If your buying in St mary an Blacktown, you won’t be waiting for CG, because it may be a long wait…just remember who you will be off loading your property too? other investor;

These area are purely for investors who are after good cash flow, say at 6-7% yield…but if you hold the property long enough due to rental increase the yield will be 8-9% in 3 years time. Much better yield if some renovation are done, GF ( depending on the area and street) etc…

Regards
Michael

If you want to get down to the finer details of criteria and rates etc…why not shoot Richard an email and he should be able to direct you + provide a more accurate and detail answer.

Regards
Michael

From a Investors point of view—

High density are normally located closer to the station, shopping centers and amenities ( council regulations – you wont see any high raise in the middle of the suburbs….) so that means they are located in better” postions” = higher rent = better returns.
But due to it’s size , there are def more maintenance issues as you would expect with a larger building ….more ppl, more lift and more traffic = more maintenance

+ high density = more competition in the market place, with the same unit deign and location.

From finance point of view—

Med density you can def leverage a lot more- ie borrow above 80%– up to 95% in some cases. = better capital growth potential.

High density on the another hand has a max LVR of 80-90% depending on the size…most of the time it be capped at 80% = less range of buyers = capital growth will be dependent on the growth of the area and location ..rather then the unit itself ; but def better rental return because of the lack of growth.

Both type of apartment plays a different role and suits different type of investors; i personally have a IP that’s in a high density building ( Sydney CBD) ; i would consider it as one of my best buy- 8% rental return + steady capital growth + strata is expensive but the rental return is enough to absorb most of the cost.

Regards
Michael

If it’s reported in the paper, you most likely missed the boat already to a point.

Regards
Michael

Question is…. are deceased estates properties any cheaper or better???

been to a few Mortgagee sales and deceased estates auctions and the prices were the same as buying it on the market for a similar property.

Regard
Michael

Hi Anthony_Black,

As Richard mentioned; would need a bit more details to provide you with an exact borrowing capacity + is your fiancé going to be on the loan?? if so do she make an income etc….

Just a few comments:

1. What the agent says in term of your property value is pointless- get CBA / a bank to do a valuation on the place, since you haven’t done one for a while

2. Depending on your LVR; it may be worth while to stay with CBA given the LMI cost- but as Richard mentioned CBA has a poor serviceability model ; so it may pay to swap lender who are willing to offer a higher borrowing capacity OR higher valuation for equity release purposes

3. Your accountant is a smart cookie Save up via the offset, your almost there…

4. Saving up for a 10-20% deposit is not easy + it’s a slow process and property prices may have increase faster then your saving ability. So for your next IP lender it may be worthwhile NOT to go with CBA and choose one that offer a discounted LMI cost OR equity release from your current IP as much as possible ( equal balance)

Sometimes it’s cheaper to do a 85% loan for one and another 85% loan for the other….COMPARED to 80% and a 90% Loan- find a equal balance based on cost- something a broker can calcu and work out for you

5. Don’t cross your loans

6. Since you get back 7k in tax every year…get a PAYG Variation done- so instead of waiting to see this money at the end of the year; you get to access it every month.

Regards
Michael

JayDee26 –

You def need to physically go and have a look at the properties in W.syd – the numbers looks great on the computer…but trust me there are def some bad buys out there, even if the numbers stacks up!! took me close to 15 house inspection before i bought my most recent IP.

Id suggest you got to a through house inspection to make sure your comfortable with the area, but most importanly work out what sort of strategy your comfortable with.

Regards
Michael

4.5% is quite low ..Is it a honeymoon loan? or a fixed loan? does it revert to a higher rate; if so these will have a bearing on the cal.

Regards
Michael

The big red is one of the hardest lender to neg on discounts + they have the highest SVR…i guess you pay a prem to be the first bank of Aus.

Regards
Michael

Our subsidiary company is based in China and we have direct access to 7 of the top Chinese based banks, however 6 of them only lend to;

1. Commercial deals over 15M OR
2. Existing clients of their banks OR
3. Chinese citizen ( it’s not easy getting money out of china, it;s all controlled by their Gov)

if your after a much smaller residential lending; then we use Bank of china – but it’s standard rates, as some of their funding source is Australian based as well ( TD). ( current offer 5.50% fixed 15 years)

It’s never wise to leverage off international banks for residential lending JUST because the rates are low now…the rates will change + different policy in terms of “breaking the contract” and currency will kill you as well.

We only suggest international based banks for commercial deals; where the terms are shorter + it’s fixed.

Regards
Michael