Thanks guys bt what about the vacant land canyou get 90% LVR on this??

We had a similar scenario with a valuation on our investment property which had been previously valued  1 year prior at $660 000 we expected the latest valuation to be around $600 000 with the downturn but they came back with $525 000. Our biggest problem is that there were no comparable properties sold in the area during the 6 months prior not…[Read more]

We had a similar scenario with a valuation on our investment property which had been previously valued  1 year prior at $660 000 we expected the latest valuation to be around $600 000 with the downturn but they came back with $525 000. Our biggest problem is that there were no comparable properties sold in the area during the 6 months prior not…[Read more]

 I am frrling more positive now the interest rates have dropped a little. By keeping the high repayments up I am going to make a bit of headway through the high debt levels I have thus buffering for any future hike. I have learnt some interesting lessons in the preceeding weeks.Lesson 1. The bubble always bursts even if we think it won't.Lesson…[Read more]

HI There,As someone who sells insurance realistically I can confidently tell that  you cannot have a valid insurance policy unless you have an insurable interest (usually financial) in the property and this does not occur until settlement.Covernotes can be taken out as at the settlement date to placate banks but the taking out of an insurance…[Read more]

I am a little embarrassed that my name is attached and responsible for this post that has become a soap box for some doomsday individuals.For the record the few rational posts I have recieved have given me great food for thought and the reduction in interest rates has steadied my nerves and created a little party in my pocket.enough saidNat

Hi Foundation,Yes your figures above look correct and give me some food for thought from an objective perspective. Thanks.  The fact is this though, this house would never be sold to an investor it would be sold to an owner occupier as that is what the property started out as and it is what it should be. Asset yield doesn't really come into the…[Read more]

Hi Tony,Thanks for your response but just to clarify this property was not originally bought as an investment it was a ppor which we actually built ourselves and I never had the idea i would make shit loads from selling as that was never in my plans. However i did expect modest growth of between 4 and 7% would offset the holding costs of the…[Read more]

Can someone pass scamp his medication!!

HI,Thanks for the feedback. We owe 530 000 realistically at the moment we could expect between between 550 000 and 570 000 to sell but whether it would sell is a problem as it is at the top end of the market for the area and there are not alot of buyers around a the moment. The house was originally our ppor so it was never bought with investment…[Read more]

We already have another house which we are claiming as a PPOR so this one will be subject to capital gains.ThnaksNatalie

Thanks everyone for your comments. We have an appointment with an accountant hopefully they can shed some light on whether this property is a viable one. I think it really all depends on how slow the Perth market is going to be now that the boom is over and for how long. Anyone know where to buy a good  quality "Crystal Ball".Nat

HI there,I work in insurance and my company has a landlords product , $20,000,000 is becoming the norm for this type of insurance.Nat

The last rise on a loan of $500 000 increase repayments by close to $100 a month.   

Hi there,I am also in Perth. What suburb are you in and which valuer did you use. I am looking to get a valuation done soon and I know some pockets are not doing as well as others. Maybe if I choose a different valuer and get a better result I can let you know who I used, Otherwise if I get a low Val as well we will know it is the market.Nat

HI Jeff,The house is one of the most expensive in the suburb  about $50 a week over the average. But it is valued about $200 000 over the average as well which will make selling more dificult I guess. Being an outer suburb probably not the best scenario for an investment as the value is largely in the building (which a tenant can damage) and not…[Read more]

Hi there,I have been very interested to read this post as I to have been thinking about Lasik surgery as I have astigmatisms which cause shortsightedness and I believe can be corrected by this procedure. It occurred to me when reading the posts that as I am 35 if my eyes are going to deteriorate in my 40's due to weakening of the muscles which I…[Read more]

Hi Jeff,Thanks for your comments. It is my understanding that as we lived in the property for 5 years prior to it becoming an IP then we can continue to claim it as our PPOR for a further 6 years and not be subject to CGT. As for the stampy duty for selling into trust that is probably what I am trying to weigh up at the moment it will be around…[Read more]

HI there,As the others have mentioned if the house is incorrectly priced then it is unlikely you will achieve your price at Auction either unless there is something very unique about the property.I am more concerned that you are feeling coerced into an auction situation that you are clearly not comfortable with. Perhaps take the property off the…[Read more]

Hi there,It is my understanding that if you have a principal and interest loan and pay the basic monthly repayment which include interest and enough principal to pay the loan off over a specified number of years (25 or 30 usually) then there will never be a redraw amount. If you have a loan which allows for a redraw facility then you need to make…[Read more]