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  • Profile photo of Corey BattCorey Batt
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    @cjaysa
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    Reports which aren’t based on reality get quite boring. Fact is that most first home buyers:

    1) do not necessarily NEED to buy a median property for their initial purchase
    2) do not need to save 20% for their first deposit

    But I guess it wouldn’t be as interesting to write a report on couples taking 18 months to save for a deposit to provide one of the most basic requirements in life – a roof over their head (that they own).

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    @cjaysa
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    Steve_H – there’s a few Adelaide threads here, the archived Somersoft Forums and on Property Chat forums regarding Adelaide – an absolute wealth of knowledge on areas to purchase in and stats.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    @cjaysa
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    That’s correct – they certainly can foreclose and or require you to take on the debt. If this fails it will be on your credit file and can bring your personal assets into the mix.

    Are you signing as a borrower or as a guarantor? Why does your nephew need you on the loan – doesn’t have enough deposit OR not enough income?

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    @cjaysa
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    Which lender is the new purchase? That’s really poor planning, the broker should know your capacity in advance for issues like this.

    You may very well be at your maximum, or all the options haven’t been explored.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    @cjaysa
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    That’s correct Ronnie. This opens options for flexibility in taxation and lending options.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    @cjaysa
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    Depending on the exact population centre, could shave the rate, increase term and increase LVR for cashout – or a combination of the variables.

    Had an approval for 4.5% variable for a client this morning, another last week for mid 5’s. Both great loans for the respective parties, as rate is just one of the considerations at play.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    @cjaysa
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    Agree Benny, this whole APRA 10% investor limit is being used as a rort by the banks to push up their profit margins.

    Meanwhile they forcefully shed market share and have reduced profitability from higher deposit requirements.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    @cjaysa
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    All depends on the figures. Make sure you factor on how tax relates to this, ie. GST/CGT/sales costs.

    If you’re going to make a strong $ and % return then sure it may well be justified, but obviously there’s not point going down any pathway unless it’s getting you to your long term goals in a reasonable time frame.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    @cjaysa
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    As mentioned above, still lots of options for credit impaired – dependent on the circumstances the results can arrange anywhere between marginally more expensive than mainstream credit to extortionate.

    Generally first step is to get any debts paid out – ongoing unpaid defaults aren’t going to help you.

    • This reply was modified 9 years ago by Profile photo of Corey Batt Corey Batt.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    @cjaysa
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    Arguably in a lot of markets this is the easiest time to ever find cash flow properties considering the historically rock bottom interest rates. Plenty of examples of cheap CF+ properties about – Adelaide is where a lot of these deals pop up: https://www.propertyinvesting.com/topic/5013494-adelaide-property-investment/

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    @cjaysa
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    So long as the loan is interest only, the repayment will automatically adjust to the net figure achieved against any offset account balance.

    Almost universally a superior option, especially if its a principle place of residence which you may turn into an investment property.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    @cjaysa
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    Outside of property spruikers, what does a property investor expo have?

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    Interest only with offset leaves you with the greatest flexibility regardless of the situation. The only time I’d suggest it may not be the most suitable is if the borrower doesn’t feel they can trust themselves with large sums sitting in their offset without using it.

    Counter to Mikal, I’d still say even in an owner occupier situation it’s not a bad idea if you may be an investor – you never know if you may make the existing PPOR as an investment property. I’ve seen too many young couples in particular upgrade from their first rung house and have a poorly structured setup from paying down their debt too much.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    @cjaysa
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    Also – a few Adelaide investors have started a Facebook group to post about Adelaide – anyone interested feel free to join:
    https://www.facebook.com/groups/593978310741768/

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    @cjaysa
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    A strategically planned lending structure will outperform any one lenders maximum borrowing capacity. Generally we find a carefully structured structure can extend your borrowing capacity 1.9-2.5x any one lenders max capacity.

    Speak with an investment focussed broker who can look at your situation from a holistic perspective.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    @cjaysa
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    Quite a few different ways Curtis, you can:

    *Save for the entire next deposit
    *Buy well and use equity from first purchase and or in combination with savings
    *Buy well and use cash to renovate the first IP and then use new equity to purchase again

    I wrote an article on this exact situation a little earlier this year about stretching your deposits at http://www.precisionfunding.com.au/11366/

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    @cjaysa
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    They most certainly DO NOT just lend 80% of the purchase no questions asked, furthermore the new debt is stress tested at a far higher rate than you’d actually pay at the current time – you’ve certainly been given a bit of wrong information.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
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    @cjaysa
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    A combination of strong yields and a decent income allow most investors to grow substantial portfolios. At this current time it’s quite easy to afford a reasonable portfolio on an average wage with neutral yield properties – what’s more likely to put the brakes on investors is their borrowing capacities with lenders who are stress testing loans at upwards of 100% above their actual repayment amounts required.

    A carefully structured lending structure can minimise these impacts as much as possible, but the APRA intervention is certainly reducing the days of easy credit for those looking to own substantial portfolios.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Reasonably balanced article which has touched on what I have experienced with my portfolio, and likewise what I’ve seen a lot of client’s portfolio’s go through.

    Fundamentals stack up well if you understand the local tenant requirements – @dtraeger can touch on this no doubt. No point having a deluxe semi in Davoren Park..

    Running on quick numbers, the last 10 valuations I’ve put through in the Playford area have had a range of 10-35% increase since last valuation OR purchase, note the upper end is usually from short term purchase with renovations so a bit of a distortion. Generally with the purchase/reno properties I buy have a post reno increase of 24-29% increase after purchase price + costs.

    A couple weeks ago I ended up at over at the commercial precinct at Playford Alive – quite impressive in size and quality. Gone are the days of cheap construction – real money is being invested in the projects:

    Would I invest directly in the Playford Alive (Munno Para) section specifically? Not really. Supply will keep the prices tempered, so I will continue to focus on the medium density zoned old trust areas with 8%+ yields and development potential.

    • This reply was modified 9 years, 1 month ago by Profile photo of Corey Batt Corey Batt.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    First step is a job or all of this will be for nothing!!! Make sure the job or income stream you have is their your whole life or you will be wasting your time on that so called education and investing adventure.
    1. Banks will not lend to anyone with no job!
    2. Banks will not lend to anyone with a house full of equity and no job
    It’s all about the income stream and the more you have the better!

    That’s not quite true – lenders certainly will lend to a person without a *job* – they just need a suitable income – this can be a pension, superannuation, income from other investments, income from business ownership etc.

    Done quite a few deals for clients who don’t fit the traditional *JOB* shackles – it’s just about income exceeding liabilities.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

Viewing 20 posts - 561 through 580 (of 983 total)