Forum Replies Created
Unless you are one of the proponents of this end of the boom is different to others, well informed, objective and a long term vision will deliver to those investors solid returns.
The same fundamental rules of investing in property hold true today as they always did and will.
In my experience when I have gone for finance, once you put in your application, you get to a conditional approval stage the bank is satisfied with all the documents and representations you have made on your application. No doubt you would have provided pay slips or letters confirming employment. In 4 finance applications for IP’s, the banks have never actually called my employer. They have taklen the evidence ie pay slips and/or letters from my employer as sufficient. Conditional approval (and the MB’s here will correct me if I am wrong) is effectively subject to satisfactory valuation.
I think technically you are supposed to let the bank know of a change of anything material in your application, but you could avoid telling the bank this fact if you have gotten to this point.
Otherwise, your broker is right re the 3 months or at least your girlfriend getting past her probation period. Of course, unless your g-friend has negotiated no probationary period.
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=16549
JackHu,
I think its time for you to go away. The same answers to different questions, and the same garbage you are peddling ie your free giveaways. You are doing the same thing on the sommersoft forum.
You add no value.
There must be a full moon?
Knowitall, what the …..? Colbert1982 was simply asking whether he could get an I/O loan with a FHOG. Not an invitation to spruik for your paid advisory service.
Sandyman,
Try this link – https://www.propertyinvesting.com/forum/topic/15615.html
Resiwealth,
Demand and supply considerations are still very much relevant in developments….You just can’t create profit by simply building.
There must be a market for your property (either sale or rental)
the bank has NO interest in your purchase offer or price, only 80% of valuation..so there is no “lower of” as far as they are concernedThere are very few banks today that will take a higher valuation over contract price even after 12 months from the contract date (ie OTP). I have recently gone through this exercise. (I had only three to choose from, who would take valuation price given the contract was signed 16 months ago). Otherwise, it is the lower of contract or valuation price.
After all, this is one of the fantastic things about RE investing, that the little man like me has this safety net of having a BANK VALUATION to back up my planned purchase, and not pay an extortionate, unfortunate priceHave I missed the sarcastic sentiment behind this statement?
If you don’t alredy have a good credit rating , open checking accout at several banks. Find those whose loan officers are friendly and interested in helpin gyou establish a credit rating of through borrow small amounts of money.JackHu,
Your US based advice is largely irrelevant for Australia. There is no such thing as positive credit records in Australia unlike the US.
Gatsby,
I did see Waco: The Rules of Engagement and it is amazing how again, the media is played and manipulated from very pertinent facts, which makes for a very different perspective.However, I cannot see the relationship with the Catholic Church. Yes they are culpbable of terrible acts of the pedophiles within their ranks and through the non-action of the Church hierarchy. However, the Catholic church does not carry to my knowledge or was being investigated for possession of illegal firearms and explosives. Or did their leader state he fathered many children with girls as young as 12/13.
Various Branch Davidians were also charged and convicted of voluntary manslaughter and weapons violations.
However serious the sins of those who hold office within the Catholic Church, they are no Branch Davidians.
(BTW, I am not Catholic, I am Greek Orthodox)
All I can say is that BIS Shrapnel have just revised their 2005 estimate of new housing starts in Australia from 160,000 down to 145,000. They were trailing HIH which had already factored a slump in 2005 followed by a minor recovery in 2006. Now the two are more closely aligned…Seems to me then that it is getting close to “BUY” time.A reduction in housing starts, depending on its cause, maybe indeed be beneficial. Counter-intuitively, a reduction in supply, all other things being equal, depending on the demand profile, results in a price increase.
F, I think you overlook the associated industries that have grown around property related investment. Yes, most are service related industries, however, this part of the economy represents a significant portion of economic activity.
Do not people use their excess equity to also invest in the sharemarket. Many will use these funds with a margin loan to increase their leverage into the sharemarket….Is this not a productive use of their equity?
It places a burden on first time buyers, reduces the feeling of ‘place in society’ that ownership brings for those priced out, forces young couples to delay starting a family therefore increasing the burden of an aging population… shall I go on?Now the property boom is responsible for the ageing population. [biggrin] I think the delay in people having families started long before the last property boom.
Has she explored the option of renting out the property. Not sure what rent her property could rent for versus outgoings. Depending the current valuation of her PPOR, maybe debt consolidation maybe an option.
You may need to provide some more information about current house value, mortgage & location…
The reason for pursuing this option is to overcome the need for selling today in a buyers market, costs and the loss of an asset that may provide future capital gains.
Why does your Mum want/need to sell?
Other than the home loan, what other debts does your mother have?F,
Your cheer leading exercise for significant property reductions and ill-conceived public policy recommendations/prognostications does raise the eyebrow but only before I start laugung out loud (incredulously)Mr Megoleganis is another cheerleader of the intellectual left if you look at his background and writings, however, again his position is also flawed.
He uses flowery and emotive language to make his point that we are heading into deficit & that the economy has “sunk”, without any supporting evidence.
If we are really serious about reforming policies regarding property, then lets consider all the state taxes and levies that are imposed by Federal & State governments. Why is it property is singled out more heavily than shares? If we had the same rules applying to both shares and property then I would say that at least the taxation system does not distort investment decisions, biasing towards shares. Not economically efficient.
Land Tax, stamp duties, mortgage stamp duties, exit taxes it doesn’t end. A quid prop quo thankyou. The political ground swell in NSW and Victoria regarding respective property taxes, will simply underscore the political reality that any government who wants to tinker with property taxes/levies is playing russian roulette with their incumbency. And so it should, they have sucked the property revenue bong for long enough.
Ahhh foundation, you are nothing if not consistent.
As for Kerwyn’s question, I am also looking into finance or at least some information on finance for future purchases in Greece.
From what I have been able to find out, mortgage insurance or Mortgage Indemnity Gurantee (MIG) as it is called in the UK, seems to be payable for deposits less than 10% (at least this is what the web-site I am looking says).
Greece from one bank’s website says up to 80% of market value for home/apartment purchases, construction finance and renovations which are up to 70% of market value or 100% of the repair cost.
Not sure what other countries you may be referring to though. Did you have any examples?
Anson,
An appointment with a mortgage broker would also clarify what you can and cannot do from a financial viewpoint as well.
Yes, I’m aware of this, however, many investors still use their PPOR as security… which was my pointNot sure if this is the case, but I recently was talking to a mortgage broker with respect to an investment loan, and whilst I don’t have a PPOR, he was recommending that I cross-collateralise one of my other IP’s with this new loan. My circumstances did not require it.
I dismissed this out of hand, however for someone who is new the IP, they may have pursued this on the advice of the MB….[thumbsdownanim
Brizza,
In all my applications for finance (which covers 4 separate lenders – CBA, Westpac, St George & Macquarie), they have all wanted to clarify current living arrangements. That is
Living in own PPOR? Renting? OR are you living at home with parents.
