Forum Replies Created
Thanks for your comments and input Michael, not going to argue with you that’s for sure! [biggrin] I was not thinking so much of when the rent could make them CF+, but rather with a view to selling and realising the gain/s, and or using the equity. At around 10% PA that realistically answers most of my question, and I guess i was after an ‘idea’ of how much a week something that would be suitable wold cost me to service. ie $50 a week out of pocket is different to $10,000 per year….. Not that it would not be worth the gain, but servicing it meanwhile for some of us would not stack up finance wise….. All the best with your property meanwhile. Might catch up with you at an expo one day! Thanks again.[strum]
Hi All. Not hijacking the forum or anything, but since a couple have referred to capital gains in these parts of Brissy, and no CF+ there, would any of the buyers agents or others in the know that have bought up that way care to give an example of how much CF- a ‘bread and butter’ home would be perhaps assuming a scenario of no depreciation and no fancy development etc? Or what sort of gross yields? I realise this may sound a bit speculative but it would be interesting to know in the market at present, how long you think a CF- home would need to be serviced in the Sth Brissy area before a good gain could be realised ‘all going well etc etc’ Thanks.[strum]
Hi. All this is purely dependant on what state you are buying the property in, as there are many differences. Regardless, an offer would normally be done in writing as a courtesy anyway, and to make sure it is presented to the vendor. Did’nt you use a solicitior? You will need to post some more info ti get some replies to this I think. [shades]
Hi, and welcome to the forum. Page 39 of this months API (Aust. Property Investor) magazine mentions Frankston……. Only a few paragraphs, but the article is titled ‘NEXT?’ in their ‘boom’ article. Know nothing about it myself, but remebered it mentioned recently. All the best. [strum]
hi novo,
Most bank and non bank lenders will provide up to 95% LVR loans for both owner occupied and Invsetment properties. You will find 100% or more also for PPOR but at a premium interest rate. So called ‘LO DOC ‘ loans are usually 70%LVR if less than 2 years ABN, or 80% for >2 years. Much over this and you pay for it- dearly. Bear in mind, as a generalisation you will require Lenders Mortage Insurance for any loan over 80% LVR, and this can be affected by the postcode you buy in. All the best.Oh….jus though I should clarify…when I mentioned I have read ‘both said persons books’ I meant Mr. Jenman……not Rotten….never had ANY dealing with the latter. [specool]
Ah,like I said, don’t know the guy from a bar of soap….and don’t plan to. I just notice so many people tearing down’ and critising without offering any solutions or alternatives. It was a general comment. Been fleeced? Then go get whoever did it mate! Let us know how you go. And of course any advice or xperience that can help others avoid this is welcomed by all I’m sure. ![thumbsupanim]
Hi Chris,
You have had some great thoughts from others on the mortgage offset side of things……helpful guys I might add. Just wanted to add that there is nothing to be ‘ashamed off’ selling a property at a PROFIT if it eases your situation, and relieves some stress. If you genuinely cannot service the loan on the 1br one for example, if you sold it now, even after CGT you will walk away with some money, and be more comfortable, and still have another quality investment property, a wad of cash, and your PPOR! Mate, that is better than 98% of the poplace, and while ‘delayed gratification’ is all good and well, your family is only young once, and if you all eat baked beans on toast (black ‘n gold’ brand bread) and eat 2 minute noodles for more than a couple of months, might be time to take a bit of action. Just have a think about it. You’ve done well, and are at a bit of a crossroads. There is worse things than losing one IP (of which you will obviously get more later on with your attitude) and walking away with 20k or so…All the best.[thumbsupanim]Just felt the link to Jenman deserved a comment (general) based on this posting…..Firstly, I have read both of the said persons books, and think there is definately some good and helpful stuff in them…..just as there is in some of the books of people such as Steve Mcknight and Jamie McKintyre……both people who are severely ostrasised (yeah, the spellings wrong, but it’s late, and if my investments were performing better I’d be drinking Annies Lane instead of elcheapo McWilliams muck…) by the said person – I do not know Rick Otton from a bar of soap, and have no plans to use any of his services, but I wish to humbly point out TWO OBSERVATIONS…nothing more, and I will simply leave you to draw your own conclusions….
1) The person mentioned as ‘rotten’ in the article (maybe he is?) and others like him are called derogatory things because they (quote) add 20 or 30% onto a house price and onsell as a ‘wrap’ to so called battlers (who can afford VB and smokes) …..yet lets be realistic lenders like Bluestone (as an exampleonly- also lend at a premium rate similar to this above ‘standard’ loans. Does that make them the same unethical whatevers?. No , it is simply based on riskand supply and demand. No one is ‘forcing’ someone to borrow money against their will. We all have choice, and we are fortunate if ‘someone’ will legitimately lend to us if we want it to be so and are not eligible for a standard loan etc etc.
2) Secondly, it is easy to tear down someone, but takes skill and nouse to build up – none of which I see from the person responsible for the materail on the provided ‘jenman link’.
If we can walk the walk, and get paid for doing so, why not.? BEats being negative all the time, and high blood pressure.
So I finally got something off my chest, and hope that it is taken as it is meant……a ‘balanced’ opinion. Now…go get those deals! Take care all.[sleepyanim]Hi Redleaves. yes, that is a viable option for many people that have no or little deposit. Just an alternative suggestion (and as mentioned already, you will need to be able to service the both loans……) it would might be more sense to look at a more conventional loan @ 95% LVR matched with a larger personal loan, than the ‘No deposit’ 100% finance type homeloans along with a smaller personal loan, which usually have a higher interest rate (assuming this is for investment of course)THis could save you around 1/2 % on the interest rate using a discounted loan product. The idea would be to then clear up your personal loan asap. All the best hey!
