Forum Replies Created
Its always a good time to buy a good deal, just need to find them.
Everything is generally pretty hot right now. I’m not buying as I feel things will cool off with rising interest rates and mortgage stress. I’m looking at the possibilities of a global recession though and seeing what deals that brings.
I would be interested.
In lake mac.
Keep me posted.
Similar for me is $440 per tax return. I am however looking for someone else – not based on price but other reasons.
Any update WestnBlue on how things have been going?
Love reading your story
I believe banks will let you use 80% of equity, some 90%
So 450-405=
45k x .8 = 36kJust my understanding.
Best advise I can give is get in touch with a good mortgage broker who can really help you out.
Good question – I would be interested to hear what others think.
Very generic answer – whatever creates the most value – but I guess that is what you are asking. See what others houses in the area are selling for with cladding vs weatherboard. I know most people when doing renovations look at a return of $1 spent to return $2-3 so maybe weigh that up in terms of cost of restoring weatherboard.
Following along to here what others think…
Well done on your savings. I am by no means an expert but will reply since there are no others yet.
My first IP was bought with 10% deposit and I believe you could even do 5% with guarantor if you wanted to. Steve in his program generally recommends 20% for various reasons.
Seek the help of a mortgage broker. Jamie Moore who you will find on the forum has been very helpful to me and many others.
Hi TM,
I was in your situation less than a year ago. I decided to use a buyers agent not only for their services but also as a learning opportunity. There was so much involved in buying an IP that i didn’t know about. My buyers agent mentored me through everything and decision making. I felt much more at ease that I was starting out on the right foot. I learn’t so much and it was also an investment into myself. I also got good recommendations from the buyers agent on property managers, accountants, conveyancers etc that saved me hours of research myself to find the right team.
I don’t know if this helps, i know the $10k can be quite a bit but if I’d do the same thing again if I had it over – I feel more confident getting my next property on my own now.
Cheers.
Thanks everyone for the helpful responses. You have all shown me that getting family property tied up in investments is defiantly not the way to go.
Like I mentioned initially I don’t know anyone who could gift or loan me the extra deposit. I have $35k at the moment and because of my casual employment I will need 10% plus costs, plus some emergency fund, so about $70k.
Jamie mentioned a gifted deposit could be via equity. How would this work? Mum owns her PPOR fully paid. Could she use that to get $35k, lend it to me, I pay deposit and then pay interest on the $35k from mum (while paying it back to her) and the bank loan? We haven’t found a property yet and will work with Alan to do this, so is this worth it or should I just keep Saving.
I’m trying to get in the market but maybe I’m just not financially ready yet.
Cheers.
Thanks very much Jamie
Who is Jac M and Richard Taylor? How would I get in contact with them?
Ill give Alan Fox a call too.
Thanks.
Thanks heaps everyone for the response. Just got back online after a week or so and was great to see people interested in helping
I would love to catch up when your around Richard. Cheers
Thanks very much Benny. Like you said, now I am finding questions to answers I haven't even thought about yet. It sounds like you have had a bit of experience and I appreciate you sharing it with me.
The home are about 5 minutes away from each other so no one is really closer to shops more than the other. Very similar. The old one is in an area with a mix of other older homes and some slightly newer brick homes. The 20 year old is surrounded by houses similar to it.
Hmmm, it's a tough one but I think for a first investment the old home would be better so we can pay it off quicker. Then we could perhaps use equity from that to get us to the next IP. I am very keen to get started towards reaching my goals.
would appreciate any other input, even if not related specifically to my question, if anyone else reads this.
Cheers and happy new year…
Thanks God of money and JacM appreciate your thoughts,
I have read a little into student rentals and a lot of it lines up pretty closely with what you have both said – that it’s usually more drama than profit. I think I can overcome some of the problems as it is not a large uni but a smaller college, and becsuse I work there I am regularly asked by students about a room to rent meaning I can be a bit more selective in the character of students I rent a room to. Also I will know most the students personally (which may be bad. They say don’t do busines with friends) but hopefully they will have more respect because of that. I’m keen to try it on a 6 month basis and if problems arise I will just use the house as a standard family rental.
Do you have any thoughts as to which property you think would be a better long term investment?
Hi Benny, thanks heaps for your thoughts. Really appreciate it.
The old house appears structurally sound but will defiantly get building report. The current garage is free standing and I don’t believe dual occupancy will be a problem for the area.
Sorry the renovation isn’t really a “full reno” I guess. It included kitchen, floorboards, lighting in living areas and very minor bathroom improvements. Electrical has not been done.
At this stage I’m looking at keeping the pool but I know it will cost more. Not sure if people would be willing to pay more for it or not.
I was liking this house better because of the 8.5% as you mentioned but my mother thinks the brick one for location and thinks the newer house will go up in value a lot more than the older one. What do you think about this? The newer house is bigger too…will a 90 year old house still go up in value compared to the newer Brick home?
Sorry, just trying to get some advice on what people think would be the better of the two for an investment property…a friend told me to stay away from older homes and pay extra for the brick home…other have said get the cheaper one as its just for students , but I still have to look at resell value….just trying to get some opinions from people with experience really.
