Forum Replies Created
- Originally posted by KDT:
I think the bubble has burst. Time to change tactics. Cash up/sell down and not be highly leveraged. money can be made in any market I think that some of the profits might not be as high as previous. Loose the greed gland and invest with no emotion. If the numbers work carry on, if they dont walk away. I’m currently looking at 5 properties with no intention of stopping. Just make sure there’s a backup plan/exit strategy in place.
Regards
KDTThere is a big difference between normal cyclic patterns and a burst bubble.
Why do you think this is anything other than a slump after the boom which happens as surely as night follows day?
or is it that this is your first slump and after such a big boom it looks like an unseen catastrophe rather than normal pattern?
And i mean no disrespect with that.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by Zorge:This forum is looks like a Brokers Forum
You did ask a loan question – surely having a number of brokers respond impartially is ideal?
My only concern is that these securitised lenders are heavily reliant on LMI and as such you will hit the wall sooner – even if your loans are under 80%.
That is a frank opinion and not some snide way of trying to secure your business.
If you like what they offer then go for it – more power to you.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
What happens if the Perth boom stops while you are holding it and you can only get offers for $700K?
Don’t get caught holding the baby at the end of the boom!
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
There is no time frame as far as lenders go – in fact they will want to lend you more money as soon as they can.
The idea of building up a repayment pattern was from the old bank manager days
today you either have an ok history or a bad one. You cannot really get better than OK.
The best time to buy is when you can do so and when the properties are the cheapest. Generally they are cheapest today!
All the best
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by Kiwi-Fulla:This is a new area [fez]
I just had another call fro mteh is vendor and they have just dropped another 10K for a quick sale ….
Who is in?Why Rent? Rent 2 own!
http://www.rent2ownaus.comA new area?
Wallsend is an original suburb?
What new area is it?
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
If you are a defacto or married couple then you are only entitled to the FHOG once.
To apply twice would be fraud.
If you are neither married nor defacto then I suggest you speak to a good broker or a solicitor about how you can structure the purchase so that the second buyer keeps eligibility.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
No waterview from Wallsend.
It is a working class suburb to the west of the city and very close to the university.
I would suggest that this property is well above the median price for the area but then it is new and Newcastle people do like new things.
Rental demand is very high in Newcastle and esp by the uni. currently 1% vacancy rate here and yields are generally a little higher than for Sydney. I have also seen some signs that the local market is strengthening somewhat.
if I can help anyone please drop me a line.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Aren`t brokers dealing with banks!!! this profit mashines?[strum]
I don’t really understand what you are saying?
Perhaps you should just follow your friends advice – is he in a place you aspire to being?
Richard mentioned the MI issue with securitised lenders and suggested that with these lenders you will run out of steam earlier.
Places like Aussie are terrific for home owners and people buying one IP. But if you aspire to owning multiple investments then you will possibly run out of steam early.
I cannot give you any suggestions as I do not know your situation well enough.
If you do find a mortgage providor that offers wealth coaching then be careful – sounds like a conflict of interest here.
All the best
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
All offers must be communicated to the vendor unless he has instructed otherwise. ie “Don’t give me any offers under $X”.
Of course there is no point having your offer presented unless the agent is trying to sell it to the vendor.
“we have just got an offer for $150K. I reckon this guy is just making low offers and it is an insult. I hope to get you something much higher shoprtly”
vs
“we have just got an offer for $150K. I know you are keen to get $180K but the market appears to be softening further and we are just not getting much interest in this style of property. Given your situation I really think that we should seriously consider this offer. The buyer appears genuine and is willing to go unconditional ASAP.”
Which agent would you rather have present your offer?
This is a game of selling by all parties. You need to get the agent onside and not piss him off by questioning whether he is passing on your lowball offer. Convince him that it is reasonable and probably the best he will get.
I think written vs oral offers is a small issue and not one to waste time over. By all means submit it as you like – but just sell it to the agent and vendor!
All the best
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Not good and not bad. The question is really as to whether they are suitable for your situation.