[strum]Hi. I assume you are aware that you would have no hasle getting a Lo-doc 70% LVR form a conforming lender? What some people do if there is no other option is get a non conforming loan form someone like Bluestone, and then refinance either with them or someone else once you have reached the ‘2 year mark’ with a good payment history. It’s a shame that for people having a go as self employed you get penalised with loans, but once you have a bit of rquity/finance and the ABN for the two years you will be up and away……. Until then it is often a case of either 1) Chill or 2) Pay an extra couple of % interest. Anyway, all the best.[strum]
Hey Rastus. Good on you for getting a good deal like that for your PPOR. Honestly. a 100% finance, there is not that much better rate you will get (excepting loan sharks and fine print type loans) and as the others said with your LMI and exit fees forget about it. If it is of any help, to put things in perspective, the best rate you are likely to find for a reasonable loan like this is between 7.02 and 7.14%, and the standard variable rates are still 7.82 from the banks, and their ‘discounted rates’ with monthly fees are around the 7.2 to 7.3% so what I say is a big congratulations on your new home…..and forget about the mortagea for a few years at this rate and enjoy your castle.! [biggrin] All the best.
Hi yessy. I imagine you will find all is revealed in your ‘masterpack’. If not you’ve done your dough! nearly any book on property, including Steves books deal with this, and if you have a look on this site back at some of the newsletters you will find the odd checklist for property inspections etc. there. Naturally, if getting serious, you would want a building inspection done before any offer you make goes unconditional. All the best too![strum]
Hi Creation1, and welcome to the forum. You can answer this one yourself, as really it all depends on your feelings. If you are 100% clinical and concerned only with getting started with building an investment portfolio, obviously renting. Sure, dead money, but not the responsibility and you can work on your investing plans meanwhile. However there is a lot to be said for the ‘secure’ feeling (it is only a feeling) owning and living in your own home brings, and what is the point in accumulating property if you don’t feel content and happy meanwhile? ……I miss it! If you buy your own home sensibly, and don’t over capitalise with spending on it, you will find you have some equity to help out down the track I’m sure. All the best…..and while I’m at it, (this comment is not directed at you, but reading through the replies I finally felt the need to broach the topic)the FHOG is for first home buyers for their own home. While some are ‘scamming’ to get it so as to live in the place for a token 6 mths or so, some of us have never had anything made availalbe like this, and would have really appreciated it all those years ago. While it is and can be done technically, even if someone is never ‘caught’ or questioned, I reckon it is a tad unethical if not dishonest. Anyway….like I said, all the best with your journey![biggrin]
Hi Jefferson. The world is your oyster….. Seriously though, a lot would depend on whether it is for an IP or your own home. That said, there are many bank and non bank lenders that will lend up to 95% now, as long as you can service the loan, and that there is no problem with lenders mortage insurance, which as a general rule of thumb is required if borrowing more than 80% of the property price. Often what happens is in some areas, the lender will not lend over a certain amount of money at 90 or 95% LVR purely because of where th property is located, perhaps that is why you may have always had to borrow more? All the best.[strum]
Hi Daryl. Depends where it is. Where are you? In tassie for example, your offer is actually made on the contract, but naturally you can /would insert a clause or two to protect yourself. A due dilligence clause, or subject to buyer being satisfied with whatever type ones cover you here. If the offer is made in writing not on a contract though, nothing is 100% definate until a contract is signed. There’s always ethics too though. If you advise what state you are talking about can get you specific info if you want. All the best too![strum]
Hi. Good on you….you’ve done well. The popular thought is to never sell property….keep borrowing against it or pay it off….although if you view it as a ‘vehicle’ or means to an end, residential property is for you to make money on and use to suit your lifestyle……so why not sell if you need some cash, and it frees up a bit for another couple of houses and maybe some time off work? Decisions decisions. Looking at your walk away figure after costs and CGT, had you thought of perhaps hedging your bets, and selling just One of the Isa properties? Could be a good option eh? I always remember one investor making the comment that realestate gains are all theoretical (ie profits are unrealised) until you sell….All the best with what you decide. [thumbsupanim]
Hi Alotti. You will find some other comments about this in the forum if you have a look…..the general concensus being that part of tassie is a bit like buying a lotto ticket. Lot of vacancies and property managers up to a couple of hours away tend to influence decisions. Even a lot of the re salespeople in Tassie agree. Then again, if that does not bother you, and rental income is not critical, you have got to be in it to win it as they say. All the best. ……..
Me? Love the apple isle, and got some property over there, but fear of doing dough and wanting to prevent marrital discord would stop me buying in those areas.[headphone]Hi Celeste. Good on you!. Sounds like you’re doing well…..Congratulations and all the best.[thumbsupanim]
Hi. This really depends on your goals and what you want to achieve. If you love the property, and it is a family home for you and you have no difficulty making repayments, as Terry said you would be way better off to use the equity in your property to borrow. However, if you wish to ‘simplify your life’ and get out of debt lots of people take this course of sell, and buy a cheaper property to live in debt free……which for many is a good idea. Would you/your family be happy though off the acreage is just one question you have to ask. All the best.
