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  • Profile photo of pwinnepwinne
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    @pwinne
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    August 17, 2009 - 5:30 am

    ajadee73,

    you are of course free to have your opinion; say what you like, however I disagree with your property prognosis. There is nothing wrong with  5-10% swing in median house prices over a given period. Property investing has proven itself to be an excellent long term growth vehicle.

    Speculators both make and lose money when shifting property in the short term; I can only assume that you tried a get quick rich method in property and got burnt. Most, and I say most property investors who invest wisely and with a long view in my mind do very well.

    As for what will happen in September? As I said before good property in the right areas will always do well, and I expect that property investors will come back to the market in the hope of snaring the odd bargain.

    I should add over the long term (and I have used this example elsewhere) property will drop and rise and yes even double…

    Real life scenario – 3-4 bedroom house in Vermont South VIC

    The figures below of course leave out real wages vs inflation etc., and assuming it doubles every 10 years. I think we can all see that it did much better than double.

    Bought              1973 $11,000
                               1983 $22,000
                               1993 $44,000
                                2003 $88,000
                                2013 $172,000

    Sold in 2009 for $450,000… ah well.

    Profile photo of pwinnepwinne
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    @pwinne
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    August 13, 2009 - 12:47 pm

    Hi Blacklab, are you looking in Bendigo or Ballarat?

    Profile photo of pwinnepwinne
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    @pwinne
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    August 12, 2009 - 12:01 pm

    Hi Richard,

    THANK YOU for the reports. Great stuff mate.

    Cheers

    Paul

    Profile photo of pwinnepwinne
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    August 12, 2009 - 2:07 am

    only in some areas, quality property will remain quality property. I not interested in mortgage belt defaults.

    Profile photo of pwinnepwinne
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    @pwinne
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    August 8, 2009 - 3:10 pm

    I should add that duckster is however correct – ANY misleading information provided to ATO, variation or not, leaves you open to prosecution; especially if you knowlingly do it.

    variations are an excellent way to reduce you PAYG tax legit.

    See an accountant on how to do it; I am not one :)

    Cheers

    Profile photo of pwinnepwinne
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    @pwinne
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    August 8, 2009 - 3:07 pm

    little bit melodramatic duckster

    I've been running a variation for years.

    I do a quarterly check on myself. If I've overquoted I contact the ATO and they give you Bpay account to 'top up' your tax; should you need to. I've only has this issue with extra large bonuses from work and some excellent wins on the ASX.

    I've found the ATO to be genuinly helpful with variations, in fact I think they'd prefer it if we all did one.

    Cheers

    Profile photo of pwinnepwinne
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    @pwinne
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    August 6, 2009 - 9:50 pm

    Yeah I've taken 2 new loans in the last 6 months and did notice they fluffed around a bit more with the detail than usual.

    I'd just assumed the banks had become more dubious about who they lent to; which would make sense.

    I shall just have to wait and see I guess.

    Cheers

    Profile photo of pwinnepwinne
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    @pwinne
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    August 6, 2009 - 12:01 pm

    Thanks Richard,

    Have the rules changed as a result of the GFC?

    My broker seemed confident that there would be no issues… I called him today and asked. I'm not disbelieving you, I'm just worried that my broker may have not funded a sub division recently and as a result is not aware of any changes.

    Cheers

    Profile photo of pwinnepwinne
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    @pwinne
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    August 6, 2009 - 9:23 am

    Can I ask gents, how does one go about funding a subdivision if the banks are not allowing people to fund the construction via normal lending channels

    Cheers

    Profile photo of pwinnepwinne
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    @pwinne
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    August 6, 2009 - 6:00 am

    Hi Richard,

    No worries; You have raised my alert level, as this is my first attempt at subdivide and build. There will be hurdles and this is just another one; I have other options if required, but not my preference.

    Either way, I appreciate you comments.

    Cheers

    Paul

    Profile photo of pwinnepwinne
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    August 6, 2009 - 4:54 am

    Hi Richard,

    I spoke to my broker that was aware of my plans last year when I purchased this particular property; he was quite sure that the banks are OK with subdivided dual occupancies. It would seem that it all depends on the amount of units that you plan to build.

