Forum Replies Created
Hi Jes,
Unfortunately, you will be hard pressed to find a lender prepared to lend 95% on a low-doc investment loan. Most deal in 80% as they will not obtain mortage insurance. I have seen various rates from 7.75% for properties in good areas and if they do not fit within those parameters then you are looking at 8.50%. I deal with a company that does offer 7.75% on low-doc investment purchases, owner builder etc. If you have any quesions just let me know.[biggrin]
Dammit
Unsure about the property market in Canberra, but I would say you will need to do some research or have a valuation done on the property to determine if $140K is a fair price. It would definately rely on property sale prices in the area.
With the fixed price contract price you will always find a cheaper price that would be available. I had a friend who was researching homes to build for himself and he was quoted around $185K to $200K for a 30m2 and then went to a few display villages and managed to get a bigger house at 33m2 for $140K, which includes the carpets etc. Also if you speak to some builders in your area they may be able to provide a better price for you in building something that they may have available.
You must ensure you have some equity to purchase the land and to start construction or the buildiers may offer something were you do not have to pay for the stage of construction until it is complete. Such as the builder arranges the slab to be laid and then bills you for the costs, which you can then obtain from the lender in progress payments.
It is impossible to determine how much you will pay as there may be additional costs that may occur, but the contract is usually an accourate estimate of what you will pay. It can take anywhere from 2 – 12 months to construct on a property.
Also, whatever state you are in make sure you get a conditional approval prior to proceeding and they will advise what is required in order to receive the loan and if it is affordable for you. Maybe even see a broker to assist.
February 2005 issue of the Australian Property Investor magazine had an interesting article of a couple who had managed to crack into the US market and at the time own 8 properties in Niagara Falls, Buffalo and Lancaster. They have properties they purchased in 2004 for $30,000 US that return $9000 in annual rental returns. A good read if your interested.
Mortgage Hunter,
Wizard (Allan Faint) do look at alternatives to their own products and being part of a lender we deal with him regularly.
Very easy to deal with and we have used him for deals all over Australia.
There are a few shoddy characters I have dealt with as well, but that is for pm.
amerc79
Hi APerry,
Commercial properties require a funds due to the high LVR, but development sounds like something that may be an option, but personally I am not a fan of vendor finance.
I have found ones that are quite close to be positive and have actually found others that have already been purchased and are under contract. I am very willing to get started, but might be a bit apprehensive in making a decision in regards to investment.
At the moment I have the funds in an investment that provides 20% return on my funds and will be coming into a bit extra which will give me about a 20% deposit on $100,000. I have found good properties.
I just cant seem to catch a trick and get my nose in the door. I do my due dilligence, but it is too late as everyone else knows were these properties are.
Hi Jenny1,
If it is working for you then I believe you should continue to buy/develop and hold or you may be able to sell some of the townhouses you develop and use the equity gained to fund other developments or purchases to improve you cash holding etc. It may be beneficial to sell all the townhouses if the return is quite good. Good position to be in though to have the funds to develop a 6 townhouse site. Keep up the good work.
Being from a lender I have dealt with Rolf Latham regularly and find him to be quite good at knowing what is required and the options available to his clientele. He is definately one of the easier ones to deal with and personally I cannot see anyone else that would be able to assist as good as him. I have never heard of this Richard Taylor either.
Probably the best in Australia I feel would be Allan Faint from Wizard in Tasmania. Very good.
What are these people wanting to do?
Access some equity for future investment etc or just content with what is happening and enjoy the fantastic cruise.
