Forum Replies Created
Hi Andrew
If you want the phone number of the Ray White broker I mentioned in our email, let me know. There is also another
broker who said he could get us no doc loans. It would
be good to sus out who offers the best rate.
I have three brokers now to compare with.I was told the Ray White broker is paid a wage so she may
not be guiding us towards loans which pay her the best.Some brokers get paid three ways:
1. $1500 from the borrower when he gets a loan approved
2. $ 250 from the lender
3. A royalty payment on each payment the lender makes.There may also be high admin costs.
I wonder how unbiased a broker can be when hunting down loans.
Still if a broker can get a better interst rate it may be worth
the extra charges. It all comes down to us becoming as educated on loans to know ourselves if it is a good deal or a lemon.Hi Dianne
Although I have bought a fair few houses on my own I am new to
this positive cash flow caper so how about if I answer with questions.
1. $328,500. seems like a huge amount of debt on one house.
Would it be better to spread your debts across a few houses rather than one house.
2. I have always been under the impression it is best to purchase properties that appeal to the widest section of the community. Does this house fit that description.
3. Will you have a contingency in place when the lease expires in case of the following:
a. Interest rates rise another 1-2%
b. If you can’t sell the house on completion of the lease
can you cover the payments with rent even if interest
rates go up.
4. If have a sleeping criteria on my investment decisions.
ie can I sleep at night if I take on this commitment?All the best Dianne, let us know how you go with your decision.
Hi Felicity
Not sure exactly how Rural A or B are
catagorised. Rural A for example could
be Rural pursuits.If members are thinking about buying properties
with acreage out in Rural areas I would suggest
they first check with their lender on interest rates
as well as how much % they can borrow on valuation.
TaraThis is exciting two Sunshine Coast folk posting on the site.
I live at Eudlo and would like to be in contact with locals
doing RE investing. It would help to share local information
and some encouragement on the journey.Thank you for the accountant contact. I have a contact
for a solicitor and accountant on the Sunshine Coast
whom I am sure do wraps and flips etc. Contact
me on [email protected] if you would
like them.I don’t have personal experience with them tho.
Is it possible to get FHOG in Qld for a wrap.
I was told that it wasn’t but the information may
be incorrect.quote:
Hi, Tara.
Why sell your property? Surely you will incur costs of sale, and costs to repurchase? Draw down on your equity in your home, and use this loan to make a deposit/s on investment property/ies. I am an older baby boomer, and like my present home (in Adelaide). Age makes no difference, except that you have less time for compounding to work than those younger!
TerryHi Everyone
It was great to receive your replies and support. Wonderful.
We have been feeling pretty much alone on this journey. Most
of the time I feel I am moving around in the dark.I am gaining heaps of experience though as we go along and
hope to share some of this on the site.Normally I would agree with suggestions to keep our house
and refinance. Here are the problems we face, I would like
your feed-back.1. The house is in a low capital gain area, one of the lowest
on the Sunshine Coast. We are about 25 mins from the
coast itself. It seems people want to buy out here but
perceive it to be much cheaper than the coast. The same
property in Buderim, Coolum, Noosa etc would be
worth $100,000-$200,000 more than what we can achieve here.
We felt it was better to free up all our capital and re-invest
in high capital gain areas such as the beach, maroochydore
or other areas where the majority of people are prefering to live.It was more of a lifestyle choice to buy this place.
My partner has put in sweat equity and the house and
land looks great. This has helped and the price has
increased some but not like on the coast.2. It is Rural A catagory….big problem it seems for lenders.
Because we have a very low income at present
(health reasons) it is difficult to even get
a loan and then interest rates are around 9%. With
another 1% or 2% rise it makes it pretty high rates. Also lenders
will only give us 60% of value (Rural A again).Our lender has told us that if we buy a house in town
Res. or Res Rural the rate will be 6% and they will
give us up to 80%. Big difference hey?3. We have put heaps into preparing the house for sale.
We are concerned that if we rent it out the house will
start going backwards as far as presentation.
We may lose a lot of the time and money we have
invested to present it well.4. Being acreage it is a lot to maintain. Apparently tenants
have to keep it mowed. The continual growth of weeds
would be up to us and we are both getting to the stage
we have had enough of weeding etc.5. Although we love it here heaps, I personally would
prefer to be closer to facilities.Feed-back is welcome.
TaraP.S. Deero If we were in an area that was going up I would
consider keeping the house. Then again it would depend
on how much capital I had in the house and how much debt.quote:
Age may be or may not be a hassle – perhaps it can be used as an advantage in the context of psychology and identifying who was serious etc.It really depends on selection and ensuring that your strategy is deployed as correctly as possible.
Hi Steve
Great site!!! Remember the fun and games we used to
have with the Wealthies on the Yahoo chat room? You have
come a long way in a short time and certainly demonstrating to me the need to keep focused on the preverbial stake in the ground.I had a bit of fun and games posting but that could be me
just getting used to the site. If You see two of my postings
ignore one of them.Regarding feed-back. I think you site is invauable to folk
learning about Real Estate. I haven’t seen any other Aussie
R.E. sites till now. I usually find the American sites frustrating because many essential details such as taxation,
and legal areas don’t relate to us.I enjoyed your question with the $50,000 house and a few
of the posters sound like they know what they are talking
about on the subject of wraps and cash flow. A good way
to keep the ball rolling and focus on relevant issues.I look forward to reading posts and contributing in the
future. I have a ton of questions which I hope members
may be able to help me with.Again congratulations Steve on a great site.
Regards
Tara
P.S. I would love to hear from members on the Sunshine
Coast. We live at Eudlo and just about to leap into RE
investing.
