Forum Replies Created
- janinewool wrote:Thanks everyone. I think we might put an offer in over the next week or so. It has been on the market just over a month and is a deceased estate so who knows how quickly they want to sell. Anyway I will let you know if we do make an offer. Thanks for the advise.
Hi Janine,
If you need recent sales to back your offer – we do run free property reports. You are more than welcome to PM me the address of the property and I will email you the report.
Shahin Afarin – Property Finance Consultant
http://elitepropertyfinance.wordpress.com/TheFinanceShop | Elite Property Finance
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pbakker wrote:Thinking of doing a knock down rebuild but not sure about its feasibility. Is this the way to work it out?Purchase price $150K, 1997
Market Value now, $400K, 2012 – Gain of $250KAssuming Knock Down Rebuild (KDR) costs $350K
Cost Base after KDR, $500K
Market Value after KDR – $650K…. Very Unfeasible – Gain of $150K
Market Value after KDR – $750K…. Unfeasible – Gain of $250K
Market Value after KDR – $850K…. Feasible – Gain of $350K
Market Value after KDR – $950K…. Very Feasible – Gain of $450KTherefore, I should only do the KDR i my mrket research can assure a future market value greater than $850K
Paul
Hi Paul,
Try sitting down with 2 real estate agents and ask them to provide you with a pessimistic value after the construction (show them the plans of the proposed building) and see what value they provide you. The other benefit of talking to a real estate agent is that they will advise you what works well in the area (e.g. ensuite, high ceilings, number of bedrooms, etc). Also have you considered say the rent you will be paying whilst the dwelling is being constructed?
Shahin Afarin – Property Finance Consultant
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janinewool wrote:Hi
I have been keeping my eye on a unit close to where I live and it came on the market at the price of $290,000 plus. The open day was today and it looks to be a good reno project at that price however the agent has now put it up to $339,950. Do you think it would be still ok for me to put an offer in at the lower price or will this be laughed at. I would not put an offer anything over the original price. What everyone’s thought on this price change?Cheers
JanineHi Janine,
Never be shy to put in a lower offer. 9 out of 10 times the agent will make you feel bad but 1 out of 10 times you will win. The reason for the price rise is a little strange but it could be either the vendor changing their mind or the initial inspections have been positive and hence a higher asking price.
Shahin Afarin – Property Finance Consultant
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keiko wrote:TheFinanceShop wrote:keiko wrote:TheFinanceShop wrote:keiko wrote:Does anyone know how strata title works
I have 600m2 of land and I am building two homes on it and then I will strata the homes.
Now the part I am not too sure about is where I put the dividing line, well actually I know where to put the line but i am not sure if this is allowedOne home will sit on about 250m2 and the other home will sit on about 350m2
Does this matter or do they need to sit on equal 300m2 each?Hi Keiko, They do not need to be the same size and you will need to engage the council as soon as possible to determine other conditions. Also speak to a town planner so that they can give you options. Does your zoning allow you to build 2 dwellings on a 600sqm property? Also why are you not aiming for a torrens title subdivision? Shahin Afarin – Property Finance Consultant http://elitepropertyfinance.wordpress.com/
Yes can build 2 homes on the property.
I had a look into Torrens but doesn't look as good as a strataYou will find that Torrens Title will carry more value than strata for resale. Is there a particular reason you are leaning towards strata? Shahin Afarin – Property Finance Consultant http://elitepropertyfinance.wordpress.com/
Thanks, only reason is because a couple of town planners said strata title it with common driveway area.
I had never heared of torrens title until you mentioned it.
I did a little google search and I see most people don't like strata.
I am still learning about strata titles as personaly I only buy freehold property and this is the first time I have needed to look into strata titles.
Could you tell me the ups and downs for each strata and torrens?
I read an article about torrens and that if the driveway needs replacing that there is nothing in place to have both parties fix it etc.
I am all for the best out come and peoples knowledge on each torrens and strata title would be most appreciated?
