Forum Replies Created
Yes, this happened to me as well. I had a property that did not go up in value for over 5 years so had to fund a reasonable shortfall during this time. In fact, my rents also went down during that period so was stressed out constantly during that time. I tried to sell but would have got $10,000 less than what I paid. I decided to hang in by cutting back expenses and increasing my income. It paid off and now after 15 years it has gone up by 250%.
If you sell now you are going to incur a lot of fees. Eventually the property cycle will turn, so if you can somehow hang in, it's going to be worth it.
Have heard some good reports about the Property School. At least they aren't selling you a product. I heard that the course was very thorough, well organised and practical.
I was told that CBA and St George don't require ABN and GST. That was a little while ago so contact a good broker who may be able to help you.
Very hard to help you if no one knows where your property is located. Do you have a house or unit? How old is your property
I've bought vacant land and built on it but have decided not to sell. I made about $70,000 equity in each case. Fortunately I bought the land just before the end of our current boom so can't guarantee that I'll be successful again. I'm currently building another house in Carseldine, Brisbane and am fairly confident but not positive that I'll be okay again.
As long as you can cope with the holding charges such as interest, rates, government charges then you should be able to manufacture wealth in this current environment. Most people are too lazy to build so why not do it yourself and reap the rewards?
David Layton wrote:Senior Economist, Jason Anderson from BIS Shrapnel, says, "……. translates to a positive outlook for good positive growth for Queensland. It adds up to still being a very strong fundamental environment in terms of property price growth over the course of this year and into 2009". BIS Shrapnel forecasts, Brisbane is projected to show the best growth over the next 3 years and, by 2010 will be the leading long-term growth average of Australian capital cities. BIS Shrapnel research also shows that Brisbane, which of course represents a barometer for the whole SE Queensland region, is showing an imbalance between supply and demand and as a result, is set to affect prices. Jason Anderson believes the Brisbane capital will soon face a direct shortage of housing, especially for renters.
A lot of people are very pessimistic about price growth in Brisbane at the moment. With talk of even more interest rates, the market appears to have slowed right down. Some real estate agents and mortgage brokers have told me that they have sold very few homes and written few or no loans in the last 2 months. Are you suggesting that things will pick up soon? The signs do not match up with Jason Anderson's optimistic remarks.
You shouldn't have any problems if your father is guarantor. Have you gone to your bank yet? There are some great mortgage brokers around either on this forum or somersoft.com.au.
Not easy to get cash flow positive properties at the moment. Some of my friends are looking at building duplexes which will be either neutral or close to cash flow positive.
The only worthwhile lo doc at 90% is with RAMS. Their interest rate is very competitive It's a fairly new product so not all mortgage brokers can write them.
Not too many hot markets at the moment. I live in Brisbane and things are definitely slowing down. Last year's across the board rise of 20% plus won't be repeated although some commentators think it may rise by 5%.
I don't know of any capitals that are "hot". The only places that may increase substantially this year will be in regional areas. I've got no idea of how to find them. I'd much prefer to buy in capital cities as close as possible to the CBD and wait for the inevitable increase in prices.
I appear to have spent more than anyone else on this forum in renovating our bathroom and toilet but it was well worth it. I could have scrounged around for cheaper materials, read books, got the cheapest quotes from electricians, plumbers etc, gone to handyman courses. Instead I got topic quality fittings, tiled to the ceiling, hired the best tradesmen around and am very happy with the result even if it did cost me $24,000.
As an investor, I like to concentrate on more important things like negotiating a great deal, getting the best finance possible, buying in the best area possible and making sure that I've got the correct legal structure. I hate getting my hands dirty so like to leave it to the experts. Most of my handyman jobs have been a disaster so won't attempt them any more.
I'm going to build some houses on land that I own. Should get some greater rental returns here in Brisbane. Even though the capital gains won't be as high as last year, I'm going to keep buying if I can get hold of finance.
I think that there are going to be some great opportunities here as heaps of people keep coming to SE Qld and there is a chronic shortage of all types of property for both renting and PPOR.
I personally would hold on to the property as selling it and buying somewhere else may make the situation worse. For a start, the selling costs such as commission, legal fees and bank fees may amount to $15000 plus which means that you going to be left with a maximum of $125,000 (or even less) for future investment. What are you going to do next? Buy into Melbourne, Sydney or Brisbane where the markets have softened and your returns may be even less? The latest Residex figures showed that nearly all captial cities had a decline in property prices for the month of February.
My advice is hang on to the property. Sooner or later, there will be an upswing and you'll be able to use the increased equity for future investing.
