Shahin, what would you base your "don't like my chances" on?

The fact is, i can rescind my contract at any stage, so here's whats against the developer:

He has someone who can leave a contract 6 weeks out from settlement who paid $485k

He would need to put the unit back on the market, pay the agents fees all over again, and then try and get at…[Read more]

I appreciate everyones opinions and feedback. The main questions i had were to do with:

If the banks struggle to find comparable sales, but there is plenty of similar type new developments in construction selling around what i paid, would it be fair to say that they had a hard time getting a figure therefore they went very conservative &

Is it…[Read more]

Sentiment wasn't the appropriate word, more so the need to move out of home. As i said I'm at the point of cracking and need to get out ASAP.

I don't see the issue in getting a nice 2 bedroom apartment that i'm planning to hold for 10 years, which should provide around 400 per week min rent (4.2% yield) in a growing market (there's no doubting we…[Read more]

I would argue that in times when banks are being very conservative, on a 480k property, you would pay 10k over the valuation price. Especially if they admitted they had big issues finding comparable sales (seeing as though they are such statistically based this really makes it hard for them so they go very conservative).

The 3 figures they…[Read more]

Unfortunately not because the valuation is done before settlement of these units, and you can't use the incomplete developments as comparable sales until they are settled So theres all these people in the same building in the same boat as me, but there is plenty going up around that are due for completion 2013/2014

Hi Qlds, 
            Hughesdale is 15km from CBD, surrounded by good suburbs in Carnegie, East Bentleigh, Murrumbeena, Oakleigh so position is good for future growth and rental appeal.

The valuation from the bank IMO is below market value, as they even admitted they don't have enough previous sales history in the area to compare. It's the first…[Read more]

Thanks Jamie.

I'm legally allowed to walk away from the deal (and take my deposit back) should i wish to do so.

I've got the additional 25k to cover the difference from the contract price and the banks valuation however i guess i was more seeking feedback as to whether or not entering negotiations based on a lower val was common and worth…[Read more]

Hi Derek,
               At a minimum, i believe the property to be worth around 470 – 475k as there are comparable sales (just not completed yet as they are still in construction).

On top of this i factor in that I'm getting 9k first home buyers grant which i wouldn't have if i walk away, so that justify my 485k purchase price IMO.

Agree with…[Read more]

Thanks Freckle.

I'm buying for a bit of both, as moving in for 12 months to get first home buyers (plus i NEED to move out of home, the parents are doing my head in), but then i want to rent it out after that as an investment property which i would be looking to hold for at least 8 – 10 years.

I really want to get into the market, and having…[Read more]

The problem is there isn't any comparable sales in the area.

The development in Hughesdale is the first multilevel apartment of it's kind, with any before it being done 20 years ago out of brick and quite old/run down basic build.

The only ones i can find in the vicinity that are comparable are in Oakleigh and are off the plan (only slab and…[Read more]

I've bought 2 OTP properties.

6 weeks away from settlement of the first and the valuation came in 25k less than the contract price from 2010 (3 years ago).

I have enough cash to cover this, plus i'd lose half of the first home buyers grant if i rescinded (around 9k), so i'm pressing forward but will certainly be more cautious moving forward and…[Read more]

Thanks Jamie, seems as though you're the resident go-to on the site! (which is much apprecaited).

The problem is, i can't find 3 comparable sales in the last 6 months as there isn't any, and the ones that have been sold are off the plan so not yet completed or settled. (Identical development around the corner being sold as the slab is being laid,…[Read more]

Qlds who would you lean towards more for this kind of deal?

Only reason I said CBA is at this point in time i've got all my accounts with them, i havent done any review/analysis of home loan products yet.

Cheers QLDS, i agree with regards to NAB.

I only did a preapproval to "test the waters" on borrowing capacity, along with the fact that the lady i met with was a colleagues wife.

I'm leaning towards CBA but I'm meeting with my mortgage broker next week to discuss other lenders and products.

Thanks to you and Jamie's advice, im most definately…[Read more]

Thanks Derek, valid point on the valuations.

With regards to valuations, this was completed only 2 months ago by the developer (independant valuer) and the figures came out at 505k which is 20k more than what i purchased in 2010.

Not really making grand plans, just ensuring that i have my loans structured correctly from the start and a…[Read more]

Thanks guys, extremely helpful information.

I think the best way moving forward will be an I/O loan with linked offset for Hughesdale.

I'm also going to put down the minimum depost, cop the LMI and then put the remaining monies in the linked offset. That way my money isn't locked away for when it comes to buy a PPOR.

Ideally i want to have…[Read more]

Thanks JP, will do.

I have already got pre approval from NAB and the settlement in Feb is for PPOR, which i hope to turn into an investment in 2 – 5 years time, so for the time being i don't have to worry about tenants.

Thanks Jac.

Are any of them based in Vic, i understand these days with email and phone it's easy but i prefer to deal with someone local e.g. Victoria

Thanks Jeano for your response.

To answer a few of your questions, I am looking to hold both units as long term investments.

Ideally what I want to do is settle Hughesdale (2013), settle South Yarra (2014) and then at some stage within the next 3 years (2013 – 2016) purchase a PPOR which i intend to live in for quite a while (nothing over the…[Read more]

My goals for 2013 are fairly simple:

1. Settle on my first house (feb)
2. Propose to my girlfriend
3. Increase my knowledge of investments prior to settlement for my first investment property (settle in 2014)
4. Accumulate accumulate accumulate $$$$$$$$$$$