Forum Replies Created
This is a pro-property forum so you will be told to hang in there, whereas if you posted on a property bear forum you will be told to get out now. Noone can see the future. I was in your boat last year and sold up 3 properties and now rent with cash in a high interest bearing account and dabble a little in the share market. I havent regretted it so far, but everyone's situation is different.
There is still big money to be made in property if you put the time and effort into it and buy/sell smart. Im too lazy for that, lol.
Seeing as noone has answered your question, here are a couple ways I find useful
*Firstly, Richard (qls007) very kindly will do a free residex report for you. This will have the last sales
*If you are friendly with a real estate agent, obviously not the one representing the vendor, you can sometimes get reports via them
*If you decide to use a buyers agent to purchase property they will have access to this information (although technically you arent getting the reports for free that way!)A cheap and nasty way for a rough historical trend are websites like http://www.oldlistings.com.au however they only give historical listing prices, not actual sale prices. Not bad for a free site though.
hope that helps
I think you'll have to be more specific than "finding clients for your deals" to get any advice.
Great advice duckster. Really appreciated
Your first point is the one that stands out to me I guess.
The block is overlooking the river, which is why we would build on the frontage – plus a bit of a backyard. Resale would be there due to location I believe. Perhaps, like you say, the smarter way is townhouses (including the front), taking advantage of the zoning.
I guess what I was asking in the first post was there any way of negotiating with the vendor along the lines of, we'll give you 50% of their asking price on settlement, and upon sale of the other subdivided lots, pay the remaining 50%.
thanks IPF
I never used them for purchasing anything. I went in to have a chat to their loan broker and was shocked when she said she would charge a fee for every loan she processes, on top of her commissions. She also told me about two lemon investments she had bought in the last year or so, which didnt impress me seeing as she worked at a property investment company.
Having said that, I have been to one of Damian's seminars and he seemed pretty genuine and knows his stuff. Some of his case studies were impressive, and he did say there are projects where you just have to cut your losses some times. The company seems professional and Im sure you would get as high a level of service from them as any other place.
Worth heading in and having a chat with them if you haven't already.
I guess one example about false information is how everyone carries on about there isnt enough housing and vacancy rates are dropping. The stats from REIWA beg to differ – vacancy rates in Perth are higher than they have been for 8 years http://reiwa.com.au/research/listings-rental-trends.cfm
All Im saying is dont blindly believe everything you are told!
Im of the opinion that people are just regurgitating what they hear on the news or from a real estate agent – mining boom, china growth, skills shortage etc without much actual research or knowledge themselves. So many people are getting into investment properties because they hear how someone else has 20% in a couple months and are being told that if they dont get in now they will miss out forever. I cant see it as sustainable. I think it will peak at a point where noone will be able to afford the high prices anymore and it will slowly drop down – no idea how much though.
Even if none of the bears predictions come true with respect to affordability and the ratio of income to mortgage payments, all it takes is another major terrorist attack or some other major upset for everyone to freak out and all the world economies go haywire.
I read conflicting reports on China teetering on the edge of collapse, but then again China ready for a big boom. If China collapses, we arent far behind as we are so reliant on them purchasing our exports
Who knows!hey lachinov
what I mean is if you sell the house, you wont have enough proceeds to pay out the loan in full (will you?). Therefore you will still have some portion of loan left, but no collateral behind that amount. Depending on the amount, I guess you could take out a personal loan to pay out the remainder of the "home loan".
Very tricky situation you are in, you have my sympathy!
Would the bank let you sell and be left with around $100k of uncollateralised loan – that is the first thing I would look at. Seeing as you can only borrow around 90% of the value of a house these days, what does that mean if you dont even have the house?
It is a very tough decision, it would take a lot to bounce back from that loss if you did sell it, however it sounds like you dont have any spare cash to enjoy life at the moment either. The market could go any way – could shoot up in value the way it has been, or there could be a world event or something else that triggers a fall in prices, putting you further in "it"
I seriously recommend you talk to a financial advisor for some professional advice – please don't base your life changing decisions on what I and others post on an internet forum
You're on the wrong forum buddy, everyone here is going to say hold and never sell.
Try searching for a property bubbleforum and you'll get advice to sell.
ps. I sold my two IPs for that reason, but that doesnt mean its the best thing to do.
Hey Jimster, just keep in mind that this is a forum about property investing – most people on here are actual investors and have the view property prices are going to sky-rocket and you'll be priced out. Similarly, if you go on a property bear forum you'll be told people's honest thoughts that prices will drop slightly or by up to 30-40%.
Its a pretty big decision if you cant afford it at current interest rates, and everyone has compelling reasons why property should and shouldnt go up in value in the next few years. Only time will tell who is right! FYI Interest rates are still at lower than normal levels, there is no way they are going to stay this low in the long run
If you have $140k in LOC and owe $230k, thats a total of $370k exposure on the $475k loan. staying under LMI you can only borrow another $10k (80% of 475 is $380k) by my calcs and about $57k if paying LMI at 90%. Sound like you will be cross collaterlised too.
if you want to borrow more, you will need to use your LOC as a 20%deposit (or 10% if you are prepared to pay LMI) and go through a different lender.
KT
Questions like that scare me! what would you do after the $50k disappears? You will also be paying interest on the $50k you are using to pay the other interest.
generally you can only borrow 90% of the properties value these days
Hey coretex
Check out the corpred website, http://www.corpred.com.au . I stumbled across them earlier this year after being told by Deppro not to bother with doing a schedule on my place.
Basically you fill out the details of your place and send it to copred. For free they will do a basic calc and then sms you back the expected depreciation for that year. If you want a report, then there are a couple different options, and still quite cost effective (plus that cost is deductible)
seeyaKT
If you have the property as security on the loan then you wont be able to sell and keep the loan – maybe if you can use another property or something else though.
The bank or a broker should be able to tell you for sure though
Hey Nathan
I just read your last bit about being fixed interest rate. Im not sure on the specifics, but you may be up for break fees for selling the house as well, similar to refinancing.
The best advice I can give is dont try and figure it out on an internet forum. Get a good accountant!
Thanks for the replies. I viewed the property i was talking about and it was closer to a main road than i thought, and had a massive gradient on the land. The house on the block was also uninhabitable. Looks like way too much work (and money) to me.
toni89 – as per my post above yours. I have had schedules prepared by Corpred and Deppro – both were of excellent standard. Corpred can be a lot cheaper too
