Forum Replies Created
- mjjg wrote:The bank's (Westpac) lending officer has told us that they would only go to 80%
I am not a broker but if you are self-employed this may be a reason for the LVR limit stated.
It may also be a postcode (greater risk for bank) issue for one or both of the properties.
Why is when doomers and gloomers talk something down they 'should be listened too' whereas when people talk up something they have 'vested interests'?
You don's say what level you are currently geared at but I would be concerned with purchasing an investment property as this will not help your overall gearing. Part of being 'wealthy' (& wealth is relative) is your overall gearing level.
An overseas version of two tiered marketing methinks.
Some of the more popular tourist destinations have locals specifcially employed to collect names, accomodation details etc of o/seas holiday makers using tricky means. Then the pressure starts with phone calls to encourage people along to seminars.
Hi Judd,
Seems to me as if you are in a 'hurry' and you are going to have a high LVR across your whole portfolio.
I would not be adverse to you sitting and waiting for a while and getting some mroe financial wherewithall behind you rather than constantly pushing the envelope as you currently seem to be.
PI is not a race.
jodes92 wrote:Does anyone have any thoughts on using a "cheap" conveyancer? When I say cheap I mean the companies that do nothing but conveyancing and offer things like, "best rates" "match any quote" etc. Examples include oz property law and go go conveyancing. I'm tempted to use one of these to purchase a cheap IP apartment as they are approx half the price! ($900 compared to $1700+) Any thoughts or even recommendations?
Do you want 'cheap' or do you want proficient?
Sometimes the two are not mutually compatible.
For the life of me I just cannot understand people wanting to 'save a few bucks' when there are 100's of thousands of dollars involved.
ummester wrote:True, there have been other hard times. But there have also been much easier times. 80's, early 90's.
Early 90's = unemployment rate +10% and home repossessions @ the highest rate in last 30 years. Early 90s was also the recession we had to have (apparently)
Late 80's Interest rates 17% + articles in daily papers stating 'our kids will never afford their own home'
There is a lot of psychology in the affordability debate. Sure there are some people who truly cannot their own home. There always has been and always will be. Then there are others who have their financial priorities all out of wack and are not prepared to make some sacrifices for the greater good and then of course their are others who want to live in a McMansion.
Priorities people.
Blitzad wrote:Just a quick note, i believe he said that he has 25k in savings,Ooops (foot in mouth) that's what you get after spending a few hours hunched over some driveway acrylic sealer.
Nonetheless $25K wont get a lot of money in additional purchasing power (just over $200K + deposit – subject to income checks and other banks interrogations) so there remains a need to get some additional deposit money behind you.
Try Geoff Carslake of Shreeve and Carslake in Herdsman Business Park. T: 9244 2900
Vanessa1985 wrote:Over the past 5 years the suburb where we are looking at investing has had poor returns of 1.5% growth and this makes us feel uneasy in developing in this area. However, the area has had a 3 year growth of 7.9%, 12 month growth of 4.9%, a quarterly growth of 4% and an average annual growth of 7.3%. What else should we be looking for to determine the potential growth for the area?HI Vanessa – I don't have all of my Sydney figures at my finger tips but I would think the Campbell town figures would pretty closely mirror the rest of Sydney with a few exceptions both ways.
While median prices are a guide they do report 'yesterdays' figures. A lot can happen in a suburb and this is far more important looking forward. The question you really need to ask yourself is, "Does your research tick most of the boxes for Campbelltown moving forward?"
JohnnyB wrote:I currently am 1 of 4 units under strata.is it possible to change & how would you go about it?I am assuming you are wanting to change strata managers.
I a nutshell you will need to get endorsement from the majority of the body of owners. You should also check to see if you have a fixed term management contract with your current managers as you may be liable for additional and unplanned costs.
Get the answers to these questions and then talk to two other owners.
In some states you MAY be able to self manage – but that is a story for another day.
FinSpec wrote:All applicants and/or their spouse/de facto have not owned a residential property, jointly, separately or with some other person, in any State or Territory of Australia before 1 July 2000.All applicants and/or their spouse/de facto have not owned on or after 1 July 2000 a residential property and occupied that property jointly, separately or with some other person in any State or Territory of Australia for a continuous period of at least six months.
Tis a veritable minefield out there isn't it.
Maybe my reading comprehension is up the creek on a Saturday afternoon (help me please if it is) but the way I read these two points and based on the information provided in the first post it would APPEAR as if this person is eligible for FHOG as follows:
1. No this person hasn't previously owned a property.
2. They still haven't owned and lived in the property for 6 months or more. Yes they own a property but haven't addressed the residency criteria.
As I said earlier check with the supervising body but maybe my Saturday afternoon brain is all frazzled after painting a driveway with acyrlic sealer.
