I’m new to property investing so please bare with me.
Technically this not an investment, since it will be purchased with the fhog and so we’ll be moving in initially. It’s not exactly cf+ either. I wish I would posted here earlier to get more insight with regards to this but essentially were past analysing and have decided to buy. Taking the big leap since this is our first purchase. Contracts are due to be signed today and the re agent wants us to make the deposit.
We’ve negotiated 5% and sufficient time to get final loan approval.
But I still have some urgent questions. Hopefully someone can help.
1. Our rate at the time pre-approval was 7% is this still a good rate or should I be getting a better rate now? Lvr is 95%
2. We do want to buy more investment properties in the near future, so is it better to go interest only and variable?
3. We will live there for the first 6 months but will then move to a cheaper rental. What insurance would we really need?
4. We just have enough for the deposit. Property a bit below 300k . Can we include insurance and other expenses with the loan?
5. Can we change or get a credit card at loan rates?
6. Only I will contributing to the loan since we’re planning on getting a baby now is it better to put only my name or both my defacto wife names on the title/ loan? Had either an advantage with regards to investing. Will she still have all the security/ no extra liabilities when the it’s in my name. We would really prefer in both names unless there major disadvantages?
7. Can we pay the deposit via bank transfer instead of cheque?
8. We did a strata report but no building report. There are some issues with the building but not very major. We just did a visual inspection and it appears to be ok. It’s a 5 year old building half an hour from Sydney check. Anything else we really need to take care of?That’s all I can think of for now. Any help would be very much appreciated. Thank you!!
Mate, why leave it until the day of exchange?
Some of your questions are minor, such as insurance, but some will have major ramifications for the next 30 years. e.g name on the title. You need to decide this before you enter into the contract. You will need tax and legal advice to properly decide on this issue.
Yes, best to get IO and make sure you have a 100% offset account. Which bank are you going with?
You cannot generally go over 95% LVR, but may be able to capitalise the LMI on top, that is all.
You can pay the deposit via any method unless objected to in the contract. It has to go into the agent’s trust account usually.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi there, thanks for that.
yes, well we've done our research, but I think I just not aware of what actually is important and what isn't like the title. I asked our conveyancer about it for example but the advice was that it was more or less up to us, no specific ramifications, etc.
This transaction doesn't have to be perfect, we've waited long enough and no doubt will make some mistakes with our first transaction, but we'd still like to go ahead as well as we can.
I know the timing is off with regards to asking here, but I just didn't think of it earlier
Yes, IO appears to be considerably lower, the bank is CBA and thanks again for the feedback so far.
Any advise with regards the which insurance is essential and that we must have!? Thanks again.
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