I have been totally shocked! It’s a feeding frenzy here.

Long time since I posted here. Our plan was to invest first in our own home and then use the equity increase to purchase our first IP. Well in the last 12 months we’ve had over 60% increase in value. Very happy with that result and we are now looking for the right property but it is going…[Read more]

These areas are great!

I bought in Medina shortly after the Kwinana (WA) area had been “renewed”. Sold it for a nice profit to buy my current property – and to a buyer that hadn’t even inspected inside. He can’t be unhappy though as it came with a good tenant and would have already gained between contract date and settlement!

In Perth these…[Read more]

I think a lot of people forget that their first home is not going to be their dream home. That’s why the cheaper “fixer uppers” are often advertised as “first home or investment”. It could be 2 or 3 down the track before you can buy what you like.

You are right to approach it as though you are buying an IP as your first home is the biggest…[Read more]

Stay at home mum (13 month old) with a useless arts degree Most of my working life for past 10 years has been web development. Also a published author but we won’t go there.

Rather spend my days with baby and when time allows educate myself on methods other than PAYE to establish future financial security.

Partner is in IT and also bored

I believe we have avoided this problem by settling both at the same time (and stipulating the coincidental settlement as a condition of the contract). Not all vendors will accept this condition of course, they may have already bought elsewhere subject to sale and have a particular settlement date on their new property.

It has worked for us though…[Read more]

If settlement occurs on them both simultaneoulsy we each take possession the same day. How does this affect insurance?

Not sure I’m with you there. Even if we had overlapping insurance premiums it is still cheaper than overlapping mortgages.

It is fraud to obtain by ommission or deception an amount greater than the actual purchase price. You may get the “early settlement rebate” or “subject to repairs” clause past the bank IF the total is equal to the bank valuation. Banks have LVR for a reason.

I reckon it’s safer to just find a bank that will do a higher LVR and cap it with fees so…[Read more]

When we were looking for a new PPOR we found that first, stipulated in the contract subject to sale of existing proprty AND settlement on both properties to coincide. We then put the place we were selling on the market with the same agent we are buying through. So far it has gone very smoothly. She sold our old property to an investor in 3 days If…[Read more]

Hi Clarksonclan. Don’t know if it will confuse you more or not [] but I have a lot of fun playing with the charts at http://www.aussiehome.com.au. They’ve just updated it with the june 03 figures. I look for suburbs that *haven’t* had huge gains lately but have potential due to future infrastructure.

As a tip in Perth (and coming from a south of…[Read more]

Hope it all works out for you vluu27!

Michael, excellent advice! We hadn’t given it a lot of thought, just the convenience of not moving before the end of the school year but yes, in future any vendor rent back we do will be put in a lease at the time of drawing up the contract.

Well now we are looking forward to moving in and getting stuck into…[Read more]

Stuart, Josie was indeed in touch with us and if not that we were running out of time I would have asked Prosolutions to take another look at it for us, I was impressed with the initial report you sent us. As it was I felt the local broker was doing a good job right up until the Pepper debacle.

The brokerage that our “advisor” works for has all…[Read more]

So while you were trying to be nice and get opinions on the course of action that was best he strung you along and looked for somewhere to rent asap?

We had a clause in our latest contract to rent back to the vendors which was worded in such a way that only gave them “entitlement” to rent back for 3 months (we should, in hindsight, have worded it…[Read more]

Sorry but it sounds like mortgage fraud. I’d think very carefully about that.

Just read an article about it in the MIAA magazine while waiting in my brokers waiting room

Here is the relevant section of the act for NSW, it is the same for WA.
http://www.austlii.edu.au/au/legis/nsw/consol_act/fhoga2000250/s11.html

(3) An applicant is ineligible if the applicant or the applicants spouse has, on or after 1 July 2000 and before the date on which the application is made, held an interest in property (other than…[Read more]

Where did you get this from Elysium?

quote:I know that in WA, once you buy an investment property, you can forget about the FHOG (unless you move into the investment property within 12 months) as your PPOR – this is all detailed in my DIY residential settlements/conveyancing book that I’m writing.

I called the OSR in Perth last week and spoke to…[Read more]

You can claim parenting payment if you own an investment property and you can still claim rent assistance if you are renting. I was doing just that until I moved in with my defacto. You must declare your net income you make from rent and you fill out a real estate form with all your income and expenses on it.

I also worked part time as working…[Read more]

Double check with the state revenue office. I did and found out that in WA at least, you can buy an IP, not claim the FHOG and STILL get the FHOG later when you do buy your first home to live in.

Also, if you claim the FHOG you have 12 months to take residence and there is no set amount of time that you need to remain in the property. BUT you…[Read more]

HI Tira Jayne

I was single mum when I bought my first home so I thought I’d share my story.

I was on a pension after my divorce with a grand total of $2000 after the settlement Not eligible for FHOG I got a crappy part time job and saved every dollar I earned for 3 months to get my deposit, then I went to the government sponsored lender in WA,…[Read more]

Thanks everyone

Rusty073, the 20% is needed to avoid mortgage insurers which most lenders go to if the loan is over 80% of the property value, we have been told by several lenders and brokers that the insurers won’t go for a recent change in employment (even though we’d previously been told that within same industry it was ok – seems what you are…[Read more]

Hi Boothy

I have been getting $130pw for the last 12 months, could be up to $150 if I did a repaint but I prefer to keep the rent low as I have a nice tenant and it is positively geared. I just put it on the market at $110 000. The property next door just went on for $128 000 so we’ll see how they both do.

You could hedge your bets if you want…[Read more]