Forum Replies Created
- Qlds007 wrote:Been around for a week or two and have small portfolio so like to think so.
Richard,you are the epitome of modesty!
TheFinanceShop wrote:Solomon10 wrote:I would not cross the properties. if you meet serviceability and could get it organized in a short time frame you could set up an LOC against one of your existing properties and use this money to fund the deposit and purchase costs.Based on an average purchase of $300k the cost of stamp duty and 20% deposit is $80k. For me personally, I would rather use the equity I have built in my current asset rather than take an additional loan and pay interest on $80k which works out to be $400 per month in interest. Later when the loan comes down or the value increases or both and the LVR is 80% you can release the additional security.
Not sure if you realize, but even if you use an equity loan as opposed to a LOC you will still be incurring interest on the same amount. A LOC is still against the value of your current property,but a good way of keeping things separate.
I would not cross the properties. if you meet serviceability and could get it organized in a short time frame you could set up an LOC against one of your existing properties and use this money to fund the deposit and purchase costs.
I have been looking in the eastern suburbs of Melbourne, there isn't a whole lot happening but around 1 for every 90-100 properties for sale are worth further investigation imo. The rest, leave there for the mums and dads..
Excellent work Amy, do you have any before pics?
Too true WIP, it has been said the perfect property comes up every few weeks, i believe this to be true. No point getting too attached to one property if it doesn't stack up, another will come shortly.
Agreed Richard, the cba misa does seem complicated compared to offsets offered by other lenders. Btw are you having trouble with posting from your tablet? Lots of multiple posts lately?
Michael.Lee wrote:Solomon10,I understand your point of view and agree, but offer the following inputs to your thoughts.
Excepting solicitors, most people who read contracts don't understand them and have those bits they don't understand explained to them by people they trust i.e. their bank manager, their mortgage broker. If the banks and the brokers are wriggling around all over the place trying to convince you that a break cost is not an Exit Fee, then well, you know…
Another point is that the contract will not stipulate a fee per se, rather a clause with some type of explanation of a formula or formulaic principle. It is unlikely to be called a Break Cost or and Exit Fee. It probably should start with something like WARNING, but of course it doesn't.
And yet another point is that human nature means we tend to see only what we are looking for. Some borrowers are lead to believe that Exit Fees are banned outright and these people in believing this are more likely to not see the trap.
As in my first post you replied to, the main thing is never to enter into a contract without understanding it. You unwittingly have supported my contention by saying human nature will lead some to only see what they want to see. So the blame if any must go to the borrower, not the bank or broker. Fixed rates are a gamble on future rate movements, you win some you lose some, this doesn't mean one party should be able to cancel a contract without any recourse when it no longer suits them, especially when it was spelled out in the original document.
Reading through these posts the most important thing to me seems to be : never sign a contract without reading it and understanding it first. Laying blame on brokers/banks/financial planners etc is no excuse for not knowing what you are getting into before signing a contract involving large (or small) sums of money.
The break fees for a fixed rate loans would have been stated in the contract for the loan.
I'm sure you will have a willing audience down here Richard! Bring your jacket though it's quite fresh.
Hope your wife doesn't see your above post Dubstep!
Thanks, haven't used a broker so far, handled it myself but i think next time i jump i ll be giving you a call. Haven't done a Canberra road trip for a while!
Thanks Jamie and Terryw, would you use any of the big four towards the start of your property buying and smaller lenders when coming close to "the wall" or vice versa?
Mattsta, i have been thinking about posting the same question. With the numbers i ve been playing with, it seems like i would hit the wall with about 3 400k ish priced houses even if they were neutral or slightly positive, lets hope we get some answers!
Catalyst wrote:Yes I'm a subscriber. I have seen it a few times lately. I haven't gone back to check whether it was listed later though. Next time I see one I'll check back later to see if it's listed then.Thanks, will be interested to know, i'm happy to be corrected.
Are you a subscriber Catalyst? An associate of mine pays around $1200 p/a i think it is rp professional? I was under the impression it had all prices, have never failed to get a previous sale price and current owner from there unless the sale was decades ago.
Sorry to say i don't think it's possible. The internet is a big place and someone in the know will always have access to a paid service like rpdata to find these details. If you are concerned that the buyer may see how much you re making, they shouldn't mind if you have done a good enough job of value adding and created something they are willing to pay for.
amyhunz wrote:As the unit is still in the cooling off period I'd prefer to retain privacy at this stage. As I said, I'd be happy to email pics to individuals and I have.
Is it safe to post some pics yet Amy??
I'm no broker, but i think it is important to have your financials in order before trying to pursue any investing strategy. Without knowing your situation , the obvious question to me is how there can be no savings on a six figure income. Building up some savings on 100k plus should not be hard, if it is, then an in depth review of your spending habits would be wise. Getting yourself into property investing without adequate funds is a recipe for disaster. Good luck with your property journey.
Most definitely, i think that is why a lot of mum and dad investors fall over, rushing into things because someone at a barby told them to. At the risk of getting analysis paralysis everything must be thought through and taken into account first. A good point to make Terry, i wonder how many people have a few IPs and no income protection insurance, what would happen if they are negative geared and find themselves injured or jobless?
