Forum Replies Created
I went for the maximum amount. Obviously, that was linked to my ability to service and the new valuation. However, I thought the higher LOC available, the greater options I would have, as I had not at the time, identified next purchase. My LOC is not a huge amount in anycase (50k).
James
If you examine the source of the commentary in the media about the share v property debate, most of the quoted who are advocating equities are from large financial conglomerates whose activity is primarily out of the sharmarket. Not saying they are wrong, but self-interest is a great motivator.
Shushar, didn’t think of the car wash down the road as a pick up place! Time to get my car washed.
James
They were different, one was Aussie (240), the other Bank of Melbourne (315). But I know, that both institutions were in the list of each broker’s software package used to determine the figure. I would have thought they would come to a very similar result.
James
BenJones,
I have recently undertaken what you are contemplating. For me, the LOC is there to fund next IP purchase. Also set up offset as well, which I think is good value to park any other savings and have pay being paid to linked account.
In terms of impact on future IP purchases, my understanding is that they will calculate your debt as the loan amount plus LOC amount. However, given that you would have been approved for the LOC, servicing is obvioulsy not an issue.
James
On the actual subject of property, two queries about everyone’s comments.
1. Property is such hetergeneous asset class, to make generalisations about the market will go up or vice-versa I think misses the point. Townhouses, apartments, houses in different georgraphical and demographic areas will respond differently to a market of rising interest rates and the psychological effect of what most people tend to think is the’cooling of the market’. Moreso than ever, individual skills to source & finance property are critical to your future success.2. +cf properties – a large enough deposit will make any property a +cf. What % deposit does everyone assume in determining what is a +cf property?
James
Whilst China as an economy is growing at a fast pace (around 8-10% per annum), what sustainable comparative advantage do they currently posses? Outside of cheap labour (which is transitory eg Taiwan, Japan) and a significant population, most of the investment is coming from large global firms. Japan had their own firms, technology & innovation. In time China may have this, but it is still a developing country with massive inequalities between Shanghai etc and its regional areas.
James
There are databases available at a cost which are designed for property managers/agents. There may also be others, not sure. http://www.rpdata.net.au/home/brochures/tenantinf.html.
James
Mart,
Mortgage insurers not even offering LMI on these properties at the moment (especially Docklands). Are you both entrenched in the idea of an apartment? I am assuming the location is due to proximity to work? I am not sure if there is anything you could really do in this location with 5%. West Melbourne or North melbourne (which are close by) which may be a more viable option. (West Melbourne is under-developed relative to the rest of city and inner suburbs).James
Just thinking aloud…how about a 80% loan with your financial institution and a second mortgage provider for the rest. Assuming servicing ratio/income is still OK.
James
Re: http://www.depreciator.com, I have compared their prices to various other QS’s and they are a little more expensive. The others that I have engaged do also provide a similar gaurantee re tax savings being twice the amount you paid for the report.
When choosing a QS, make sure they are registered as a member of the Australian Institute of Quantity Surveyors (www.aiqs.com.au)James
My understanding is that you can claim one (1) trip per year to your IP. Not sure if that means you can claim 3 trips if you have three IP in another area though.
James
Ask your bank which valuers they use because you are interested in purchasing another IP and would like their assistance so you don’t pay too much. If you use them to value your current IP, even if they assign the valuation to you personally, there is more chance that there will not be any conflicting valuations, when they offically revalue. I have re-financed my loan and most financial institutions, from my conversations seem to be doing internet valuations. Not sure what the base data is (maybe others in the forum know what information source these figures come from) however, if your property falls in a small % range around comparable sales, they will accept it sight unseen. Even those dreaded inner city apartments, of which I ahev ercently re-financed.
Ona slightly related topic, have you had a TDS performed on your IP & S15-15 tax variation??
James
The local council web-sites (at least in Victoria) generally have information regading demographics and other general property indices in the area.
Valuer-General’s office in each state has property values as well. (I think there is a charge here though).James
Spider,
Once you have an address, you need to do a title search. They do have a minimal cost and that will give you the owners address at the time of purchase. This might not necessarily be the same address today. You will have a name nonetheless. Which state are you in?
Alterantively, units generallly indicate a plaque indicating a managing agent or body corporate. You can approach them and they might be able to help. The BC may also be able to point out works being proposed/completed, the size of the sinking fund. Not all might give you this information, but know your spiel before hand and you shuold be able to get some pointers.Before any discussion with prospective vendors, make sure that you can sight comparable sales in the area to back your case. Photos, results in the paper etc.
What do you mean by format of property offers?
regards,
JamesRobAde, do you have anyone on the ground here in melbourne who is property savvy? This would help. Whilst it might be easy to say Richmond/Elwood might have higher CG compared to a Sunshine/Dandenong. Or alterantively, Sunshine/Dandenong may have more neutrally or +ve greared propoerty, you need to pick the brains of sales agents & property managers in those specific areas. Understand those suburbs and adjoining ones. Attend some auctions to appreciate the pulse of the market. Don’t beleive the hype about property, the sky is not falling in. Ultimately, do your homework and then make your move.
Demographically these are significantly different areas. How did you choose these areas?
