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I agree with some of the sentiments here. I've got loans with all the Big 4 and find that they are not all that much different. Sometimes ANZ seem to be the best and then CBA may be the best. If you leave ANZ for another bank you may find that the next one may be even worse.
The key is to get a decent broker. They can do things which I've never dreamt of. There are some very good brokers on this forum.
Chinchilla/Miles are very expensive if you want to buy new but not sure about second hand stuff.
You'd have to go out a fair way from Brisbane CBD (ie more than 15 km) if you to buy a house for $300K. You may be able to get a unit but even then you will struggling unless you go a fair way out.
I have taken out a contract with Surat Basin Homes to build a house and land package. I am impressed with their product, being far superior to anything else around. I have been dealing with Di Ewen who has been more than helpful.
There is a program on the Surat Basin, and in particular Chinchilla, this coming Sunday 9th May on ABC Landline at 12 midday.
Terryw wrote:If it was subject to finance then she could get out of the contract, but it seems this was an off the plan type purchase. Long settlement. In that case no vendor is going to take the risk of a purchaser pulling out at the last min so they wouldn be unlikely to accept a finance clause, or if they do limiting it for a few weeks.
[/quote ]Good point, although I've never recently come across a contract that does not have a finance clause. I took out a contract about 2 years ago with long term (ie 6 to 7 months) settlement and found that finance clause was standard from the developer.
I still can't understand why you couldn't get out of the contract through the finance clause. You mentioned earlier that the exchanging of contracts forced you to go ahead with the contract – not sure what you mean.
I thought that all contracts these days had finance clauses. If you can't get the finance, you should be able to get most of your deposit back.
You mention that you got pre-approval which shouldn't make the contract binding.
I feel for you but a reduced rent is better than allowing it to stay unrented for too long a time. One of my units had to have its rent reduced by $70 to get someone in. Over time I was able to get it up to the market rate again and yes it did hurt but in the long run everything worked out well.
My agent told me to keep on reducing the rent by $10 a week until there was more interest. I had to reduce it initially by $40 and even then there was no interest. Sure enough, as the rent went down in $10 lots, my agent got more and more interest until it was rented.
I would definitely sell if what you say is correct. Before considering some of the other options ie subdividing I'd be very careful with your figures as it could be a lot more than you think.
It doesn't make sense to hold on to something which is constantly losing money. How do you know that there won't be any capital growth in the future? Have you checked with council to see whether there is going to be any new developments in the future?I'm with you, Sailesh. The demand, particularly from immigration and overseas investors, is still there. A lot of these migrants are cashed up in a market where there is a shortage of land for housing. Many investors are shying away from the stock market. They've got to put their money somewhere, and at the moment, it appears to be in property.
I predict a 6-7% increase in prices across Australia with Brisbane and Perth being the standout cities.
It's a bad sign if your agent hasn't been the most responsive. A decent agent will be creative and pro active, not waiting for you to make suggestions such as dropping the rent by $35. I had to go through a couple of agents before I got a decent one. The first ones never contacted me when re-letting a property; the current ones would ring me up once a week giving me an update plus suggestions on how I could get a tenant. My current agent knows how to use the internet to my advantage eg they were able to keep my property on page 1 for quite a while.
A decent agent can make all the difference!! I agree that the wording can make all the difference. It's not just the wording though, you need a decent photo of your property..
You may have to change your agent
I've been meeting with a group on the northside of Brisbane (about 14km from CBD) in a private home for about 3 years. No cost, free coffee and biscuits. No hidden agendas. There is an average attendance of about 10 which is nearly enough. We range from those who have one property to those who have over 10. We've got a successful developer, businessmen, professionals, unskilled workers. Our next meeting is on 15/2
Send a private message to my inbox and I'll give you more information.
JNM wrote:While I have also benfited from MY's books, newsletter and seminars but in my mind, it does not necessarily mean that his company's buyer agent service would be the most suitable for one's buying needs at a particular time. What I mean is it depends where you intend to buy in sydney, what kind of property and what your strategy is. Metropole specializes in historically high growth properties in a defined area from the cbd. So if you were looking to buy more of a <font color=”#990033″><font color=”#ff3366″>cash-flow oriented property</font> </font>in the outer western suburbs of sydney, I doubt if Metropole buying service would suit your needs in that case.The main reason I haven't used his organisation is because <font size=”4″>I require cash flow positive properties</font>. Michael's strategy of targetting high growth properties is great if you have the cash flow to support them.i've read many of his articles and have purchased all his books. Great information but doesn't suit me
god_of_money wrote:I still don't understand why people want to buy NRAS property just because of small tax advantage.Please enlighten me if I am wrong
The tax advantage is not small. It is currently $8600 per year, indexed to inflation. It is this payment that usually makes these properties, cash flow positive. Where else can you get a cash flow positive property in a great location close to 2 major cities? I've recently signed up for a NRAS property in Loganlea. The builder said that they would only be approved if the property was close to transport, schools, shopping and hospitals . Well this property is about 1.5 kilometres from a major hospital and train station, it is a 2 minutes drive to a university and TAFE, across the road from a large shopping centre, and walking distance to primary and secondary schools. It is also very close to the motorway which can get you to the Gold Coast in 40 minutes and to Brisbane CBD in about 25 minues.
A lot of people don't realise that a family can earn up to $91,000 and still qualify as a tenant in one of these properties so you are not necessary housing low income earners and unemployed. The government is very conscious of ghettos so will only allow, in most cases, a maximum of 30% NRAS in each new development.
I've signed up for a second property in Chinchilla where again I'll be cash flow positive. I'm still investigating all the pros and cons of NRAS but am at the moment convinced that they are a great investment
You could probably do something now without waiting for the loan to come down. You need to get yourself a good mortgagebroker who will tell you how much money you can borrow. There are some very good brokers on this forum. I'm also on somersoft.com.au which also has some great brokers.
Based on your income and equity you should be able to buy something now.
Tammy, do you know how of the 70,000 loans have been approved?
Tammy, not too sure what you mean that there are only 70,000 green loans. Does that mean only 70,000 of those who applied for an assessment will actually get a loan? If there are 360,000 assessments, surely more than 70,000 will be eligible based on the criteria I was shown.
I've been waiting now for 4 weeks for the report in order to get the green loan. How long does it normally take?
Which banks lend on these green loans and how strict are they on eligibility requirements?
That's a hard one as you don't give much information about income, education. My advice is to get as much education as you can, not the formal stuff at unis and TAFE but by following those who have been successful (eg Steve McKnight, Margaret Lomas, Michael Yardney, Reno Kings, Jan Somers, John Fitzgerald). There are heaps of books around so just either go to your library or to a bookshop in your local shopping centre. Find a mentor who is willing to show the ropes – that person will prove invaluable
Unless you have a reasonable level of income, you'll find it very difficult getting a loan.
There is an article in the latest API magazine re NRAS properties. The figures look compelling. I'm going to contact the 3 builders mentioned and would like to know if anyone has had any experience with Aztec Developments, Awesome1 Property and Surat Basin Homes.
The most attractive thing about these properties is that they are cash flow positive from day 1. Even if capital gain is not great in the first few years, I'm sure that over a long period ie 10 years, that they will do well. The other big attraction is the depreciation allowances as all the properties have to be new,
