paid - jut like claiming your workboots agiainst your salary, if the expense are more than income that year, it is "negatively geared" just a name..