I know people are saying just go see council or just go to a town planner or draftsman etc, but to be honest I have done all of this in the past for other types of situations like subdivisions and alterations to properties etc, and you get a different storey from each of them, one says one thing and the next person says another thing. the way I like to do it, is to get as much info as possible from a bunch of people and then decide for myself which is the best way to do it.Hi Keiko,
The title of the property can potentially make a huge difference to the resale value of the property. Owners of properties with strata titles buy into a community lifestyle with shared responsibilities and liabilities. This means that owners need to ‘agree’ on decisions affecting the common areas. This can cause disputes with other owners and one of the reasons why potential buyers are put off by them.
On top of this is the strata cost. Owners need to pay quarterly payments to the fund to cover the charges associated with the common areas.
Perhaps try speaking to say 2 real estate agents and ask them if it is easier or more valuable selling torrent or strata and see what they say.
Shahin Afarin – Property Finance Consultant
http://elitepropertyfinance.wordpress.com/TheFinanceShop | Elite Property Finance
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smartcube wrote:.aim is to own 5~10 properties(Farm/IP/commercial) in 10 years and eventually have some equity i.e. loan free so we can continue to have the same income on retirement to maintain the same standard of livingHi Smartcube,
Your investment strategy of having 5-10 properties within 10 years is great but also aggressive. You need heavy capital growth to ensure this is achieved. The property you have provided is great to live in but will most likely not deliver you hugh CG. Why? Its already renovated and its smaller block (can’t really develop it). Your other option of an extension will also be costly as the property is already renovated ground floor. Try and look for properties you can renovate or properties which you can develop (subdivide, build a granny flat, etc).
Shahin Afarin – Property Finance Consultant
http://elitepropertyfinance.wordpress.com/TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
keiko wrote:TheFinanceShop wrote:keiko wrote:Does anyone know how strata title works
I have 600m2 of land and I am building two homes on it and then I will strata the homes.
Now the part I am not too sure about is where I put the dividing line, well actually I know where to put the line but i am not sure if this is allowedOne home will sit on about 250m2 and the other home will sit on about 350m2
Does this matter or do they need to sit on equal 300m2 each?Hi Keiko, They do not need to be the same size and you will need to engage the council as soon as possible to determine other conditions. Also speak to a town planner so that they can give you options. Does your zoning allow you to build 2 dwellings on a 600sqm property? Also why are you not aiming for a torrens title subdivision? Shahin Afarin – Property Finance Consultant http://elitepropertyfinance.wordpress.com/
Yes can build 2 homes on the property.
I had a look into Torrens but doesn't look as good as a strataYou will find that Torrens Title will carry more value than strata for resale. Is there a particular reason you are leaning towards strata?
Shahin Afarin – Property Finance Consultant
http://elitepropertyfinance.wordpress.com/TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
keiko wrote:Does anyone know how strata title works
I have 600m2 of land and I am building two homes on it and then I will strata the homes.
Now the part I am not too sure about is where I put the dividing line, well actually I know where to put the line but i am not sure if this is allowedOne home will sit on about 250m2 and the other home will sit on about 350m2
Does this matter or do they need to sit on equal 300m2 each?Hi Keiko,
They do not need to be the same size and you will need to engage the council as soon as possible to determine other conditions. Also speak to a town planner so that they can give you options. Does your zoning allow you to build 2 dwellings on a 600sqm property?
Also why are you not aiming for a torrens title subdivision?
Shahin Afarin – Property Finance Consultant
http://elitepropertyfinance.wordpress.com/TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
anandd wrote:Hi Shahin,The vendor died and the surviving party (Estate representative) don't have plans available to get a fixed price quote. And the relationship between the vendor & the builder were not the best and I suppose he didn't get paid which resulted into this builder not interested in talking to anyone. we can't get a fixed price quote from anyone unless there is a plan.
Hi Anandd,
You have one other option but the final LVR must be under 80%. I don’t have visibility of the customer’s deposit/asset balance but you will need to submit 2 loans – one as a vacant land purchase at say 60% and the second (concurrently) as a construction (which covers the demolition) loan for say the 20%. You will also need a quote from a licensed builder showing the demolition and the construction and the progress payments.
