Forum Replies Created
- Quote:Billfromoz
1)$8000min is legal cost for placing caveat, lodging claim with district court, solicitors fees etc..2) It was sent to the vendors but did not want to sign. But that shouldn’t matter anyway, the contract has gone uncoditional and the 1 st buyer has now got the funds and is ready to settle, the vendors are not ready.
In regards to the FHOG it was only asked to the vendor, it was not a condition of settlement or the contract.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Wayne and I are both correct. Whack on a caveat…bugger all $$$. Let the vendor get sued by the second buyer….Billfromoz
G’day…
Who told you that it costs $8,000 to register a caveat? Could be done for less than a couple of hundred dollars.
You have a problem, in that your discussions with vendor re FHOG appeared to have not been backed up in writing.
Billfromoz
G’day…
Big, big question.
If you have equity in propert then you are more than half way there. For wxample you could use existing equity to fund the deposit requirements and closing costs of any other investment.
In 1993 I had software written for my Mortgage Control Program. Essentially a tool that ALL variables can be entered to determine the Best alternative for your situation. Care should be taken that you do not end up giving any lender Blanket Security. If you don’t understand, then they will take advantage of you.
I have had a mortgage and Real Estate consulting business for 30 plus years….it would take an initial 2 hour meeting before I could advise a client. In other words all clients differed in some way…so you can’t just “buy off the shelf”
Impossible to advise you in detail on a forum.
I hesitate to give my telephone number but if you wish…I can be emailed…. [email protected]Cheers
Billfromoz
G’day…
Re Aussie $
The Aussie $ was at .8700 in 1988. Whats to say that the interest rate differential between US/Aus won’t push the Aussie up another .10 at least.
Consider : .5320 then up to .8700 by 1988( +3380)
recent bottom .4750…current top .6800 ( + 2050)
If it climbes 63% again (why not?) maybe .7750If you graph the above scenario….A$ still in downtrend even at .7750. Lower peaks and lower lows. I have seen the Aussie $ jump .03c in a day.
Can you imagine… .6800 when you go to bed…and .7100 as you have a morning cuppa?
Interest rates will do it again. We are about 40% below our long term average on interest rates.Different, this time ?
I don’t think so.Billfromoz
[No]
Billfromoz
hi everybody, Am new to all this, but I have a question regarding the $7000 gov grant to first home buyers.My Partner doesnt own a home yet and was wondering if any body knows if she can use this money towards an investment property, without actually having to live there. Thanks[:0)]
[/quote]G’day…
Also a maths nut.
You are spot on.Me….30 + years in Real Estate as Principal mostly. Concentrated on Investors and Propert Management in the latter years as well as Mortgages, Money Markets experience etc,etc.
In other words I reckon I’m qualified to make a few statements……I will be making a general observation,of course there will be exceptions.
In this business…of Cashflow Positive Real Estate Investment to get better than 10% net it will be Regional Aussie. Given the World wide Real Estate boom…it will now be on the outskirts and “rougher” areas of small towns.
Immediate problems…what sort of person does this attract ? They live there cause they have to…not want to. Employment opportunities ????Reality …the bottom end of the market is your client. WE are at the end of a 9 year big run in Real Estate and prices will pull back 25%-35% in areas other than “Prime Real Estate Locations”.
Wrap deals, lease with option to purchase and flips are good in a rising market…probably over for now.
Buy and hold + geared maybe + today but- tomorrow.I look forward to the next couple of years as the higher rates begin to “hurt like hell”…there will be “blood in the streets”….a buyers market.
Ask yourself this question “Would you wrap a deal in todays market, that covers your costs and risk and gives you a profit, to a family member or your best mate ?
So what do you do while we wait out the next 6-12 months or so ? Research, learn, put in the hard yards and give your financial position a reality check. Get positioned for a buyers market. As you make your $$$$ when you buy, you must be skilled enough to know what you are doing.
From my experience…when the average person, who has NO expertise in Property Investment starts talking about wraps etc…..they or their clients are going to get hurt. Most will need their “hands held” for at least 5-10 deals.
So, they need a mentor and need to do their
apprenticeship FIRST.You read yesterday on this forum where a couple made an offer that was accepted. Then discovered that they made an error and it was negative cashflow…not positive. Of course we all make mistakes and I commend them for their efforts in getting their feet wet. But the repercussions of people entering this field before they are qualified will prove to be a disaster.
I suspect that you have approached this from the buyers point of view….as we should. You have come to the same conclusion as I have. Deals are out there but not for those without skills or a mentor.
I wish you well
Billfromoz
G’day…
Another lender is fine. BUT they will appoint their own valuer. Even if you had your own “sworn” valuation the new lender will value it with one of their own panel…and you pay for that.
Also the costs of refinancing must be considered…penalties etc.
If above is acceptable and your confident that the increase in value justifies the cost…then YES refinance.
Billfromoz
Ouch…
Contact the Agent or Vendor by phone immediately and advise them that you are withdrawing your offer. Follow that up in writing.
You don’t have to give any reason. If you did you would feel foolish. MAKE THAT PHONE CALL.
Put yourself in the owners shoes….You would want to know if a buyer on any deal you put together had a change of heart.
They may not be happy…but will appreciate your phone call eventually.
Part of your learning curve..You have not commited yourself legally, you don’t even need a Solicitor to get you out…cause you ain’t in yet.
Billfromoz
G’day Hippy…
All lenders have their own panel of valuers.
You would not be able to get your own valuer .
“as you may have them in your pocket”.Furthermore your lender is unlikely to redo your deal in under 6-12 months.
Billfromoz
G’day…
Sure is…get the October copy of …..
“Your Mortgage” Magazine ….Every suburb, every major town, Australia wide.
Beats paying $39.95 for just one postcode online.Cheers
Billfromoz
G’day…
Try Wagga Wagga…..cause there’s a military base
and Armidale….University on tap.You will get 11-12% if u look hard enough.
Happy hunting.Billfromoz
G’day…
Started in Real Estate in 1971. Self employed since 1972. Added Mortgage consuting in 1993.
Sold out in 1980….traded futures and option writing for 9 years. Back to Realestate and mortgages 1990 as agent/broker.
Last 2 years I’m my only client, I have…more fun no hassles, no office…love doing deals.
Billfromoz
G’day Wayne…
Like you I was a futures trader/broker in 80’s.
!981-1988, there on the day 20th Oct.’87. Made more money writing options and trading Aussie $ than anything else. The SPI used to be $100 point.Of course you can “short” the Real Estate Market.
A real life example…..
Canberra median price is $318,000 today. If you owned a Canberra property at this price and sold it today you could probably buy it back in 18-24 months for $210-$250,000.
Canberra has a history of “crashing”…no soft landings there.
Watch out for the DJIA and SPI…a sell if ever I saw one.
Best of luck..
BillfromozHi Sue,
You will find that lenders have a set policy on “postcodes:. For example you may get say,90% LVR in one area and only 70% in another…usually slow moving Rural/Regional areas.
Your best bet is to purchase where the population is 10,000 +. Suggest you talk with Resi Home loans, Liberty, and Easy-loans.com.au
Cheers
Billfromoz
Hi Guys,So what you’re saying is that if I am self-employed (Under 2yrs) and therefore need a lo-doc loan, I’m going to have trouble if I buy in a country area? Perhaps a higher interest rate or no finance at all?
Cheers,
Sue [
]Be careful not step on the flowers when you’re looking at the stars
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