Forum Replies Created
Thanks
I will probably try to get 100%. Just spoke to my current bank and they said due to financial crisis blah blah, they can only do 90% including LMI. Will speak to a MB to see what else is on offer. Just out of curiousity, what lenders still offer 100%?
My solicitor faxed my signed purchase contract and application documents to One Direct.
Originals were then sent afterwards.
Just saying as it is.I have an investment loan with one direct.
I had a tight deadline and they managed to finalise everything very quickly.
Also, I was assigned a primary contact so that person got to know my situation fairly well
They are based in Melbourne though so all documents will need to be sent/faxed if you are interstate.
Hi
I have a 2 bedder in the Sydney CBD ( Summit apartment on George Street) which I purchased late last year.
Purchased for $425K and identical apartments in the same building has since been sold for around the $460-480K mark depending on the floor and layout. Based on records, the original owner purchased it in 2002 for $350K.
The only thing I can say is right now (and also before), rental demand in the Sydney CBD is quite high. There are many people wanting to rent because there are always going to be international students, working professionals and so on. On the downside, CBD apartments usually have lower capital gains and have associated costs involved such as strata levies etc.
My apartment is nearly positively geared.
If i was in your shoes, I would stick to uni and get a p/t job as a clerk or similar at a law firm.
Things happen in life and can be unexpected. Having the degree gives you not only a piece of paper but also many opportunities in the event things do not go your way and you need to find a job. I have completed a combined engineering/business degree last semester and I am currently touching 6 figures income. Could I have done the same without my 5.5 year degree? I believe so. However, the degree has given me a foot in the door and many opportunities in both IT and finance industries. Sure, people like Bill Gates, Zuckerberg etc never had degrees. So too are many people who can't afford the basic necessities.
In regards to investing, banks would be looking at whether you have income to service the loan. Having a p/t will undoubtedly be a benefit but it is important to see how well can you handle the workload? You mentioned you want a $200k job in the USA and complete a MBA at Harvard. My gf's friend graduated from Law at UNSW with first class honours. She is registered in Australia, UK and USA. She is currently working in Hong Kong at one of the best law firms doing 13-14 hour days and getting paid only about 10k more than me. You will definately need to work just as hard if not harder than her to acheive $200k and Harvard acceptance.
If I was in your shoes, I would dump the money into a high interest savings account and not touch it for x number of years. When you graduate and want to pursue a masters at Harvard, you will need $$$$ and not be bogged down with mortgage repayments as a MBA will not be cheap especially at Harvard.
I admire your ability to save $50k in one year. It took me a bit longer to do that which I used as a deposit for my first IP. However, my goals are different to yours.
Hi
I've purchased an apartment in the Sydney CBD earlier this year and have looked at countless apartments ranging from older ones (e.g. regal, regis, millenium etc) to new ones (e.g. world tower, lumiere) etc. In the end I settled for an apartment on george street which is roughly 6 years old.
I dont really know if the older ones will risk being torn down but I guess if they do, then I guess all the owners would get some sort of payout figure. However, should note that older apartments will usually attract higher strata levies because generally more stuff usually goes wrong.
Currently in my final semester of a double degree. Dont think I could've managed to make the puchase if I didnt work full time and studied at night (puchased in November 07 and settled on the 1st Feb 08).
However, whilst it may seem like a good idea to start early, there are a few things to consider.
* Are you going to change jobs (if so, try to continue saving regularly as banks dont like changes)
* Will the job be stable (having a mortgage will have immense dependence/pressure on your job security)
* Will your salary be able to support everything. E.g. rates/strata etc etc. Also will you be puchasing the property as a PPOR or IP? If the latter, remember there is stamp duty unless you puchase it as a PPOR and rent it out 6 months later (in which case, you will have 6 months of no rent to support your mortgage repayment)I'm a SINK 'single income no kids' (hahaha as opposed to a DINK)
I'm currently working f/t and also in the last year of my degree. After working the past 2 years and despite the fact that I have a "very" decent salary (compared to people who have worked around the same time and longer in my industry), I decided that I did not want to work in IT/consulting for the rest of my life nor work for somebody else.
Decided to break into the property investing scene early so that I can secure 1-2 properties and hopefully gain some rental income after I have paid them off. This way, if I decide to start a business, I still have enough income from rent to sustain my lifestyle should anything go wrong.
Another reason is my inability to save money if its sitting in my bank account. I tend to slice bits and bits off it and before you know it…. i've used a large portion of it. Figured if i used it in investments, it'll be harder for me to touch it.
Cheers
Eric
I agree with the different perceptions they will use to sell the property based on investor or home buyer … e.g. rental returns for investors or safe environment for families etc etc
I also found most RE agents (5 out of the 8 I saw) tend to not take younger investors seriously.
I had one asked me to show a bank balance before wanting to deal with me.. I'm like "what the?".. just plain rude
Others just didnt even bother showing me around the property or answering my questions.
i'm not "that" young btw
Hi Mate
If you are looking for pure cashflows, then student accomodation could do it.
However, apart from the limited capital growth, banks are usually tough when it comes to student accomodations as they are harder to resell if anything should happen.
I myself am a student and I know my fair share of interstate/international students. I found that a large majority tend NOT to rent from unilodge/student accomodation but rather, rent out a 1 bedder or split a 2 bedder with other students near the university and/or CBD. Maybe look into that.
Dont dive into PI just for the sake of buying something. Look at your long term goals.
cheers mate
