Forum Replies Created
Hi blay,
You may want to make sure your father has appropriate landlord insurance as well. This should (to a large extent) coverdamages from malicious damage, loss of rent, etc.Hi Michael,
I think on a No-Doc loan you can get 70% LVR only.
Some pros of No-Doc loan are:
1. No proof of income is required and therefore there is very little paperwork.
2. Because you are putting in 30%, you do not have to pay the Lender's Mortgage Insurance (LMI)Some cons of No-Doc loan are:
1. You have to put 30% deposit and therefore more of your cash is locked
2. The interest rate charged may be higher than the interest rate charged for a traditional loan
3. Because very little paperwork is required, non-residents can qualify for loans in Australia using a No-Doc loanSeasons Greetings to all
hi Syphanx,
Welcome to the forum.
I think its good that you have started thinking about investing now. I think you should do the following:
1. Pay off the personal loan
2. Pay off the loan for laptop.
3. While you are paying off the loans, educate yourself on property/share investments and more importantly the psychology of wealth creation. There are a number of books, audio programs and live seminars that you can attend.
4. Choose your investment vehicle and start the journey.
Hope this helpsHi cutegal,
Welcome to the forum.
I would say, why don't you use this forum as your mentor. There are a number of experienced people on this forum who are willing to offer their advice. That said, I am in Melbourne and will be willing to help you as much as possible.I think you may have to give 60 day notice.
Hi vegemite3,
you might want to try some residex reports as well.
The November and December issues of API magazine has the top 100 hotspots as well.Hi Chris,
I'll join the bandwagon as well – please send me details of some of the past and current deals. My email [email protected]
ThanksI think you can amend the tax return within 4 years
hi al2216w,
You might want to consider interest only loan.Hio alwayslearning,
Buying off the plan is a somewhat risky if you want to flip the property. You should always be ready to settle on the property if need be. Make sure you have done your research on the area, developer, etc before you get into a contract. Few things that might help you in an off-the-plan deal are:
* Buy in an area showing growth
* Buy in Stage 1
* Do not buy in a high rise (say > 3 levels) apartment block
* Do not buy too many off the plans at the same time (make sure you can settle on them, if need be)
* Do not buy in developments that have hundreds of properties. If they all become available at the same time, it will put downward pressure on prices and rent (demand and supply)
* Its better to have settlement 12 months after contract date. In this case, you can borrow against the end valuation rather than contract price. Assuming the value has gone up in 12 months, you have to put less money in the deal.
Hope this helpsIf the contract has not been signed by both the parties, I think it will be a challenge to get the developer to change. Maybe you can ask the developer to tell you the prices of adjoining townhouses. Assuming they have similar finish and aspects, you can see if there is a genuine mix-up or the developer is just trying to get some more money out of you.
Good luck and keep us posted on progress.hi sciomako,
I think you should get around $12k depreciation for the first couple of years and it will drop down to around $10k by 5th year..Cut the tree and use some of the profit to plant few to make up for it.
You can try Depreciator (http://www.depreciator.com.au)
hi kirsteh,
Congratulations on finding a great deal. I think you should progress with the purchase.
Some options available to you are;
1. Redraw equity from your PPOR. You need to withdraw approximately $25k equity because you already have $20k saved up.
2. Use the savings and equity from your PPOR to put deposit and closing costs for your investment property. Have an independent loan arrangement for it. I don't think its a good idea to cross-collateralising properties.
3. Complete the renovation on your investment property and get it independently revalued. Assuming the property is revalued at $240k, go back to the lenderr and try to increase your loan. Even at 80% LVR, the lender should give you $192k loan. However, for the property to be revalued, the renovation may need to be more than just painting, changing fittings, curtains, etc. I think updating the kitchen and bathroom may be required as well.
4. If you are borrowing at 80% LVR, then there should be no LMI.
Hope this helps.Hi atapiap,
Given the contract did not have finance clause, I am assuming it did not have any clauses about building/pest inspection or independent valuation either. If it did, may be you can try and use them to get out.
The other thing – have you tried getting it valued from different valuers. If the property is located close to Melbourne CBD, it appears to be undervalued at $170,000. Maybe the valuer was having a bad day.hi p_mac,
Welcome to the forum.
Studio apartments generally have lower capital growth and depending on the area of the apartment, the loan to valuation ration might be low as well. Its probably better to have a 2 bedroom apartement shared by 2 (maybe 3) students. I think you will find the return is better.Hi Tim,
I will not recommend transferring the property to a trust because of CGT and Stamp Duty costs, etc. Couple of things you can do to increase the protection:
1/ Reduce the equity in the house by maximising your borrowing against your current IP.
2/ Make sure you have a building, contents and landlords insurance policy.Try Nancy Keep from Nancy Keep and Associates (www.nancykeep.com.au).
She is a keen property investor and a very good accountant. He office is in Mt Waverley.
Contact # 9544 9577
