Mike, you still need to be able to service the loan (and ask what you like in here. As for me, if I understand the question, I’ll answer it. If not, I let the smarter ones do it! :o))

A pensioner with a multimilion dolar mansion in sydney is not going to be able to use his or her equity to buy another place. Well, perhaps an unscrupulous lender might let her, but sheesh! It’s all about being able to pay back the loan. That’s why people who have multiple properties like Brenda Irwin and her hubby (profiled again in last month’s API mag) have had to sell up properties to be able to borrow more. Her hubby also had to keep his job to be able to qualify for loans.

This ain’t an easy game. And I am NOT being negative or a naysayer, for those who think we should tell everyone the only thing stopping them is their mind. Reality is, generally, you have to have a job and increasing levels of money to service loans or you can get into trouble.

And Brenda and Les’s props were all CF+ ones too.

kay henry

Gunner :o) Firstly, congrats on your purchase!

A couple of things. Double brick is a GOOD thing, I agree. And yes, when I was young, I certainly heard all the merits of buying houses that were of an older vintage- not too old! 30 years old is not THAT old though. I guess I am referring to houses built in the 50’s and how solid they were blah blah.

Older units- 1960’s, 70’s and 80’s, on the other hand, are, I read, now struggling in the market. I don’t think there were any units built much before 1965- people built houses before then. But I do know some of those units are having structural problems, of the concrete cancer variety. And they are also struggling in selling in a flatter market, because newer units are more aesthetically pleasing.

In terms of structure though, Gunner, it all depends on the state of the house. If you had a building report done on the place, hopefully it will attest to being a good buy!!

kay henry

Yes, Sibo, I think you might be at least 18 months – 2 years too late to get a pozz CF place in Q’beyan. Last time I looked, prices were about equal to wollongong. Dunno what they’re like now though. I stopped looking at canby’s poorer cuzz about a year ago- too exxy for what they were.

kay henry

No pictures of the property Cel??? No way! Pictures let me know if I can love it or not! And if there’s no love, there’s no purchase [inlove]

I did actually buy an IP without a pic, but I saw some pics a month later of another one in the same condition, so I had something to hold onto. [blush2] I think buying an IP (we ARE spending a lot of $$$ after all, even on cheapy CF+ ones) is a bit like agreeing to marry someone without knowing what they look like. I wanna know my IP is attractive, otherwise how can I sleep with it? hehe.

Pics rock. Having said that… virtual tours add about 10sq metres to the visuals of a property. The place, when one sees it, can appear positively anorexic compared to the cam shots.

kay henry

yack- I hear ya. But if you are waiting for prices to go down really far, then you may be waiting for ever. I was just talking to a RE guy. He said a vendor bought a place for 720k in sydney- 2 bedder- and now can’t get 550k for it now that he wants to sell. Well, I can’t afford 550k anyhoo, but maybe that’s what it was worth in the first place.

I really understand your hesitancy about buying what appears to be overvalued. I wanted to pay around what I bought my first IP for. Then I realised that, due to the boom, I would have to buy regionally to pay anywhere near that price (my first IP was in the city). But I couldn’t expect to pay similar prices in an RE boom for what I bought in a flat market a decade ago. Prices are NOT gonna revert back to what they were a decade ago. I just cannot see that happening ever again. Just like wages will never be 2 pounds six pence again (we hope!)

I will be buying if the bank will let me. Absolutely I will. Doesn’t mean I will be paying 720k then trying to offload. It just means I enjoy RE and I’d like to buy at least 1 a year- despite the market conditions.

kay henry

Dani,

If you have 3 IP’s, you probably know a little about what you’re doing. Thing is, you can borrow to but CF+ props no problems at all, because it will repay itself. Anything other than that, and it doesn’t matter how much equity (via a reval)you have, you’ll still have to find the money to repay a mortgage. This can be done through a pay rise or a lotto win. Or you can do a reno to make the place achieve more rent :o)

kay henry

Genki,

Most of us have to start out buying in “not so good areas”, or else, we’d all have a few places on pretty harbours )

This doesn’t affect your borrowing. If you see the article I posted in General roperty, banks have a problem with financing apartments and houses in the innercity as well, so it seems banks are being razor gangs all over the place. Some financiers will want a 30% deposit for locations with less than say, a 10,000 pupulation. But to check out lending criteria, why don’t you get a mortgage broker around to your house. There’s a bunch of them on here. They’ll just sit you down and discuss with you what’s viable.

kay henry

Well, presumably through his Consumer Protection Fund (paid for by his own RE agents and not costing anything to consumers), Jenman has his finger on the pulse of some of the people who got stung. Guess there’ll be some case studies on there- I’ll be up for a watch. Thanks Chan! :o)

kay henry

Thpought I’d bring this post back up to the top :o) Come on yall- put a pic of yourselves up! [lmao]

kay henry

*intercepts the bunnies and eats all the eggs so Cel doesn’t mess up her first IP arrangement and lose her fortune!!* MUAHAHA! [upsidedown]

kay henry