Forum Replies Created
some vendors may want to get greedy and slit the difference 50/50
Does anyone know when the payments will increase? Is it from today
what is you aim from making this investment? to be able to leave work immediately/scale back/building for thr future
Commercial property. With commercial propety max LVR of 70%, but in current climate stick to maybe stick to 50% – so buy $2million of property. Find a property with long term tennants. Do some research on the tennants to make sure they are companies that should survive any recession. This should make it CF+. Hold any extra cash you receive in an offset account. Keep an eye on the economy, whilst building you cash supply any keep an eye out for any new bargains as the economy improves and you are comfortable increasing the LVR above 50%. With any initial or additional purchases keep it CF+
When the US$ was at 97cents i would of been interested, with the dollar droppin to 63 i think its now out of my price range. If the REA was to throw in some airfares for me to view the property I may reconsider
I think the part you are referring to is when a contract is subject to finance. If a contract only states that its conditional on finance being approved, then if dodgy bros approves you for a thousand dollars @54% then that condition has been filled. Problem is that its not enough to purchase the property of with a lender you are happy with. By having that amount stated in the contract the offer only goes unconditional once you get the amount of finance you need.
Before going back to the REA work out if you are likely the get the extra $10k approved and if it doesn't (you only get the original amount) will you still proceed with the purchase. If you will only proceed if you get the $10k and there is a chance that you may not be approved at the higher rate then give the REA a call. Any change will need to be signed off by the vendor. If you will definately get the amount you need or happy to proceed one way or the other then there is no real need to change the contract.
hbbehrendorff wrote:If you want to make huge profits and secure your future, Dump all your paper (Cash, Bonds, Shares) As the world will soon realise paper is worthless and exchange it for Precious metals, Either gold or silver, These resources are so precious and finite, If Gold was shared to everyone in the world everyone would only have 1 ounce each, This shows you in how short supply it is.You can print all the monopoly money in the world but it will still be worth nothing soon, Every paper currency in the histroy of the world has had its value eventually go to 0, Because people eventually realise its a fraud. It looks as if the dollar will collapse sooner rather then later, You don't want to retire next year with only enough paper to buy a few loafs of bread.
Gold and Silver has a huge catching up to do to account for all the compounding inflation there has been in the last few dacades
I have been warning of what is happening today on this forum months ago and everyone laughed and mocked my statements, Now the combined stocks of the world are loosing 3-5% a week, This is 1929 stuff yet people still are not waking up.
Educate yourself as fast as you can and protect yourself from the comming ecconomic collapse.
Remember, Knowing the truth is power, Living in a bubble of doubt and unknowing will result in fear and panic once the S%^ hits the fan
Do you type this each time, are just cut and paste it. Have read the same thing so many times in so many different posts
First of all Nilson your are incorrect – you legally don't have the right to interupt me – I am listed on the DNC list. Is your company one of those that like to disregard this list. Secondly when you ring me you don't know what my current situation is with property investment. I may have a portfolio that is already working perfectly well and enjoying a nice meal – one of my luxuries – to be interupted by a company that wont be able to offer me anything more then what i currently have.
Scamp wrote:yep , me too, positive about the sharemarkets in the future. Much more money to be made on shares than on property. Renting and investing is a much better option than buying a property.
Why lose 50K a year and even more on capital losses, if you can make 100K a year with the same investment ?
Doesn't make a lot of sense to me. I'd rather invest my cash in shares ( the right ones ) and make money instead.Plenty of opportunity is there, just not in property.
Scamp, some very big differences in investing in sharemarket v property. Both investments have cyclic movements, but the chance of being forced to take a capital loss or loose all invested is greater with shares. With shares the value could drop 50% and then have another company make a take over bid. If the bid is succesful you dont have the option of holding the shares until it regains its share price. With recent actions of some companies it is possible to have shares in some companies that go into liquidation and have no return to shareholders.
If you are using a leveraged investment with shares, if the share value falls you will be required to make additional capital payments or once again be forced to sell at a capital loss. With property, if you buy a property for $300k @ 95%LVR and the value falls to $250k over the following year, the bank wont force you to sell if you are still able to make repayments and you don't need to make additional capital payments. In a few years time the property prices have improved and you have maintained your investment.
Nat,
Good to hear you are feeling more comfortable, good luck and hope it all goes well for you.
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Ehm…Let's look at the facts as we've been given them:
- Nat herself said "the values in the area have dropped by about 15% in the last 18 months".
- Nat herself said "we could expect between between 550 000 and 570 000 to sell" and "at the height of the boom the value was 700 000". That's a drop of between 18% and 21%.
- Nat herself indicated that she expects prices to fall further: "…as well as capital losses".
- From Nat's figures it looks like this house was renting for around $15k per year and valued at peak at $700k. A gross yield of around 2.1%.
- At $550k, assuming the $15k rent is about right (plus NG & depreciation bringing it up to $25k) the gross yield is 2.7%
Considering all these "other factors for this one particular house" as you put it, it's pretty easy to draw the obvious conclusion that the property is fundamentally waaaay over-valued (ditto for every other dwelling in Perth IMNSHO). If there's any positive in all this, it looks like there's a chance that Nat might still sell it to a greater fool for more than its fundamental value (I'm not going to personally disclose here what I think the fundamental value of a $15k gross yielding asset is… trust me, you'd heave up your lunch).
