Forum Replies Created
he gets around $46000 i think, he has no debt or problem with serviceability
MORE HELP PLEASE!!
Ok.
The property has since dropped down to $110,000.
I am having a builder look at it for an estimate.I’m not too worried about the actual termites but the damage. We estimated $10,000 repairs and now the price has dropped can afford to go above that but i don’t want to have to rebuild the whole house.
As for the agent well being a small town and all his reputation is one of being extremely ethical so i think he probably wants to insure the sale doesn’t fall over (Isn’t there some rule about non disclosure?)
Anyway i’m itching to buy it now the price has dropped it’s looking very good so hopefully the builder agrees.
Well the agent advised me of the fact termits were evident yes after phoning to answer my offer of $125,000 (which i never received)
I know little of fixing termites permanently or the damage and as i already have to spend around $10,000 i was worried about the fact that could blow out.
Maybe i should look into it further.
Apparently the owner is considering taking it off the market.I estimate quite confidently after renovation i could resell for a minimum of $220,000. Even if i just rent out (family) while renovating and then sell it. make a quick profit??
An update!
On closer inspection and advise of agent the property had termite damage.
We are not going ahead.
Sorry i should clarify figures a bit.
Purchase price $125,000 (hopefully) asking $130,000- 120 knocked back.
I want to borrow 100% if possible to include the deposit amount.
I’ll use the line of credit already in place for renovations as i don’t pay interest till drawn upon.
I can cover stamp duty and legals out of savings.
interest rate around 6.65% through Rams same as line of credit. Pre approved.
Hope i included enough.
Thanks for the tool help i’ll look it up.
Thanks to everyone for the replies.
Firstly i have the $10,000 as a line of credit already which i will pay $40 a week off.Water rates the tenant pays where i live.
Buying for $125,000 now stamp duty $2,865
I can add a LOT of value to this place. Has a great yard, great street etc so i’m thinking if it didn’t stetch to be positive cashflow or i needed to sell down the track i will certainly make good capital gains.I’m thinking it’s too good to pass up being my first, in my own town, tenanted straight away and i have all week to work on reno’s as i work weekends now. I have done a lot of renovating previously and think it will come up great.
I live in Country NSW by the way.
I thought there was a register kept with the local chamber magistrate or sheriffs office.
Sheriff would be private i imagine but i thought the chamber magistrate held a list which was public knowledge???
Not sure but that’s what i’d heardHi again,
Sorry for getting everyone upset.
Basically lo doc sounds good to me purely as they may take other streams of income into account or at least a higher percentage.
I have income from a boarder which is regular and declared,disability payment i’m told is counted in part and very low living expenses. I own home outright have no loans etc yet it always comes down to set income (job) which being in a country town will possibly always be low.
I am looking into shares as a way of getting more income along with a few business ideas but once again the tradition lenders will have hassels with that until i have an established record.
Anyway thanx everyone for thier input.Hi Crusher,
Lot’s of confusion!!!
Thankyou for the advice i will contact her and get my head around it all yet.
Low doc sounds the way to go so far.
Thanx againThanx everyone for the replies.
Crusher i would very much appreciate you sending me details of your broker!Living in a small town (Goulburn NSW) We have a limited range of brokers and most are not too helpful.
St George Bank are the one’s who tell me i can only borrow $95,000 of equity.I am looking at the $200 – $230 price range as that will buy a three bed family home which would suit the potential wrappers i have in mind.
As for income well for now there is not much change for my income to go up, if anything it may go down for a while when boarder moves out. I will be getting a raise next year but am unsure as to how much.Other than share investing or similar i’m unable to up my income for now.
A low doc loan sounds good as being used for a wrap my income rises, the wrappee is covering mortgage payments etc and it will at least get me started in raising my income.
One other question if successful in obtaining more equity is it smart or possible to pay a higher deposit therefore dropping what i have to borrow but upping repayments on equity loan and at a later date upon agreement with wrappee re draw the deposit paid as equity for next place??
Is this possible or viable??Hi,
Thanx for the links they have been very helpful especially http://www.businesslawyer.com.au/fr_property.html
website as it has a lot of other hard to find info to do with busineses.
Thankyou all so much.[biggrin]Hi,
Woodsman,
Low income in terms of what we can borrow.
joint income
Monthly income net $2200 from job
$180.00 monthly from disibility payment for dependant which i’m told is counted
1 dependant
Extra income $160.00 month from boarder
Total of $2540 month
No credit cards, car loan etc
$50.00 month payment on personal loan.
All this tells me we can borrow a max of $175,000 if were lucky and the places we are looking at are $200,000 – $230,000 for a wrap situation.
This is without taking into account repayments on an equity loan for deposits.
Own around $280,000 in equity allowed to borrow $95,000 only.I understand we must be able to service the loan but i have no mortgage, rent,cards, car loan etc to pay for and with wrap in place shall be making more income.
Very new to all this and very frustrated, especially with having the equity for deposits.
Any advice is greatly appreciated.
ThanxThanx Terry,
I have been reading up on wraps on this forum and will check out the website.How about store cards???
Same??Robpiller
Hi,
Having worked for a short time in Property Management i have come across similar situations although they were all under a lease at the time and were therefore taken to tribunal to settle. One case however was very similar in which a family friend had taken advantage of the property owner,ceased paying rent and was also still living there. His solicitor advised him to clear out all tenants property, place on front lawn, change the locks and be happy to forgo the arrears which in term would make things easier and guarantee him an empty house. He took this advise and then appeared at the house the next morning to find everything gone and has never heard from them since.
As there is no lease in place there is also no proof the property is thiers or they were living there.I suggest clear it out, send him a letter via a solicitor or not stating the goods will be removed and sold by such and such a date.That way if he doesn’t show you have given warning.
If you were under a lease there are very strict guidelines governing the sale of previous tenants property. In your case no lease no worries.
Hi Steve,
Just what i was looking for.
Thanx for the help.cathnniv
Terry,
Thankyou so much! I will check it out.
CathHi Terry
A seperate agreement sounds good.I will have to explore it more as for now that would be fine but i am unsure as to how to split profits down the track given that my side of the partnership would be time investment only.Also we wish to make it a going concern and want to do it right from the start.
Thanx again for your advice i will look into it.Hi,
Seems we’re the only two!
My dad and i are just starting out and are a while off actually buying yet as we still don’t get all the in’s and out’s, well even most of them for that matter.
It would be great to have someone to talk to who actually know’s Goulburn.
You may contact me by email if you like and we can maybe arrange to meet up or start our own group once we find a few more + cashflow investors in our area.Like you mentioned even in Canberra would be good.
My email is [email protected]Hi Terryw,
Thanx for the reply.
My problem with buying jointly is i have a low income and three dependants which i thought would work against us for finance, I’m unsure as to whether the same applies with a partnership I’m guessing now it would be as it’s similar to a sole trader in that your income/assets are the security.Sorry like i said i’m new to all this.
