Forum Replies Created
hi wealth4life that sounds great! I actually live near mt druitt and know the area you are talking about. Is it the units off luxford rd infront of KFC, is it the new or old units that you have bought? I'm all for positive CF but what happens when rates head upwards to 7-8%. Will your unit still be positive cf? Or have you locked yourself into a good rate? That's what im always confused about how will it still be positive when rates go up- does it mean you need to have a large deposit to have a good buffer? Approx how much more positive a week do you get from the rent $50-$100. What happens if mt..druitt growth remains flat or worse drops .For eg say you make $100x 52weeks = $5200 pa positive cashflow but what if price drop like it did 6months to june 09 -10% growth of median price. http://www.homepriceguide.com.au/snapshot/price/index.cfm?action=view&source=apm
Trust me i love positive cashflow properties but im scared of the negative or flat growth. Becasue if i make extra $50 on top but lose $15,000 in gorwth per year because of the area, then is it still positive because you are still getting abit more on the side but in the bigger picture you are losing in growthIt will be great to hear from you wealth4life, great post
Hi guys just wondering what would be a good source of info when looking for residential growth and yields for units in sydney …cheers
cool thanks guys for the info well to ad some more info my plan is to buy my FH by June using FHOG 14k + 10k savings buy 2 bed unit within 15km from Sydney pp$280k-300k GRY 6%. During 6 months do cosmetic Reno , then revalue rent out and use eventual equity to fund deposit for further IPs . Now what kind of loan structure/products would suit that any suggestions- Ive been doing my own research but am still kind of lost. Also if you where looking at fixing rates near the end of the year for approx 3 years who would you go with and why? When you fix can you still pull equity from that for a future deposit or do you have to refinance to get that available equity out? Thanks guys.
yeah and you need genuine 3% savings as a deposit (they do not take into account FHOG) i guess there scared that they will borrow too much and default when rates go up.
lolz hahaha
thanks guys for the comments, i haven't dealt with bankwest loans in the past , i have a telenet saving account with them at present, now i guess st.george is just as bad i got my broker to seek pre approval from the around last Monday , and we still havent got a final word from whats going on. so i guess is that whats going on at the moment with all banks?. Im really 50-50 with bankwest and stgeorge, who would you choose from them . after the 3 years with bankwest you have to refinance to one of their other loan products – will you have to pay for application fees again etc. What about after 12months (1.5% SVR discount) it goes to their normal SVR does that have an offset account etc . or do you have to set it up again just like with bankwest. Thanks again for the feed back Terryw and Qlds007 .
thanks terry so after the three years it says it converts to lite home loan but can i actually change to their other product the lite plus home home? That is the one with the offset account for a fee i think $15 per month (is that a reasonable fee?) . After three years i can change to another bank will i pay break cost or will that be over the term that i need to stay with bankwest to not get slapped with an exit fee? Thanks for the info Terry
Hi guys I'm 21 at the moment and i have $7000 to my name ha-ha- i guess im weird (most of of friends don't have a dollar) i guess i just have a different mindset to my friends (theirs are cars etc vs mine trying to save for a First home/IP ) hopefully by the end of the week i will have $9000 plus FHOG $14000.
I also am looking in Sydney market. My area is within 14km of Sydney CBD (2bed units PP 280-300k) GRY of 6% near transport, avg population growth of 7%pa for the last 5 years, 5 minutes to the beach and major employment hub for the area with 5 different major industries and is also identified as Major Centre in 'Metro Strategy' (is that still going through or was that just a draft haha).
Also since the start of the year i have been going to open inspections every Saturday and it just seems like there are more and more people (young couples) every-time and the units are selling within 3 weeks when they are usually on for 70 days or so on average. I guess it really does depend on which part of Sydney your looking at so i guess it cant all be hype- I'm definetly and i MEAN DEFINETLY not an expert on this but you can't place the Sydney market as a whole, Sydney has many markets in itself right? just my thoughts…
hi you'd have to check this out more in detail with your state office but you can logically rent out the property for the first 11months and move in on the 12th month after settlement to still receive the FHOG.
kids and dogs not a problem- property will be rented to young single professionals i'm still in the process of looking for a durable laminate floorboard so if anyone can provide me a great brand or supplier(in sydney) that would be great!
great thanks guys for the advice . i guess we can shut this post down now hahaha- simple answer go with a broker
cheers!
That's the problem I'm just scared i might buy some dud so i guess i must research and look it to it more thoroughly
haha great advice, i must visit bunning again soon and accidentally trip with my hands outstretched key in hand.so basically exchange contracts and have building/pest inspectors ready so they can get a report done within cooling off period. I think in NSW is 5 biz days for cooling off period – in the contract can you ask for a longer cooling off period like 7-10 business days? Is that reasonable if you tell them about the inspections etc.
thanks harb for the feedback, is there any particular brands that you can recommend- i was in bunnings this afternoon checking out a laminate floor 7mm thick german egineered 20 years warranty and described as heavy duty residential for $14.95 per sqm- is that reasonable? And the only flooring allowed in the unit apart from carpet is floating floor boards. So basically my dad and I will do it to save abit of money, but I still want a laminate floor that is durable with a warranty and wont blow the wallet to much.
great thanks for all the info guys !
Hi for all those who have invested in Campbelltown , i've been looking into it briefly what areas should i be looking at and what areas should i be running from (where are all the housing commision houses) and can anyone tell me of a good agent to help me find a good IP in campbelltown and also a property manager to help me look after the place, lastly what kind of yeilds and returns are you guys getting with the campbelltown IPs? Thanks guys for the valuable info.
Patriot soldier thanks for the detailed feedback i'm definetly taking all the info into consideration- thanks heaps, btw patriot soldier and macros where are you guys both based? How old ? and how many properties , sorry to be blunt it just really inspires me to see others like myself working towards financial independence at such a young age. And definetly the younger we start the more our properties hopefully grow and grow.
hey chris let me just say ur numbers has just blown away my mind haha, i can't really help you with them- but maybe you can help me. How do you noe what initial numbers you must now before buying an IP (number crunching) is there a site or program that can help with this. I seriously don't know the number crunching business – what ingoings and outgoings should i do everytime i buy an IP?
hey thanks for the info guys . can anyone tell me of a good broker or an anvenue where i can speak more of possible financial strategies that will suit my individual needs. If i was to buy an Ip in another state apart from sydney would i have to get a bank/lender from the state where i decide to buy my IP or doesnt it matter
hey guys thanks for all the info i guess it's a really worthwhile idea depending on how you look at the ingoings and outgoings plus acquiring a corporate lease in the first place.
