Forum Replies Created
me thinks biggest prob with house and land packages lies in two areas, 1. location, 2. suitability of development in the location.
if end product is well located and is a suitable style of development for the local area, then at worst, you face a flat market for a year or two.
if the end product exceeds the expectations of the market, then you have immediate realisable growth.
unfortunately MOST house and land packages are located in outer growth corridors and often designs are focused on end price rather than amenity to end users. this is a problem – you end up with mass produced bv&t trash, nonchalantly boasting 4 bedrooms and 2 bathrooms but precious little else (ie. public transport, jobs, schools, parks, significant shopping facilities, general social infrastructure)
or, worse still, 2 bed 2 level townhouses 37 k’s from the cbd….classic missmatch..but much cheaper than the ones 3km from the cbd…mmmmm…wonder why???
final comment, developers like to build into the purchase price the exact equivalent of $$$ you claim as depreciation in the early years of owning your investment property. Why? Because they can. Investors keep buying the new stock and therefore the developers thought process is validated as is there bank balance!
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbanehi, i’d ask the agent exactly who will provide finance for this type of property on a stand alone basis and at what loan to value percentage.
i’d also request full statements regarding rental history – ie. week in week out history.
i’d also ask for a print out of all the recent sales history, particularly the history of resales.
with the above and given the location etc i’d make a commercial decision whether or not to proceed.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbanespi, i’m in tune with the environment, as long as its concrete and at least 25 levels high i’m loving it (green hills on horizon optional, prefer more skyscrapers tho!)
just joking…
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbanejohn, if the offer was accepted as submitted then the realtor can ‘whistle’ for it. cannot see why you need to do more.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneCRIKEY… $270/wk for 21.5sqm
they must really stack the students in for this sort of $$$$!
are you sure that you are not being touched in a big way??
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneBarry Moore – 1800625055
i’ve always used him and have referred him to dozens of happy clients.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbanepalmer, your alternative may have some conceptual errors – but feel free to flesh it out a little if you have the time.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneShane, I don’t own anything in WW but i have brokered finance for a few – we get some pretty indifferent vals i must admit, and the new stock seems to be pretty heavily focussed on investor purchasers (preferably interstate it would seem).
As for what is the area like, well, brick veneer and tile, brick veneer and tile, brick veneer and tile, brick veneer and tile (i could keep going but i’d have to sue myself for RSI)
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbanehi Lizzy, sounds like two things to me
1. a very clumsy and unsophisticated attempt at client retention
2. utter bscheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbanecw, sounds a bit overzealous – since when do we listen to what real estate agents say????
i think the important thing is to make sure your finance is in order, and do your pest and building inspections before you bid.
btw, was the agent you spoke to the agent who is selling the auction property?
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbanecw, sounds a bit overzealous – since when do we listen to what real estate agents say????
i think the important thing is to make sure your finance is in order, and do your pest and building inspections before you bid.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbanewell, lets be honest, i got to page one….
Now, lets get back to life in ’05 whilst it is still ’05, then i suggest we focus on ’06.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbanejust to add a twist to your thinking bxd…
why would someone want to buy it?
if you identify this, then maybe you can focus the efforts of the agent and (re)position the property in the most appropriate light.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneOften mcubed it comes down to only two things-
1. what you can afford
2. where do you want to liveyou can buy a house in the outer outer suburbs for the price of a inner ring apartment – you will need to decide what suits you and your circumstances
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbanemoolah, what sort of property is it?
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbaneashb23,
what has been constructed is allowable given a reasonably large block of land – but it is not on its own title and does not have individual services (let me know if this is incorrect)- its not meant to be a commercially let dwelling if it is to comply with the specific planning guidelines.
also, i think you will find it is in a low density residential zoning – multiple dwelling not permitted.
hence a bank or other lender will only take into consideration income derived from the main residence, and will treat with caution the ‘second’ residence – in reality, they probably don’t even want to know its there.
as for how to overcome this, well, for a start how much deposit do you have? large deposits seem to act as a HUGE risk mitigator to banks.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbanehappyjack
you just need to do a partial discharge of mortgage – usually comes with a $300 or so fee – which is reasonably inconsequentual.
so long as the ‘new’ transaction supports itself at 80% lvr no LMI payable, easy peasy..
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbanepagan
why was this a mistake?
lots of people are down on x-coll but the reality is that its a common practice which suits many circumstances (hence its a common practice).
to be quite specific what are your future plans and present situation that you now deem your decision to x-coll ‘bad’.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneJust another angle to this topic – as an IP owner I’m really not at all keen for tenants to be ‘doing’ too much in the way of ‘work’ around the place.
Obviously insurance reasons, as well as the very high liklihood that they are probably not very ‘handy’ and what starts out just ‘popping’ a fly screen together could easily end up as a broken window 3 floors below all over visiting Porsche (unfortunately not my Porsche!)
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneOriginally posted by Dazzling:whats an overgrown hovel worth in 2005 as opposed to the sale price in 1997Why do you ask brahms ?? Are you a purveyor of fine hovels as well ??
I’d have to answer what it’s worth in a multi-faceted way ;
Capital…it’s grown by 11% p.a., so 2.3 x what we sold it for.
Income…it ain’t worth squat right now, not even $ 20 p.w.
Costs…what with shire rates / water rates / land tax and insurances, it costs heaps.
Good bits…like say imputation credits…nothing.
Headaches…it’s worth absolutely heaps in this department.
Imposition on your time…once again worth heaps.Not sure if you find the one and only good thing about the IP, the 2.3x over 8 years CG attractive or not ?? We certainly don’t, especially when all of the other baggage needs to be hung off it.
Each to their own.
goodness, thanks for that. got a couple of burrs under your saddle blanket today have we dazzling?
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbane
