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  • Profile photo of kimckimc
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    @kimc
    Join Date: 2006
    Post Count: 12
    April 2, 2010 - 8:42 am

    Oh, Hi Richard,
    Your welcome,…you've  worked hard this week and I know that for a fact!!  If it hadn't been for your help and sense of humour…I think I would have cracked under the pressure.

    Yes, you're are right, we did get there in the end.

    Thanks
    kimc

    Profile photo of kimckimc
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    @kimc
    Join Date: 2006
    Post Count: 12
    April 2, 2010 - 6:30 am

    Hi Grug,
    I am a long time reader of the forums also.
    I recently took the plunge into property investing with Richards help.

    I highly recommend him. He is professional and thorough.

    I live in sydney so distance isn't a problem at all.

    I will not hesitate to use his services again in the future.

    Good luck, go for it!

    Kimc

    Profile photo of kimckimc
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    @kimc
    Join Date: 2006
    Post Count: 12
    March 11, 2010 - 10:39 pm

    Hi Romeop,
    I'm not sure how much extra you would pay in strata fees for a pool.? Personally I would bypass any block of units which had a pool, but that's just me.
    The block I'm looking at does have a lift. the unit  is on the 3rd floor . The way I look at it, is if  I want to attract a tennant to the 3rd floor I will need a lift.   A pool would be a luxury. May be I would look at it differently if it was to be my PPOR.
    I looked at a block of 8 with no lift and the strata fees were $5.00 a week more??
    I am very new to this investment game and It is all a bit of a learning curve. I just try to do as much home work as I can.
    I am awaiting the body corp annual minutes on this block to find out what is in the sinking fund and get an idea of it's history.

    Good Luck

    Kimc

    Profile photo of kimckimc
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    @kimc
    Join Date: 2006
    Post Count: 12
    March 8, 2010 - 8:30 pm

    Hi Richard,
    From what I gathered from my broker  we don't have quite have enough equity. Not sure how much our PPOR is worth. He thought about the $420000.00 mark…I would be more conservative at $410000.00. We owe $274000.00
    I would really like to avoid LMI.
    I'm not really sure how to work that out.

    Is it mortgage owed+investment prop price (including stamp duty and costs) which in my case would be
    274000.000 + 300.000 = $574000.00 then……
    value of PPOR +  investment prop price and costs(money borrowed) which in my case would be
    420000.00 + 300000.00 = $720000.00 then…
    574000.00 divided by 720000.00 =0.79

    This all seems to hang on what our PPOR is valued at.

    Richard we do have 30,000.00 sitting in a redraw and we also only need to pay $500.00 a week off our PPOR mortgage but we choose to pay $1000.00 a week. Could it be that by the time we settle on the property, our mortgage owed could be a different figure to the $274000.00 it is now…or am I grabing at straws?

    I will query the MB about what you raised. Thankyou

    Will let you know the outcome

    Regards
    Kim

    Profile photo of kimckimc
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    @kimc
    Join Date: 2006
    Post Count: 12
    March 8, 2010 - 9:42 am

    Hi,
    Thanks for you 'helpful input'
    I will definately get some more BC info. I did ask the agent how much was in the sinking fund…and his reply was….. (wait for it)……."of course there's plenty….it's only four years old"….geeze they're good arn't they!!..I felt as if he thought I was being cheeky but now thanks to you I have some amo!…I now know I am quite within my rights to get all that infobefore I make an offer…if I do……and if he won't give it to me…..I will smell a rat!
      There is no swimming pool thankgoodness(I wouldn't have been interested if there was…those things are expensive!) BUT there is a lift. I suppose if you own a unit on the 3rd floor, a lift is quite attractive to a tennant but I will see how much maintenance has  had to be done over the last year.
    luckily I have read many posts so the depreciation and capital allowances are a gimmee( I'm thinking of that at this stage as a bit of a bonus) Until I am actually on 'the journey'…it is quite hard to fully understand the implications of the deductions side of property investing.  My broker has already mentioned getting a quantity surveyor report if I take this further.

