STICK WITH THE BANK !!!

Banks have been valuing and lending against property since land was invented !!!

THEY know what cycle we're entering long before the general market catches on…

REA and herd mentalities drive prices up… Banks follow conservatively, but then back off real quick when prodded by the possibility of high risk lending…

We all should know that BANKS ARE DESIGNED TO MAKE MONEY

Trust what they told you the first time… GET AWAY FROM THIS HOUSE… There are 1000's more all around you !!!

Thanks for expanding on this…

The property I did purchase has since been valued at $65,000 and I paid hard cash for it – $25,000 up…

The bank has advised that they are still pretty giving, but yes the insurers are a lot stricter. Before with 90% lend and good savings or 85% lend  they could be avoided but currently it's out to 80% !!!

The situation I'm now in is the title I'll receive at the end of the month I will have to hand over the bank…
Property against property ???

I'll now move to another area of the site to find out more on setting up such a thing if want to purchase up to 5 props this year ???

It has taken 6 years of savings and term deposits to get a realistic amount in the accounts where someone might consider lending to a self employed sub-contractor who's income is reliant on climatic conditions without having to go self certified and paying well above average… or affordable rates.

Now I do have the cash and an asset to contribute and an understanding consultant at the bank we'll see how far we can go…

Thanks for the advice, I hope our experience can encourage others.

ALSO, we are a single income family with 4 dependants under 7 !!! Our non taxable government assistance is not much more than my annual net income, after benefits of cars, equipment and other write offs.

My point is… that no matter your situation, if you have a savings mentality and are prepared to start with anything rather than the biggest and best… ANYBODY can make money from real estate !!!
I'm only 29, so there's a lot time for us to ride many more financial waves…

5 years registered… 1 year actively scouring through forums sponging all your information.
4 years sitting on the fence waiting… waiting… waiting for what ??? I don't know ??? But banks can be cruel…
Now I'm energised, 1st CF+ under my belt and ready to contribute…

What a forum and still so many nay-sayers !!!

I've been a self employed contractor for 8 years…

I was renting on the Sunshine Coast, unable to get finance for a 3brm townhouse with ocean views for $112,000 YES…
Only to see the same prop relisted 18 mths later for $354,000 !!!

I experienced first hand the mean price grow from $90,000 to $350,000 within 18 mths and totally missed the boat !!!

Well… finally we have relocated back to Melbourne where a brand new 4brm home is rented for $280pw, rather than a $400 3brm dump in Maroochydore…

Work is busier, rates are much higher, the general cost of living is drastically lower… therefor the bank manager is finally our friend

And the best part is… after 2 weeks of scouring the internet I have found dozens of CF+ oppurtunities.

The first was a 4 bdrm in the nth west listed for only $40,000 in a town where the mean price is $120,000 and rental returns are average on those. We found it late Friday night and thought, to be considerate we'd enquire at 9am Monday morning… Everything's closed on the weekend in the country. It was sold to the first caller late Friday night !!! The lucky owner might be reading this post right now ???

The following week we found our next opportunity, listed for $48,000 and rented for $110… small town but very well serviced and within coo-ee of major regional centers… We rudely disturbed the agent late Friday night and put in a offer… He called back the next morning and said yes to $40,000 !!! We got straight in the car and drove out there to have a few in the local pub with the agent and get to know the locals… What a great little place… Now we're assessing several others that havn't been advertised…

Browsing through the internet sites, we have found many others that have potential for knock down and build 4×2 bdrm's rented at $220 each and depreciated that would reap great CF+ over many years… But those are many away for us…
BUT there are heaps out there !!!

Many, many, many others that are currently returning 8%… with a coat of paint, afew ceiling fans, security screen doors and fly wire screens ??? Why couldn't the rent be raised in line with other higher priced rentals in the towns ???
Could it really be that easy to lift an 8% return property to a 10% with $2000, a handyman and a long weekend ???

I'm only starting very small… It's all I can get right now… BUT on Wednesday we have a meeting with a local big 4 loans consultant who within 2 minutes on the phone said it's not possible for me to get finance in our situation… but after prompting for another 5 minutes he confessed he'd only been with this particular bank for a few months so he'd check with a higher authority and call me back. He called back within 10 minutes with a range of options that may be available… after another 10 minutes he invited me in to go through the paperwork so he can put his strong stamp of approval on it, meaning it's 90% over the line ???

Wish me luck…

ADVICE : Before you tie up all your cash in one property, start as small as you can and build your confidence…
                 Hit below the belt with your offers… then walk away if it's not satisfactory (they have your number)
                 Before you can run with the wind at your back, first you may have to crawl up a hill into a cyclone.