Forum Replies Created
- duckster wrote:jsoohoo wrote:Hi Fellow Investors,
He told me that if I were to bid and if the bid was too high
Ask your lender who they use as a valuer and then employ that valuer to provide you with a valuation before you go to auction.
That way you will know exactly what the property is worth before bidding on it and you can use the valuation for the bank loan.
However banks can go for the lower of both values being what you won the bid at and what the valuation was.Another method is to look at what similar properties in the area sold for this can be done in the sold (TAB) section of http://www.realestate.com.au then select the suburb and then pull up one of the properties listed.
Then at the bottom of the detailed screen you will see a link to recent sales.
This brings up a list of sales so you know what they sold for.It is very easy to get emotional carried away at an auction and by knowing the prices of property in the area you have an upper limit on bidding and must be prepared to walk away if the bidding is too high from what your researched price is.
The other problem is the price ranges given are not often followed in the bidding.
I prefer to buy without auction but unfortunately a lot of properties are sold by auction.
Also if it doesn't sell approach agent with an offer to buy at $xxx,xxxx amount.
You might need a pest and building inspection which then goes to waste if you are not successful in the auction.jsoohoo wrote:a pre-approval done and I could buy a property up to $350k with 90% LVR.So you have an upper limit so find out if similar properties recently sold for 350k in the area. As you can't go by what the price range is advertised at by the real estate agent.
However if yiu get two really motivated buyers who knows what the bidding will rise to.[/quote]
Sorry, when you meant 'The other problem is the price ranges given are not often followed in the bidding', can you explain further?
Thank you,
gurjjeet wrote:Hi Everyone I am in process of buying my first IP in Coomera. I have finally taken my first step after 6 months of confusion etc. & right now I am in cooling off period of contract which is making me write this query. I would appretiate some help. I am buying a near new 4 bedder house on small land (around 380m2) is this a right choice as I am not local. Though I found a lot of similar size block there. This house is mainly made of wood except the front face of house, I have heard of termite problem in Gold Coast but is it big n Coomera. I do not want end up paying for repairs every day outta my pocket. Thanks in advanceI'm curious gurjjeet, what made you choose Coomera? I'm also thinking of buying my first IP in Coomera region as well. But for me its a tough choice between Ipswich and Coomera because I've heard good things about both places.
The way I see it, Ipswich has alot happening for future employment, housing demand due to affordability, new infrastructures, transport etc however so does Coomera but I reckon the boom isn't for a while, correct me if I'm wrong? I was told my an agent the rental market now is dying down as there are more vacant houses in the area and tenants have more options to choose from. Coomera is also more expensive than Ipswich, and I'm abit unsure as to whether I want to plunge my money there because it'll definitely be negative geared well I guess same with Ipswich.
Cheers.
Which issue is this? I would like to read up on the article myself.
I'm also thinking about investing in Upper Coomera but have mixed feelings about the place. I would love to know how your investment is going since 2008? What is your feelings on your property at the moment? Any advice would be great!
Rockian wrote:Trance wrote:hey Ian,where abouts is your property in SE QLD?
cheers mate
I have a few in Ocean Shores which is actually in NSW. About 30 min south of the border.
The new API magazine shows an ad on the inside front cover for positive cashflow properties at BOOMERA COOMERA. Gives the place a big rave. Hope they're right for your sake!
Cheers, Ian
Sorry I should also add, because this is my first property and the fact that I'm looking at 90% LVR..
Hi Richard,
This is for an investment.
Thank you all for your reply.
ryan – I'm calculating that it won't be positive cashflow however I am holding out as negative gearing (maybe neutral if I'm lucky) until the go ahead is given for lng projects in that area. How soon the property becomes positive cashflow is something I can't answer and I take this as purely a gamble.
Music to my ears!
Cheers Sonya.
Thank you all for you advice.
I plan on seeing an accountant in the following week or later and see what he/she says about buying in my own name or in a trust.
I was reading the 'Your Investment property' magazine today and read that its becoming more difficult to buy in a trust and from the advice above it doesn't necessarily give you more borrowing power. Besides asset protection what other benefits does it hold?
I'm beginning to think buying my first one as an individual is more beneficial and for my subsequent properties, I'd do joint ventures with my partner and family members to help with getting my 5 properties in the next 5 years? Maybe, I could do this it this way for now and then transfer all the properties in a trust later on, or is this something that is difficult/costly to do?
I don't have an accountant and was advised by two mortgage brokers (who are also financial brokers) that an accountant is not necessary until I buy a house and then need a tax return lodged.
DWolfe – I felt as though my dream was crushed because when I was told that I could only borrow 400k as an individual with my current salary, I got the impression from my broker that once I reach this limit I would be maxed out and the only way to borrow more is unless I have more income or just do and buy and sell (but I don't think it would be right to do this over). Maybe I am wrong here?
What's not clear to me is the criteria that banks will lend against? My thinking is if a bank sees you earn enough to service a loan then its ok, but what about the loans that you may have under your name, would they see this as a bad thing towards servicability? eg I earn 51k and have a 300k mortgage (negatively geared investment but with significantly increased captial), is it easy to get another loan of say 300k to buy another property based on the fact that I keep my job but use my extra captial from my investment property?
Yes I was hoping to buy 1 property in each year for the next 5 years or so. I am initially looking at buy and hold strategy but as I get more confident I was thinking of moving on to doing renovations to houses to quick capital and increased rental returns. For now, since Im inexperienced with buying houses and everything it entails I think its wise for me to stick to my first property as being a buy and hold.
The last thing is, I have trouble just reading about strategies in order to learn about building my portfolio. Are there certain people who I can speak to about getting advice like a strategic mortgage broker/financial planner? How much do they charge and how can I find them?
Thanks rinnia for your post. My main concern was the risk of having constantly maintain these houses and it falling apart on me down the track. I do get that feeling that these 'Queenslander" homes are more popular and therefore preferred by tenants. Hmm….
The other thing I really need to understand is how I would maintain a DSR to be 80% if I take out a loan of 90% (paying mortgage insurance of say 2%) of the purchase price. I read in Steve's book that maintaining a DSR of 80% is ideal but if I wanted to build a portfolio of say 5 houses within the next 5 years, would it be a bad idea to start off with taking out such a big home loan.
Thank you all for your valuable advice. So LMI isn't so bad after all… As a first timer I was told to avoid it at all costs.
Ok so let me clarify this with an example, say a place was bought for $320000 but a year later it gets appraised at $350000. If I put in $64,000 (320,000 x 20%) deposit on the home, to calculate the deposit after the appraisal, my deposit will now become $70,000 (350,000 x 20%)? And this deposit of $70,000 can now be “released” and used as a deposit for my second property?
Ok so let me clarify this with an example, say a place was bought for $320000 but a year later it gets appraised at $350000. If I put in $64,000 (320,000 x 20%) deposit on the home, to calculate the deposit after the appraisal, my deposit will now become $70,000 (350,000 x 20%)? And this deposit of $70,000 can now be “released” and used as a deposit for my second property?
