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Many years ago, I got flown to Queensland for free to look at some units that were for sale off the plan… Day 1 was fairly relaxed so i visited a few estate agencies in the area so i could compare apples with apples, Day 2 was intense, they ran a presentation then somehow split myself and a friend of mine into different rooms and tried the heavy sell… To the point where they were furious that neither myself, or my mate were interested. It was actually quite amusing to see ho irate the sales team were getting ! but then again I have a warped sense of humour.
My advise would be to steer clear, even if they are paying the air fares !
Well said IP Freely.
And if the market drops… you pay the builder less ?? or not at all ?
Another reason I (as a builder) choose to work for myself, on my own projects.Some builders may enter into a contract with you, with a bank guarantee, but i am guessing this would be hard for you to obtain unless you own the property/s outright.
The 11 sec rule is just a quick guide you can use when weeding through the thousands of deals out there.. very rare to find a deal that instantly works with the advertised 'as is price'.
Best to use the rule to get close to an 'acceptable deal', then factor in cosmetic makeovers, rent increases, aditional rooms, negotiating a better purchase price. Then try and apply the rule again, and you will be surprised how well it works.On the flipside, the landlord would have had about 6 interest rate rises in the time that you have had 2 rent increases, also you knew the condition of the place when you first moved in so if you didnt like it you should not have signed the lease and looked for something else.
Also, my deepest sympathies are with you regarding your mother passing away and can understand that times are very tough, but please note MOST landlords also have families to support and the banks are not very sympathetic if a mortgage payment is missed. They can often lose their own house, including their rental property/s.I keep saving up to attend… but each time i have a spare 5 – 10k, I end up putting it towards another property !!
Having said that, Im up to 18 properties and still have to go to "work" for a living, so maybe i could learn from these seminars..CHANGE AGENTS !! or better still, list it with 2 agents, this will have them competing with each other to rent it out.
Burnie – it’s amusing that the banker I was talking about is also from WBC.. You can imagine how I cringe when I hear the “bank you can bank on” slogan … MAKES ME SICK !!
Banker – yes, accountants, financial planners etc do the same thing. However when you go to your accountant you would first expect to at least have your taxes done (the job you are actually paying them for !!) then you can listen if you choose to whatever other ideas / products they are spruiking. If bankers spent more time looking at the actual deal infront of them and do what they are actually paid to do, instead of thinking about their small minded little world.. Maybe our economy would start moving.
Keiko – I did not take it any further with him, or WBC. I went to a small finance company who shall remain nameless as I don’t want to appear to be pushing my own agenda !!
I have been (for years now), using the income from positive cashflow rural properties to cover the shortfall on high growth inner city properties. No use having a million dollar inner city properties if all you are doing is putting your hand in your pocket to pay for them !
I do limit my rural towns to those that have 10 000 + population
Also brush up on your handyman/person skills and do some of the repairs yourself (might need to add a ute / trailer to the equation… and be prepared to spend time travelling to carry out the repairs) or YES as Terry mentioned the local “handyman” will find out you are not local, and the price of repairs will skyrocket… its amazing how fast word travels in these small country towns, if you never go and inspect yourself NO MATTER HOW ‘GOOD’ YOUR PROPERTY MANAGER IS !
I spoke to ANZ last friday as i would like to refinance, I was concerned about the two blocks of units in particular and specifically asked the bank manager the above question. They are ok, but ‘only’ for a 70% lend. I did not go into what other securities they would require, but did ask about the rate and he would match WBC. Meeting later in the week to discuss, ill let you know how it goes..
No
But did put down a large chunk of my own money to cover the remaining 40%Hi,
I have a block of 6 (one title) that I purchased a year ago at same rate as residential, however the bank (WBC) would only lend 60% without M ins.
6 Months ago I purchased a block of 5, again residential rate, and would only lend 60%Cheers,
J-Lou,
I have similar LVR as yourself, (only different amounts) and recently purchased a property and went through hell with finance companies, such as Bankwest/Commbank, Westpac, Anz and Nab.
I have savings / loan history of 25 years with Westpac, and this did not help. (Cringe every time i see the “bank you can bank on add” !!)
Ended up having to go through a ‘unconventional’ finance company, called La Trobe financial. their rate was slightly higher but the deal went through without to many hicups.
Best of luck
I am a member and have found their info very helpful although I have only purchased one property through them. Be sure to add the 2.5% when working out if the deals they advertise are still cashflow + also check the rental returns are long term, meaning they have not just upped the rents and advertised for a quick sale.
Their staff turn around is also very annoying, I constantly have different people call to say they are my ‘new’ personal manager.
The site is good if your time to hunt for the property yourself is limited.
Good luck
Hi Fredo,
Your post seems like dejavu, as i recently had the exact same experience, only I had purchased the property at auction and paid 5%dep (ouch). After 4 weeks of dealing with a broker and not really getting anywhere, I approached another broker who recommended I “GO STRAIGHT TO THE BANK !! as this will be quicker”.I usually go direct to the bank but assumed with the brokers large range of contacts it would be quicker…. WRONG.
Thanks both for your input..
Finspec – could you elaborate a little more on ” Loan quality also plays a role in the discount that you can get now”
and Richard, I am currently trying to run the tricky balance between maximising loan amounts for IP’s (to reduce tax) and getting a good deal on finance. If i was to add some of my own funds to reduce my LVR do you think i would be eligible for further discounts and if so what LVR would the banks be happy with ??
Thank you again for your information and help
Anyone ?? congratulations on your purchase !, I bought a 1000m2 block in mt druitt 11 years ago for $110000, sub divided it and built a duplex on the back block. EVERYONE told me that it was a bad area and I will never get the return. It has proved to be one of the best investments i have ever made, the only regret i have is not buying 10 of these properties at the time !!!
You will find that although it might be considered a “bad area” your unit will very rarely be vacant, good work
Shhh… dont tell everyone !!
I have been a menber for a little over a year and found the site and service excellent, but most of their properties are on domain or realestateaustralia anyway. They just let you know the rental income (save you ringing every property on domain etc) to find out the rental return.
Most of their properties are in county towns. Where we all know provide, on average, better rental returns.Try Bank West, I have found them to be fairly flexible, while most of the majors (Westpac and CBA) are tightening their lending criteria. I have also found that “banking with them forever” is currently making no difference to the way the big banks are looking after clients…
Try Bank West, I have found them to be fairly flexible, while most of the majors (Westpac and CBA) are tightening their lending criteria.
