haha.. a bit of reality check every now and then is always good.. especially from reputable people.

Hi HollyRose,

Have you spoken to a finance person yet? What made you think that you can’t qualify for a loan now and have to wait for two years?
Just curious that’s all.
A few lenders have become a bit loose with self employed borrowers, and with the lending industry fighting hard for each applicant, I’ll be surprised if you really have to wait two years to qualify for a loan.

I think what you are asking for is Vendor Financing. The way you have worded your proposal is pretty good. But in reality, there’s a lot more benefit this agreement gives to the vendor than you. Its one way of getting into the market like you said and I am sure you have done a fair bit of reading regarding this topic. Do a quick search on the forums regarding Vendor Finance, just to ensure you have not missed any valuable info out.

Cheers!

Hey hja,

We can send you a residex report that you can use as a guide for comparable sales around the area. Just message me the address of the property.

Cheers!

Hey Joe,

You will find most of the answers to your questions if you just browse around the forum. Just spend a bit more time and you will more than likely find what you want to know.

Not knowing your current financial situation, I can say you are losing quite a few amount in tax incentives with the way your finance structure is set up. You basically want to get the maximum tax benefit from an IP so by having a loan with your IP is beneficial for you as you are in a slightly above average income. You currently have a loan in your own house which is not tax deductible so this is not really working to your favour. Better talk to your broker/finance person and your accountant about fixing this up for you.

Cheers!

There’s a few things to consider:

The rates (water, council, body corp fees (if strata prop))
Property Management Fees
Insurance
Maintenance Costs
And always add a cash buffer to prepare for unexpected expenses (1 or 2 weeks rent)
Etc.

Make sure you add all expected expenses to your calculation and allow for the unexpected costs as well.

PS.
If you are looking at Nowra, get in contact with knightm.
I have no affiliations with him and I have no dealings with him whatsoever but found him to be very knowledgeable in that area.

Good on you Danny for asking these questions before doing anything. Richard has explained the steps to be taken already. Listen to the people who has been there and has done what you want to achieve.

Cheer!

Hi Siewlin,

Every time a property is being purchased with a mortgage, the lender will send in their own valuer for their own security. This can be a desktop valuation, drive-by or full valuation. Nothing’s stopping you from getting an independent valuation but bear in mind that the lender will honor their own valuer’s report. If there’s a really large difference with your independent val vs the lender’s val, you can challenge your lender’s val. Most of the time they will still stick to their own valuation though.

Alternatively ,you can check the comparable properties around the area if you want to know the rough estimated value of the property you want, or get your broker to order a valuation for you, some lenders charge a small amount for a full val.

I was looking at Bradbury a couple of months ago as well.
And as always, knightm is spot on once again with the advice.

The growth started 2011-2012 with an average of 3.7%.
2012 – 2013 = 8% average
2013 – Sept 2014 = 14% average

Just some very rough numbers but it gives you an idea of the place.

Cheers!

Adrian Cahill wrote:

Ivan, I just visit Cebu & Bohol occasionally. In Townsville now, renovating, then back to Shanghai.

Zyrine69, Love to see an update on your hunt. an Dimple, could you share your numbers.

Personally, I would love to buy house and land on Palawan. Or if I was a young tech savy eager Entrepreneur, I would be tempted to run an Outsource center in Cebu with 2 apartments in Ayala.

That’s pretty interesting Adrian. Have you done your research regarding starting up an outsource center? How much to set up and what would be your ROI?
Is Palawan on the rise therefore house and land is being considered?

Dimple wrote:

Hi zyrine69

If you don’t intend to live in the Philippines, you don’t have to deal with corruption. Corruption lies in the middle of the politicians and public officials. If your intention is to invest in properties for extra income, then you will be dealing with private real estate companies. There are a lot of good real estate companies selling top notch condominium properties. I know because I invested in 2 properties already. One from DMCI near the Global city and one from SMDC in one of the country’s tourist destinations.

Hey Dimple,

Care to share your numbers? costs, yields, etc?