pcn wrote:

How the deposit bond works? could you provide more information?

Hi PC

No worries. It’s literally a piece of paper that substitutes cash when paying the deposit.

Takes less than a day to arrange and costs a small fee. Deposit Power is probably the most well know provider – http://www.depositpower.com.au/dpg/

This would be the easiest option in my opinion.

Just check with the vendor if they’ll accept a deposit bond (most will).

Cheers

Jamie

jmsrachel wrote:

Wow $20k! For that price I can renovate your bathroom and send you on a trip to Europe. You need to get into DIY Jamie!

Haha – that’s the problem, I’m not the handiest guy and my time is probably better spent with a calculator rather than a hammer.

I’ll actually be in Europe while it’s being renovated :-)

Cheers

Jamie

Best of luck to your friend Woody – hopefully it all works out ok.

If he has troubles, pop back on the forum and see if we can come up with a solution.

Cheers

Jamie

Given the slow processing times you’ve eluded to – I’d avoid a rework at all costs!

Cheers

Jamie

Heaps of places in Perth charge 9.35% + GST + 2 weeks letting fee + monthly admin fee + yearly fee + condition report fee + inspection fee + tribunal fee + lease renewal fee + bum scratching fee + GST on all of the above
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Sounds similar to Canberra – apart from the 2 weeks letting fee, I think it’s usually one week.

As mentioned above – the market determines price and Perth is too big for PM’s to collude.

Cheers

Jamie

Hi Tom

It all comes down to how aggressive you want to be with your investing and what your overall plan is.

You can buy more properties if going with 95% lends – the downside is the large LMI cost and high LVR (so if the property market takes a dip, you could find yourself in negative equity).

If you’re young and looking at a long term buy and hold strategy for instance – then purchasing multiple IPs at higher LVRs is probably going to be a better option than one at 80%

In regards to the second part of your question – equity releases at 80% are quite easy, at 90% they’re still usually ok depending on the lender and at 95% I probably wouldn’t bother. CBA/NAB might say they do them – but in reality, they’re not easy to get approved and are restricted to very tight parameters.

Cheers

Jamie

Hi Tom

Sounds like there’s a right way and a wrong way. The right way will take time/effort/costs but should be worth it in the long run. I’d always have a formal lease in place.

Cheers

Jamie

Hi Jon

The bank will go off whichever is lower – the purchase price or the valuation.

So in this instance, they’ll go off $150k.

Cheers

Jamie

I use coffee in the morning and pinot noir at night :-)

Cheers

Jamie

The most pressure is on the broker/finance provider IMO. If they aren’t efficient it won’t happen on time.

Cheers

Jamie