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Sounds like a good deal to me, let me when you find it, I want one too!
I too have just taken out a second loan (LOC) on my PPOR in order to be kept in reserve for when I find a suitable IP.
It appeared there was some confusion as the head office wanted to know why I was not just doing a new loan once I found the property.. I stood firm, told them what I wanted and it was done. My only fear is whether it was correct for tax purposes to have it stated that the amount borrowed was intended for the purchase of an IP although apparently this is still considered 'personal use'. I made sure it was stated in notes that the intended purpose was IP (hope thats right).
I also spoke about the future loan and crossing. Again the loans manager said much like the above, it didnt matter, the bank would still have access to everything anyway. I mentioned difficulty in selling property or using equity in future, she continued that it made no difference and that what people say is not correct… I didn't know enough about why it important not to cross so I was unable to make a suitable argument.
either way I told her that when the time comes I will be insisting that it not crossed and she say thats fine, she can do either way!
They dont make it easy for newbies.
Agreed.. thank you acjd,
I certainly would be interested to receive a copy of your checklist and am sure that many on the forum would benefit. I am also sure that I am not alone in appreciating the generocity you are showing in being prepared to do work and share at no cost.
Thanks.
My other concern re: the broker is that I am not sure there is any money in it for them.
As I am under the NAB choice package it does not cost me anything to do this loan (I pay an annual service amount). Therefore I am unsure if there are commissions payable.
Could the brokers out there please confirm for me that if I ask for you to do this for me that there will be funds in it for you?
Good morning and thank you for your comments.
I am financed through NAB and I will have a chat to find out how they calculated my available borrowings. It's such a shame you really have to dig for details, they just say yep sign the form and we'll get it done.. get what done, how much can I borrow, whats the rate, what secure's it etc… arrgh (I kinda like tormenting the girl though, I swear I must be the only one that ask questions)
My suspicion about the amount and thoughts about using a broker from this site perhaps relate to the same issue (will have to investigate). My PPOR is in an area that is zoned rural and thus lending differs. I went to NAB in the first place because the local branch were able to vouch for the fact that although the area is still zoned rural it is a residential area, thus we seem to be able to get approval for higher LVR lending (NAB were the only bank that were willing to do this). My concern Jamie M is that if I asked you to do the brokering for me you would likely hit the wall with NAB based on the rural zoning?? unless working with a local branch manager??
Hello there,
I too am scouring the net for property checklists. Perhaps Property WA you have done the hard work for me and can lend a hand with what you have found.
And is it just me or has amanda and that website disappeared.. cant find it.
I hope there turning in a favourable direction for me!
Jason can you please tell me what you are looking at, at what you were referring to about 'tonight in the US'.
Sorry to be so ignorant, desperately trying to learn!So who was it that purchased that little property in tassie?… i see it is under contract
Thanks Jason,
I am sure that link would be really helpful if I could understand a word of what he said. Its an all new language to me
But there arent any buyers agents in my area, so there isnt anyone that buys several properties a month on behalf of clients.
But I get the picture – I'm a dill. At least I put my ideas out there and am learning.. thanks for the patience and contributions
I completely understand what is being said here and have done some homework. RPdata is a pretty fantastic tool. From this I can find out what the property was purhased for and when. One property I am looking at was purchased for $95k in 1999. It is currently listed at $330k. I understand that these sellers have since heavily invested in commercial property and would like out of residential investments.
On one hand I say yay.. If I purchased for $240k they would still have made 2.5 times their money in 11years – Thats not bad.
On the other hand its costing them nothing to hold it, in fact they would be earning a good income from it, so not real urgency to sell. (that said realising a profit can be nice motivation).When I first started thinking that my offers were going to be about $60k under asking price, I thought who am I kidding. Since then I have stumbled upon deals being done that are very similar – so my thoughts of it being impossible have turned to it could be possible, if I'm smart enough and find the right property. One property in this area sold for $205k, where was I that day.. dou
What is a buyers agent going to do that I can't?
Thanks Scott. I dont mean to sound like a fool. You see my pricing I feel is alot closer to the real market value that the current asking prices.
