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  • Profile photo of SparkysSparkys
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    @sparkys
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    October 12, 2011 - 3:43 am

    My question is who owns the home that the third little pig lived in? A smart investor, that's who.

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    March 28, 2011 - 10:17 pm

    Hi NSW2011,

    I cannot offer you professional advice like Richard can, but I can offer you personal experience with Bankwest with the same product you are looking at.

    I applied for the a 100% offset loan to replace the loan I had already. I applied for the loan on the 13th December 2010 and it was only settled on the 8th of March 2011 which is a three month processing time.

    Delays were partly due to things like Bankwest not accepting the word "Ltd" on my home insurance property and requiring the full word "Limited", partly due to the fact that the Christmas break was in the middle and partly due to the new responsible lending laws brought in at the beginning of the year which meant they required absolutely HUGE amounts of paperwork proving income. Add into this the fact I work in the family business and it was a real headache of a procedure.

    BUT, in my opinion it is worth it. I was originally putting all my extra money into my home loan and paying penalties if I paid off more than was allowed. Plus it cost me to redraw the money if I wanted to invest it in an IP. Now though, it's great to see savings adding up in my offset account that I can use at any time as a deposit on an IP but still save interest on the principle on my PPOR.

    IMO the product is worth the wait.

    Hope this helps.
    Sam

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    March 21, 2011 - 12:55 am

    Thanks for the input everyone.
    It's given me a few different things to follow up, which I will now.
    Cheers

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    February 23, 2011 - 9:58 pm

    http://www.realestate.com.au/property-unit-tas-gagebrook-106892093

    I watched the link above for a while. I didn't buy but it's under contract now. What are people's thoughts on it as an IP?

    I didn't buy because I couldn't come to terms with the area. Googling Gagebrook brings up "Gagebrook shooting" where one of the residents let loose with a shotgun on a vehicle on the exact same street!

    Profile photo of SparkysSparkys
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    November 29, 2010 - 10:55 pm

    Hi Mikey,

    I'm not suggesting that it's not a great place, I've enjoyed holidays there myself and the fishing is great!

    However I think it's only fair to tell people that it is an island and that the ferry is expensive. It cost me over three hundred dollars to get there and back (two people one vehicle) last time I went, which is quite expensive for a 45 minute trip.

    There is sure to be a discounted rate for people living on the island but nonetheless it needs to be factored into the equation, plus the fact that there is virtually no large industry in the area for investors.

    But thanks for providing the link anyway.

    Sparky

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    November 29, 2010 - 2:35 am

    As a local to the area people need to be informed that this is an island with vehicle access only provided by an overpriced ferry!

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    November 29, 2010 - 2:32 am

    Ah, that makes a lot of sense! Thanks Richard

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    November 25, 2010 - 3:53 am
    Qlds007 wrote:
    I would have suggested interest only with a 100% offset account from day 1 to preserve the deductibility of the interest and also to give you flexibility.

    What do you mean by this Richard? How does this provide flexibility and how is the deductability of interest preserved? Also, with an IP in this situation then the only value gained is the appreciation in capital value over the actual loan amount, which seems pointless

    Profile photo of SparkysSparkys
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    November 17, 2010 - 6:22 am
    IP Freely wrote:
    Sparkys wrote:
    Most real estate agents are happy to provide you with a list of past sales data in the area.

    If I had a crystal ball, I would also provide future sales data as well. ;)

    Heh, if you could do that I'd have to wonder if you were a directing member of the RBA!

    Profile photo of SparkysSparkys
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    November 17, 2010 - 1:40 am

    Most real estate agents are happy to provide you with a list of past sales data in the area.

    Get this list, type it all into Excel (as they will usually provide it in pdf format), do some charts comparing actual sale price to fields like year built, extras added, bedrooms, bathrooms, location etc and determine the sales trends.

    Go visit some of the properties that have sold for higher prices and ask if you can have a look through them.

    Build up your picture before starting work.

Viewing 10 posts - 1 through 10 (of 10 total)