Forum Replies Created
Hi Getahead
Once you have considered what Derek said and still decide to buy, subject to budgetary constraints, I would avoid townhouse style developments and renter units in big complexes. My homework suggests that these have little capital growth opportunity compared to houses here on the coast and there are always plenty for sale (meaning that there is plenty of competition when you want to sell too). Having said that if it’s a great deal-then it doesn’t matter too much what you buy-The Gold Coast still has plenty of future potential if you buy right.markk
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http://www.kentscollections.comThe way I understand it is if you clear the bad ones up and then are able to explain the reason for it in the first place (ie Divorce) you should be fine. If they are a few hundred dollars, get rid of them so they don’t come back to haunt you. Not just on this potential loan but any loan you may want down the track.If they are court judgments, you could have 12 years of haunting. Just make sure you get acknowledgements and releases from the creditors. It won’t clear your bad rating but at least you can show you are genuinely trying to sort it out.
markk
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http://www.kentscollections.comHi Toni
I am a debt collector (Commercial agent). There is little doubt that (depending on the individual) using a commercial agent will get your money back more quickly because that’s what we do. Quite often the involvement of a third party is enough motivation to get them to pay. The biggest problem is keeping track of them. If they move sometimes they are not easy to find.
You should know however that unless you have a court judgment (not a tribunal order but an order converted to a civil judgment for the money at court) then there is no effect on their CRA. Collections agencies cannot “list” a bad debt.
TICA does not as far as I am aware list them on CRA but does effect them as a tenant if they try and rent through an affiliated agent. Not sure if you can list someone on TICA though unless you are a member agent and have it on the original tenacy agreement.
Good luck anyway
markk
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http://www.kentscollections.comA partnership arrangement is essential when it comes to contributions and profit (or loss) division and liability. If it isn’t in writing then it simply isn’t. An agreement should cover all scenarios if it is done correctly-but get a lawyer to do it.
As far as an exit clause is concerned, it will depend when you want to exit. Obviously if there are problems finacially and one of you wants to pull the pin in 12 months, you can hardly do so and leave all the liabiltiy in the others laps. I would work out maybe a date by which anyone with cold feet wants to get out and the terms of that (eg they lose any future benefit and cash contribution) and then make a decision as to how any party who wants to “exit” at a later date is to be paid out (eg by monthly instalments of an agreed amount or an amount based on a share of the profit made to that pont) otherwise someone may want to walk with his share which the entity cannot pay causing a winding up situation).
It is fairly involved. Do it right.Put all this down on paper then see a lawyer
Good Luck
markk
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http://www.kentscollections.comI have spoken to my broker but he has trouble getting anyone above the 60% mark without LMI
Any suggestions as to which institutions I could try?
markk
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http://www.kentscollections.comThanks for the input guys.
I am looking for an interest rate in the high 6’s with at least 70% LVR with no mortgage insurance (or at least paid for). I went to St george who have my current loan and they quoted me $8000 for mortgage insurance which I had to pay for an 80% lend. Prop value is $800000.00
Someone mentioned Bankwest to me
markk
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http://www.kentscollections.comHi grossrealisation
Southport units that are 4 sale seem to be pretty common. Whole heap of brand new upper market ones have just come on the market(and also there will be more in November) 400K and up. The cheaper ones do sell but only if the price is right. Forget one bedders (unless it is in a redevelopment area) they don’t rent too well or rent to loners. Don’t know Wyndham St but am around Southport a lot so will drive by and check it out if you want to email me at [email protected]
cheersmarkk
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http://www.kentscollections.comI live on the Coast and g7 is spot on. The coast hit its peak with the rest of the country 12-18 months ago and prices are edging backwards on investment type properties. Most agents here talk it up as usual but just watching the real estate papers every week, there are a lot more properties coming back onto the market. They are still at the higher end of the price bracket though(a 2 bed crappy little dark unit in a block of 36 returning about 3.5% in one case)but the volume of the listings will bring prices back in the next 12 months.
having said that there are always good deals to be made if you look depending on expectations.
Stay tuned……
markk
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http://www.kentscollections.comBy all means, do everything possible to make sure you are outwardly happy about the property but if your contract is subject to a satisfactory (to you) building and pest inspection, then I wouldn’t fork out the dollars until you strike a deal on one (with this clause in of course) then get out if you aren’t happy and look for another..
markk
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http://www.kentscollections.comIn Queensalnd you either need to get an agreement signed or a court or tribunal order FIRST. If you build first and ask later, the neighbour is not bound.Probably the same in other states.
