Forum Replies Created
Sorry folks, been away from the computer of late – have been a tad pre-occupied with the project.
Thanks one and all for the suggestions – have listed the development with out of town agents, who have clients/customers seeking investment properties. Have estimated returns in the region of 6.5% p/a or thereabouts, (rent + depreciation) which whilst not spectacular is probably better than a lot of “investment” property nowadays. There is a definite shortage of comparable rental properties in the town, so they wouldn’t be hard to let if that remains the case when they’re completed. The forseeable capital growth may not be spectacular (being a smaller town), but could be a very good fit re a mortgage reduction strategy (no, not the Hart’s method, the legal way..) for people looking for a lower price range property. Time will tell..Am heading down there over the next week to talk face to face with a number of interested parties – having considered the (reported) number of people wanting info vs the lack of deposits I believe the agents are somewhat lacking in their ability to impart full details, despite being supplied with pretty comprehensive property marketing packs. Plus dealing direct with the principle rather than an agent might prove more reassuring to people, and I can see how strong their interest really is, and work out an agreeable solution, ie < 5% deposits, modifications, etc, if that’s what’s causing the hesitancy.
I learnt a long time ago that it’s very easy to say no to something I’m not 100% certain about – I’m guessing older people (most of the interest is from retirees, as expected) can be more cautious than most. As yet I’m uncertain whether to talk to each individually, or hold a meeting and invite all and sundry to attend. I’m thinking that by standing up in front of a roomful of people that it may go some way towards reassuring people I’m telling it straight, and cover all questions from all comers in a time effective manner. If I do get a roomful of people it’ll show me the demand is there, (good to know these things for sure..)as well as creating a sense of urgency/competion from interested people. Only 9 villas, all different, 1st in best dressed, etc. What do you think people? Worth the effort?
Will have to end here (the coalface beckons..) but if the interest/replies are there I’ll keep this thread going and report back in a week or so on how things are progressing. And at the risk of being condemned/accused of a blatent sales plug, if anyone out there would like details, specifics, etc please send just me a PM.
Thanks again to all for their input.
Cheers,
theloanarranger
Thanks AusProp and GQ,
Re the mock up – good call but can think of nowhere to stage it, not to mention the dramas n $$$ of putting together a real ‘exhibit.’
So am now considering getting a virtual mock up done so people can do a walk thru etc – may well be a good step as I think yor’re right – people have trouble visualizing the end product from the plans and artist impression. Many thankstheloanarranger
hi Kattan,
Don’t know of any offhand, but you might try Owner Builder magazine, lots of people share their ideas + plenty of trades specializing in O/B advertise in it.
Cheers
theloanarranger
Hey luckyone,
Pick a broker, any broker..
There’s still 1 or 2 lenders who’ll give you a discount on their fixed rates on certain loan levels, but it’s nothing to write home about – around 0.1 or so off advertised rates. If you intend fixing it all find out what you can get elsewhere and then have the unless-you-match/better-this-I’m-outta-here talk with your lender. Otherwise you could consider combining a fixed rate + intro fixed rate rolling to pro discount on a refinance – keeps some flexibilty in case your crystal ball is wrong re fixing the lot..Find a broker you can trust to do the homework, then check the variables – ie rate is as of approval or settlement, rate lock options/costs, etc – to ensure what you want is what you get.
Cheers
theloanarranger
Hey alwayscurious,
On face value I can’t understand how the 25 y/o unit is costing you $200 p/m (unless you’re paying way high interest..??) It should be creating + cash flow, in which case I would NOT be selling it.. Whether to renovate would be a decision based on if it would increase the rent, increase your deductions or to keep your tenant happy (or all three..)
Are your figures re loan and rent correct?
Cheers,
Theloanarranger
theloanarranger
Sounds like you’re a wee bit un-unbiased there Rob.. 20 large, huh?
Mind you, I had a good laugh when I read the article too – I’ve had a few of their ex-clients with stories to tell, and problems to fix..
theloanarranger
Yep – the writing is on the wall for some.. There’s going to be some fall-out for banks, borrowers and brokers, and it could get very messy indeed..
My colleagues and I were scratching our heads when various lenders brought out regulated Lo Doc Loans – I appreciate most are funded offshore -but still believe the majority would breach the UCCC if tested. Have always been careful when writing Lo Docs because of the potential pitfalls, but I think the ATO could have a field day if they so desire..
theloanarranger
Hi Dingles,
I too hate selling unless absolutely necessary.
