80% LVR is it a bad sign to a area.

Viewing 10 posts - 1 through 10 (of 10 total)

NewInvestor
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@newinvestor
Join Date: 2003
Post Count: 18
June 11, 2003 - 4:14 am
Hi,
If the bank says they can lend only 80% LVR
what all does it take into consideration
i need to know whether an area is considered bad if banks says they cant insure the place.
thanks
darrenb
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@darrenb
Join Date: 2002
Post Count: 71
June 11, 2003 - 4:58 am
Because you can get 80% doesnt mean the area is bad, it means that the area has been saturated with alot of investors lately or First home buyers paying inflated prices for house and land packages and the mortgage insurers wont insure for 90%. I have heard that you cannot get LMI for the Latrobe Valley and Narre Warren South!
NewInvestor
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@newinvestor
Join Date: 2003
Post Count: 18
June 11, 2003 - 5:04 am
Because you can get 80% doesnt mean the area is bad, it means that the area has been saturated with alot of investors lately or First home buyers paying inflated prices for house and land packages and the mortgage insurers wont insure for 90%. I have heard that you cannot get LMI for the Latrobe Valley and Narre Warren South!
since u have stated that its already saturated or prices or inflated does that mean any new investors should take it negative .
iam just a little confused.
neologism
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@neologism
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June 11, 2003 - 5:35 am
quote:
I have heard that you cannot get LMI for the Latrobe Valley and Narre Warren South!
i did just 2 days ago in the Valley prices are very inflated tho, my father has a few houses in the area and has done very well as he got them about 5 years ago. i’m not to worried, i still see a huge growth for the region as a new coal refinary has just been cleared bring more jobs and industry to the region.
MJK
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@mjk
Join Date: 2003
Post Count: 157
June 11, 2003 - 5:56 am
New Investor,
Yes it is a negative if you are capital growth focussed but if the numbers stack up for you, in income terms, it may still be OK for cash positive investing.
MJK
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
June 11, 2003 - 7:15 am
Banks, or LMI are a bit behind. Some very promising locations in the outer Sydney area are not covered by LMI. They just haven’t updated their lists for a long time.
Terryw
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
NewInvestor
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@newinvestor
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Post Count: 18
June 11, 2003 - 7:36 am
Hi terryw,
can u mention a few of them please ?
Terryw
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@terryw
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Post Count: 16,213
June 11, 2003 - 7:51 am
Hi New Investor
Kangaroo Valley is one example and the Piction area as well (20% growth over last year or so)-And only 1 hr from city on the M5
Terryw
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
whj
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@whj
Join Date: 2003
Post Count: 13
June 11, 2003 - 1:57 pm
With areas like Picton etc, you will not find “cheapies” as such, it will cost you $200-$300k for starters.
But I agree it really is a good area for capital growth.
WHJ
NewInvestor
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@newinvestor
Join Date: 2003
Post Count: 18
June 12, 2003 - 12:02 am
Hi terryw,
thanks for that info.
according to whj the prices in these areas are so high .
as a new investor and that too starting out new i think these areas are too difficult to get into with 80% LVR.