    I imagine that a 3 unit development would be OK (one unit already existing)…

    And you are right, you don't get the title until after you have completed the subdivision plan (i.e. completed the building to the councils requirements, signed off by the surveyor)

    Cheers

    Profile photo of pwinnepwinne
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    @pwinne
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    August 5, 2009 - 10:08 pm

    Hi Richard,

    Thanks fo your help, I will need to do some investigating. I will post back here when/if things are sorted :)

    Cheers

    Profile photo of pwinnepwinne
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    August 5, 2009 - 1:56 pm

    Hi Richard,

    My current loan for the 1st property is with ING. How are they on multi dwellings?

    cheers

    Paul

    Profile photo of pwinnepwinne
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    August 5, 2009 - 1:01 pm

    Mike,

    THANK YOU..

    That report filled some gaps in my research as that area was proving difficult to obtain reliable data.

    Appreciate the prompt response

    regards

    Paul

    Profile photo of pwinnepwinne
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    August 5, 2009 - 12:40 pm

    I should add that the loan on the 1st property is 350k.

    cheers

    Paul

    Profile photo of pwinnepwinne
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    August 5, 2009 - 12:14 pm

    wealth4life,

    great pickup, just been looking at apartments in in 150-200k and the yeilds are impressive.

    I'm was on the hunt for a development block in regional VIC (specifically a regional town south of Bendigo), but I've never looked at NSW metro before; time to look I think!

    Cheers

    Profile photo of pwinnepwinne
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    @pwinne
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    April 22, 2009 - 3:45 am
    Edvico_kvn wrote:
    While there are certainly benefits in fixing your home loan rate (e.g certainty in your interest expense and potentially paying less interest than you would under a variable rate), one must not forget that you lose flexibility in your property investment/ownership decisions (Or at least it is going to be very expensive).

    What I am referring to is the break cost fees to exit a fixed rate loan before the fixed term ends.  We've all heard of stories of borrowers trying to exit fixed rate that they have locked in at 8% or so last year and how they have to cough up thousands of $'s in break costs fees if they want to refinance.

    So you would have to be very certain that you won't need to sell or refinance your loan in the ext 1,2,3….5 years.  There could be numerous reasons why a borrower would need to sell or refinance…….job loss, divorce, job relocation, your business needing extra cashflow from equity in yhour property, receiving an offer to buy your property at a price too good to refuse (which is not uncommon for under $500k property during this period of FHG $14k-$21k madness)……..These types of events can happen when you least expect it……

    So just keep in mind the flexibility issue when considering fixing versus variable and not just look at which option costs you less in interest expense.

    This is all true, however banks often will be happy for you to break out of a fixed loan at NO COST if the variable rate at the time is HIGHER than your current fixed rate.

    I just did this in September last year with both ANZ and CommBank – no charge. There is of course the usual switching fee, BUT zero break costs.

    cheers

    Profile photo of pwinnepwinne
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    April 17, 2009 - 11:46 am

    Hi Richard,

    You may well be right. However 3 years at 4.99 is far better than the rate ANZ was offering. So the move is not a sad one; and in this climate the more $ in your hand the better, especially if more good property deals surface post June.

    I'd liked dealing with ANZ, but I guess my time with them has ended for the moment. They knocked me back in August last year on a development block with heaps of upside, and went through ING with no issues. My file is clean and I personally believe I'm a good lend; however ANZ doesnt seem to think so :)

    Cheers

    Profile photo of pwinnepwinne
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    @pwinne
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    April 17, 2009 - 4:25 am

    No worries Richard,

    I'm not a broker, so my view is only that of the consumer ;) I have no issue with being corrected.

    My recent experience i.e. this week was that ANZ was ballbusting and WESTPAC welcomed me with open arms. Mind you I have been with ANZ for 10 years and this is 3 loans of 1 mil in total. ANZ would not let my existing loans go IO and I was having to stay P&I.

    ANZ rates are far from competitive IMHO.

    Profile photo of pwinnepwinne
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    @pwinne
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    April 16, 2009 - 1:52 am

    ANZ have been extremely tight with lending of late; i just moved 1mil+ from them as they would not budge on a PI to IO loan (you have to do a complete refinance to switch, they claim its credit critical, whatever..) in IMHO they have lost the plot a bit of late, I suspect the Opes Prime debacle has caused a few knuckles to get rapped.

    Try Westpac, a good broker should be to get you 4.97 fixed for 2 years or 4.99 fixed for 3.

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