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That's a hard question. You need to get quotes but be careful that you compare apples with apples as a lot of organisations provide such varying products. Try to negotiate a discount with RAA if you go with them.
You'd be better to pool your money. I'm against buying property in small rural areas because of possible low capital growth.
You could start your property purchasing now with little or no savings. Don't forget you would be eligible for 1st home owners grant of $7,000. You need to contact a mortgage broker as soon as possible to get your borrowing capacity assessed. In Brisbane we are in fast rising market so the longer you leave your purchase the more it's going to cost. I think that the median price of a Brisbane property is going to rise by more than $80,000 within 2 years.
There are heaps of books around. There are some on this website as well as somersoft.com.au & propertyupdate.com.au & custodianwealth.com.au. Go to Borders bookshop for a very comprehensive range of books – make sure you buy the Australian books, not the American or English ones. Also, in every edition of API you'll get a list of books at the end of their magazine. Why don't you look at a couple of books and ask this forum for their opinion before you buy. Two books I'm reading at the moment are: "How to achieve wealth for Life" by Melvin & Chan, "How to grow a multi-million dollar property portfolio" by Michael Yardney. Very impressed with both books which are easy reads.
Even though you are retired, you can still get a mortgage. You need to see a decent mortgage broker about no doc /lo doc loans.
graeme garden wrote:I have recently bought 3 properties in Deception bay. 1 is a bare block of land on Esplanade Nth, the other is newish 3bdm house further up on the esplanade nth and the other has direct water views thru a park in sampson st. i am buying these as a long term hold and plan to build on the block in november 08. the yields are crap overall compared to what i paid but the equivalent waterfront in redcliffe, sandgate etc is double the price.
any thoughts?? does anyone else believe the waterfront growth in this suburb will outperform in 08/09??
i like the area and plan to move into one of the properties within the next 12 months and i believe that like wynnum, redcliffe and some other bayside suburbs, Deception Bay will shake off its negative image especially with continued development in the area and overall scarcity of waterfront 35 mins from the city.
have i made a sound decision??Residex has targetted this area as one of the growth suburbs next year. Yes, it still has a negative image but due to its closeness to water will do well in the future. I don't think that it has the same infrastructure as places like Kallangur where I have bought. My property is close to rail, a massive shopping centre and plenty of schools.
As you have already bought, I wouldn't be too worried – you'll do well in the long term. What makes you wealthy in the future is the capital gain, not the yields so if you have good reserves of cash you won't have any problems.
Qlds007 wrote:Yes you can still obtain 80% Nodoc. Because the loan is mortgage insured there are certain post codes that the mortgage insurer will not lend hence this style of loan is not available in regional or rural small town areas where some of the higher + returns tend to be.
Thanks, that clarifies your earlier statement. Apart from RAMS, can you name other lenders willing to give 80% no doc.
Qlds007 wrote:1) You will get 80% Nodoc however every loan is mortgage insured so you will be restricted on where you can purchase.
What does the above mean, Richard? Does it mean that you can still get 80% no doc – all my contacts indicate that .apart from RAMS, it is very difficult to get 80% no doc. Why will you be be restricted on where you can purchase? I must be reading you wrong.
Some lenders are making it even harder by charging mortgage insurance on all no doc loans. This is a recent development since the sub prime problems in the States.
With a no doc loan you must have an ABN. You only need it for one day. No GST registration is required unlike a lo doc loan where you may need it for a reasonable time. Requirements for these loans is constantly changing as well.
The good thing about no doc loans is that it may mean the difference whether you can buy a property or miss out.
Here is a copy of a post from Steve McKnight from another thread: Comments???
Hi,
To throw in a different opinion, if I was betting on the next city in Aus to experience above average growth, I'd be putting my money on Sydney.
Adelaide is at the tail end of a recent boom, Queensland is experiencing a increase in prices, but when Sydney goes again, it will make both look insignificant by comparison.
All in all, there is money to be made everywhere. Your choice is best determined from your experience and skill base rather than picking a location and trying to strike it lucky. That is, what you do is more important than where you do it.
Cheers,
Steve McKnight
His comment but when Sydney goes again, it will make both look insignificant by comparison is interesting. Not exactly sure what he mean but maybe Sydney is getting cheap
I'd be very wary of becoming a mortgage broker these days. It's only a matter of time before a client is going to sue a mortage broker for giving bad advice. Is the professional indemnity insurance going to be enough to cover him/her? Even if it does ,it's going to mean that skyrocketing premiums for the next year.
As usual, the mortgage broking industry, like most industries, won't act until all hell breaks loose.
Francesca Chakich wrote:Do you know the QLD is predicted to have the highest population growth in the next 50 years.I think QLD is the best place to invest long term. Esp SE QLD….. running out of land in between the ocean and hills :>
I think Adelaide is a good short term investing place but long term, very average.
I agree with you Franseca. For the long term, I prefer SE Qld. Its fundamentals such as population growth, massive new infrastructure, new businesses relocating & its closeness to resource rich areas are the reasons I have bought quite a few Brisbane properties over the 18 months.
