Forum Replies Created
Welcome to the forum pixel,
some answers to some of your questions:
1) Conveyancer or solicitor?
If you have like minded friends/family or you know a few people that have purchased property in the past, ask them how they went about the purchase and the method that they used.
Have they bought more than one property using the same method? Have they tried different methods? Do they have anyone they could recommend to you that you could meet and ‘assess’ them for yourself.
Ultimately you have to be comfortable with the person who will be handling each of your future property purchases.
2) When you finally make an offer on a property, be sure that the offer DOES include any ‘subject to’ clauses that you may have in mind:
‘subject to finance being approved suitable to …….’ etc.. may be someof the clauses you may wish to research for yourself.
Goodluck and don’t lose sight of the big picture! [thumbsup2]
It is only your thoughts that create your future – Be careful what you think!
Smithster,
Grew up in Adelaide for 23 years, then moved to lovely NSW 6+ years ago.
We bought south of Adelaide in Jan 2004 with a guarantor and very minimal savings, 100% plus costs PI loan.
In under 2 years the property increased by over 20%, so we then refinanced with another bank on an IO loan and haven’t looked back.
At the time it seemed like it wouldn’t work to our advantage because we thought we had missed ‘the boom’, but by faith and good fortune we are now looking to buy another block of land, hopefully with no mortgage.
I grew up in this area and believed that it would one day grow in price, but didnt think it would have been so soon.
Good luck!
It is only your thoughts that create your future – Be careful what you think!
Thanks Terry.
If we decide to keep the shares and obtain a margin loan against them, what sort of ratio can we borrow against them? ( ie 70% 80% of value )
Then, would this interest then be deductable because the loan is against the shares, even though we have used the cash taken from the loan for a private purchase?
And if we choose thisoption, what sort of cash reserve would we need in case of a ‘margin call’?
[blink]
It is only your thoughts that create your future – Be careful what you think!
Thanks for the replies!
AUSPROP, your explanation of the ‘sunset clause’ was very appropriate for our situation, thanks heaps!
[cap]
It is only your thoughts that create your future – Be careful what you think!
Hi Simon,
If Zaksta has already purchased an IP, is it still possible for them to claim the FHOG?
I too have purchased an IP only (1st property purchae) about 18 months ago and would be very interested in learning about the ability to claim the FHOG, as we are ready to buy another property…..
We too purchased on 100% finance with an P&I loan, but due to having saved more $ in the mean time are looking to maybe convert to an IO loan if possible to allow us to save extra cash (currently approx $700/week surplus cash to save for further property purchases as well as approx $27K in savings).
We rent at the moment also. What would be the ideal way for us to go to maximise our immediate ability to save more $ per week and maybe buy more property with our current savings?
[biggrin]It is only your thoughts that create your future – Be careful what you think!
Hi bs,
if you just sold a property that you owned, then how do you figure you can legally get the FHOG being that it is for First Home Owners?
[blink]
It is only your thoughts that create your future – Be careful what you think!
TMA,
correct. i have no desire or time at the moment to even think about becoming a share trading ‘guru’ and would not see this as a viable solution for us – at the moment.
when the shares are finally transferred to my name i may call on you The Mortgage Adviser with advice on how to re-structure our current loan to make it a bit more financially viable and to gain control for ourselves without the use of guarantor. [bonjour]
It is only your thoughts that create your future – Be careful what you think!
Thanks for the replies.
There are varied perceptions of the same situation which is excellent. I will look at fixing the fence at my own cost and have the advantages of choosing what i want put up, and which way it faces etc. etc.
Thanks again [biggrin]
It is only your thoughts that create your future – Be careful what you think!
welcome to the forum michael.
it all depends on a lot of variables when ‘crunching the numbers’.
what you need to take into account is what you would determine the estimated yearly costs for owning/managing any specific property are going to be, by investigating through various sources: R/estate agents, government, local rental markets etc. then you need to determine what would be a ‘realistic’ rent value for any specific property in a specific area, and calculate the difference.
if there is $ left over after all costs & income has been estimated, then the property MAY be CF+ (if it is rented out within your calculations and guidelines it may be CF+, but it WONT be CF+ if it is NOT rented out because the rent value you have set is too un realistic).
remember: CF+ properties are rarely bought, they are created through finding a ‘problem’ and providing a ‘solution’.
you just need to look outside the square.
