Forum Replies Created
LOL.
And I thought it was bad when they just didn’t return your calls!
Well, I agree with secretgnome in that you shouldn’t always follow the pack, but I also agree with other comments that you need to check out what the town does as far as indusrty, employment, population etc goes.
I’d also check what proportion of the population rent and what the vacancy rates are.
You can get the renting % from ABS and the vacancy rates from RE agents in the town.
If the town has a high rental % and a low vacancy rate then I’d consider it (as long as population isn’t declining).
If they have a low number of renters and high vacancy rates then I’d steer clear as your house may sit vacant too.
Well done dpeka
I’ve never had a problem and I believe you shouldn’t have a problem as long as your situation doesn’t change from the information you gave them ie: as long as when they value your PPOR it is worth what you’ve told them, that you don’t lose your job, don’t take on new debt etc.
However, nothing is ever definite, so to play it safe, still have the “Subject to Finance by ‘nameofyourbank’ bank” should still form part of your contract. That way if an issue does come up and they won’t give you finance then you can still get out of the contract without incurring a cost.
PK
Consider the possibilities of having both, or how you can change your negative geared ones to positive.
My Sister. She’s more conservative though, it makes for likely debate at times.
Friends tend to fall into two categories, those that want to know how we got started as they think they are interested (none have taken the plunge yet) and those that think we’d gone a bit mad.
Hi Terry,
I filled in the form (with another form allowing them to deduct the fee from our account), had the valuation done by their approved valuer, it came in OK (ie: house valued at $210,000, land is $166,000), ie: we own MORE than 20% equity now. However, their “Risk Assessor” declined it and the only reason we’ve got from them is “it’s not their policy”.
An intersting point you make that you tend to get different answers when you talk to different people. I find communication with this bank the biggest problem of all, we have 4, nearly 5 mortgages with them now and the last three have had some sort of problem, either a form they forgot to send out, or not getting the approval back on time because one department “forgot” to send the other department the valuation etc.
Basically, when the loan we are currently doing goes through I intend to write a compalint to there complaints dept or whatever they have and see if they’ll either change their mind or give more information if there is a problem. Failing that we will move banks when our fixed loans fall due next year.
Regards
PKYes Yes Yes, get a report done.
To date, I’ve also found it worth the cost.
Also in WA, new Prospector train coming, supposed to provide a faster service between Midland (suburb of Perth) and Kalgoorlie (and the towns in between).
Everdine,
What’s lamipanel? Is it for bathrooms, curious as we’re about to do up a bathroom.
Regards
PKYes, I’d say so as long as the property your purchasing is sound and rentable.
I have learnt that the b?#?#? scanner won’t work if the cord has fallen out. I have also learnt that it’s the first thing I should have checked instead of cursing the thing while trying to reload software that was still there.
I live here so it’s got to be good! Kidding, LOL.
Perth suburbs are no longer cash flow positive, like any other state you need to look regional. One of the disadvantages our our state is it’s so big, places are so far apart. Ask Recoveryman about his trip from Perth to Geraldton, I seem to recall him saying it was 5 hours of “nothing to see”! Having said that, people over here are used to it and don’t think much of doing a 5 hour trip to Perth to see specialists etc.
So it all depends on what you’re after and what size town you’re looking for and whether you’re willing to travel the distances to check our state out.
Regards
PKHi everyone,
Thanks for the advice. Yes, Colonail are not easy to contact, it’s all leave a message type of business and hopefully they call you back.
Bit hard to move one at a time as they are all tied up, whihc is exactly what they are after I guess. Perhaps ringing to ask exit fees (I haven’t done this yet, thanks for the idea) might help as perhpas it is time to move it all elsewhere.
Just to do so would mean more valuations, whihc means upsetting the tenants again as this was all just done for a new loan. Not sure I want to upset my tenants again.
I do agree that’s it’s time to move but I may need to wait a few months and allow the tenants a bit of piece first. Bu tI’ve definitely had enough of Colonial.
Does anyone know if Commonwealth Bank policies are the same? (As Commonwealth own Colonial I wonder whether Colonial have there own polices or whether they uses Commonwealth policies?)
PK
A couple of loans are fixed for another year, so can’t really move exisiting business without getting exit fees.
New business is a different story though, that can go elsewhere if we put in the 20% deposit rather than using our equity! Not ideal, but a possibility.
PK
Ah, Picies, I hope your wife brought you a present, perhaps a bunch of flowers that she could appreciate? LOL.
Happy Easter Everyone.
Well I’ve never read his book, but I’ll fathom two guesses.
It could be properties that aren’t appealing to others for some reason. If you can work out why they aren’t appealing and then do something about it, then you could be onto a winner. Having said that, you’d need to make sure that whatever it is you need to do, is manageable and the cost reasonable.
Or he could mean properties that are different in some way and therefore make then special ie: we have a house in a low income area, the majority of the area are 3×1’s, yet most of the poeple in the area have at least 2 kids and therefore no spare room. The house we have had an extension that made it a 5×1, and although the price was only a couple thousand more to buy, it’s rentability is amazing. Every family that looked when we advertised to rent put in an application, now the house was appealing to them as it meant they could have a spare room, something they’d never had before. Basically it meant we had a choice of tenants and that’s a nice feeling!
Regards
PKBottom line. Only job growth can really affect the market to any great extent and has not changed much lately and is not likely to. Without the stimulus of jobs, the population that is here (or migrates here) are not able to spend up big on property so take care when buying, even in Brisbane and Perth.LOL, I thought I was a cynic! Well, i don’t know about the other states, but unemployment is WA has been dropping, so perhpas we will be OK over here!
Redwing,
Followed your link (well done) and had a look. Firstly, how come we as Westralians haven’t heard of him before? Secondly, I couldn’t see anything relating to his current net worth, it states the value of real estate that he’s developing and the value he has invested in , but I couldn’t see where it stated his “Net worth” or the value of the loans or expenses relating to the investments and developments.
Having said that, it may be guenuine and very worthwhile but I’m a cynic so would be asking more questions first.
PK
mmm. My only thought was “Make sure you have tenants insurance”!
Good Luck.
