Excuse my ignorance, but what does LOC stand for?

Message to Steve – how about creating a glossary of terms section somewhere on the web site please.

Gotta love all these TLAs…

Kim

You can get those credit limits on a normal card. Getting a platinum card is about what other benefits you get for the extra fee it costs. Personally I’ve never taken them up because the return on the benefits that I would use just hasn’t been worth it. Its just a basic attempt to get you to pay a higher fee for extra benefits that you’ll probably never use anyway.

Kim

Hi Helpme,

I sort of agree with a lot of the posts but playing devil’s advocate, why not tough out the current situation for a while. You have your dream home. If you wait a couple of years and reduce your mortgage perhaps you will be able to afford an investment property later. There are significant costs associated with selling and repurchasing. Don’t know exactly what it is in Sydney. But in Perth it will cost $50K plus to buy and sell a $700K property.
Talk to your lender about ways to reduce your mortgage repayments in the short term if they are too hard.

Remember that your own home is still probably the best investment – no CGT.

Flame away fellow forum people

Kim

Well things have changed since I left in 1998 – house prices have doubled and even tripled in some places. But there were some hotspots. Brighton for instance was averaging 12% ROI for rental properties. Dunno if it was cashflow +ve. Cambridge returns were high too. Both are university towns with transient rental populations. Now Cambridge of course is Silicon Fen which provides for greater shortages.

Wow Richard,

You should write a book. 0 to 131 properties in … years []

How long did it take you by the way? Pretty impressive. Good to know someone besides Steve can do it!

Kim

Its my understanding that no lender can say no to a mortgage based on the potential mortgagee’s age. They have to find another reason. Thank our political correct times.

i.e. if an 80 year old came in wanting a 30 year mortgage they cannot reject the mortgage based on age.

I’m 47 and have 2 mortgages which will both mature in my 70’s. Bank was very keen to lend too.

Just one quick comment.

I’ve never needed or used a solicitor. Just hire a settlement agency – its their bread and butter and they know what to do. Solicitors cost too much and they probably get a junior to do it anyway.

Felicity

All I can say is, to hell with the agent. Bypass them and present your offer to the vendor.

Kim

Here’s my 2c…
You don’t mention your income but presumably the $200 shortfall isn’t too onerous. Your 3 pieces of land aren’t earning you anything but it doesn’t look like they are costing you much either. Beware selling them. They aren’t making any more land and land prices are what has fueled a lot of the property boom.

Presumably you have set up your loans so that you can claim interest losses, etc against your income. Also presumably you are living in one property and renting the other?

Depending on your circumstances, I suggest building on all 3 pieces of land eventually or selling one piece of land to finance building on the others. Another poster has recommended going into a partnership with a builder but look at trying to do it yourself first. Why give away profit if you don’t have too?

If you can squeeze in multiple family dwellings on each piece of land e.g. a duplex, you can use the sale of one to completely finance the project. But only sell if you have to.

An extreme example I heard about is a block of land one house back from the beach in Cottesloe in Perth which was on the market in about 2000 for $800,000. I looked at in then and thought about dividing it and building but couldn’t contemplate the enormity of the loans. Since then someone bought the land, built 2 wonderful 2 storey houses with 180 degree ocean views, big decks. Sold one and lives in the other. I estimate each property is worth about 2.5M. Expect they would have got their house for free.

Anyway, a pretty nice dilemma to be in []

Kim