Yes but stamp duty is much less, land tax is much lower – means much higher roe. Also 7% yield means I wont get cappeD on serviceability and can keep Buying. I want to turn this into a full time job. 2m properties will have 2-3% yields if u can find me a 7% yielding 2m property or suggest an area let me know – not looking for some holiday let or seasonaL property either.
so what are the horror stories of moe, warrent arrarat etc? Squatters, ice houses, etc?
This reply was modified 3 years, 2 months ago by propertyboy.
In my experience in aus you are capped on personal income for conventional lending as resi yields are low and banks stress at very high rates. In uk, you can be on a very low perdonal income as long as its £25k (thats from property distributions mind you also) and as long as property services 1.25x of the interest that is all they test. I Wonder if historic low rates have changed the game and wil make it easier for there to be more professional landlords
This reply was modified 3 years, 3 months ago by propertyboy.
Yes they may have their mortgage in place but its always subject to valuation and lender discretion.
Just because a bank has given you an agreement in principle doesnt mean they can’t back out.
What is the risk if I buy a non habitable property at auction (with agreement in principle) that the lender may reject if say the kitchen is not functional or property not liveable?
Who conducts a Sheriff’s auction?
A Sheriff’s auction is conducted by a Sheriff’s officer, not a real estate agent or auctioneer.
Sheriff’s auctions of real estate differ from usual auctions conducted by real estate agents/licensed auctioneers.
A property can not be inspected prior to auction as the Sheriff does not obtain possession of a property as part of the sale process.
A Sheriff’s auction does not operate under the Sale of Land Act 1962 and there is no requirement to provide a vendor’s statement under section 32 of the Sale of Land Act.
Unless the court orders otherwise, the Sheriff has a duty to obtain a fair price. The Sheriff sets a reserve price, however, the reserve price is not disclosed.
Interest in property
A person’s interest may be subject to any other interests in the property registered on the title to the property at the time of the auction, including mortgages and caveats. These other interests are noted on the advertisement of property to be sold at the Sheriff’s auction.
The extent of the interest being sold by the Sheriff will differ at each auction.
Process following a Sheriff’s auction
Prospective purchasers should note that different requirements apply following the completion of a Sheriff’s auction. In summary:
A sale of contract will be entered into. This is not a standard form contract.
On payment of the purchase price, the Sheriff provides the purchaser with a completed Transfer of Land form, which the purchaser can use to become registered as a proprietor of the property. The Sheriff does not provide the Certificate of Title.
Payment terms vary from auction to auction – refer to individual contract for details.
There are no adjustments made on the purchaser’s payment of the balance of the price.
The Sheriff does not deliver possession of the property upon a sale.
Stamp duty is payable on transfer of land from the Sheriff.
Prospective purchasers at a Sheriff’s auction should obtain legal advice in relation to the effect of other interests registered on title.
Are you sure about that? My understanding was they are sold site unseen and the buyer has to take on the debt hence can’t go through normal auction process and same warranties around title arn’t provided hence cant use conventional bank finance until issues sorted
The victorian sheriff auction lists properties but there is limited stock (only 2 at the moment)
Are these receivers running a usual sale process to non anxious buyers? Listed on domain etc? Where are they listed? If they are listed on usual salE sites and run usual auction process i dont understand why you say they are cash? Most the buyers will bid on basis they can get mortgage to settle.
Hi richard, bit confused – most auctions are purchased by retail investors with 80%lvrwho then have the bank fund the gap. Can you elaborate more on that comment? I appreciate most people bid at auction and dont appreiacte risk that lender may pull out but dont get you comment? Genuine qs – not trying to be smartass
eg say i got 2m cash, the retail market is quite wide with couples, families etc with 400k deposit and 80% loan. However, the investor market with 2m cash ready to buy problem assets site unseen and fix the problem is cery thin – well thiner than the 80% lvr example.
so how do i find these sheriff sales? Right now on vic sheriff website there are only 2 properties a d i cant see how to bid?
also my understanding was sherif sales are not mortgeable?
i need to find cash deals – where do i find these? Anyone got a deal?
in the uk if u have cash you can get real discounts. I am struggling to understand why this dynamic doesnt exist here?
This reply was modified 3 years, 7 months ago by propertyboy.
This reply was modified 3 years, 7 months ago by propertyboy.
How do you get comfort on property that go auction? Do you just accept the risk? Or keep paying for inspection takkng on risk you may lose auction on properties you have sunk a building inspection on
If I am given bsb and account number how do i confirm the account is a trust account and not just an ordinary account the agent or their reps can pull money ouT of?