Forum Replies Created
Thank you everyone for your ideas.
Banker – So if I get this right – I could realistically approach multiple lenders (perhaps two), thus sharing their risks. And with the seperate titles, I could perhaps go for lower deposit across the board, but most likely at a higher commercial rate on a few of them? The property contains two blocks of eight, so split the two and negotiate on half of each block? What would be the increase to the up fronts seeing that the transactions, with multiple titles for each lendor, would have to be seperated to do this (I assume)?
Richard – I would be looking at these as a buy and hold. They seem in good shape structurally (no close inspection as yet)
just bland and shabby. The market is here, especially for two bed with off street parking assigned. The CBD is glutted, however the parking is minimal, the rents exorbitant, so suburban areas surrounding the major shopping centre rather than the CBD have enjoyed good growth, I see no reason to sell on quickly, especially when they are positive income.Even if this one doesn't come to fruition, I would definately be looking at similar, so any advise will still be relevant and appreciated. Both for myself, and people like Sonya, who have more experience but the same issues.
Jay
Thank you everyone for your ideas.
Banker – So if I get this right – I could realistically approach multiple lenders (perhaps two), thus sharing their risks. And with the seperate titles, I could perhaps go for lower deposit across the board, but most likely at a higher commercial rate on a few of them? The property contains two blocks of eight, so split the two and negotiate on half of each block? What would be the increase to the up fronts seeing that the transactions, with multiple titles for each lendor, would have to be seperated to do this (I assume)?
Richard – I would be looking at these as a buy and hold. They seem in good shape structurally (no close inspection as yet)
just bland and shabby. The market is here, especially for two bed with off street parking assigned. The CBD is glutted, however the parking is minimal, the rents exorbitant, so suburban areas surrounding the major shopping centre rather than the CBD have enjoyed good growth, I see no reason to sell on quickly, especially when they are positive income.Even if this one doesn't come to fruition, I would definately be looking at similar, so any advise will still be relevant and appreciated. Both for myself, and people like Sonya, who have more experience but the same issues.
Jay
Thank you everyone for your ideas.
Banker – So if I get this right – I could realistically approach multiple lenders (perhaps two), thus sharing their risks. And with the seperate titles, I could perhaps go for lower deposit across the board, but most likely at a higher commercial rate on a few of them? The property contains two blocks of eight, so split the two and negotiate on half of each block? What would be the increase to the up fronts seeing that the transactions, with multiple titles for each lendor, would have to be seperated to do this (I assume)?
Richard – I would be looking at these as a buy and hold. They seem in good shape structurally (no close inspection as yet)
just bland and shabby. The market is here, especially for two bed with off street parking assigned. The CBD is glutted, however the parking is minimal, the rents exorbitant, so suburban areas surrounding the major shopping centre rather than the CBD have enjoyed good growth, I see no reason to sell on quickly, especially when they are positive income.Even if this one doesn't come to fruition, I would definately be looking at similar, so any advise will still be relevant and appreciated. Both for myself, and people like Sonya, who have more experience but the same issues.
Jay
Richard
Well that's bad news – that would clean us out once we worked in the costs. Bit of an irony when you look at the situation, but I really hate to lose my safety net. Seems like such a shame, when the this will be so clearly a positive earning opportunity. More info on the property if anyone else is interested. It is based in Darwin, a block from the largest shopping centre in town. Close to uni, and all bus routes, and everything is no more than 20min away by car. There are two blocks of 8, with minimal work required up front, but plenty of opportunity to improve (little bit shoddy looking). And all the units are titled, so opportunity to sell off individually in the future if needed.
Seemed ideal, but I have been told I have a 'pie-in-the-sky' way of looking at things. (I will not point out that the people that say this are not poster boys for investment strategies). I am just getting sick of people pooh poohing any idea I have, just because it scares the s.. out of them My thoughts are the money in the bank is barely earning anything, need to invest it with more growth. I have an extensive background in the building industry so can see where a little could go a long way, why not use it? Everyone says to invest in what you know!
I would prefer not to invest in IP that doesn't have land attached (eg managed properties, flats) as I don't want to play with others. Looks like I will have to lower the boom a bit.
Jay
Sonya
Thanks for that . I don't want to go shopping for finance as yet. When we purchased our first home, we had lots of hassles as with the advise of well meaning friends, we shopped around, and as a result had multiple queries lodged against us on CRAA etc, this reflected to the other lenders as unsuccessful applications, even though they were just queries. Took weeks to sort that out, and missed out on the original proprty that we were interested in at the time. Lost a lot of confidence as well. Sold that property 12 years ago now, nothing since.
We have wasted so much time already (40yo).
Is anyone aware of financial institutions that focus on this area (multiple dwellings)? There seems to be niche lender for everything else out there. I know the above seems extreme, especially for a first timer, but comparitively speaking the local market just doesn't lend itself to positive returns on rentals without copious up front funds, which defeats the purpose of this. The extreme purchase costs involved for the properties in this area actually means that it's a 'bulk buy and save' market.
I would feel more confident investing in a rental property where the income stream comes from 18 parties, thus minimising the risk, than having 4 local properties fo rthe same value with additional rates, maintenance etc. Anyone else see things this way?
Jay
