The simple answer is..YES..But some things to take into account….

1. Choice of suburb – long term growth prospects?
2. Choice of apartments block ie how many units/apartments, how many 1, 2 or even 3 br apts
3. Current condition of the both apt and block
4. Size & floor plan design of apartment
5. Who runs body corporate and the balance of the…[Read more]

Your financier will have a valuation taken on your property when you re-finance. This will dictate what LVR you are borrowing and therefore any LMI liability.

So yes, capital growth may have taken your property from a LVR which requires you to pay LMI (above 80%) to a LVR which does not.

James

As an investor, I think this is great news.
Reduced supply in the future of stock (whether house or apartment), a relatively stable economy and low interest rates with a positive outlook, all in the presence of continuing increased immigration.

All underpinning IMO, very solid capital gains in the longer term.

James

Don’t forget that this comes off three years of negative job growth, so this is only the start of the climb back from a jobs perspective.

The LA Times article “Jobs Growth in 2004 Best Since 1999, 8/1/2005, also pinpoint limited or no wage pressures and a declining participation rate which tend to suggest there is still considerable under…[Read more]

Abbee,

The management group will dictate the return once guarantee has expired. You need to satisfy yourself that they have the experience and credentials to deliver. Do they manage other similar investments? What is their performance on those? Who owns the Group. Due diligence required on the management company.

Banks will not lend you as…[Read more]

Lumwood,

Not a broker etc, however, you can today get very good 3 and 5 year fixed rates for around 6.5%, I have seen advertised. To put that into perspective, I am currently paying 6.67% variable with a professional package.

You can mitigate the RBA risk through this approach.

As for interest rate rises, it seems likely for at least a 0.25%…[Read more]

I am sure the REIWA would be very interested to hear about that. http://www.reiwa.com.au.

(Of course, I am assuming the agent is a member, which would give the REIWA power to punish if they have done something wrong)

James

Prodontia,

Re contents insurance, when establishing what is the right amount to insure, assume, the worst case scenario where everything is destroyed in your apartment (yes, pretty far fetched I know, but that is the point of insurance). So you might need to replace not only the carpets, kitchen, bathroom etc, plus your own things (TV,…[Read more]

JackHu,

I think many people use this forum as a thought starter, utilising the knowledge of others, maybe ,like yourself.

Others may already have an idea and look for confirming or contrary advice to see whether they have not missed anything.

We all have to start somewhere.

CK,
Don’t think that your own home is not an investment either.

You also make mention that you want to start earning an income off property before your husband retires. Generally, it takes time for any one property to start providing you with a sufficent enough cashflow for you to live off. Are you giving yourself enough time to be in the…[Read more]

Victorian PM charges $2+GST. Qld PM charges $6+GST.

From a principal viewpoint, I agree that their commission, should incorporate all their costs of doing business. However, put in perspective, these charges are not usurious and tend to agree with MortgageHunter, that personally while irksome, this is small potatoes.

Interesting to see whether…[Read more]

Robert,

Personally re ‘how much I can borrow’ calc., the information I get back from them tend to differ to the amount that the lenders eventually say they will lend to me. (Yes, with the same information), so I tend to not use them anymore.

The other calculator that I would like to see is a LMI calculator. Therefore based on %LVR = % of loan…[Read more]

Claire,
Can only concur and re-inforce Rob’s commentary on impartial final inspections.

Recently, an acquaintenace who bought IP on Hope Island in Qld (new construction). It was due for settlement on 6/12 and all was completed. However, there was no final inspection done and when she flew up to view the property, there was still builders…[Read more]

One more point that I forgot to make, earlier this year I purchased an IP at 90%LVR. At that point, there was no overdue account on my credit history.
Would this potentially go in my favour from a mortgage insurer’s perspective? ie already obtained finance. Although I guess they don’t see the LVR on the credit history, for all they know, it…[Read more]

Have previously spoken to Westpac on the issue of further borrowing ability with minimal deposit and the amount they had indicated was approximately $300k(max) purchase price with a 95% P&I loan (IP)

Given the price is in the vicinity of $350k, this would make things impossible. Admittedly this is only Westpac, so I have not verified elsewhere.…[Read more]

Joe,

I bought 3 br townhouse in April this year in Upper Commera. I have just had it revlaued and in the process of getting a refund on LMI. Rent has gone up from $235 to $250pw in that time.

I was recently up there for work (Gold Coast), and am more convinced once the town centre & remaining infrastructure has been completed as booboo…[Read more]

I have just had the cost of $2700 for a Hybrid Discretionary Trust with corporate trustee by Gatherum-Goss (previously mentioned by GreatPig).

However, you could set up your own pty ltd company without accountants’ charge for minimal amounts, other then the statutory charges (www.incorporator.com.au)

James

I know of a few examples in the early 90’s on commercial properties. Haven’t heard that on residential.

James

Understand completely Kay.

Docklands was mentioned before. I know in looking there to rent at the start of the year, I thought that the facilities ie shopping, proximity to places going out other than Docklands, was a bit far. Anyhow, I don’t think people say in Melbourne yet, lets go out tonight and go to Dockland. When people come and visit…[Read more]

Yes, I do own an apartment in South Melbourne, which is extremely close to Southbank. My comments are not based on the attempt to talk-up the area, purely based on my experiences in this area over the last 3 years in total.

The commercial realities for owners and renters are self-evident ie depressed prices, subdued rents. I just don’t see the…[Read more]