The majority of properies in the areas I am looking have been on market in excess of 100 days (some in excess of 12 months). They have often been listed with one agency and then changed to another and sometimes another. They have often had a couple of price drops but still no real interest. It is a common belief (even amongst the agents) that these couple of areas have been overinflated. They surround a key area and pices rose dramatically throughout the late 2006 – early 2009 as everyone was of the belief prices would continue to skyrocket (I'm talking 20% per year type stuff). But the GFC happened and QLD property seemed to take a hard hit. Property in the key area I mention has come back 20-30% but in the areas I am watching (near by) this is not so as yet. It is my belief that the sellers will soon need to accept the situation and also bring back their pricing expectations.
The way I see it, I can wait for that to happen, or I can be a bit more pro-active and get out there and make offers. I was talking to a seller in that area the other day (collegue) she not know I looking, she says she has home on market for $310. She would happily take $285 but she has had no offers at all (due to this she is not reducing the price) go figure? Now If she had to sell quickly I am sure she would need to consider my $240 offer.
Am I wrong?
It may be a simple as just applying for a settlement extension (quite common). Hopefully you have friendly sellers
Hello all, thank you for your feedback.
I did it!, I jumped right into that deep end (well deep for me, I am sure shallow for many) Do as the rich are doing (they say)
I took $10k out of my 'offset' and purchased silver. I may have made some mistakes already but sometimes you just gotta get in to learn (they say). I did purchase via one of those online sites (auction or not I dunno) prolly paid too much, dunno? this is the site I used.
https://www.ainsliebullion.com.au/Home/tabid/39/language/en-AU/Default.aspx
I can see it would have been better for me to buy in at $10 rather than the $28 I paid but hey, here's hoping it goes up and I know when to get out. If not I guess I just hold onto it until one day the value comes back.
My plan is to hold for 12 months while I study the property market as closely as possible and target my investment location. I can decide then. I thinking the risk is not that great. the money was saving me 7% interest in the offset but could make me more than that is people are right about silver (surely I havent missed the boat?)
One thing I can be sure of is its chances of earning me money are much greater than my first leap into investment… Some dodgy company (PLATINUM PROFESSIONALS) convinced me to enter into some scheme that was supposed to return heaps. As soon as they got my $2k they were never to be found again…. grrr (that was 10yrs ago and I am over it now.. not &*%$)
Hi white goodman, is that a foreign language? I having trouble understanding.
Are you saying, you feel that peoples interest in gold and silver has aided in driving the property bubble? (maybe you mean about ones willingness to accept more and more debt?)
Then are you saying that you feel that gold and silver is not at the top of its cycle and if you didnt get in 3 years ago, you missed the boat?
What are you investing in currently? property.. shares?
no disprepect intended, just trying to understand
Surely if i finally do find my suitable IP then I can sell my silver yer… so no risk unless silver goes down which is fairly unlikely yer?
owe it went down to worth zip….
How risky is investing in silver as apposed to property?
Sri, I am not the best person to answer these questions (sorry can provide the hints but not the clear advise) there are however poeple on here that will be able to help.. TerryW I believe is well versed in options etc (behaps you could search past posts on options).
I believe that in some states (perhaps VIC) by using an 'and or nominee' as the purchasing entity you can avoid stampduty and capital gain? (you purchasing entity would be eg. John Brown and or nominee). Prior to settlement you would arrange new documentation to be made up between the seller and the new purchaser.. (not all sellers are open to this so would have to check).
Options are different again and there are many types. The most common I have heard in 'off the plan' is putt call options. Again the terms of these differ in differing states (I think) also not all sellers will be interested in partaking in options. You will need to do some homework and understand it well if you are to negotiate for such terms.
I think Sri may be referring to investing 'off the plan' and onselling prior to settlement..
My understanding (QLD knowledge only) is that the original purchase documentation should allow you to onsell the allotment prior to settlement. Generally once the title has been registered there would be a similtaneos settlement. This is the time in which you would receive your profits on the deal (i.e. not at the time you sold it to the other). Generally speaking you would be required to pay stampduty and capital gains tax however I have heard of differing ways this may be reduced but can vary from state to state. I.e. securing the land under 'option' rather than 'purchase contract'. Using 'an or nominee' as the purchasing entity.
Many people have made money investing 'off the plan' however many have lost money. It is important to do your homework and have a genuine belief that the property will be worth more upon competion (not just the agents say so)Also developments can take alot longer that originally suggested and even if you on-sell you are still responsible for the purchase until the other party settles, thus if they fail to setttle, you must.
Therefore dont even think about this strategy unless you have the ability to settle if need be.
Hope that helps a little.
morning Duckster, in that situation who would own the property? who's name would the title be in?
