Forum Replies Created
Hi Cojocojo
I agree 100% with xdrew, do your own research and get to understand your area and potential market. While you are doing that, if possible, put the $60 000 in a loan offset account that will offset your interest on your loan and not add to your taxable income. Remember there is no rush and we are in unusual times in relation to interest rates and property valuations in some locations. Small block unit developments only suit some buyers and some locations, ask yourself would you pay $ X XXX dollars to live in a location where I can buy a suitable house for $yyyyyy. Go to some open houses and get a feel for prices and what people are looking for. Remember also that an option is to build up the value of your PPOR and roll it over without having capital gains tax but again do your research to see what will add this value without costing more than the return. Don't over capitalise.
If you take Xdrews potential 33 % value drop and apply it to your home if the price bubble busted, you would effectively no longer have any equity in it.
Qlds007 wrote:Agree what a stupid question and one any decent broker would answer.Cheers
Yours in Finance
Looks like you may have had a bit of a freudian slip there — look forward to any decent broker providing an answer.
Many years ago I was told by a very good professional "I would rather answer a thousand seemingly stupid questions, than have to deal with the results one stupid mistake that could have been avoided. by asking"
I hope you don't treat your clients and their questions with the same disdain.
I do see in your next post that it appears your rate is around 5 Basis Points above some other brokers. Certainly not a high figure for premium service or a margin that would temp satisfied clients to swap brokers.
Thanks for the reply Joe,
Jamie certainly looks like he has good client satisfaction on the forum. If he meets all your needs and if emails on a Sunday morning is the extra bit it takes for you, that's a bonus! Then again as you say, you only get what you pay for!
With money so cheap at the moment that interest rate of loans is the least of their concern, and the possibility of a real estate bubble in Australia, I just hope investors have a fall back position factored in.
No not shopping at all, have an executive style 5 /3/ 4 settling this week close to Bris CBD. I have done a lot of phone and email work but only seen photos and commissioned reports on it as I am currently in NQ. Purchased on prearranged finance / line of credit.
There have been a number of claims made that brokers will always get a better rate than a borrower will get from a finance provider on their own application.
Simply putting it out there to both Brokers and Finance providers on this forum to see if anyone is willing to put a figure up for a best case application. You can write the terms to achieve such a good rate, but keep deposit and income around average rates you deal with every day for start out PPOR investors.
The understanding what you need to get such a figure, I think, will help new potential investors gain a better understanding of the factors they need to pay attention to.in their deliberations.
Finance has never been cheaper, so I realise there is a smaller margin to play with but then finance providers never like giving anything away.
It's not like the old days when everyone's standard variable rate was the same. A bigger discount doesn't necessarily mean a lower rate any more. It also depends on what else is being offered in the market at the time, as none of them like being beaten for good business. I know this answer seems evasive, but truly the only real answer is that it depends on both the loan scenario and the timing.[/quote]
That's true but there is not a lot between them and changing all the time, but I will put the question out there again to all the brokers on this forum,
What is the best final .rate to the borrower you have been able to offer in the last six months on a standard house purchase.
I will put it up as a new post so it is not lost.
Alister I agree that on the face of the information supplied they are not in a very strong bargaining position. They are certainly not in the Premier banking customer category and
the deal they can cut will depend who they bank with in this case. In the present financial climate first time buyers need to be looking at their figures very closely and factoring in higher interest rates with a plan on how they will manage same. Having bought my first in the days of 15%, I have always been able to negotiate with the finance provider for a good deal.Back around the early to mid 80s I can remember buying bank bills with a 20% return, lets hope we don't end up back there as inflation on that scale destroys many struggling investors.
As a matter of interest, in the present climate, how many percentage points below the standard variable rate would your best final rate to the borrower be. (Best Case Scenario)
True, but if in doing their planning and figures and comparing their current bank rates to those advertised elsewhere they will be more informed, know where they stand and be better prepared to consider their options.
Your best option is going direct to lenders and try to negotiate a lower borrowing rate based you are not using a broker. you will need to have your planning and figures in order and laid out and being a long term client with good history will help your case
Hi Bec
Which state are you in?
If you are capable of learning the requirements of tenancy rules, you are in a prime position (200 m away) to manage it yourself. Get your local contractors lined up ( the same ones you would use for your home) and Develop a cordial but management relationship with your tenants and promote them letting you know of things starting to go wrong rather than when there is an emergency that requires a after hours call out of a contractor. Still do all your inspections and let them know if you think attention is required to their actions around the rental. Remember they have a right (as we all do) to fair treatment and ability to live without undue intrusion or interruption. Its all about Mutual Respect with good tenants.
If you have difficulty with the agents staff and attitude imagine how tenants must suffer with that attitude. Tell your friend of this attitude as it will affect their business in the end.
ps RE rent you still increase rent in line with area but you may give them a discount for being good tenants but make it clear to them that is what you are doing. A six pack or bottle of wine and a card at Christmas goes a long way as well. Fair but Firm with Respect.
I once read somewhere "Friends may come and go but an enemy made is usually an enemy for life" may we all only have friends!Parliament house
Jamie why would you even consider, it is full of people who are mostly hopeless with a 3 year tenancy agreement, that have never done any business in their own name. (no matter what their political leanings)
A 20 m Power and sail cat converted to a home. Cruise the coast and stop and stay as long as you desire. carry a jetski couple of Tinnies bikes and Quad bike. Rent the PPR hire a manager to look after all day to day
I would not be too worried about the electrics, they will be done by a electrical contractor to Aus standards and should be signed off . I would assume you or the insurer will inspect and sign off on the job completion so you will have recourse to the insurer who will take it to the contractor.
