Forum Replies Created
Hi All,
wow, been a while since i've been on the forum, been over in the US and Canada.
just thought i'd update you all on how this one eventually went down.
managed to squeeze the vendor down to $395,000 purchase, bank did value at sale price, which is fine.
Loan organised @85% including closing costs, the property is currently rented out @ $400 p/w.Richard, the sales prices was due to the vendor having some very personal reasons……
Got my bank to revalue in October 2010 for a valuation of $540k. I had done a little reno on it, just the bathroom. total outlay of $4,500.
Purchased 2 more since this one, as well as the one's in the US and Canada. I'm permantly relocating to Canada at the end of this year so the Canadian one is going to be PPOR. Looking for 2-3 more deals to do before the end of the year…..Hi YI and Danny,
just spoke to the r/e agent, it is the current owners' bank that has done the valuation and they have used and external valuer, was valued 9 days ago. I'm quiet aware that the banks will use the lower of the purchase/valuation (well my bank will anyway) which is why the question was raised. I couldn't get my head around how I could proceed, cause as far as i'm concerned (bit sceptical on the LVR front) to the bank it would be
Value: $400k
Deposit: $25-50k
Loan: $350-375kStill thinking it is a good deal though if we wait 6 months and get my bank to revalue should be able to go forward with the next property.
Thanks Ryan,
Didn't think it would technically be a 100% loan based on the valuation, and yes that is a bank valuation.
So if i go through and do the $400k would that mean the $50k i have as the current deposit just sits in the offset acct till we are ready??
HAHAHAHAHA
Ben I feel for you, I had a similar experience 2 years ago when my wife and i bought our house. Now the place was almost 30 yr old by the time we bought it, and the kitchen and bathroom where still original, great spaces just bad orange and brown tiles and paint with mostly white cupboards. And don't get me started on the carpet in the lounge.
I told my wife that before we go spending "THOUSANDS" of dollards on reno's, she had to live in the house for a while to get a GREAT idea (notice it wasn't just good) of what you like and dislike in the house. Well that's where the similarity comes in, the ensuing arguements lasted a good month or so, it was, "but i already know what i want to do" and "what's going to go where" and "what new furtiture we're going to get". Well 18 months later, we had the kitchen and living areas redone.
Kitchen was just a make over, not new ie use exsisting frame work and just added new doors, hinges, kick boards, handles, stove, sink etc etc etc…
The lounge we ripped up ALL the odd carpet knocked out a brick free standing bar and titled. Now my wife has a very good nack at matching colours and putting schemes and all that fancy stuff, so i just let her go with whatever she felt like (which was her reward for waiting 18 months) and the tiles match the bench top and we've got more room and a shiny new kitchen too boot.After we were all done and dusted and there was a lot of dust from old carpet, my wife agreed with me that it was the best idea to wait before we did anything, so I won that one.
But alas, I'm well aware that the same arguement will be coming when we go to do the bathroom in the next month or 2 but this time i don't really have a leg to stand on cause we've already been in the place almost 3 years….
Row
Hi EvaCA,
I actually live very close to Liverpool, as spos has said, I'd avoid being close to either the station or westfields, but try searching a km or 2 from these. Liverpool isn't a bad area as most people think and if you have a good place (reno'd) within walking distance or a short drive to the station and westfields you should have no problems with tenants…
Hi Paul,
Thanks for that info,
Yeah well that was my thinking as well, because one of the trusts is trading if the trustee gets sued both trusts would be open for attack, well that's my logic to it.
Can anyone else shed some light??
Thanks Richard,
You reply has helped a lot!!
Just one more thought, on a "shared equity" as you've mentioned, you say this is done in the initial contracts? Im guessing a good solicitor would be needed to put that in there? Further, I'm in Sydney, can anyone reckomend a good solicitor that can do rent to own deals???
eddiec wrote:There may be a way to achieve negative gearing by way of a "gift and loan back" arrangement even if the trust does not have any income. It involves buying the property in an individual's name but having the trust take a second mortgage over the equity in the property.You need to talk to an accountant and/or a lawyer to investigate if you could use the arrangement in your specific circumstance.
Eddie
[email protected]Hi Eddie,
Can you please comment a bit more on this "gift/loan back" arrangement. I'm looking at attempting something similar.
Thanks
Row
