Forum Replies Created
Maybe Dazz did know but he’ll never admit it and I got a great laugh from it…
I’m in a hard place – My parents invest and so do I. My partners parents don’t and never will because it’s risky and they might lose everything. Much like we will apparently. I ignore it. My partner though is the one getting the third degree and always when I’m not there. Apparently our investment decisions are going to cause us to lose the lot one day.
Well I am fairly confident I could sell between now and then, or refi into a LOC and use the equity to self fund the hard patch. But then again I’ve always looked for creative solutions to work through the trials in life, as it’s always more fun that way…
In a nutshell – if they don’t play the game they have no right to comment on it or attempt to make the rules for you. Like voting – If you don’t do it shut up and leave the whinging to those of us who do!!!!!
What more can I say?
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055You don’t need to attend settlement.
You do need however to get the building and pest inspection done asap as most contracts only allow 5 working days for this (I’m thinking Qld) although most Real Estate Agents should learn to allow 10 working days as this is more realistic. Generally speaking under the Finance Clause you “Must Make every reasonable attempt to get finance satisfactory to you the buyer.” Therefore influencing the lender on the property condition or building report is not allowed, but if they were to decide for whatever reason to decline your loan for the property (and they don’t need to give a reason here) that is allowed if you take my drift.
Work with a broker who will knock your deal on the head at your say so and also send your solicitor a declined finance letter upon being told you don’t wish to proceed. Then find another property and start again…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Same here I have to agree with Richard on the easy part. Can be a relatively straight forward process though I believe we half somewhere around 6 or 7 lenders who will do N.Z. Property all differently and all at different costs.
The best thing is for a broker to assess the deal and work on it from there.
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055FHB – Funny thing Comparables. I am now wondering how the Valuer in Cairns who did a Val for one of my clients managed to ignore the Comparables in the same complex and street within the last six months in favour of the ones older than 6 months and not even in the same suburb?
Then again what about the Valuer who used words to the effect of he wouldn’t let his dog reside in the suburb let alone the property and then brought it in on value?
I personally have nothing against Valuers I’m just a touch curious as to how half of you come to your values? It makes a man wonder honestly. As for Drive Bys being done at a lower than 80% LVR? No chance Suncorp do them as policy (maybe not officially) as do the NAB Common as sunshine in the desert my friend.
I’ll leave off now with my ranting as I don’t wish to upset the next Valuer I assign a deal to. May come in well under and punish my client. But can you explain these strange occurences to me? Please…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055I have to agree with Richard we can get 80% and in very limited circumstances even more on these types of properties through a mainstream funder. They do require previous experience in property ownership and there’s a few other guidlines I was under the impression the rules in relation to this were that they had to be over 38m2 perhaps I need to read the guidelines some more…
The long and the short of it is this: If you want it buy it. If the shoe fits comfortably then put it on. If not don’t. Do your due diligence and ensure you have it right. Then obtain funding…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055I have two houses there and would recomend it. I gained 23% Capital growth on both of mine last year which made me very very happy!
If you need any tips or contacts up there let me know, I’ll be glad to help…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055I have always been a fan of Everton Hills or alternately the Samford Valley. There’s nothing like acreage so close to the CBD…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Look at “The Recession We Had To Have”…
Rental Prices increased as did interest rates but there were still plenty of investors lining up to buy properties…
One thing about residential property is people always need it. That meas if Rates do go sky high then it aint all bad as people will still wanna lease your hut.
Relax fella keep an eye out for the signs rates are about to take a huge hike and fix your rates. Some lenders have a 15 year fixed option so there’s no need to panic…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055I don’t see the point in paying LMI but if you like we have access to 6.69% fixed for 3 or 5 years across 1 loan or all of your portfolio it’s up to you with an LMI premium if that’s more your thing?
It is entirely up to you though. Personally I don’t see the point in paying the premium as in most cases it cannot be capitalised and has to be paid at settlement out of your pocket. Then again to save $480 per year on your loan of $160,000 at a cost which potentially voids any savings you may make (i.e; up to 3%), I know a heap of people who would spend the money.
Not that that makes any sense to me I personally think it’s better in my pocket but to each their own…..
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055O.K. Low Doc are available at 80% from 6.99 per annum (Comparison 7.09 on $300k over 30) 3 years fixed rate (Must have held ABN for 2 YEARS though) No LMI payable either, but you must declare an income.
No Doc Comparison Rates from 6.97% based on $300k over 30yrs.
In all instances this is general advice only and not intended to be taken or used as specific to anyone individuals circumstances. your own investigations may be warranted to determine if this product is suitable to your needs.
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055I now have to question the logic of spending the money getting the draftwork done along with the cost of the D.A. Application?
Perhaps I missed something somewhere along the lines, but I would think the money would be better spent on the new I.P.?
If I did miss something could you please explain it to me?
If on the other hand the owner was to complete the D.A. he could then take that and obtain funding to construct the units based on gross realisation if the lend was established correctly.
The end benefits including the equity he would then have to play with would be well worth taking the project on. That would be an awesome first I.P. I think
It would take a bit more work, but the end result and the fact the Block is currently PPOR would give far better taxation benefits and have a lesser CG implication down the track depending on how long the property was held for. But he would really need to speak with his accountant in relation to these benefits and if they apply as should every one else this is only general advice and not tailored to anyone person…I would still have a crack at it though if the client were to ask me to try for them though. How much deposit did your friend purchase their home with? They may have enough equity now to kick off their investing career without the rigmarole and hassle of the other…
One just never knows till they ask the question.
