Hi all,
This is my first post to this knowledgeable forum and I seek some info/advice from you fine people. Basically, I want to know if we are in right position to start looking for IP. Below is my current situation.
We Live in Sydney. We live in Unit and it is owned by us. Our mortgage balance is $190000 and are paying off at @$3500 per month. Our combined income is $92000. We already have approval of $260000 investment loan from bank provided we pay @ $3000 Mortgage Insurance. They are happy to lend us $300000 but Mortgage Insurance goes up to $12000 approx. We both have good job security so the income will be stable in coming years.
Once I know what you all recommend, I will ask further questions.
Please provide your thoughts.
Thanks,
hi Munno
In a simple answer there is no bad time to invest and you should invest everyday the only problem is what are you investing in.
if you went to a real estate and said I have 500k do you think you wouldn’t get out alive.
my advice is there is a sydney group meeting on this month come along and see pm me or camder and I will post you the date and you can ask other investorshere to help
JP Morgan reckon Sydney house prices are over valued by 36% – if this is correct I wouldn’t be touching Sydney. what are your thoughts?
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
Hi Munno
I agree the Sydney market is still overpriced.The yields are low unless you can find a bargan. You can still find reasonable deals in other area’s for under $260,000. Your repayments of your mortgage is a fair lump of your combined income so I would be careful not to over extend yourselves with a poor yield on your first investment property. As far as Mortgage Insurance I would be careful with agreeing to this amount. The market in general is not climbing and it may take some time for this amount to come back to you in equity. You could wait and continue to pay off the PPOR to gain more equity to save the insurance if buying in Sydney as I do not think the market there will climb to any great extent or look further afield for a more affordable property with reasonable yields to help pay the bills.
Bradshaw.
Everyone, thanks for your input. I was expecting more response but well…
Ok, so general advise is as below:
We can invest in property with current situation but look for property with lesser value and higher rent, comparatively. Also, look outside of Sydney (Country NSW or Interstate).
Am I correct in assuming that?
Thanks,
Hi Munno & welcome to the forum.
A couple of questions if I may,
What is the approx. value of your unit and an approx. price range on the intended IP purchase? Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Mobile Mortgage,
I baught property for $235000 and spend @ $10000 for renovation. Havent got eveluation done by professional but looking at the sell price in my area and considering that my unit is in very good condition (totaly renovated), I assume that I should get @ $ 260000-$275000 if I sell now.
I am looking to purchase IP of $200000 & below as an ideal situation but can go up to $230000 mark if property/rent is right.
Thanks,
Thanks Munno,
It seems you have $30K in equity @ 80% LVR secured against your PPR,
This should be adequate to cover the deposit and closing costs on a $200K purchase.The IP would secure the 2nd loan at approx. 89% LVR with LMI (approx $2.500) capitalised in to the loan, Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Munno,
Mobile Mortgage reply seems fairly accurate.BUT I would humbly request you stay out of country NSW. I am having too much fun out there and am trying to keep it all very hush hush.
Joking of course and the country has been good to me and continues to do so. Cheers for now LenNever a bad time to buy property, it’s just a matter of doing your research to know where??
First things first is to find out your borrwing capasity and then looking at different options outthere, like QLD, WA or even parts of NSW.
Roy H.
L.R.E.A., Dip FS (FP)Guardian Property Specialists (GPS) is a research-focused company that specialises in sourcing and providing residential investment properties Australia wide!
Can you all point me to some resources where I could get further info on selection of geographical area to buy IP in.
Thanks,
Where do you want to start, we are glad to help..
Roy H.
L.R.E.A., Dip FS (FP)Guardian Property Specialists (GPS) is a research-focused company that specialises in sourcing and providing residential investment properties Australia wide!
Lets start with country NSW.
Also, am I fair in assuming that rent should be @ 1.5% of purchase price?
Thanks,
Munno, I did ask you nicely to stay out of the country !!!
Camder,
Sorry, my mistake. Misinterprited.
Munno, we best not turn this topic into our own little item. However I was only joking, no really. There is still opportunities out there and you may realise that there is enough for all.
For your own sake , do not make the mistake of thinking that because there is no deals on the Realestate.com etc that there is none out there.
If you drive to the country using the realestate sites as a guide on pricing and rents(returns) you will soon get a feel for max rents payable regardless of the purchase price.Also when you are out there you will see that not all agents in their towns use the internet for any thing other than their own site.
This means that unless you know what their site os called in which town, you will never see the info on the generic websites.
I hope I am not tellin you how to “suck eggs” but other posters feel they have missed the boat because they cannot find deals on the generic sites.
Good luck and PM via this forum me if you wish. Cheers for now LenI’ve been looking few suburbus in west sydney and strongly feel that price are very much inflated. For and property of approx $280000 one can only get rent @ $180-$200. That is very low rent. Hopefully properties in western sydney will have good capital growth due to that new M7 freeway underway.
Any opinions/experiences from you all are welcome.
Thanks,
Investing in western Sydney was what we were doing 2 years ago, this doesn’t mean that you can’t get a good buy although you will be looking at a lot of outlay out of your pocket to service it, which can be ok if you can afford it and hold out for some growth, depending where & what you buy.
Now days we have been finding greater opportunities with potential growth and low holding costs on a variety of properties interstate, particularly in Qld & WA..
Happy to help.
Roy H.
L.R.E.A., Dip FS (FP)Guardian Property Specialists (GPS) is a research-focused company that specialises in sourcing and providing residential investment properties Australia wide!
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