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Be wary is all I can say… have heard stories of their bank valuer guy overvalue properties significantly http://australianpropertyforum.com/topic/10077322/1/ and providing a cookie cutter approach to buying for all their clients. There’s a good few threads on other property forums you could find with a quick Google search ;)
Wow… this is the exact same situation I’m in too! 1br in FV through Ironfish and only realizing the mistake now… Guessing it’s the Elenberg Fraser/Gurner Flat Iron building.
Due to visa restrictions I can only buy brand new for the next two years and was shown this one as a good option and while it would be better stock than other similar 1br OTP’s in Brisbane, I’ve realized that $40k is probably better off in the bank until I can buy an established house and reno it. Can’t do much with a new 1br in amongst a building of 200+ and all those thousands of other apartments that have yet to be built.
Costwise… there would stamp duty and solicitors fees. For now, I’m putting $400/wk away in case it does settle for less. If it’s worth more when it settles, I’ll simply use that money for my next IP deposit.
Check your contract as there may be something in there about not being to sell it before settlement.
Thanks for that, had no luck on Google. While there’s no defined time for VIC REA’s, it pretty much should have happened at the time he signed.
Forgot to mention it was signed it NSW but for a QLD property though guessing it should be similarly worded for either if they have the same Act.
If you don’t ask, you won’t know. I’d still go and talk to the owners. Things don’t look to be in your favourite but may get lucky and will never know unless you try. It’s not always about the $$$’s ;)
The amount of stamp duty you are required to pay is assessed on the purchase price or the market value of the property at the date of settlement, whichever is the greater.
https://www.revenuesa.sa.gov.au/generic-pages/i-am-a-property-ownerbuyer
Good start with taking out house and landlord insurance. I hope you went with the most comprehensive options… With your house insurance make sure it covers ‘uninvited guests’. Income protection insurance would also be a good idea, especially if you’re negatively geared.
Depending on the level of protection you want it would be worthwhile looking into trusts. Google the pros and cons and see if that piques your interest. A good place to get started is a book called Trust Magic by Dale Gaterum-Goss.
Welcome :)
What’s your background and investing goals?
HCK has been around for a while and would put her in the same camp as Margaret Lomas
As mentioned above, all the information is widely available at a fraction of the cost but where I think it would be beneficial paying such a pretty penny would be for the consistent motivation and being held accountable. But if you’re motivated enough yourself to succeed and follow through with your plans you would be better off looking for a successful mentor for advice and networking at places such as Meet Up groups in your area.
Thanks for the replies. Must have misunderstood what the speaker was saying as it did sound pretty good but at least it is possible as long as the valuation comes in higher than the contract price. I’ll keep the fingers crossed for the next three years :D
Where was that OTP Richard?
The risks for someone like you who is highly geared are very high irregardless of how the economy is going. Have you looked into a ‘worst case scenario’ exit strategy and reducing or adjusting your level of exposure? An exit plan is just as important as every other stage.
No idea what it was in Auckland but I remember reading that the Sydney median dropped about 10% from $575k to $525k during the GFC. Pretty bearable if you’re set up correctly and have a buffer just in case you’re let go. If you’re already worrying about what could happen, imagine how bad you’ll be when it does happen!
This shows how previous events have impacted property prices in Melbourne. Pretty weatherable if you’ve planned properly ;)
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Buying for $410k and deposit was 10% but as its Off the Plan due for completion in 3 years I plan to have at least another 15% saved. Is asking for more solely to act as a buffer not possible?
No PPoR so no mixing of the purpose of the loan. Tax deductible while simultaneously paying down the interest… Very nice!
I did a MAP session with Nathan some time last year and only have positive things to say about it… well, aside from the fact that the hour went way too fast!
I had a lot of questions prepared beforehand and by the time the session was up, he had answered every single one quite well. Obviously he related to his own personal experience a lot but the man is so unbelievably grounded and an absolute pleasure to talk to that his impressive portfolio and success hasn't gone to his head, he's more than happy to help others. At times it felt like a casual conversation between mates.
