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Are you looking for any type of apartment in particular? There are a few ways you can do this.
Is it for an investment or PPOR?
alokahuja wrote:anyone in Sydney Metro AreaI know a lot of people in the Sydney and Melbourne areas if you're interested. I've worked with heaps of them over the years, but have really only paid attention to a few over the years that I feel comfortable with.
I always tell people that buying off the plan isn't that much different from buying new as far as value is concerned. You want to look at the price as if you were buying it today, and compare it on that basis. The fact that you may not have to pay for it for a while is just a bonus.
eg:
If similar properties are selling for $350k, you have to ask yourself, what is the premium for?
If similar properties are selling for $400k – again ask why.Terry is spot on with the lending risks, I've seen it happen quite a few things when things change between exchange and settlement. One thing that is affecting people at the moment is they bought off the plan two years ago expecting to get a 97% loan, and have not saved sufficient of a deposit to get it over the line if they no longer qualify for a high LVR.
So the answer? It can be good, but be very careful, and just like everything else, research research research.
What and where is the project? 55+? Nr the water or inland?
Hi Karen,
Loved reading your post – well done, it's such a satisfying thing to see the end project.
Bonus on not having a nervous breakdown while doing it all! Hats off to you – it's a great job.
Looking forward to hearing what you're doing next!
Hi Simon,
I would recommend that you contact Just Rent Sydney – they look after me personally and I also send them quite a few clients. Their website is http://www.justrentsydney.com.au
I have no other association with them other than I think they're very good at what they do.
Best of luck finding a tenant!
Hi there,
You certainly have sufficient equity to go ahead with your plan, however a few important things to consider:
If you borrow money for the purpose of buying your own home (PPOR) then the interest on that money which you have borrowed will not be deductible. While this is not a good thing, there are ways to fix that. Considering that you have some investment income, you can structure your affairs so that your debt is slowly recycled and becomes more tax efficient. Be warned however, there are ways to do this, and then there are ways not to do it.
Secondly, budget is important. Considering you have a joint income of $170,000 and it appears that you don't have major comitments (strong rental to cover your debts) then I would assume that you can afford to move into the property – however doing a budget will confirm this.
Finally, depending on what arrangements you can make on the purchase of the property, there are other structural ideas that you can utilise to may be able to shuffle things around – however it's not the kind of advice that can be given without a more thorough analysis. PM me if you like and I can take you through a few more things.
Hi SydnerCider,
I always tell people that it's best of to look at your broader situation and what you want to achieve, where you want to go etc rather than looking at a specific transaction. If you sit down (either by yourself or with a professional) and map out as much as you can, the best way forward will actually become quite apparent. There are many different structural changes and ideas that may aid you – such as where you want to live, how you want to live, will you have a family etc etc – as that will make the difference to how you structure your affairs, if you use trusts etc etc.
PM if you want a checklist of things to go through to get you heading in the right direction – while it may seem like short term overkill, getting this right will make it all a lot easier in the future. The other important thing to keep in mind is flexibility becuase things change, and what you want today may not be what you want in the future.
Hi Ash,
It would be possible for your parents to buy the property in trust for you – they would have to trustees of the trust and go guarantors of the loan. Effecitvely, they will be the ones responsible for the property and the loan – the trust structure just ensures that the benefits may be passed onto you rather than your parents. There are many structuring ideas that may be relevant, but you are best off receiving property legal and financial advice – I can't advise you on here obviously. Additionally, there are taxation elements for you to consider as well being a minor. Again, proper advice is necessary.
Well done on taking control of your financial future so early – it always puts a spring in my step to help people out at the start of their journey.
I can recommend one to you – but would prefer if you PM me.
Have a great day!
In my dealings with finance, if you salary sacrafice anything, it comes off your salary and the banks take that net amount for your servicability. An alternative that I've seen is them adding it back in and treating it like a normal car loan – the reasons behind this is that if you either decide not to salary sacrafice or can't in the future, you'll still have those payments to be made. Could it be possible that if they took this approach that you would have falled short on servicability?
The law is quite painful when it comes to paying for financial planning fees. While the fee itself may not be deductible (the ATO counts some fees as capital in nature if they are going towards the setting up of your financial affairs rather than the ongoing management of them) the interest on funds borrowed to pay those costs should be.
