Forum Replies Created
In regards to lenders;
Each lender has their borrowing limit, some higher than others.Boy, talk about a learning curve! Lenders have been giving me the impression that I’d only get $80,000 no matter who I approached.
In regards to purchasing an investment property;
1) Will this effect your govt benifits?Good point. I’ll have to check.
2) I personally think that you should purchase your own home first, then when you got the equity , use it to purchase an IP. Especially the way the market has gone recently, it wouldn’t take long to get to this stage.Hey, I think I’m learning something! [
] So we’d be paying off our own home, and it would (likely) be increasing in value while we doing so.
In regards, to Housing Commision;I was just mainly implying that it might not be the best way to go. There are other options out there for you.
By all means, please suggest some! In all honesty, I was assuming (perhaps wrongly) it would be the ideal situation… That housing homes would generally sell cheaper. But maybe there’s drawbacks I haven’t even considered?
Also with the 80% thing;
In a case the person was paying out a loan from the housing commision and wanted to refinance. He was told: for them (Housing Commision) to be paid out, they would require 80% of the valuation. So if the property was valued at $100k they wanted $80K.Hm… I think why I’m having difficulty understanding the above is because, I don’t think they give out loans themselves anymore (if they did in the past?). The way it works now (as I understand it, anyway), is the tenant pays ~$200 to have the house valued by HComm., they provide a written valuation, the tenant takes that valuation to a lender – and the lender fills out some specific paperwork that eliminates the stamp duty.
Oops, went a bit too far with that one, but you’ll get what I mean.
However I thought it might be worth knowing to ask the question before you sign anything.Forgive me – what was that question to consider?
First off; you might be best to send your income and liability deatils to me.Ok, I’ll do that (soon).
I’ll be able to give you a borrowing power, that should be much higher than $80000, depending on what lenders you have been to.Sounds interesting – any hints about the details of how this works? Please note that, we’d like to own a home yes, but more than this, long term I want us to be free of government benefits, generating our own passive income. (In other words, owning our own home is not the final destination I’m aiming for.) Hey! We want it all! [
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You will need either 5% genuine savings or 10% deposit (doesn’t matter where it comes from), depending on location and lender.I guess I’m still at a crossroads at this point. Trying to decide if we should buy where we are – or buy one of the cheaper ~$40,000 homes often seen in more remote areas – and keep renting ourselves, while our tenant pays off the other home.
So (anyone!) I’m still looking for opinions on this! [?] To buy a house and live in it, or aim for an IP first up?
Secondly; with past clients that have had housing commision houses, loaning from them, when it comes time to sell they want 80% of valuation as payout figure.Do I understand you correctly above?? Do you mean, housing comm. regularly will accept 80% of the total property valuation, if you pay it in one lump sum? Great stuff, but how would that help us?
I have also had a client where their interest rate kept climbing. It was over 16%p/a at the time. I didn’t go into much detail with this client, however you do need to ask the questions.Heh… Now I really *am* lost. What caused their interest rate to climb so drastically?
It may pay for you to apply with a different lender and even a different house if they use the normal valuation methods, which I would believe to be correct.Sorry to drag this out so much… What are your reasons for saying this?
I have heard of discounts, but only when the housing commision put their properties up for tender. Also, when this happens if you are renting through them you will have first prefference.Ok. They have mentioned to me that the house we are in will not be sold, unless we’re the ones buying it. Oh – or do you mean, that when they decide to sell one of their *empty* homes, that current tenants have first preference at purchasing? Hm… I’ll have to ring them tomorrow and ask them about this one.
In the meantime, I’ll dig up our budget spreadsheet…
Allan.
Allan, have you considered purchasing the home your living in from GEHA? [snip]
…and of course once you buy your own PPOR and equity increases you can start using that and any savings to put towards your first IP. Hope this helps.sq
Hi Suzie! : )
We have indeed… Please see my other replies above!
So is this the recommended “plan of attack”? To buy the home you’re living in, and use that as equity? I’m desperate not to make a mistake – for instance… If we were to do this, then find no one willing to lend again to us to buy an IP (being on a pension).
Or should we stay here, pay rent, and make our first purchase another house, rented out with postive gearing?
I guess our main difficultly is, the $80,000 limit lenders are offering us (and the higher interest rate to cover their risk). If this house is valued more than that, we couldn’t get the loan – and to buy in a more remote area, they won’t provide *any* loan. Heh… Talk about catch 22!
Thanks for help all, with this basic stuff too… This debilitating illness makes it difficult to think through the consequence of such things clearly. So all help is very much appreciated!
[
]Allan.
] So we’d be paying off our own home, and it would (likely) be increasing in value while we doing so.
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