Hi Breeza86,

Darling, what i’m going to say to you may not be what you want to hear. But first I want to stress that i don’t want to burst your bubbles. I just want to lay out some realities. Call it old age wisdom.

1. Do you have savings? If not, why not? If not, then you’re in no position to buy a house. Buying one takes massive self-discipline. Mum and dad being willing to guarantor the loan is a high risk business for them. You should have a demonstrable ability to live within your means.

2. If you are eligible for FHOG and soon-to-be husband isn’t, then buy before you marry. Once you get married, you are no longer eligible for the FHOG, too. Unless the policy has changed and I didn’t know about it. In fact, living as de facto is also “iffy.” Ask the experts here.

3. Whether you buy a home together first or a rental is up to two factors: Relational: Do you both want to be with mum and dad for THAT long? And do mum and dad WANT to have you stay at their house for THAT long.?

Second factor: How much you can borrow as a single person depends on what you eventually buy (assuming BF can’t get a loan).

4. What is the reason for soon-to-be husband’s default? There are lenders who will look at the circumstances in which a default was accrued and for how much? When I was mortgage broker, I helped three people with small defaults to get a home loan with St George. However, these individuals have very, very good reason as to how the default came about.

5. The idea of owning lots of properties is very thrilling, but the path is full of pitfalls if you’re not careful. Since your parents will be somewhat involved, they NEED to be PROTECTED as well. A mortgage broker with integrity can make sure they do not become liable for more than they should be.

These issues need to be bedded down first before anything. Speak to mortgage brokers who can educate you on certain aspects of getting a loan, and yes, it is essential to get a pre-approval before going shopping.

Good luck and good to know of your great intentions.

Take care.

angel

Hi smart GenY,

You have provoked some good discussion… that’s is good in itself.

In answer to you question (prediction): @angelinsydney – In the coming years there will be a record numbers of retirees. I am willing to bet my future that there will be enough of them with negatively geared IP who wont have the option of holding and will “realize” their gains, resulting in an over supply of property on the market. Are you willing to bet there wont be? Alternatively if I’m wrong my “opportunity cost”, I’m sure will be minimal, will yours if your wrong?

Firstly, I don’t hold solid statistics but my gut feel tells me there aren’t a lot of boomers, soon to be retirees, who have or hold negatively geared properties. There is not enough of them to make a dent on the marketplace.

There are more of them who will be down-sizing from their own residences. But my gut feeling also tells me that their children will prevent them from selling the house if it means diluting their inheritance. Their children, at least one of them, will have an interest on the house. Why sell a good asset and then buy someone else’s crap?

Sorry to disappoint you Smart GenY, the prediction is not going to happen.

Take care.

angel

Hi Jamie,

I suspect the low result for Queensland is due to flooding and continuing bad weather. Hopefully, for our Queenslander friends, blue sky is coming soon.

Angel.

Hi all,

This is amazing read…. lots of fun really.

Well, I did work as a banker, a financial adviser and a mortgage broker. But the role I’m most proud of is being a MOTHER. So, my sole contribution to this very cerebral debate is this:

An old, proven proverb: Don’t put all your eggs in one basket.

Regardless of where we are in the economic “clock” it is best to have a little bit in cash, a little bit in super, a little in gold and jewellery, a little in blue chips and mining shares, a lots in real estate.

I’m not an economist, but I’m feeding, clothing. raising four kids. So conventional wisdom tells me, that whatever happens in America, I still want to spread my goodies all around.

Not so cerebral… just practical.

Carry on you intellectuals, it’s a fun read.

Angel

Good on ya, katiedee.

Hopefully you get some business.

Angel

Hi Personal Leader,

You’re forgiven for the call caps.

Valuers are very hard to please, especially when banking lending policies are tight. They are licensed and the bank “job” is their bread and butter and will not willingly jeopardise that. I’m afraid there really not much you can do but help make sure the property is clean and tidy. But that probably won’t be much of a muchness.

Mortgagee in possession usually sold at auction because the bank would still want the most they can get from the property. It is rare for MIP to be sold on private treaty (in Sydney, don’t know about the other places). I’m happy to be corrected.

What’s the guarantee that people will not go crazy on auction day? MIP aren’t the bargain investors hope for.

I’m sorry for the sellers predicament, hopefully she gets something in the end. My heart always goes out to people who loses their house.

Take care.

Angel

Hi all,

I’d like to add my 2 cents worth.

Personally, I have one handyman who does all the work for me – except properties inter-state. He is wonderful, kind, and does what he promises to do ON BUDGET and ON TIME. And he knows my properties inside out, this is important to me.

Second, it does costs money to run a business. The bigger the business, the costlier it gets. My handyman charges “lower” than most because he’s a lone ranger. Pays no salary, and lower overheads.

Let us never assume that if a tradie ask for $20K, that all of this goes to his pocket. Likely, not. So if you want lower costs, use the same person all the time, and make sure he is a lone ranger.

Maybe I’m wrong – but it works for me.

Take care all,

Angel

Hi Pommy Ian,

There’s no such thing as “missed a boat.” There are many boats leaving the piers everyday, and many more loading.

Research, research, research.

Read as many threads in this forum as you can. chances are these questions have been answered in one form or another” “Also what type of house would make the best investment, location, size, cost etc?”

I don’t anyone can give you advice on specific suburbs, only you know best. Hopefully, you are doing your research and your math.

Angel

Hi Octain,

I’ve been out of the game for awhile (was a mortgage broker) but I think you can’t get a residential loan for this type of purchase. Eight units in one block on one title screams “commercial” to me.

Did you mean to tell me you didn’t get a pre-approval before buying?

Hopefully you have a lot of equity on your PPoR because it’s the only way to get a residential loan. Being deemed a commercial property, you can borrow less in terms of LVR before LMI kicks in. Well, this was way back when….

Those who are currently doing it should be able to give you more up-to-date lending policies.

Take care,

Angelina