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, 6 months ago by  Corey Batt.

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!

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!

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.

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!

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.

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.

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.

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.

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!