Jackie1966 wrote:If you were to increase your offer by, say, $5000, at the end of the day this would mean about a difference of $10 per week to your mortgage (at 9.5% interest). Would you miss out on the house of your dream for $10.00 a week? I know I wouldn't. You keep saying that if someone wants to pay more than it's worth, so be it. Isn't a property worth what a buyer is willing to pay? It's not so black and white.I sold real estate for 8 years and often would have more than one offer on a property. My approach was the same … you have one go at this so make it your best. What's the property really worth to you? Are you prepared to let it go and start searching again? How long have you been searching? At the end of the day, when the property has gone up in value, will the $5,000 really mean that much? All property appears dear at the time but with the passage of time, they are cheap! My husband and I bought a property about 14 months ago for $513,000 (at auction). We were bidding against another buyer and had had the intention of paying only $470,000-$480,000 at the time (which was fair market value). We wanted the property and that was the upshot. We paid some $30,000 more than we had intended. The property's value is now $800,000 and that is without exaggeration. So, in hindsight, it was a good move.
Do you intend to live in the property for some time? I know that there are no guarantees in life, but if your plan is long term and you can afford it, increase your offer by $5000 and GO FOR IT! I'm not saying that you'll get it for the extra $5,000 but one would think it would put you in the ball park. If the $5,000 takes you over the listed price, EVEN BETTER. I have sold many properties for more than the listed price and I've never once had a buyer say that they had regretted paying the extra money. In fact, with the property that my husband and I bought, that I mentioned above, the reserve was set at $490,000. We didn't quibble about the fact that we had paid $23,000 more than the seller wanted. We're just so glad we bought it!
STOP MUCKING AROUND or you're going to miss out. GOOD LUCK.
Regards
Jacqueline
I totally concur with the above comments. If you really like the property go for it!!! Don't worry if you have to pay a little bit extra as long as you can meet the repayments.
About 4-5 years ago, a relative of mine paid $320,000 for a house in the inner suburbs of Brisbane . A few months later he had buyer's remorse thinking that he had overpaid by $10,000 to $20,000. Do you know what? It is now worth $600,000 plus.
Qlds007 wrote:Yes only top ups to existing loans are being considered with no new lending.They closed their doors last Friday and the State Manager tells me that future deals need to be done on a full doc basis only with Nodoc / Lodoc products being withdrawn.
Richard, what do you mean by top ups? I already have a no doc loan with Macquarie for the purchase of a block of land. I now want to construct a house on the land. Will the construction loan be considered a top up?
I've just come back from talking to a representative at Australand in Carseldine (14km north of Brisbane). 3 house and land packages were put on the market starting at $529,000. They were sold out within 4 hours of release. He showed me the contracts and said that he still has a waiting list of unsatisfied customers. The 3 purchasers were all from interstate with incomes that are double the average.I think that the market is going to flatten out in some price ranges (very upper and very lower) but don't forget, there are couples out there with very high incomes, who will continue to buy despite interest rate increases.
Australand has no land available for sale in the northside. They expect their next release will have a starting price of $285,000. This is 15% more than their stage 2 release.
Ian Landy wrote:Hi Lucky,There may be a market for such a course but their are so many different strategies that the course would be very general in nature. Like Marc says, get in their and do it. If you have read 10 books then you don't need any more academic stuff to confuse you. Just pick a strategy and go for it. Procrastination can be a real wealth stopper.
Ian
The only thing wrong with "get in their and do it' is that you can make so many mistakes along the way even after reading 10 books. It's good to be able to do a course such as the TAFE one, ask questions and get some feedback from those who are not trying to push an idea. A lot of the books that I have read in the past are trying to sell a product.
Qlds007 wrote:Rams 90% Lodoc I would still classify as flexible and competitive.I agree with Richard. RAMS 90% lo doc has an interest rate of only 7.95%. Very flexibe and competitive. My son is applying for a 90% RAMS loan at the moment and ,so far, is very impressed with the product and service. Exit fees are under $500. What is X Inc Mortgage Company's rate once the discount is taken off.
Do you really need a trust? I know some wealthy people with over 20 properties who don't think that trusts are necessary.
My worst mistake ever is that I have been too cautious (or maybe I have just been too lazy!!!). I've had so many opportunities to invest over the years but have never got around to doing it because of my negative mindset. I could be hundreds of thousands dollars wealthier today if I took more risks when I was younger. There were properties that I could have bought if I was surrounded by good mortgage brokers, solicitors, agents and tradesmen.
Over the last 2 years I've joined forums like this, read many books and meet with some like minded investors. My mindset is better but have to be careful that I don't go back to my old cautious negative ways.