Shahin Afarin – Property Finance Consultant
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anandd wrote:Hello Guys,Can someone please tell me the best lender for a half built home in Melbourne (eastern suburbs).
The original house was suppose to be 'renovated', the owners demolished almost the whole house and started fresh and now it is near lock-up stage but for personal reasons the vendors couldn't continue building so selling. The previous builder is not available to complete so can't give a financier fixed cost to complete. Purchase price is basically land value which any valuer would be able to confirm. I just want to know whats the best LVR loan can be obtained on such property and who would be able to offer them if settlment was to take place in 5 weeks.
Purchasers are not first home buyers and can service the debt whilst their current IP is sold (already in market) which will give them adequate cash to complete the house.
I know we have lots of brokers in this forum so will appreciate if someone can help with this.
Thanks
Hi Anandd,
I can only comment on the limited information that has been provided. Firstly the maximum LVR needs to be 80%. No mortgage insurer would touch such a deal. Secondly, the customer needs to be squeaky clean; i.e. strong servicing, stable customer, etc. Thirdly, you would need to present to the bank a lot of supporting information, this includes why has the development stopped and more importantly how much will it cost to ‘finish’ the construction.
The thing I cannot understand and which slightly worries me is that you are saying that the dwelling is almost at lock up stage but the builder cannot provide an estimation on how much it will cost to complete? Have you tried ascertaining quotes from other builders?
Shahin Afarin – Property Finance Consultant
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Mr Prop wrote:Hi everyone, relatively new to the Property Forums, just want to gauge what your personal preference is for NG vs PG and why. I know many investors are still pro NG properties and wondered why. TIAHi Mr Prop,
The answer is very circumstantial to your situation and also your investment short and long term investment strategy. They both have the pros and cons, e.g Negative Gearing reduces your taxable income but it affects your serviceability and ability to borrow more money and more properties. Whereas Positive Gearing increases your taxable income but also your ability to purchase more properties. You need to sit with someone and go through a strategy that will work well for you. Another consideration is retirement and determining how much income you need to support yourself via positively geared properties.
Shahin Afarin – Property Finance Consultant
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HI Kija,
How much is the ongoing strata and also does the complex have a pool or lifts?
Also if you are concerned it may be worthwhile for you or your solicitor/conveyancor to talk to the strata manager. I had one case the the purchaser spoke to the Strata Manager and he stated that they are planning to remove a tree within a complex in 6 months which will cost each dwelling approx $5k.
Regards
Shahin Afarin – Property Finance Consultant
http://elitepropertyfinance.wordpress.com/TheFinanceShop | Elite Property Finance
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Marlyn looks after Toongabbiee as well – its only a few minutes away.
Regards
Shahin Afarin – Property Finance Consultant
http://elitepropertyfinance.wordpress.com/TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
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j21 wrote:TheFinanceShop wrote:j21 wrote:TheFinanceShop wrote:Hi Kate, You can either cross securitise (i.e use the equity in other properties which you own) or you could possibly take out a personal loan to cover the deposit and stamp duty. The latter option is obviously dependent on a number of things but I would need more information. Regards Shahin Afarin – Property Finance Consultant http://elitepropertyfinance.wordpress.comI am in the same situation as Kate. How do I go about taking a personal loan? Cross securitise is not the option to go for me, as my current residential property do not have equity yet)
Hi J21, Taking out a personal loan is not an issue. The issue is your specific scenario and ensuring that it fits with the lender's policy criteria. Are you looking to borrow the minimum deposit of 5% plus stamp duty or the 20% plus stamp duty? What is the property purchase amount? Regards Shahin Afarin – Property Finance Consultant http://elitepropertyfinance.wordpress.com
Hi, thanks for the reply.
I am looking to borrow the 10% deposit ($50,000), with the purchase price around 499K. The location is inner city suburb, with no new developments for the next couple years.
Stamp duty is covered by the developer and the rest of the 90% loan is not payable until Q3 2014 when the apartment is built. I was told that I can organise the loan six months before that.
