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Viewing 20 posts - 681 through 700 (of 983 total)
  • Profile photo of Corey BattCorey Batt
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    @cjaysa
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    Weigh up the potential selling price vs selling in the future? Does the property cost you money to hold? If so you need to factor that into any speculative longer term profit.

    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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    The only two real influences you have on the time it will take to sell your property is marketing and price. If your marketing is handled by a capable agent then realistically, you can either reduce your price until the market jumps on the property, or ride it out for the price.

    When you sell a property you can choose the price or the time it takes to sell, it’s a fine balancing act!

    • This reply was modified 9 years, 5 months ago by Profile photo of Corey Batt Corey Batt.

    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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    Paying extra repayments isn’t increasing your costs, you’re just reducing your debt (which in turn reduces your interest making it further cash flow positive!

    As Terryw has touched on, it’s a poor line of thought to try to lose money just to get tax deductions as in the end you’re still losing more money than you gain through deductions.

    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 previously mentioned, yield isn’t the only factor. If comparables are well below yours it’s not going to be an easy sale.

    ~9.5% for a fully furnished student accom isn’t necessarily screaming a great deal, more an accurate pricing of the risk involved.

    Best of luck!

    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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    Post Count: 1,010

    Hey David,

    There’s plenty of brokers on the forum who have shared a wealth of knowledge here – have a read around and see if one fits your goals. :)

    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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    Hi Chirp,

    Are the four villas each on their own title, or all four are on a single title? If they’re on individual titles almost every lender will consider them at 90-95%, however if on a single title theres only a handful. Thankfully some of the ones which will consider it are decent lenders, not lenders of last resort!

    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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    Lots of similar companies around which use this to circumvent the realestate.com.au ‘agents only’ rule.

    Just another option to those selling their homes.

    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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    Thankfully it’s only Bankwest at this time – not a lender that investors should be using in any case. The adjustments to serviceability models and rate discounting removals are much larger impacts IMHO.

    Interesting times at the moment – as always we need to evolve with the challenges presented to us.

    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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    Technology makes it very easy these days to work through phone/email/skype etc. Combine busy schedules and it makes sense that a lot of people choose this route!

    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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    APRA has been applying a lot of pressure to a number of banks over the last few weeks which have indeed meant that the serviceability models have been tightened. A key example of this is with AMP – whose niche policy set have been wiped out over night. It appears this will be following through with quite a few other lenders, as APRA attempts to cool down the growth of investment debt.

    As always, evolve with the new challenges we face!

    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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    To expand on your idea, a common strategy used by a lot of my clients is to do small renovations on cash flow neutral/positive properties, draw out the equity from the increased value to buy another, rinse and repeat. Eventually you build a sizeable portfolio which has positive cash flow. Allow rental increases over time to grow you a healthy passive income (which can be aided by debt reduction/partial sell down at the consolidation or retirement phase).

    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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    Generally the properties are valued by a valuer (they do not work for the bank, but are instead contracted to value properties individually). The process is fairly simple – the valuer assesses the property in question through a lot of it’s variables (property size, type, block size, fitout, location etc), and then compares it against other properties in the area which have sold recently. They will generally rank the properties against one another saying whether they are superior, inferior or comparable. From there an estimation of value is determined.

    EG

    An inferior property sells for 250k
    A superior property sells for 300k

    They may determine that the property being valued is worth circa 275k, especially if they can find similar properties selling for this figure.

    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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    5-8% for an unsecured business loan for a business which can’t get lending through traditional lenders is quite fanciful.

    • This reply was modified 9 years, 6 months 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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    Depreciation really should be considered as the icing on the cake, not the fundamental driver behind a purchase. OTP can be fraught with issues (overpriced so they fail valuations and no means of backing out of contract, long delays (I’ve seen investors stuck in contracts where they will most likely NEVER receive the end product or their deposit back) etc.

    Personally I prefer properties in a tightly constrained area and if they have renovation potential which can create sweat equity, EVEN better! You can certainly renovate units/apartments too, but you need to follow the strata bylaws. Also note that valuers will need to compare against others in the complex/other complexes so it can be difficult to gain significant value increases compared to standalone houses.

    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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    Post Count: 1,010

    A lot of great responses here. As always, sometimes patience and saving more can lead to more fruitful results – remember how long it takes to save that initial deposit in total, so a couple more weeks/months is a drop in the ocean!

    As per property selection, I wouldn’t touch a property in a large complex with a ten foot barge pole.

    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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    Post Count: 1,010

    Managed funds as in shares?

    Leave this one to the legal eagles, but assuming you sold the shares and then made the purchases in the trust there wouldn’t be an issue as long as it meets the usual lending criteria. Otherwise you could potential lend the funds from the trust to a person/entity outside of the trust – speak with a lawyer/accountant on that situation.

    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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    Any taxation changes need to make sure they encourage individuals to self fund for retirement – the current system is clunky.

    I’d rather a complete re-haul of the system than a tax grab. Earlier elected access ages via annuity but at a low tax rate etc.

    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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    If you’re able to lend him the deposit and serviceability permitting it may well be possible – done a few lately for parent’s helping their kids by lending the 10% deposit to them – all OK with the banks.

    There is always the guarantee option providing security from a property held by the parents, but this does tie up the finances a lot more while the guarantee is in place.

    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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    Jamie hit the nail on the head, all resolved though. Reply sent through Master. :)

    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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    Post Count: 1,010

    Hi Master – you can give me a call on 1300 656 299 or send through an email to [email protected] and we can have a discussion from there.

    As per fees – Like most brokers in Australia, I do not charge any fees to facilitate any lending. Instead the lender used is charged a commission amount. This is in contrast to a lender having to pay a staff member to sit in branch regardless of productivity!

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

    Investment Focused Finance Strategist - servicing Australia-wide

Viewing 20 posts - 681 through 700 (of 983 total)