You will probably also find that the developer has incorporated a provision that limits or prevents him having to contribute to any dividing fences.
markk
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http://www.kentscollections.comHi grreg
“A few Weeks” sound optimistic if he is going to do all the work he says. I would get a more accurate estimate of the timeframe. If the renos are going to leave a huge mess then while they are going on (assuming things like the toilet and kitchen remain functional) I would offer him half the rent until the work is finished. One thing is for sure if you do move out he will get nothing. He won’t and can’t rent unless it is liveable in. Do you relly love the place that much? I would almost gurantee the renos take twice as long as he suspectsalways do
And then what will the rent go up to?! Might put renting this place out of your price range.
Start looking elsewhere.
markk
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http://www.kentscollections.comHi wallace
Not sure if you have found anywhere in SEQ for $100,000.00 but you would be lucky. Can’t even buy a block of dirt for that in this area. Realistically in today’s market you are looking at at least $150,000 and upwards and that is for an older place in areas like Ipswich which is “all the rage”. I have had a good look around there but as one agent said anything below $200,000 will have a few problems assoiated with age (most were built in the 40’s 50’s and 60’s) The last contract I signed (for $155,000)on an older place failed the building inspection.
All this said don’t give up. What about a joint venture. $100,000 each will give you $200,000.and you will start a portfolio with that. Alternatively if you can stretch to 180 you will get property around Kingston, Logan, Beenleigh etc.
Keep trying-time MIGHT help if the market softens but don’t expect to get anything for $100,000. Maybe you can consolidate what you have a save to get to the level you need
Best of luck
markk
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http://www.kentscollections.comAs interest rates rise then prices MAY drop depending on demand and the area but that is usually the scenario but if you buy well now there isn’t likely to be any great benefit in waiting because you will also be paying higher rates. Buy now if you can find the deal amd lock in the rate (up to 5 years) if you are worried about rises.
That was a BIS Shrapnel report today forecasting those rates and has also had its detractors.
A crystal ball might help!!
markk
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http://www.kentscollections.comHi Steven
Have had that thought but the moment we go over 60% LVR Mortgage Insurance kicks in and on the amount we are looking at we were quoted about $8000.
Any repuable lo doc 80% lends without LMI or with low LMI. I know there are only a couple of morgage insureers out there.
markk
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http://www.kentscollections.comHi Markk,
At 7.32% the STG low doc rate is not competitive,Steven
I would be interested in what rate would be competative in a lo doc variable rate scenario. I went thru a couple of matrices and sourced what I thought was about the best with 60% LVR.
I am still looking for a lo doc high LVR (around 90%-most max out at 80%) without massive exit fees because it is a short term scenario. Not too worried about interest rates-within reason. More concerned over the 3% early discharge they want. Any suggestions??
cheers
markk
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http://www.kentscollections.comIn Qld you have to make an actual formal application to the Court to appear before the Magistrate. You will have to pay a filing fee etc to appear but if you don’t know the process and what to do they will send you off to a solicitor or legal aid. They will not advise you.
I have heard about the Chamber Magistrates in NSW-great idea and obviously they do what our don’t!
markk
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http://www.kentscollections.comIn most states regardless of the nature of the tenancy Small Claims will handle the matter but Robert is right. Don’t go to the Res Tenancies Tribunal if it is a company lessee.
In Qld you won’t be able to see a Chamber Magistrate (not sure about other states) and the court registry will only give general advice but it is a starting point.
markk
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http://www.kentscollections.comI think the St George low doc max LVR with interest only repayments is 70% LVR or 80% LVR with P&I, and the LMI premium is applicable over 60% LVR,
With this in mind coupled with there higher low doc rates ….The stats are correct. We just finalised a split lo doc with St George and these were the figures.
The interest rates I would query. Before the last rise our St George Lo Doc was at 7.32%-the going rate-Our new lo Doc fixed rate is just below 7%. I wouldn’t say that their lo doc rates were too high at all[cap]
markk
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http://www.kentscollections.comWhy are you at 8.55%? Why can’t you just re-finance to a better deal? How is buying in one place or the other going to provide you with more equity?
Maybe if you give us a better idea as to how you sit at the moment the people on this forum will be able to give you some better advice.
markk
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