Desk Top- no job and no savings? You could sell your current IP and buy some cheaper ones with a bigger rental yield. Given that you’re living at home, presumably your outlays are minimal right now. As you’re not working, serviceability might (probably will) become an issue, if you don’t sell up the current IP and resease some cash.

kay henry

Simon (or anyone who can answer),

Is the point of an IO loan that one can buy many more IP’s at the same time? Are the repayments less on an IO loan? If so, how much less are they, say on a $500 week loan?

What happens when you have paid out the IO loan? Do you then have to pay a lump sum to pay out the principle? And how do people do that? Do they simply have to sell the IP to make the repayments? And if this is so, would this type of loan not be for people who wish to buy and hold for a longer perdio (like forever)?

I’m aware that IO loans are really only for properties that might have substantial CG. I’m just wondering if people might let me know how they might suit the smaller investor who wishes to build the portfolio.

Thanks!!

kay henry

James,

Banks in sydney have also been loaning 80% LVR on apartments in sydney inncer-city too. I think it’s been thr highly developed areas- glebe, ultimo, Green Park etc etc. Those areas <10km’s from the city. But those areas have also done very well in terms of maintaining values.

I think banks just wanted to slow down on the big spending. It was similar to them acting as their their own Reserve Bank- but instrad of raising interest rates, they just tightened lending criteria.

Presumably, it’s the same situation in brisbane too in the heavily supplied inner-brisbane/gold coast areas.

I haven;t seen reports of properties in Docklands at 100-200k below original valuation. I’ll have to look it up. Got a reference for it, James?

kay henry

georgis

Wouldn’t that be a bit premature of banks to do a margin call? Is that actually legal for a bank to do anyway?

kay henry

secretgnome,

I have to disagree here. Newer properties (more exxy, negative geared ones) do not require the same level of structural maintenance as older properties. Let’s look at a 5 year old house or a 70 year old house. The latter *may* need restumping, rewiring, etc etc. Of course, not all old houses are in poor condition, but try finding a 50k house these days (mid/post boom) that doesn’t need substantial work.

kay henry

See, my problem is…

REIV says: REIV News

12 month house market wrap
The Age – 28 February 2004

Melbourne’s residential property market maintained its upward trend with a median house price of $363,000 being recorded for 2003. This represents growth of 11.8 per cent growth since 2002 and a staggering 81.8 per cent growth since 1998.

… whereas the above link on this post states:

Median house prices in Brisbane have increased by 300 per cent since 1986 and around the country by 329 per cent.

i have real difficulty with such differing statistics. I know one is ’96 and the other is ’98, but prices were flat from 96-98 anyway, so it makes buggerall difference.

What gives folks? Can we believe Residex, CommSec, the REI’s? What about Matusik? homeprice.com.au? The ValuerGeneral?

By the way, I thought the link was agood article 111111, but I have just read so many differing perspectives, it’s hard to be definitive.

kay henry

You can buy the Nothing Down book on ebay.com.au

kay henry

Thanks Shushar!

Must be hard being a RE agent. given that even valuers get it wrong at times (look at some of the shonky inhouse valuations done on some apartments), it means RE’s now have to be valuers too! Think i’ll stick to my job

kay henry

Heya sis :o)

How does your partner service $3 mill of debt? Rents mostly, or a well-paid job? equity doesn’t mean anything if you can’t pay debts.

kay henry