If you are only looking at 2 inches might be better to pave over it with nice paving patern also better where services are under.
Depends on type of floor you are considering on the stumps but generally slab will be cheaper.
Research prices paid (not advertised) for like homes in the area to base a fair market value Do inspections of it and other properties to further develop your valuation. It will invariably be below the starting price but don't be deterred. Decide on an absolute maximum you are willing to go to and lock that in your mind. Make sure you have developed a finance plan and if an offer that is not subject to finance with short settlement is possible by you,this can be a big incentive to some sellers who are keen to move or buy another property they want.
Remember there is a bit of blue sky in some property prices being advertised at the moment so stick to your values. There is another deal around every corner!
Make your offer subject to whatever conditions you want to apply including building and pest inspection and I would add a Due Diligence clause to give you an out without cost to you if you turn up any thing that is a problem to you.
Put your first offer to them and expect they will come back. Remember everything is negotiable and you can always raise the price but only come down if the property does not meet your contract conditions so the contract will fall over unless they negotiate on price based on problems found. have your contract reviewed by your legal advisor before you sign the contract – don't be pressured by the agent saying another contract is due to be signed so get in now.
Once you sign a contract Hire a good independent Building and Pest Inspector and I like to attend the inspection or have a rep of mine there. dont use the one offered by the sellers agent!
Remember negating the contract price is a bit like a poker game, if you show your cards you will be pushed to your limit straight away so put emotions aside and negotiate the best deal to suit you It can go backwards and forwars as many times as you like and if the final bottom line the seller is willing to take is a bit high you could possibly ask them to throw in items to sweeten the deal enough for you to agree.
Which city are you buying in?
`Hi EVISIONAL
What was the outcome?
My experience is if the HW system is 10 year old tradies will generally replace as warranty of any work likely to be called up if another problem arrises.
About the only thing that I can think of that could be fixed by a temp repair in an electric HW would be a blockage or a leak. in a gas unit its possible burner / control parts are no longer available for the unit. I would guess its gas.
Its good to have your own trades lined up so they will report direct to you on an emergency call out.
Having had a foot on both sides of the fence so to speak I find some practices do not value good tenants and you loose them because of agents pumping up their charges to the owner. As a landlord I have found that if you live in the area and are capable it is worth your while in recruiting and managing your own tenants. You can put the savings into regular maintenance checks by a contractor. Lets face it the rental manager just rings a contractor to do any work at your cost plus fee and usually there is some sort of kickback.
A family member has been renting a house in a "better" suburb of Brisbane. I can assure you they are a model tenant of 5 years and they have now given up and are buying because the agent is hopeless and they have had a gut full, new 6 month leases, lack of response to requests for longer lease, poor response to roof leaks or maintenance, the list go's on A good tenant is worth more to you than you may think. The longest I have managed a single tenant in one of my properties is 7 years. A rental manager uses a "us and them" combative mentality in their dealings, where as you can foster a partnership with your tenants around the rental. Respect is reciprocal so if you want them to respect the property give some respect to them, it goes a long way!
I don't think you will see overdevelopment in the local towns in the basin, just support industry and local economy pick up from local employment etc.
The difference with this is that it is thermal coal used mainly for power generation and the Indian company will be exporting a lot of it for their own use as I understand it. That operation alone plans to ship 30 000 000 tonnes per year.
My money is on where all lines are heading, the Bowen area. When the action dies down it will still be a very nice place to retire or live, with its established facilities and a reasonable local economy to support it. It was originally going to be the capital of Queensland when it was laid out. It has Good Beaches Good Fishing Good Farming country, Tourism and all major transport. Get out of town a bit and there are plenty of places for lifestyle or hobby farms also.
Forgot to mention, I am in the area at the moment and I am told Gina bought a local resort to develop for staff housing. Just found the article so added it this morning. She got in early as you would expect, before news pushed prices at all http://www.townsvillebulletin.com.au/article/2011/06/29/243361_business.html
Added Sat PM
Just heard that the owners of Collinsville Power Station just west of Bowen has been given approval (27/09/2013) to go Solar with 40 hectares of panels in operation 2015. 50 jobs.
So a bit more substance to support the local economy.
Adani holds the 99 year lease on the current port which it paid big dollars for.
This article give scale of revised down port development proposals http://www.sunshinecoastdaily.com.au/news/joint-venture-likely-build-one-abbot-point-termina/1824534/
In talking with an agent in Toowoomba a couple of months ago I was told they are getting quite a lot of enquiries from people who are looking at retirement homes in Toowoomba. They can sell up in Brisbane at high prices and buy in Toowoomba and cash the difference. They are looking for the upper end in Toowoomba.
Climate wise its a great place to have a summer residence and eventually its relationship to Brisbane will be like the Blue Mountains are to Sydney.
Just need the Range Tunnel from the new Gov and some high speed rail and freeway and commute to Brisbane. I can drive Rangeville to Toowong in 1 hr 15 without roadworks or traffic blockages in Brisbane.. So in comparison to some cities its very good The New tunnel on the Brisbane western connection will put you on the other side of the city in another 3 minutes I think the sign at the tunnel construction site says.
Thanks for that update Simon
We have a contract on a property with a detached Unit / Granny flat so might make it a better deal.