Cheers,
F. [cowboy2]
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I know she said it has gone done in the past and has the FEELING that it will continue to go down. Knowing the other information, especially the suburb will allow people to comment in a different way. Even though Nat says she feels it will continue to decrease, another member might say that that particular suburb will be a good one to hold due to some particular reason. For example, if it was Ellenbrook the prices there would be effected by the extension of the railway. If its another suburb a forum member might be able to give information on a new business, estate, planning changes, etc that may give a positive light to that suburb. My whole point is alot of people are basing their decision on whats happening worldwide and in their own parts of the world. In some suburbs tonight 90% of the poplation of that suburb may think that their housing prices will decrease in the next 12 months, the other 10% may be more optimistic – some of them may know some information that will help increase prices in that suburb.
Devo,
You state that prices are falling, the house in question is located in Perth. Perth has some suburbs that are falling, some that have fallen but have started to turn around, some that are pretty flat and others that have continued to increase (although at a decreased rate) during this whole cycle. I think its imposible to make an acrose the board recommendation without considering all the other factors for this one particular house.
by the way scamp, do you have any idea about where this house is located in perth, do you know where perth is, do you know the demographics of the different suburbs in perth, do you know the median house price of a property in perth, the median house price of the suburb in question, do you know which areas of perth have high rental demands outstripping vacany, do you know the facilities in this house, what services are in the suburb, is the house one or two stories, how big is the block, what is happening in adjoining suburbs, with the change of government – is there going to be any shift in policy that may effect value eg new infrastucture, does the house face north, is it double brick, does it have a tiled roof or metal? If you dont know any of this infomation you just show how stupid you are in being able to "value" a property without these pieces of information. The reason most people loose money in RE is cause they make decissions without knowing all of this sort of information and buy using there heart
scamp,
lets say 6 people look at this property, the price they offer is 500, 525, 560, 560, 570, 575 and of course scamp with his offer of 250. this property is worth 575. Even if there were a million "scamps" (god help us) the property is still worth 575 as you have one person willing to pay that price.On the issue of job losses, yes there will be different job losses in the economy. Some jobs are recission proof others want be so lucky. YOu have no idea of the type of job macnatt has, yet you make these predicitions about them.
Scamp wrote:Please let us know what you sold your house for ( if you can even sell it in this climate ).
My guess : You will put it on the market for 570 now.. In 4 months you will drop to 550, in 9 months you will be without a job and you will put the house on the market for 450, and in 15 months you will be bankrupt and the house is sold on Auction for it's real value of 250 ( and it will probably still keep declining for 5+ years )Please keep me updated.
And how did your crystal ball work out about the job loss. Some of the things you say have some degree and credibility. Posts like this one just dont do much at all, unless people are looking for a laugh. You say to put it on the market at 450 as thats all its worth. A property is worth what just 1 person is willing to pay for it. If someone is willing to pay 570 why put it on the market at 450?
For a personal loan the banks will want to see some proof of income. If you have a property to use as security then the lo doc or no doc options are possible. You will pay higher interest and need a lower LVR
Como, highgate,east perth etc are good for units as many renters wanting units close to city. Also good demand for houses in suburbs a bit further out for younger families.
One of the things to consider when choosing unit or house is what is your long term objectives? If you are looking at a long term buy and hold (plus being in Melbourne in a couple of years time) then units will have alot less maintainence issues to deal with, and normally a stead income flow. If you are looking at property developments later on then an older place on a big block. If you bought a block in Balga it can be sub divded etc, but being an older place you may have to spend a bit on maintaining the place before then.
If you are looking at living in the place for 6 months, find a place that looks a bit scruffy and spend some time doing it up whilst it is your PPOR. Give the outside a clean up, a new colour scheme, floor coverings, sky lights etc all add extra value to your place, make it more attractive to future tenants and you can increase the rent. Important thing to do is to get it revalued when you move out so the capital gains durring the time it was your PPOR was CGT free. This can be done to both units and houses. By the time you move out you would of gained extra equity (tax free) and have a higher cash flow when it becomes a rental. These two things will allow you to get your 2nd property earlier.
Regards
Todd
Another idea in a similar direction to what CHIS suggested is finding a couple of mates and go thirds in buying a 3 bedroom place. This way the banks will look at 3 incomes to service the loan. Depending on the interests of the different parties can come to an aggrement to hold it for a set number of years and then sell and use equity to buy your own. Or it could be a start of an investment group for later years
It depends upon your own personal goals. If you want to do a quick reno and flip, this isn't the time. If you are looking at increasing your portfolio and hold for the long term and have the financial resources to cover any unexpected increase in interest rates it may be worth looking around for a bargain. I personally believe that properties are getting closer to there low point but wont see great levels of growth in the short term. Depending on what parts of Australia you are in, rental prices are increasing at a fairly steady rate.
Scamp wrote:Please stay with 'momie' for a little longer, you really don't want to burn your little designer hands on this crisis.Come on Scamp, I don't care about your views, but lets treat new comers to this forum with some respect
