Investment Finance

The difference between “investment debt” and “home loan”?

Wednesday, August 25th, 2010

So you have an investment property….do you know the difference between your investment debt and your home loan?
A home loan in this context is your personal, non-deductible home loan, secured by your home. The investment loan is the loan that was used to buy your investment property. The vast majority of property investors use the [...]

The Banks Secret Weapon: Final Part

Tuesday, June 29th, 2010

We come to end on Gordon and Sally’s investment journey.
Let’s see why their finance wasn’t structured correctly…
.1. A lender will always optimise its position, by obtaining and retaining all available properties to secure the loan. The lender is in a powerful position, while Gordon and Sally are in a weak position.
.2. A bank cannot achieve [...]

The Banks Secret Weapon: Part Three

Friday, June 25th, 2010

Lets find out what Gordon and Sally’s Grave Mistakes were;

Firstly, none of this had to happen.
This whole tragic scenario could have been avoided if only Gordon and Sally had sat down with a financier who was skilled in correctly structuring finance for property investors.
They had made many financing errors, but it was three key mistakes [...]

The Banks Secret Weapon: Part Two

Wednesday, June 16th, 2010

We continue on with Gordon and Sally’s story about their investment property…
Banks won’t lend 106% of the purchase price against a property without a much higher interest rate
and a huge mortgage insurance fee (which, by the way, only covers the lender… not you - you pay
the premium for their peace of mind!)
As you can see [...]

The Bank’s Secret Weapon

Friday, May 28th, 2010

Property investors Gordon and Sally Jones are about to lose everything, their home, their three investment properties, and potentially their marriage; if only they’d been advised on how to protect their home from the bank when they set their loan up.
You see, their bank, like all lenders, has an insidious ’secret weapon’ embedded in their [...]

Ten Tax Tips

Thursday, May 13th, 2010

TIP 1: A deduction rarely claimed
Amazingly the most frequently overlooked tax deduction is interest!  Many advisors tell their clients to pay their rent directly into their home loan to eliminate it more quickly.
However, the required loan structures and practices are rarely established causing the home loan to actually increase as deductible debt is unwittingly mixed [...]

2009 Investment Wrap Up

Monday, December 21st, 2009

2009 was certainly a very, very interesting year!!
We started the year in the grips of a Global Financial Crisis that some feared would see the whole world plunged into economic oblivion. You may recall “Professor” Steve Keen, for example, took every media opportunity to frighten us with his dire predictions of economic calamity, predicting property [...]