Firstly welcome to the forum! hope you enjoy your stay.

With any property these days you will need a min deposit of 5% ( for high quality/safe property + strong application) , now given your unit is in a Category 2 area + it’s under 45 squ meters you will be looking at a min deposit of 10-20% ( 90-80% LVR) depending on the lender….

Is there any way around this?
1. Not really, unless you buy a “higher quality”/ safer property ie larger then 45 squ meters + not a studio or service apartment etc…
2. Unless you can get your parents as guarantor with their property ( presuming their home has usable equity)
3. Find the required deposit

Regards
Michael

why dont this person just transfer the money to your bank account?

Regards
Michael

If your looking for property located in Sydney, then you can’t go wrong with Nathan Birch.
Some of my clients keeps raving about him! + i been to 2 of his talk and i can see why.,..

Regards
Michael

A bit hard to say, as this will be your PPOR the thinking behind the investing is slightly diff….Depends on;

1. What you interpret as “value wise”, i have buyers who had bought a Townhouse in Merrylands for $380,000 which is roughly $25,000 less then the average for a simliar property ~ 10% less…and they may they consider that as value?

2. How much work do you want to put towards the property + how experienced are you?. are you wanting to do small-medium renovations and cosmetic changes- or buy a place that’s already done up.

3. How long will it be your PPOR? setting the right structure is paramount to max your growth potential and tax benefits.

4. DO you need the property to be close to a station?

On a personal note; i have a thing for Toongabbie- since 2008 me and some of my another stuff have mark this suburb as one of the area to go through a massive capital growth stage in the next 5 years, – if the right land size, street , zoning and property type is chosen – I know my property mentor has personally bought 2 houses in Toongabbie in the last 4 years, if only i didn’t have my money tied up on my development project….- however it only works for particular investors and may not suit everyone.

2012 -2013 is the year for toongabie to bloom so it may be a bit late already as there was a slight peak in prices leading up to 2009-2010???- if you walk around toongabbie now you will notice a lot of new units, council upgrades and the new shopping center!

http://forecast2.id.com.au/Default.aspx?id=265&pg=5530

Cheers.
Michael

ok wow…something must have went terribly wrong- 10k borrowing capacity to 400k!?

Apply for the pre-approval when you are ready to buy + have all the paper work in place. Ie no point applying if you need to submit the group ceri which you clearly dont have with you now?

If you borrowered 20% deposit from your PPOR- then no you don’t need to pay for LMI…

From the sounds of thing your loans are crossed; crossing your loan benefits the bank as it’s hardier for you to move from that one lender + LMI is more expensive

With 6,000 in LMI and a possible loan amount of $800,000 it means you were over by a few % only..like 83%

LMi pricing works based ON:
1. security – Location
2. LVR amount
3. Loan amount ( in your case it’s both loan together rather then one single loan amount – hence the higher cost)
4. Use of funds

If you did a simple equity release and went with a different bank then you may have avoided the LMI and saved on the $6,000! + spread your risk among 2 different bank ( possibly at a better rate…but def better deal with no lmi)

Lesson learnt- Shopping around + doing your homework or working with a broker and not just sticking with your current bank because it’s “easy” can save you quite a bit.

Regards
Michael

Are you doing this as a private sale? or via a agent?

Like create a conspiracy

Depends on location…..+ security type.
But 7% is pretty good for Com.

I would consider hiring a development project manager to overlook the prices, builders, plans in fact the whole project.
Most ppl choose not to hire a project manager for smaller-medium development because they think it cost too much….but i think it’s money well spent especially if you have not done this sort of work before- Cost: around $4000 for a standard 1 house build…and for a project of your size it will be around $12,000-15,000 depending on complexity and location.

1. they overlook the whole project for you from council approval to finish
2. Make sure the price that’s been quoted is within standard and will try find another tradie to do the job faster, better and cheaper – end of the day they are paid a set fee already not a % of your build price
3.Time, make sure everything is running on time and as planned.
4. Less headace…

My parents are semi- professional land developers and have finished 3 development project…currently in the process of starting their 4th and they still use a development project manager to over look the project.

Regards
Michael