    Richard you might be interested in the letter my broker sent me. He suggested since I was planning on buying more prop in the future I should borrow up to 90% on the current and proposed unit. I will have to spend a few $$ on LMI but it will save redoing loans down the  track and incurring the cost then, in which I can pay a deposit on a place I see rather than using a bond. He will structure so each is a seperate loan.

    Hi Tracey, Thankyou for you comments. I live very close to Blacktown.( I live in a suburb between Blacktown and Parramatta) so I feel as if I know the area which helps a little, but it is still nerve wracking when you get close to the 'business end ' of a deal!! Blacktown has a fast train to the city which is a bonus.
    That's a good idea…I will see if I can chat to tennants in the building.

    Many Thanks to you both.
    I will definatly post with an up date.

    Kimc

    Profile photo of kimckimc
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    January 13, 2010 - 6:55 pm

    Ahh…I’ll watch out for that..

    Thanks

    kim

    Profile photo of kimckimc
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    January 13, 2010 - 11:11 am

    Hi Richard,

    That's helpful…..small bonus!

    I read many ''For' and 'Against" …Re LMI. The way I see it…and this is just the opinion I have formed for my situation …if I want to get on the band wagon this year…it is just part of the price I need to pay. I want to be on the ferris wheel when things get going again.

    Thanks again

    Kim

    Profile photo of kimckimc
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    @kimc
    Join Date: 2006
    Post Count: 12
    January 13, 2010 - 10:41 am

    Hi Richard,
    I have read many of your posts and the 'cross collateralise' and  'loan structure' will be one of the things I will be aware of…thanks to you and many others.
     
    You might think you sound like a broken record but believe me, the more times we hear it …the more confident we will all feel when setting everything in place.

    We were told in 2005 that we could borrow an unbelievable amount for our PPOR but I did my own figures and told them what 'WE' wanted to borrow…..had we taken the money and run, we could very well be a 'morgagee sale' statistic…So I  am very ready for the guy standing on his head punching the figures into his calculator!

    Thankyou for this and all your posts
    Much appreciated

    Regards
    Kim

    Profile photo of kimckimc
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    @kimc
    Join Date: 2006
    Post Count: 12
    January 13, 2010 - 9:59 am

    Hi Duckster,
    No, Children will not be an issue.
    Your information was also helpful.  It really is all about  number crunching and how much risk you are willing to take.
    I will take your advice and contact a mortgage broker to see where we stand re: finance…..then do some numbers.

    thankyou
    kim

    Profile photo of kimckimc
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    @kimc
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    Post Count: 12
    January 13, 2010 - 4:56 am

    Hi Finspec,
    '
    Many thanks for your comments….it seems one of the forks in the road has a very clear sign..'Just do it!'

    To be honest I have looked into alot of areas including western Sydney where we live (Parramatta/  area) There are villas near us $330,000, and renting  for 340,00. It is so easy to  become 'mind boggled' about the whole investment thing. My feet are firmly cemented in concrete at the moment. I'm dying to invest in property ( definately for the long term). I don't feel nervous about it but I feel anxious about making the right decision.

    My first big decision was what to invest in…I came to the conclusion that although there is probably more CG to be gained in repeating what we have already done (house and land), our own home is high maintenance and I would rather invest in a unit where I can keep more  of a handle on the out goings. ( that's my budget background clicking in!)

    I know the investment thing is alot about due diligence, no emotion and numbers…but it seems like a guessing game for us newbies. I just thought lifestyle and demand in that area might help   CG as well as rental yield….I could be very wrong. I would hope (see.. more guessing :)  that a tidy unit in a good  location like that might not sit vacant for too long.

    Well, that's  where I am  but I could be easily  persuaded.

    Thanks again

    kim

Viewing 10 posts - 1 through 10 (of 10 total)