If he is no longer personally doing the sessions, his business partner (Christian I think) is equally capable and holds a similar record for a large portfolio of CF+ IP's. Without knowing it, I met him at a bInvested session last year in Sydney. He struck up the conversation and we had a good talk about property for about 10 minutes before revealing he was Nathan's business partner. Very friendly and interesting guy.
I think any time spent with Nathan or a member of his team can only benefit you and if you're in the position to start buying, I would highly recommend his services. His business and network are rapidly growing so it would be a good idea to take advantage of this.
It is for the most part outdated but it is still possible to find 10%+ yields, just broaden your search. Remember to look at just the numbers and not with your emotions. I think there was a revised version in his second book but can't remember what it was. Have you heard of Nathan Birch? He's still regularly finding properties with fantastic returns.
Properties on the more affordable end of the scale (think Orange) and mining towns are the two types that come to mind and seem to be generating this kind of return at the moment. Check the back of YIP and API for Gross Yield Return as indicators or for back issues that suggest areas where these returns are possible.
By doing a simple reno you can easily increase the yield by a few percent so keep that in mind too.
Here's a few links from others asking a similar question;
https://www.propertyinvesting.com/forums/property-investing/help-needed/4335945
https://www.propertyinvesting.com/forums/property-investing/help-needed/4323727
https://www.propertyinvesting.com/forums/treasure-chest-past-forums/the-treasure-chest/665
As another member posted-
"The 11 sec rule is just a yard stick (as Steve puts it) … It was never designed as the be all end all of property procurement tools.
There are still many deals out there that work well within the 11 second rule but some need more creative solutions to get them cashflowing.. such as wraps, lease options, upgrades to justify rental increases and many more.
Trick is to try to find a hidden solution to bring the yield up so that you are not out of pocket … if it not by increasing the rent .. then it could be through lowering costs to get you over the line."
It was just general advice from the point of view that spare cash that's in an everyday bank account would be better off in an offset that is paying down the principal and saving on interest in the long term. Hence the example I gave about the extra $100 repayments.
Would there be another way to use spare cash that's more tax savvy?Hi Sundance,
It would definitely be better to pay down the loan as quickly as possible so putting the money straight back into the mortgage is highly recommended. Along with any other spare cash you have. (Paying an extra $100 a week into a 30year mortgage on a $360k property will save 10years and $200k worth of interest!)
Have you set up an offset account to make payments into? If so, you can still withdraw the cash if necessary and it would be far more beneficial to have it there than in your bank account.
Thanks for finding this thread Woga, just moved to Perth and was going to ask the same question.
Momentum are still around (I've conversed with Damien a few times) and http://www.propertyinvestornetwork.com.au is up and running with an address in Palmyra. Try Meetup.com as well for local groups that meet up and discuss all things property related
This video comes to mind http://www.youtube.com/watch?v=-HaqwFJj4ZY
Gold fits the bill and should prove to be an excellent buy if you understand (and believe in) the fundamentals of it as an investment. I'm heavy on silver for many more reasons but for portability, hideability etc, gold wins every time. I've bought 5oz of gold (about $8k) with no I.D requirements but most will tell you I.D. is required for purchases of more than $5K.
N@than, where do you buy your gold? A kilo would cost minimum $53k!
Thanks Richard, it's quite a relief to know that it's possible as I was unable to apply for the 457 as originally planned.
I'll be looking for a mining job for the cash (along with half the country by the sounds of it!) pretty soon so should be able to obtain at least a $70k+ wage and already have some cash for deposits. No debt or credit cards either.
I will contact you once I actually have the job and see what is possible at that time.
Kind regards,
Derek
Strange, was only looking at this thread this morning to see if the OP had followed up with an outcome.
What are the chances like for someone like myself on a 485 visa? Is 90% still a possibility?
Hank, I've always read that the minimum amount of time you should be in a job before applying for a mortgage is at least 6 months. How did you manage to work off just the one pay slip?!
Interesting idea indeed. Wonder if the cost of buying, transporting, modifying etc would be worth investigating further. Let us know how you go when you suggest it to council!
Here's the NatGeo episode- http://www.youtube.com/watch?v=0A1_PSzhVj0
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