A lot of borrowers are fixated on the idea of having an offset account. Apparently, an offset account allows them to save interest. Whenever they have extra money, extra wages, extra savings, they just “chuck” the money into the offset account. Voilà, they save on interest charges! This is true, but also not true. It …
Continue reading “Why an offset account is not always better”
Commercial properties can be a great investment, as it gives a higher rental income compared to a similarly-priced residential property (house or apartment which people live in). A typical rental yield on a commercial property is 5% to 10% of the property value/purchase price. In other words, the rental income is around 5% to 10% …
We build a property investment portfolio to build wealth, and ultimately gain financial freedom and get out of our 9-5 job. How many properties do we need to retire modestly or comfortably? The answer depends on what type of properties we buy, what sort of rents they get, ongoing expenses such as agent management fees, …
Continue reading “How many properties do you need to retire on rental income”
Typically, when you buy a property, you would want to contribute 20% deposit, and pay for the 4%-ish stamp duty, with your own savings. On a $500k property, this can equate to around $120k. Let’s say you and your partner save $20k a year… it can take you 6 years to get there. By that …
Continue reading “Saving for a deposit VS using equity to buy your next property”
As a business owner, you probably want to know, when is a good time to take out a loan for your business? The prospects of growth are so tempting. Yet you have heard that business loans are evil and will kill your business. Taking a loan for your business is indeed dangerous. It’s risky not …
Continue reading “When is a good time to take out a business loan?”
Yesterday I had a lengthy debate with my friend.
The question that always come up when a property investor wants to buy an investment property:
Should he get an Interest Only loan, or pay the Principal & the Interest?
You have been working hard and have been offered to work at a rival firm.
Should you accept the job offer if you are trying to get a home loan?
A low comparison rate is generally good.
But a high comparison rate does not mean it’s bad, it just means you need to look into it a bit more. It can in fact be better than a loan with a lower comparison rate, if you know how to use the loan facility to your advantage.
Where do I apply for a loan? Do I go to my bank? Do I go to another bank? Do I go to a mortgage broker?
We are a mortgage broker but we will try to give you a balanced argument for all sides.
Thinking of getting yourself a cute little puppy?
Think again! It may reduce the loan amount you can get to buy your first home 🙁
