Forum Replies Created
Hi grossrealisation,
well at this stage there is not much structure to it as I only have 1 IP so far (as per previous posts) financed by ANZ’s “Money saver” product (.6% of standard variable, interest inly with redraw, no offset).
To my disappointment, I only recently learnt that redraw will not exactly work the same way the offset account does (as the tax implications of either are quite different).
So now I would like to fix that while borrowing for my 2nd IP.
As to my mortgage broker – I am trying to establish “my team” and build some kind of long term business relationship with him, but not sure if he also sees it that way instead of chasing highest commissions….something for me to think hard about I guess.
Ok so I got off my lazy backside and instead of asking you guys here for everything (thanks for patience btw[cap]) I spoke to ANZ mortgage folks who were very helpful and provided following info:
Two types of revaluations:
a) kebside – based on the values of similar properties in the area; less expensive
b) full – evaluator will make full inspection of entire property inside out; suits best to after reno revaluations etcApparently either valuation will only take about 1 week to complete. If done by the bank (well at least in ANZ) as part of new loan application its free of charge (…um well direct charge anyway[biggrin])
Pls feel free to correct / add more info.
Ok than but how is it with having new valuation done on my first IP? How long does it normally take and cost?
Also my mortgage broker didnt really seem that keen on getting my first IP revalued as apparently bank (ANZ) may be bit difficult on properties held shorter than 12 months. Is that really so?
Hi Kim,
I may be just paranoid here, but everytime I hear something like honeymoon rates, gold credit cards, frequent flyer points etc from any finance company I either go “NO” right away or (if I feel like it) take my time and do the maths carefuly at home myself.
Just my 2cents.
Dan
Now re-reading it after myself both options seems ultimatelly almost identical in their outcomes so maybe I just make too much fuss for nothing.
Pls let me know anyways.
Thanks to you all for the effort. After lenghty consideration I decided against buying this DHA managed property. Main reason being the return on this property, which, even though being slightly higher than comparables next door, did not entirely reflected risks/drawbacks of having DHA involved. Well in my opinion anyway.[blush2]
And so I bought a “comparable next door” without DHA in place. [cap]
Cheers
Dan
Hi all,
After some consideration I actually achieved some improvement on the price in my favour;) so I was maybe going bit easier on those settlement conditions.
In the meantime I did have the contract checked by both my conveyancing and mortgage guys neither of them found any problems there.
Also, as commonly expected, I did get my way of for the number of inspections to be done. Not a real achievement on my behalf here I know:) The inspections I asked for are:
1. Building (apparently, and i did not know this, there are two one checking the state of the building itself another one to check the state of any works/constructions done on it afterwards. So getting both as I am no builder myself…yet that is.
2. Pest/termintes
3. Electrical
4. PlumingIs there anything I am missing or am I going over board?
Anyway, I am fully aware that perhaps I am not in 100% control of the situation (hey its my first time wait when it gets to 135th:) but I dont think that I am doing all that bad either.
Appreciate your thoughts guys,
Dan
Yeah spot on guys.
Firstly the “hassle free” part of the deal is really attractive especially for an investor deciding to hold the property forever. What I was not sure about was if I as a rightful owner of the property have any say there at all eg. wanting to sell the property eventualy or want it to become “regular” rental property with “normal” REA manager. I guess, as an owner I would lack the freedom of decision there. Pls correct me if I am wrong.
And yeah the price was somehow inflated. I am not sure if that should be the case cause with this kind of limitation (DHA in place) they limit the group of potential buyers (ie its got to be investor) and such somehow smaller target market should be actually reflected in the asking price. ie price should be actually bit lower than normal or not?
Anyway I will think if I put my offer thru on this one. I will make sure my offer is on the regular market level though.
Cheers
Thanks guys.
Yeah I will certainly ask the conveyancer to recommend me somebody. I havent mentioned thought that the potential IP is in Darwin – pretty far from where I live (Sydney) and therefore I need some time to find sound conveyancer as well as the inspection folks. But that should be a problem not that hard to solve.