Obviously, check with your accountant or the ATO for further clarification.
It really comes down to the lifestyle that you want to live – where you're going to be working etc etc. If you want to be close to certain things etc etc.
Post a little bit more about your expectations, that will help.
Hi Yiima,
Given the current state of the finance market, you are not alone with your frustration and concerns.
If you were going to go to a different lender, the lead time would probably not see you settle on 26th June as lead times are a bit long with the banks. Most finance companies are not ordering the valuation until an approval has come through, and this is adding further delays to an already buckling system. It's also possible that someone delayed in ordering a valuation for you. If a valuation has been done, it should be close to getting through, however it sounds like your broker is not particularly supportive.
There is an alternative to get the transaction done for end of financial year – you can arrange vendor finance with the vendor – that way the transaction goes through before end of fin year, you get to keep your "home" and the finance can be a little late. There is a chance you'll have to pay a premium for that, but it's worth looking at as a back up option.
If the contract is subject to finance, it depends on the details of the clause as to what will happen – you're best checking with your solicitor regarding that. Keep on the broker too.
Where abouts are you?
I've sent people to a guy called Shukri Barbara in Chatswood. He has a practice called Propery Tax Specialists.
I know Ed, he's a very smart man, however you may only get to deal with the accountants in his firm rather than Ed himself.
If you have no luck there, PM me.
Best of luck!
Hey there,
I'm not a lawyer and I don't know the WA law particularly well, but I've had some experience in these matters. When lodging any caveat, you need to have a good, provable reason for doing so. Usually, it's to prepresent some sort of interest in a property whether it be equity or debt.
To quote "Where an improper Caveat is lodged, Section 138 of the TLA states the Registered Proprietor may summon the Caveator to appear before the Supreme Court or a Judge in chambers, to show cause why the Caveat should not be withdrawn. NOTE: Where a Caveat is lodged without reasonable cause, the law provides that the Caveator may be liable to pay compensation for damage caused."
I'm not sure what the cost would be to file in the Supreme Court, but I believe that you can do this yourself should you wish to – you'll just need to do some research and a lot of reading before hand to prepare. Getting a copy of the caveat is a good idea as it will arm you with the particulars.
For more information on caveats in WA, go to:
http://www.landgate.wa.gov.au/docvault.nsf/web/INF_LG_Lodging_a_Caveat_update_20080407/$FILE/INF_LG_Lodging_a_Caveat_update_20080407.pdfBest of luck.
Hi Nit,
Personally, I like to use effective cash yield… ie:
Net rent (=Total rent minus all cash costs (rates, strata, agent's fees etc))
___________________________
Property Purchase Price.Don't include any of the interest costs as yield is usually a measure of the income that an asset produces by itself.
Nothing irritates me more than seeing properties that "yield" at 9%, oh yeah, there are a stack of fees in there so the effective cash yield is actually 4!
The two options should be separate for you… ie, you pick how long you want to have your loan I/O for, and you pick if and how long you want your rate to be fixed by. You can have your loan variable and I/O if you like. You can have your loan I/O for 5 years, but the rate fixed for 1, 2, 3 yrs etc. There are a few restrictions on the combinations, but they shouldn't worry you.
Guys, step in if you know anything to the contrary, but that's my experience.
Each state has their own set of regulations at the moment relating to mortgage broking. Currently, I believe, brokers in Victoria are required to give their clients a document to sign appointing them to negotiate on behalf of their clients – this is supposed to outline any fees.
The current regulations outline that brokers can charge anything they want – and if someone agrees to it, then it's up to them. It sounds like your broker is complying with the rules, however they sound like they want you to pay a fee if you walk away.
There are plans for national regulation, but it's taking it time getter here.
For more information, Consumer Affairs in Vic have a section on their web site dedicated to mortgage brokers and VIC regulations. You can find it here: http://www.consumer.vic.gov.au/CA256EB5000644CE/page/Business+Licensing+%26+Regulation-Credit+Providers-Finance+Brokers?OpenDocument&1=30-Business+Licensing+%26+Regulation~&2=40-Credit+Providers~&3=10-Finance+Brokers~