Be aware that if you sell the IP you probably won’t have as much $$$ to play with, after sale costs, CGT, etc – and you’ll forgo any more capital appreciation. Only way I’d sell the IP (don’t forget market in most areas is slowing/retracting) is if you could use the $$$ freed up from a sale to fund a purchase or 2 that would increase your cash flow, or make your -ive debt repayments smaller.
Consider restructuring your PPOR loan to release the equity in your home – it would be what I’d do – provided you split the loan to differentiate your personal (existing) debt from the new borrowings (to be used for investment). That’s where the equity is, splitting it will keep you and the taxman happy, and if you want to maximise borrowings use those funds as deposits and get stand alone loans (cheap I.O. ones) for the balance of funds. Too easy.
theloanarranger
Quote:Originally posted by spider2:Steve McK has stated in his book that he favours self gratification
He does..???? [ohno] That would explain the glasses..
[biggrin]theloanarranger
Hi Pin22436,
If you want to send me your contact details, or details of the deal, etc either send me a PM or (preferably) an email – I’m not on the forum boards continueously.
I’m a MB in Sydney, grew up in country NSW..
Cheers,
theloanarranger
Elbow,
Unless the outlaws still have a reasonable mortgage on their property and/or they could expect the property to rise in value substantially, they might bebetter off to sell it. Reasoning being that any loan they raise on their property to buy a new o/o property will NOT be tax deductable, so they’ll have a o/o loan (even though it’s secured by their existing, and now an investment property) to pay out of their after tax income, plus additional income (the rent) to pay tax on..
The PURPOSE of the loan is what determines the tax deductable issue, and in their case the purpose is to buy an o/o property..
P.S. If they decide to sell, they should consider selling it themselves, if possible.
theloanarranger
Hey Bionic,
If all else fails, try going to the relevant council, (the rates dept)and ask to see the sales register – basically a list of all property transactions going back several years within council boundaries.
Some councils charge, others don’t. Should give you the address, price paid and settlement date.theloanarranger
Go WAF!!! [thumbsupanim]
Re occ: broker ‘n private sale consultant
theloanarranger
So who’s this herman guy[evo]?
theloanarranger
My 2 cents worth.. R/E sales agreements have the
extension clauses (ie up to 60- 90days after expiry) to ensure agents can claim commission if a buyer that was introduced during the agency period approaches the vendor to buy after agency expires, witha view to saving/splitting the comm. Some agents use this clause as a de facto agency, or for bullying some vendors.The key is what’s defined as ‘effective cause’ of the sale – most agents believe that introducing a buyer to the property/vendor constitutes effective cause – not necessarily the case at all.
However Yack, in your case I would suggest waiting out the extention clause in the initial agreement just to be sure there can be no claim for comm from the agent down the track – if it was a sizeable amount the agent might think it’s worth a lawsuit.. If you do want/need to sell it prior, try asking the agent for a complete list of those people they introduced during the agency period. (lax agents rarely keep details of buyers) If the buyer is not on the list, they can’t really make a fuss can they?[rolleyesanim]
theloanarranger
So I build my house on your land, huh? We really wouldn’t want to have a disagreement about anything before settlement now, would we?
theloanarranger
Misty,
If you think a lower val price is possible, consider getting a val done either privately (ie you pay for it, and ensure the valuer is on your lenders panel, so you can use it later), or use another lender than your existing to do the val. (probably still have to pay for the val, but will probably be cheaper than getting one done yourself, because of lenders’ bulk discounts).
At least you’ll then know what val will be and act accordingly. If your existing lender does the val, and it comes in low, kiss goodbye getting a loan from ’em for a long, long time..
theloanarranger
You called ??
theloanarranger
Agree with Simon re property presents better furnished, and possible rent discount. Talk to the tenants first – you’d be suprised how many want to buy the property they live in. If they can’t afford a normal loan – I know a good place to find info on wrapping..[biggrin]
But if they look after your property well, treat the tenants like family – if you get them to sign a new lease and then immediately put it on the market they might be very cheesed off and cause you grief re access, or presentation, which could be a potential sale killer in a slow market with lots of property for sale.
I’ve found if you treat people as you’d want to be treated, it (generally!) is rocipricated – and you sure want them onside whilst you sell. And hey, with Carr’s new tax, there’s a whole lotta NSW investor’s heading to QLD, – odd’s are good an investor will buy, and your tenants can stay – everyone wins…theloanarranger
Depends on who we is…
If it’s the members of the club, and you have to borrow the funds to do it, think very long and hard before you go down this path..
Every borrower would be potentially responsible for the entire debt – would get very messy very easily.
If everybody’s going to throw in and buy it, what happens when someone wants out? Or the club disbands? Who/what is on title? Who pays rates, upkeep, etc?
My advice – keep renting.
theloanarranger