Cheers for your tips.
Dan
Appreciate your help guys.
I see that the depraciation regulations are very precise so this time I will better write it down into my notes this time (as opposed to once again rely on my memory and than ending up repeatedly asking same question).
alwayscurious: appreciate your words of encouragement, God knows i need it. I did read few Jan Sommers books and they are the best but seem to be a bit outdated, unless there are some new ones I may have missed. While her strategies are timeless (well I hope so anyway), as far as building materials go, books I read did not reflect the current society feelings about the asbestos products. Due to the attention given to this topic in the media recently, my subjective judgement is that people/tenants may try to steer clear of any asbestos products altogether.
depreciator: thanks for the contact I will see how I go with my purchase and eventually may give you guys a call if thats ok.
qwerty: thanks. I like the way you have established exactly what type of house you are looking for (point 4). Something I need to give a bit more thought.
Dan
What areas? Well not decided yet. I would love to stay around lower nth shore where I currently live but I dont think I will be able afford anything here. I will make the decision once I get the exact figure on my preapproval.
Thanks a lot guys, LMI is now much clearer to me.
Yeah I noticed that there is also the “other” stamp duty. This one would not happen to be somehow refundable or vawed for first home buyer would it?
I am pretty sure my broker mentioned that there was a part of the mortgage fees which should be refundable to me on the settlement of the purchase. There was sooo much info i was getting from my broker that I was not able to hold it all:(
Perhaps only a wishful thinking here though.Congrats Steve, I am looking forward to reading it.
Not sure if this has been already mentioned somewhere else, but could you give us a taste of what is the new book about?
Obviously I would expect some more easily readable +ve cashflow information together with humorous stories of their practical implications. Is that right? I am just wondering how does your new book compare to the first one.Once again congratulations and thanks for all the info.
Dan
MortgageHunter: I am afraid I dont follow here. I thought LMI will be one of the first costs I will need to pay out of my pocket and its pretty much “wasted” money if you know what I mean. I thought LMI is a necessary burden I need to take not having 20% deposit. What am I missing?
My apologies if I wast your time over this, I should perhaps do way more research or ask more questions while talking to my broker. My last session with him only took 3 hrs[biggrin]
Chris: thx for help appreciate that mate.
As to my progress – After rather lengthy discussions I decided to go with ANZ Breakfree package (one of those suggested by my broker). I dont mean to advertise here or anything so basicaly I decided for it, because of its professional package discount rate at which they still offer all the bells and whistles.
So now my application is about to be sent thru and hopefuly approved in few days. Then the next step – finding THE HOUSE:)Does any of you have an experience/knowledge of that particular package? Cheers
As far as my plan with the property goes: Hold it, live in it, try to pay as much of the mortgage as I can and then perhaps in 2-3yrs time rent it out. I am somehow hoping that by that time the rent will cover at leat the mortgage interest interest entirely.
If that works i will then try to use the equite there to invest into first PI. Bit slow I know but property is a patience game or not? If you guys have any suggestions pls share here.
Thanks for help
Chris: I did not realize that I can change the type of the loan as I go. I imagine it will probably cost me something but thanks for pointing that out. As to the broker recomendations – I read here somewhere that broker should be getting same provision fm the bank regardless what he/she is recomending me is that right? You see I am just very conscious of ppl trying to help me of my little savings.[blush2] Maybe I need to trust the broker little bit more.
MortgageHunter: Oh yeah I remember seeing people here talking about those professional packages but I was not really sure what the conditions are. Cheers for bringing it up I will definatelly ask my borker about it. Asking cost me nothing right?[biggrin]
Thanks a lot – will give him a call.
teabagted:
Yes I got your point but to:
“Leave it alone and find something that will give you a bigger reward for your time.”is easier to said (written) than done at leat from my financial prospectibe I am afraid.
Either way you guys have made me think again about all this and thank you for that. I will be careful with it I promise[
]D.
sis
I am also certainly planning to just do that[
]But wouldn’t mind to squeeze some extra $$ on my way to beautiful free flights.
Ta
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