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Just a quick note here: In Queensland and I would think everywhere else as well the Pest Controllers are not able to use insecticides which are as strong as you can buy in the shops due to workplace health and safety laws. Try them first but if the situation persists work it oyurself in conjunction with them. Set baits and spray. Ask if they have gotten into the ceiling and sprayed up there and in the wall cavities where ants love to nest? If not they should as this is the likely source of your issue.
As for the tenants breaching the lease as a result of ants? You’re kidding aren’t you? Tell them to pull their heads in change agencies to one who will call when there is an issue and if the tenants know you’re on their side they should stay around. The biggest problem is PM’s recommend cheap solutions Landlords follow this advice the Tenants don’t see value for thier rental money and as a result they get the <edited>s and move to another property.
Show your tenants you are genuine about fixing the problem and work with them and the NEW PM to resolve the issue. You will probably find there is more of an issue than just the ants. I personally write to my tenants twice a year asking them if there are any outstanding maintenance issues they have asked to have fixed which haven’t been yet. Works a treat.
Ps: to do that last one get a P.O. Box…..
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Do what I did: Change your Apointment to act with them – Nil expenditure without your permission. Yes you have to answer that call at 0330 and yes they know what time it is believe me.
Yes you have to get your plumber out of bed at that time and he will charge you top dollar for the opportunity anyway get used it, life still rolls on (unless your the tenant paying a pittance for no hot water at 0330 in the morning in the middle of winter)…
Let your tradesman charge you a fortune for refilling the hot water heater for you. Who cares? You don’t want to do it. Otherwise make it the agents responsibility that when they do their quarterly inspection they refill it. (Yes I know blocked drains I’m getting their).
Then give your tenants Draino for Christmas. (Anonymously of course think of the liability issues). And for the start of the new financial year too! Then forget about the drainage issues they will be able to resolve them without calling….
The next step in the process after removing the agents authority to spend your capital is to demand ONE person in the office makes decisions on your property. Ensure they have a mobile and are contactable. Then you will have ensured this doesn’t happen again.
Easy Right? You would think so, but you will still end up refusing to pay for work which wasn’t authorised. Oh well at least it’s not your problem now…..
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Hmmm young singles…
Great target market. I would be working on the premise that they could be in need of white goods, and definitely a microwave?
Love the concept though and yes you probably would get slightly higher than average rental return on your property especially if you instructed the Agent to charge the higher rental and to specifically market your property to them. You have to be careful you don’t discriminate here, but ask for more money it’s the only way you’ll get it. I have one of my IP’s returning 20/wk more than the agent told me I would get and it was leased within 7 days of being listed. I have the other one paying 10/wk more than the agent told me in their comparison it was worth so don’t listen to them.
“Ask and ye shall receive.”
I base my rent on what my frends (who rent) would expect to pay for the property. This seems to give a reasonable expectation and remember it’s harder to come up then it is to go down again…..
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055For taxation reasons and to minimise the cost of your accountants time and keeping him happy I would suggest having a split put in the loan otherwise he will have to calculate the amount of interest paid on your PPOR loan portion and the amount paid for the investment. It also simplifies things, Doesn’t cost anymore to do when taking the money so why not?
If you have any dramas with my explanation I’d be glad to discuss with you further.
Cheers,
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Without wanting to suggest anything as I don’t know your financial position I can give genral advice only. The firast thing I would do is speak with someone such as Cata and look into seeting up a trust structure which suited my financial needs, wants and goals. Then I would look at taking on a mixed portfolio of investments such as a house, a unit, a commercial property, and some blue chip shares in either an insurance company or somewhere like x-strata or bhp, with the possibility of an offshore mutual fund depending on how you feel about it.. Balance is the key and calculating the risk is the same. If you take the safe shares option at first you still get returns and you know they are relatively safe.
Either way your comfort zones are the key and being able to sleep at night is as well.
Just remember you need to protect your assetts as their is always someone looking to take them. Play safe have fun and remember at 22 you are more than young enough to stand up and start running again if you fall…
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055It depends on the D.A. which has been obtained for the block. It is generally of most value when selling the block to someone who wishes to develop it, but there’s no harm in trying I for one will never die wondering thats for sure.
Speak with a Broker when doing the re-fi and they should be able to get you close to the money you need, if they are any good of course, and also assuming your friend isn’t chasing $5m for a $10k block of dirt. Location is important but can be worked around as can most other issues. If you would like to discuss further please feel free it would be a true pleasure to assist if I can..
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Pro’s – easy application easy money. Easier for the broker for the same commission thats why they like them so much….
Cons – The ATO has the power to walk into ANY lender at any given time and demand to audit files at random eg; low or no doc loan files. If you apply for a low doc loan and puff or pad you income and the ATO audit that Lender and your stated income is more than you declared you are in a world of hurt. Yo have to prove to the ATO you didn’t commit tax fraud and then you have to avade a fraud charge from the lender and Mortgage insurer.
No-doc loans without an income declaration are great although the LVR is generally lower than a low doc. Saves the ATO issues though and thats always a great thing!!!!!
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Valuers will assess and make their remarks and Valuations along those lines, but it is still a vacant block of dirt at the end of the day. Doesn’t mean you can’t use it for equity though.
It makes no real difference if it is worth $150k and only owing $50k to the bank it still has $100k equity same as a house.
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055You need a new accountant. And a corporate entity. You should be running these through a company and claiming them as INCOME. You can do that if you own the property for 12months or less. If it’s a line ball decision the tax office will generally run with income anyway. Don’t take my word for it check it out with the ATO.
Look into it this is the usual general advice only and is not intended to be taken as financial advice. It may also not be relevant to your circumstances.
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055
