thanks all!! I guess its everyone's dream to own a place and i'm just trying to live that dream like every Joe average, but yes your right it doesn't have to be my PPOR as you say. I will have a long hard think over next few days. FYI it's 49 sqm as you mentioned so is on the borderline of the smaller apartments.
I have much to dwell on now…. and need to ignore everyone else like family, friends, colelagues etc pushing me in a potentially illogical direction!!
Personally I see a lower price for a similar property as a huge bonus. Let’s say that a property without the restrictions would be $450k rather than $350k. You see them as having equivalent satisfaction value to you (utility in economic terms).
At a 7% interest rate, the cost to hold the $450k property is an extra $7k per year. Over the next 5 years, the $450k property would have to increase in value by more than $35k more than the $350k property. This may or may not happen, in the meantime you are guaranteed to save money compared to the more expensive one.
It seems that the key to solving the problem, is finding the right lender… get a good mortgage broker on the job. Maybe ask the real estate agent to find out which bank the previous owner has their mortgage with and use that to get the same deal they got.
Spot on new_start. Excellent to hear we've gotten through to you
It is, I assume, more likely that people on this forum are better read and educated on investment matters than your family might be We are absolutely not saying "do not buy a property". We are simply saying "we don't think you ought to buy THIS property". The rule of property is to buy as soon as you can possibly do so
Good luck – let us know how you get on!
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
hey doesn't mattnz make a good point? i'm getting a property in an area at a discount and am saving in that regard. I honestly think that the vendor may be underselling himself a little as it was purely an investment property for him previously. I feel i can get better appreciation selling it as a ppurely residential unit in future. I am waiting on approval from a mortgage broker and so will know later this week while I'm thinking about it and that may ultimately decide my decision for me or allow me to purchase if I so wish.
In theory, if more properties sold in this block an dit became purely residential then I could get greater appreciation. ofcourse that's not something to depend on but may change the dynamics.
I'm wondering why so many people have invested in this block as it is if it such a bad buy? have they been conned or made bad investment decisions or is it simply a good tax right-off for them in negative gearing etc? am i missing something about why they have been bought?
And thankyou JacM, you are right I think emotions do take over and I must admit I still have them as I REALLY want a place to live I'm struggling to get past them as I have been looking for over 12 months and have missed out on places and finally founnd something within my budget and fits my lifestyle perfect and other advantages like few mins to work, entertainment etc so no more train rides etc… I don't think I can honestly find the same type of place for under the $420-450k mark and so wondering if mattnz's comments hold true in anyone elses eyes?
sorry to harp on, but its the biggest investment decision of my life and I'm on the verge of making it and still have the chance to go one way or the other… for best or worst?
p.s. the bank he chose originally was a mistake on his part and he admitted he knew they normally are quite strict but his contact there had advised this instance woudl be ok but was obviously wrong and apologised. have to wait and see on approval in meantime try and do my calculations. i guess the FHOG and no stamp duty is a slight factor in it too as if I don't buy its a PPOR I won't get the 10.5k + no stamp duty? just to throw that in the mix. anyone have a good spreadsheet template to help do some calculations around investment returns etc? I unfortunately have to study for an exam for work course tomorrow and so can't spend much time on this until Fri at least. thanks again all I really appreciate you inout and advice and I'm learning a lot
p.s. any good books recommended to read?
Hi again
I think we've said all we can say. Personally I think it is a bad idea to buy this place. There is a reason it is hard to get finance for these places.
Nobody was suggesting you buy it as a PPOR or even as an investment. We were suggesting that if you want to live there badly, just rent there. Buy something else that actually has capital growth, and whack a tenant in it. And as for the FHOG: buy something (ideally not this place), live in it for 6 months to validate your right to the FHOG, and then move out. Put tenants in it, and you can go live in an area you fancy – RENTING. Remember, you don't have to be able to afford to BUY in an area in order to live there. You can rent there. I've heard quite a number of successful investors say that they consider it unwise to live in a property they own anyway. This is because when you LIVE in your property, its expenses are not tax deductable
Good books – yes – you can download this one for free:
http://yourempire.com.au/#/bookJacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
ps have a read of this thread; https://www.propertyinvesting.com/forums/property-investing/help-needed/4329963. Might be a good idea to get in touch with the chap who has done some research on purchasing serviced apartments, and the implications of doing so
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
ps have a read of this thread; https://www.propertyinvesting.com/forums/property-investing/help-needed/4329963. Might be a good idea to get in touch with the chap who has done some research on purchasing serviced apartments, and the implications of doing so
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi JacM and others and happy new year!!
Thanks for the link, I've been MIA on holidays and cooling off extended until 13th January due to Christmas break and have had time to think about it.
The main difference I see with the other thread is that this apartment can be purchased and rented out without any need for using metro the serviced apartment company. I am in
I also see the positioning of the property will likely benefit in appreciation and demand with the news of the new barangaroo development nearby: http://www.barangaroo.com/opportunities.cfm
The biggest concern for me is the strata is $1080 per qtr (incl GST) for the apatrtment and $500 per qtr for the car stacker + about $1200 in council and water rates for the year. So about $7564 per year in just building costs that I cannot tax deduct. does this seem excessive in others opinions?
I am very curious about how I could possibly setup a business and lease the property to my self or even just lease the car spot to myself? I only work as a full time employee? How can I set up a business in my instance? I do want this property to be my PPOR.
Can anyone shed any light on how I may be able to deduct the costs?
I've been seriously pondering this property during my holidays and am now swinging back to buying this property again as I feel developments in the near by areas will help boost the value and increase rental returns in future after i live in it for a couple of years and the likely rent it out.
Thanks again in advance and hope you have all enjoyed the Chrissy season
Hi new_start
Yeah the annual fees sound high. And they will never go away. Beware that even though your proposed place is not a serviced apartment, its capital appreciation may well be affected by the fact that most of the rest of the building is (serviced apartments).
You could do a bit of reading on SMSFs (Self Managed Super Funds) and Discretionary trusts. There's a bit on them on the forums on this website. Basically, SMSFs can buy property. However they can't loan a great deal, so you'd either need 50% up front, or you would open your super fund, shovel money into it over a few years, and when you have enough, buy a place and rent it from your SMSF.
Other people will have further comments on such things…
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi jac
Just to correct a couple of points made above:
1) YOU CANNOT rent a residential property from your Self Managed Super Fund as it is a clear breach of the SISA.
Realistically you would get 70% LVR but cant borrow in the name of the SMSF. The borrowing has to be done in a separate Installment Trust as a Super Fund cannot borrow in its own right.
Richard Taylor | Australia's leading private lender
ah ok good to know. cheers for the clarification
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Pleasure mate.
Richard Taylor | Australia's leading private lender
Thanks guys. I've taken that location on board and realise it will hold it back but means it is cheaper to begin with.
Thanks JacM also for the book link it was good read. Wish I had known this stuff over 10 yrs ago! Oh well better late than never I guess!
It is, I assume, more likely that people on this forum are better read and educated on investment matters than your family might be 
You must be logged in to reply to this topic. If you don't have an account, you can register here.