Just read a post from another forum: Bit of an eye opener last w'end.. Attended auction at West End (Bris) old colonial house on ~280 m- everything in original condition
A few wks before the auction the agent mentioned a house in the same street went for high 500K's earlier in the year so due to the inferior condition of this one it should be 500-550 range.
Every man and his dog turned up and it went for $670K.
WEnd- nice place to buy but a somewhat hot market currently
Brisbane is currently in a rising market which is predicted to peak in the next 2 years. I still think that there is money to be made in SE Qld but people have to get in within the next 6 months. I've been saying this to my friends and family for the past 2 years. Fortunately, some acted on my advice and are extremely happy with their decision.s My son bought a place in Stafford (7km from the CBD) yesterday. He is confident that it will do well in the short and long term.
Hey Fransesca Chakich, you have repeated yourself 8 times. Can you delete 7 of your posts
cutegal wrote:is there any successful property investor in melbourne woho would giv eme some mentoring. i relaly want to turn around my family's situation.If you were in Brisbane, I would love to help you. If you can't get anyone to help you, there are meetings (very little cost) that you attend with like minded investors. I'm not as familiar with this forum as somersoft.com.au which advertises a meeting point for Melbourne investors. I think that they meet in Blackburn.
Add these ones:
1. Must be ethical. There must be someone that mortgage brokers can be checked for past criminal and unethical behaviour. Is this the job of MFAA? If Reedy thinks that FBAA are old hat then its no use relying on them.
2. Should not involve a conflict of interest. Don't use brokers who are working for the agent or company you are buying the property from.
3. Must show basic manners. I will never ever again use a broker who promises to ring me back but never does. It happened to me with 2 brokers and I will always remember to bag them in front of friends and family. It is so rude. Brokers who have been late for appointments are also annoying, especially as I have a tight schedule during the day.
I agree that recommendations are one of the best ways to go.
As well as the ones mentioned, you should add:
1. Must be good communicators. They must be able to explain things clearly to non-finance people. Need to return phone calls, email, text messages prompty. Need to be contactable easily.
2. Must be up-to-date with all information.
3. Must have at least one investment property themselves to that they can empathise with investors and owner occupiers.
4. Must be properly mentored by a successful mortgage broker.
5. Must be able to think outside the square. ie should be able to handle difficult and complex cases.
6. Should be tertiary educated (degree or diploma) not just members of MFAA or FBAA. I've already mentioned in another post that I don't regard Certificate 4 as being sufficient.
All my landlord policies (except one) are with Elders. I tried the banks but their policies are a lot different than Elders. It was very hard to compare apples with apples. I had a couple of tenants who shot through without warning. Landlord insurance covered me for many weeks rent until I could get another tenant.
Anyone landlord who doesn't have this insurance is crazy. One tenant started off okay but went off the rails after a few months. Landlord insurance covered me for the losses that he incurred.
Body corporate insurance covers common property so if the front yard fence and the garage door didn't belong to one particular owner then body corporate would be responsible. You need to contact your body corporate manager with the specifics who should be able to answer you.
If you are in a body corporate you need to pay for most of the contents insurance. You should also get landlord insurance.
Shaun
I've just refinanced all of my loans because my bank constantly made it hard for me. I had over 10 loans and stupid me, didn't realise that they were cross collatirised. It cost me over $20,000 but was well worth it because my broker was able to get 2 deals over the line for me. If I stayed in the same bank, I wouldn't have made the $50,000 which I think that I've so far made.
The bank was one of the big four and must say that the manager bent over backwards to help me. However, in the end, I'd had enough because they kept on saying "rules have to be followed". I tried to reason with them that I had the capacity to pay but they kept on ignoring my pleas.
pete g wrote:I think that area is a cracker for a lot of reasons and would hold for sure. I have quie a few savvy investors as cleints who have bought in this area and are looking for more. Good time to hold an asset in SE QLD.
pete gwynne
[email protected]
0423 028 239Thanks Peter G. I've just about made up mind that I won't sell.
bardon wrote:
With respect to the news article its interesting that all the pundits are talking about Roxby Downs being a major driver for Adelaide. The expansion has not yet reached FID (Final Investment Desicion) so it is not a certain project. The project has some huge capital expenditure blow outs to deal with before it gets the green light so it is not a certainty that it will. I think it will go ahead but it is misleading for the pundits to talk as if it is a done deal.That's interesting information. I thought that is was a certain project. I'l stay away from Adelaide until Roxby Downs becomes more certain. Will stick with SE Qld for the moment. Don't know much about Sydney but it will have to start going up soon when investors start moving back due to the dire shortage of rental properties/
Apart from Richard, any other mortgage brokers out there? What do you think about the qualifications needed to become a mortgage broker? What a sham – only a certificate 4 to become a mortgage broker. I recently finished a TAFE cert 4 (not mortgage broking) in 3 days with no homework and no exams. I only had to attend, fill in a few workbooks, had a few discussions, that's all. I've got a feeling that the lecturerer didn't even read my workbooks because I got my certificate 4 within a few days. Some in my class only attended half the time and still got through.