It is only your thoughts that create your future – Be careful what you think!
With a 95%LVR: is it possible to do this (95%LVR)on an IO loan and also pay for MI as we do not have 20% as a deposit?
Then we could use the remaining $ from the $20K (after MI and refinance costs are taken out) to purchase another property?
It is only your thoughts that create your future – Be careful what you think!
yep, subsidising we are [crying], but this is something we have realised before purchasing the property.
i too feel obligitory to increasing the LVR to 80% in order for mum [party] to be ‘free’ and so that we can also feel free to choose what we do with this and susequent properties (as there will be more, but maybe not in the form of subsidising someone else’s rent).
we now have a few decisions to make, but thanks again for the insights.[medieval]
It is only your thoughts that create your future – Be careful what you think!
Thanks for your feedback.
The IP is south of Adelaide and we purchased it in January 2004 for 172K, and has been valued in August 2004 at around 185K. We have since had tenants move out who were paying $165/week rent and a new tenant move in paying $180/week rent.
The house is tired but structurally sound, and could use a good paint job and some cosmetic love on the inside and out. As for the gardens, well they are pretty much non existant and this could be addressed also. Overall, a general tidy up would refresh the place and may add value – but to what degree i am not sure.
I personally would feel much more confident in relessing mum as guarantor, but also know that putting the ‘cash’ on the loan wont make it to the 20% LVR and would welcome the possibility of value adding to increase this likelihood of reaching 80% LVR. [cap]
It is only your thoughts that create your future – Be careful what you think!
Thanks.
It is in south oz so may need written consent by the sounds of it. would a solicitor be the best person to ask this question of?
It is only your thoughts that create your future – Be careful what you think!
Thanks guys & girls, some very valuable insights for me to take a look at.
The $20K reno in approx 3 years will consist of a rear deck, front fence (brick and wood) and an interior o/haul – paint, blinds (?), sanding floor boards, kitchen revamp etc in order to increase equity by around $65K – current value 185K to 250K in 3 years from now, as the house looks VERY tired and has not had anything done since it was built 29-30 years ago. The idea is to either build more equity and refinance or increase value and sell to purchase a PPOR.
Any ideas?[biggrin]
It is only your thoughts that create your future – Be careful what you think!
Thanks Terry [biggrin]
It is only your thoughts that create your future – Be careful what you think!
“You certainly are not elligible for the FHOG on the execution of a Lease Option.”
Is that to say that when the tennant decides to exercise the option to buy the property they will NOT be eligible for the FHOG if it is the first house they are purchasing?
If the above statement is true, this would seem a bit un fair or am I missing something?
It is only your thoughts that create your future – Be careful what you think!
Cool, that makes life a bit easier to read.
As i currently am renting, the idea behind this is that me and my partner wish to invest again, as well as my mum, but at the same time we wish to buy a place to live in as well. with this situation, i will be paying lower per week than my current rent, my partner a little bit more than her current costs, and a relatively small cost for my mum, who has good ‘tenants’ for her part of the deal.
this is our way of creating a ‘win win’ situation, as well as breaking free of the rent cycle, whilst keeping costs to a minimum.
Thanks again for your advice, gretaly appreciated
[biggrin]
It is only your thoughts that create your future – Be careful what you think!
Thanks guys, very helpful.
As mum is already claimimg her current house as PPOR, then if we paid her 1/3 of the current market value in rent (1/3 of $150 = $50), then would she be able to -vely gear her 1/3 share?
It is only your thoughts that create your future – Be careful what you think!
jenwren,
your numbers so8und inspiring. oz or internatrional? either way, what was your research or personal background to confirm or be confident about these deals?
It is only your thoughts that create your future – Be careful what you think!
We bought an IP south of Adelaide just under 12 mths ago and the value at the last check up – about 2 months – ago was about 7.5% growth in value, but i believe the market to be slowing down to a steady growth rate.
The areas that are asking higher prices are the beach front properties, but they are staying on the market longer so are therefore asking for prices higher than the market is currently willing to pay.
It is only your thoughts that create your future – Be careful what you think!