You don't say how long you have been employed so I may be out of line – but you wanted honest!
After tax you have nett income of ~$67K. Many bank will want to know where this is/has going/gone as you haven't any savings or equity to launch from. While there are some banks who do such things as 'family pledges' etc for security purposes your first real step should be to get a deposit behind you.
At the moment you have no equity and no savings.
While I am not a broker I would suggest this will be a major stumbling block to you as you try and move forward.
Only you will know which strategy suits you and your situation. As you rightly point out there are so many ways to purchase property the challenge is to work out which strategy suits you.
This forum is very much a cashflow forum if you were to wander around the net even more you will probably find people who wouldn't consider cashflow as being a very important goal when making investment decisions.
Each strategy has its own strength and weakness.
I suggest you list the benefits and drawbacks of each strategy and then run these against your personal situation. You may find there is a 'perfect match' for you.
We started around the age of 25 and held our first property for about 13 years – living in it for only 2 of those years.
Don't regret it for one minute as we were able sell the property and use the proceeds to build our dream home.
My only regret is that I/we didn't leverage off the equity we had in this first property. If we had done this then who knows where we would be today.
DSH wrote:I guess Im interested to know what others have done in a similar situation, and whether it worked both in terms of financial returns and lifestyle (I dont want to lay awake at night stressing about loan repayments, bad tenants, etc) . cheers! DaveYour fears are 'normal' – anyone who is conscious of these sorts of issues is either a fool, ignorant or dead. To me the fact you are wary of these issues is an endorsement of your financial acumen rather than an indictment on you.
Fear of debt can hold you back – make sure you differentiate between good & bad debt. While it is a cliched phrase it is to a large degree true, The key to debt is to manage it wisely and keep within the bounds of reason. Remember the bank use assessments and analysis from many different people over many different years to establish their borrowing limits. Under these circumstances you can be reasonable confident the bank won't give you any money if you can't afford it.
Congrats on the savings' regime – the way you have managed this would suggest you have the capacity to handle a loan.
There was a 'loop hole' which allowed individuals to purchase an investment property, not live in it and at some stage in the future buy their own home and still be eligible for the FHOG.
Best to check with the relevant websites – FHOG & OSR (or similar) in your own state.
Matters like these should always be checked against the relevant supervising authority.
Check with the OFT regarding 'or nominee' clause'
I understand (not 100% sure) replacing am 'or nominee' with a real name can trigger a second stamp duty calculation in some states dependent upon when the change occurs. In some case the simple change may be seen as a separate sale.
Worth a phone call.
Posted this elsewhere
My thoughts;
1. Maybe/maybe not depending upon the individual broker – property investing is more than just 'interest rates' as there are far more important things to worry about. You also need to consider such issues as capacity to maximise borrowing but even more important loan structuring. To me these last two items carry much more weight than 'interest rates'
2. I would be very surprised if you only get the 'same result'. Maybe from an interest rate perspective but as indicated above in 1 – interest rates are almost secondary in consideration to other aspects of lending money.
3. Yep brokers do get trailers. Not sure why this would be a concern as brokers are not allowed to people into unsuitable loans and if ever questioned by authorities need to justify why lender X and package Y were chosen. I am happy for my broker to earn his trailers – believe me he earns them.
4. A bigger perspective is required.
4jojo wrote:Wondering-1. Do mortgage brokers get better rates etc?
2. But I'm wondering whether I am better off going directly to a variety of different banks myself (yes, I'm aware it can be time consuming but so can dealing with a mortgage broker). In the end will I end up getting the same result?
3. I would be happy to use a mortgage broker to do the initial work and pay he/her a fee for this service but I'm not keen on the long term fees they get paid, even if it's paid by the bank.
4. What do you think?
My thoughts;
1. Maybe/maybe not depending upon the individual broker – property investing is more than just 'interest rates' as there are far more important things to worry about. You also need to consider such issues as capacity to maximise borrowing but even more important loan structuring. To me these last two items carry much more weight than 'interest rates'
2. I would be very surprised if you only get the 'same result'. Maybe from an interest rate perspective but as indicated above in 1 – interest rates are almost secondary in consideration to other aspects of lending money.
3. Yep brokers do get trailers. Not sure why this would be a concern as brokers are not allowed to people into unsuitable loans and if ever questioned by authorities need to justify why lender X and package Y were chosen. I am happy for my broker to earn his trailers – believe me he earns them.
4. A bigger perspective is required.
michaelandre70 wrote:Darek – agree with you on the classic saying – sometimes you just have to take a chance. but i think taking some precaution so that the risk is minimized, would be better.Without a doubt.
Due diligence should always be undertaken – they key is trying to determine what and how much should be done. Trouble is I have seen some people never take the step and live to regret it later.