As for trustworthy there should be no problems – this is a tightly regulated industry.
Why don’t you focus on what to buy and have a broker source your finance. He can bring an awful lot of experience to you at no charge.
All the best
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Rather than speculating whether or not you might be able to get a loan I suggest you call a broker and sit down with him/her and find out exactly where you stand.
I can give generic advice via this forum or email but am a poor substitute for a local expert sitting in front of you.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Why don’t you offer to buy the project from him.
If you can find a price that will make sense for you and also bail him out of trouble?
With family it might be wiser not to make too big a profit from him tho as this might cause lasting resentment?
I think you need to seek some professional advice and temper it with compassion and common sense – remember this is family we are discussing.
Makes no financial sense to go down the drain with him so I would seriously consider the wisdom in going guarantor.
All the best
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Probably not the answer you want to hear – but if he is very well informed and has access to the right info he can probably do it himself.
I wouldn’t though…
I reckon it was $600 well spent and my last one was for a house built in 1960 with minor renovations done since.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by v8ghia:Hi Matt. I agree with the other reply. [exhappy]
Matt,
Don’t get me wrong – I am not suggesting any course of action – just asking you some questions to try to help clarify your reasons in your mind.
Cheers
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Go to the Police.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
The title of this thread is sensationalist and offers no alternative but to state the there is a bubble and it will burst.
Not really much point arguing someone who sets a question like this.
Is like me asking my mate if he has stopped beating his wife yet [blink]
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
It means that someone hasn’t kept up with their payments and the Mortgagee (Bank) has instructed the property to be sold.
Agents love it because it makes people think that it is a distressed vendor who will accept a low price – thus getting more people to the auction.
In reality – if the market is hot – these properties can sell for even higher because of the increased attendance of hungry investors.
By all means submit a low offer but don’t expect it to be snapped up. The banks are obligated to get a fair price and will usually hold out for one.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
OK Matt – lets see if we can get this clearer in your mind.
My first question is why?
Why sell a property, pay costs and CGT and then buy another one – paying costs and stamp duty?
Why not just buy another property as well?
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
The ATO looks at the purpose of each loan you take out when determining whether you can claim the interest.
So if you raised the loan on your IP and sent the money into your PPOR the ATO will see this as a new loan and the purpose is for your PPOR – so not deductible and you have also made it more complex for no reason.
The only way to legally release the equity is to sell the IP, pay CGT, pay a real estate agent and put the remainder into your PPOR loan. If you stil lwant an IP then you have to buy a new one with a 105% loan and pay stamp duty over again. Hardly worth it in most cases.
You can “sell” your share to your spouse and put your “profit” into your home loan. In some states he may not even have to pay stamp duty on the transaction. He can then borrow all the cash to pay your share resulting in a higher IP loan and a lower PPOR loan.
Both of you can even “sell” into a family trust of some type. The trust will borrow 105% and the profit goes into your home loan. The Trust will need to be created for around $2000 and administered every year and it will also pay stamp duty.
So as you can see there is no easy way around this problem that we all face when we wish to use our IP equity to reduce our PPOR loan.
I hope I have explained it clearly but remember my advice is no substitue for an accountants professional opinion of your situation. I have just provided some food for thought.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by DLPP:Do you believe that he is right because if he is only 5% of people on this site are actual investors and my caculations make that 2100 people leaving 39900 people who are lookersInterested thread – not sure what the numbers would translate to but the idea that alot of people do not participe in property investing must be true.
I suppose with forums and general investing education you may end up with alot of technical experts.
I Buy Property http://www.cashflowproperties.co.nz
Logic tells us that this is wrong. I put it to you that the type of people who are members of this site are more likely to own property than the national average.
Just as, for example, the national ownership of Ford Mustangs would be a very small %. That % would be much higher if you surveyed the members of a Mustang Owners Forum.
Shame we cannot run a poll here to show that more than 5% of this forums membership invest in real estate. But I imagine the numbers would be significantly higher.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
