Hello,
We have found the property we wish to invest in, but dont really know where to start.
Do I obtain a contract first, then arrange pest/building inspection before making an offer.
I have an IP with $300k equity, and PPOR with similar equity, so believe the finance side will be ok. I will find a good mortgage broker to help me there.
I am in WA, and the property is around 450k, returning $650 week rent.
Also, I will be unable to visit the place myself, but have a friend who has checked out the neighbourhood and is local to the area. He thinks the place looks great. Any advice there?
Could someone please describe the procedure to follow, in order of priority to purchase this house.many thanks, to those knowledgable people out there!
Don't assume finance will be ok as it depends on more than equity. At least approach a broker beforehand. You wouldn't want to waste all your time and energy and costs of checks only to find out there is no chance.
Then get a copy of the contract. See if there is anythin unusual in it. You could start some verbal negotiations and then see a solicitor before making a formal offer. Get your friend to check it out and then use a building inspector too.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I agree with Terry.
Contact a decent broker to look over your situation before proceeding. You don't want to spend a lot of time/energy on a deal to find out that finance will be an issue.
Since you've got a couple of properties under your belt, you also want to ensure everything's structured correctly.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks again Terry. I had verbal pre approval 6 months ago for 750k. I'm full time employed eanring 150k/yr.
I will get onto a broker next week.
Any other advice advice on purchasing without physically visiting the place.
Both kitchen and bathroom are recently renovated – looks great.
Is the current depreciation schedule transferable, or do I have to get another one drawn up for myself.We plan to move into this house in about 5-10 years time.
Hi boney
I hate to say 6 days is a long time in finance let alone 6 months.
If the loan requires LMI then be prepared for a lot of questions and documentation.
If you have equity in both your PPOR and existing IP then you certainly shouldnt be cross collateralising the two loans or going back to the same lender and getting them to provide you with 100% of purchase price + costs.
The structure needs to be sorted out prior to going to contract as the equity loan can often be the longest part of the process.
Any man and his dog can finance an IP loan standalone depending on what features you require in the loan. Make sure your Broker is au fait with investment structures, maybe one who has a IP, two or three.
Take nothing for granted trust me as what seems ok on paper to start with can often take a lot longer to sort out than you expect.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks Jamie and Richard.
I am in Karratha, and dont trust many of the local business around here. a lot seem to move in looking for a quick dollar and then dissappear. Do either of you do "long distance business"? Obviously you guys know your stuff, so I'm ready to make a move.
Thanks again….
sitting at work waiting for a cyclone to developI live and invest in VIC. Richard (who posted in this thread) is a broker based in QLD and he is my broker. You can arrange all that sort of thing via email, fax and phone these days. You do not need a local broker. You simply need a good one. Doesn't matter if he/she is on the other side of the country.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
As Jac has very kindly said said most applications these days are lodged electronically so distance is not a problem.
I have a couple of forum clients I am dealing with from Abu Dhabi and 1 in Finland at the moment. All 3 are buying in Melbourne.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
boney bream wrote:Thanks Jamie and Richard.
I am in Karratha, and dont trust many of the local business around here. a lot seem to move in looking for a quick dollar and then dissappear. Do either of you do "long distance business"? Obviously you guys know your stuff, so I'm ready to make a move.
Thanks again….
sitting at work waiting for a cyclone to developYes – clients everywhere.
I assumed you were the person that wrote to me from WA this afternoon?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
No Jamie, I was going to write tomorrow when I am back at work.
Thanks again to everyoneUnknown admirer Jamie lol
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
boney bream wrote:He thinks the place looks great. Any advice there?Hi BB,
Is your friend a property investor or have you briefed him/her on what you are looking for?
Sometimes locals look at their area with 'rose-coloured' glasses on and may not be looking at the property from an investors point of view.
Agree with the others get in touch with your broker asap – given you have a couple of properties under your belt and are now lookign for number three it is important you have your finance structure right. Now is a good time to get someone to look over things for you.
If it is necessary to do some restructuring – missing out on this property and getting your foundations right now is very important. .
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