Forum Replies Created
what the heck is an ‘absentee owners’
Lol irony on timing…. this was in my inbox this morning :)
– https://foragerfunds.com/bristlemouth/loans-in-a-zloty-trouble/
lol at “for profit” comment….ok maybe not that basic.
what I’m trying to understand is how is the ANZ bank able to offer 5 year in Singapore when the same term mortgage here in Australia is about double that.
Every second article I’m reading about Australian banks is claiming their cost of borrowing is jacked and going up so much that they have to be pushing loans to 5% in order to make a profit.
What I don’t understand is how they can be claiming this and then offering 2.55% in another country.
Is it just there is more competition in Singapore for retail mortgages than the Australian big four?
yep also mystery shopped my property managers when we had a vacancy, just setup a fake gmail to send it from and then checked to see response.
trust but verify.
Can you provide more of an explanation as I don’t understand what you are proposing there.
Also I understand that there may be some variation in cost of borrowing based on RBA/Fed etc for variable but how can it be that different for a 5 year?
I’m an Australian but live in the USA.
St George restricted us to a LVR of 70% to cover currency variations for our Australian investment properties but apart from that is the same as applying for a loan when we lived in Australia eg pay stubs, letter of employment etc.
Yep some of the people who responded when I posted to http://www.Facebook.com/LivePoliticalChat commented around California milking property owners dry.
Anyone who thinks that “Land tax” will stay at 5k a year needs their head read, it will be a major cost factor if stamp duty is abolished…..death by a thousand cuts each and every year
Very true, very true…..daughter could die as well though :P
@terryw but that only matters if he is planning on selling.
@rob, just buy it in your own name, yes you don’t get 50% cgt BUT you will get a pro-rata based on how long you live in it yourself eg if you buy and then move there in 10 years AND live another 20 then you will get 2/3rd of the 50% CGT
(lol that’s IF and its a big IF the 50% CGT is in place in 30 years from now).If you aren’t buying a new apartment….then maybe your next 2 years rentals could be wiped out by ‘repairs’….would be a real shame if this took care of the tax issue for rents over the next 2 years :)
He is a New Zealander but seems to be speaking more about the US market in this book (Real Estate Insider).
Its a US taxation term, not applicable in Australia…..
(though interestingly…..if you live in the USA and your investments are in Australia…..doesn’t prevent you from classifying as this :)Same with I always find it funny I can depreciate Australian property against USA taxes even though same depreciation doesn’t apply in Australia (doesn’t help with AMT etc :( but still worth calculating each year for carry forwards)
That would make sense but elsewhere it talks about rents being up for the year…..
I was thinking afterwards maybe the word ‘yields’ was missing but that’s not even right as on a sales price yields were down.
Just feels like ‘all PR fluff’ no responsibility these days.
Words have meaning ;)
Nope, as long as you follow the ATO rules they don’t care how many times you do this over and over again…..
Great idea…..”give up what you don’t want”, lol ever been stuck with “the furniture” on a deal?
Yes I think people are over leveraged…..(personally we are about 10% more than comfortable at 65% with 1.3m outstanding in V+F mortgages) but do you really see a snap back for global borrowing costs within the next 2-5 years?
I don’t mean Australian borrowing eg vampires charging as much as they can over and above any RBA moves.
What I mean is globally will NIRP and ZIRP all disappear within the next 2-5 years as borrowing costs tighten dramatically like BIS seem to suggest?
My main concern at the moment is don’t be too under leveraged as otherwise Australian rising property prices will eat you up. I’d be happy for a downturn…..but don’t think its happening until rates rise sharply.
@cattleya not sure the USA is doing that bad. Very positive jobs number today and oil is back up (ridiculous as means speculators raking it in…..consumer not benefitting at all).
After today’s results I think Yellen is a shoe-in to raise rates in June.
You’ve got variable rates….you should shop around.
St George will lend to expats, only condition as far as I know is max 70% LVR (though they waived it for us to go to 72.5% with our last purchase).
And would the developer the second cut of sale profits, eg you get paid…..after the investor gets their guaranteed rate?
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This reply was modified 8 years, 9 months ago by
DeanCollins.
Outgoings
Agency management 5% @$240pw rent is $624pa or $12pw
Insurance? $345pa from honan
Interest? lets use 80% @4.5% I/O $6732pa this means you would need to have a 20% deposit of $37,400 to put down.Other prudent potential outgoings
Re-Lease fee $320 (1wk $240 + lease prep $30 + advertisings $50)
Vacancy prudent at 1 week@240pw
Repairs (unknown but I’d allow $500pa)$12,480 Rent income
$624 Agent
$1600 Rates
$1200 Strata
$1000 Water
$345 Insurance
$6732 Interest
$320 New tenant release fee
$240 Vacancy allowance
$500 Repairs
Total outgoings = $12,561= a loss of $81 pa or approximately $1.50pw
Obviously if your property is vacant for more than one week a year (which is a minimum and I’d suggest in rural areas allowing at least 4 weeks a year which I’m guessing this isn’t Syd/Mel) then your losses could increase dramatically.
Hi Terry,
Does it even matter if the costs to recover are expensive? eg don’t the defendants have to pay the costs to recover?
Once the apartment is sold costs will come out of that, eg first step is warn them legal costs are about to be incurred if not paid within XY days.
Lets say in 3-5 years from now interest rates got back up to 7% thereby causing a drop of 10-25%
ok…..
But if property goes up 3-4% every year between now and then (with the long term average being 8% then basically property over the next 3-5 years has gone up 9%-20% with the hope that it goes down 10-25% at that time.
For any number of reasons we wont see a mass long term drop like the USA (mainly around job portability…..no way 50% of Orange is leaving Orange to move to New Castle or vice versa etc).
My advice is buy smart now, low ball offers, if you get turned down….no harm no foul and bid on the next property you see. You could probably buy one to three smart purchases between now and when rates crash and build up equity to be used to buy smart in the ‘normalized interest rate hike’ crash….if and when it happens.
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This reply was modified 8 years, 9 months ago by