Rental of the apartment is appraised at 550 per week.
Me and my husband earns around 150-155k per annum combined and he previously had a 375k loan for our current home that had no equity yet.
So what I can do next?
Hi J21,
I would need a little more information before – are you able to email me your details and also the details of the property?
Also re off the plan purchases please be careful and make sure you invest the money and have a good solictor review the terms and conditions of the contract, e.g. the last thing you want is to get to Q3 2014 and be advised that the construction has been delayed for another year or more.
TheFinanceShop | Elite Property Finance
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You can get a copy of the DA from the council – this includes everything from submission to determinations (approval and rejections).
To answer for first question, generally speaking, if you can do most of the work upfront such as ascertaining the DA and even CC then the more profit you will make. The interesting thing will be to make the most out of the site. By this I mean ascertaining consent to build as many dwellings as possible. The 2 storey unit permit sounds more attract than the subdivide into 2. Of course getting DA on the 2 storey unit will be far more difficult than a ‘simple’ subdivide.
Regards
Shahin Afarin – Property Finance Consultant
http://elitepropertyfinance.wordpress.comTheFinanceShop | Elite Property Finance
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kateej03 wrote:Thanks for the replies. I am the same as j21 don’t have equity so would need a personal loan. Is there any kind of security required? I have seen a few loans around 15% does this sound about right?Thanks,
Kate
Hi Kate,
You would need to get an ‘unsecured’ personal loan. Bendigo Bank have one at 13.49% and ANZ have one at 13.99 %. Make sure you get an pre-approval for the new loan before taking out the personal loan.
Regards
Shahin Afarin – Property Finance Consultant
http://elitepropertyfinance.wordpress.comTheFinanceShop | Elite Property Finance
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Hi Lila77,
I love Marlyn! I think the great thing is that she has been with the company for such a long time which in this industry is rare. You are definitely in good hands with her!
Good luck!
Regards
Shahin Afarin – Property Finance Consultant
http://elitepropertyfinance.wordpress.comTheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
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St George is an example of a lender that will lend 95% of the value of the property as long as you can come up with the 5% deposit and stamp duty. So in a case where the purchase is $300k – you need to come up with $25k. This can be by way for any type of non genuine saving such as sale of a car, gift, or even personal loan. There are certain policy conditions that have to be met such as the ability to demonstrate that you have paid the rent continuously for the past 12 months (this doesn’t need to equate to 5%).
Regards
Shahin Afarin- Property Finance Consultant
http://elitepropertyfinance.wordpress.comTheFinanceShop | Elite Property Finance
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j21 wrote:TheFinanceShop wrote:Hi Kate,You can either cross securitise (i.e use the equity in other properties which you own) or you could possibly take out a personal loan to cover the deposit and stamp duty. The latter option is obviously dependent on a number of things but I would need more information.
Regards
Shahin Afarin – Property Finance Consultant
http://elitepropertyfinance.wordpress.comI am in the same situation as Kate.
How do I go about taking a personal loan?
Cross securitise is not the option to go for me, as my current residential property do not have equity yet)
Hi J21,
Taking out a personal loan is not an issue. The issue is your specific scenario and ensuring that it fits with the lender’s policy criteria. Are you looking to borrow the minimum deposit of 5% plus stamp duty or the 20% plus stamp duty? What is the property purchase amount?
Regards
Shahin Afarin – Property Finance Consultant
http://elitepropertyfinance.wordpress.comTheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
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Solomon10 wrote:I would not cross the properties. if you meet serviceability and could get it organized in a short time frame you could set up an LOC against one of your existing properties and use this money to fund the deposit and purchase costs.Based on an average purchase of $300k the cost of stamp duty and 20% deposit is $80k. For me personally, I would rather use the equity I have built in my current asset rather than take an additional loan and pay interest on $80k which works out to be $400 per month in interest. Later when the loan comes down or the value increases or both and the LVR is 80% you can release the additional security.
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I think Kate is looking to borrow the total property purchase plus other costs such as stamp duty hence the cross securitisation.
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