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Advice soughtJNM [12 Posts] Hello, I am seeking some opinions and advice on the following. Three weeks ago I bought 2 1b/r apts off the plan in South Yarra melbourne. the complex promises to be a cutting edge, hype building for the Y gen with bars, restaurant, outdoor cinema, etc. It is due for completion in mid 2010. Both apartments that I bought are around 40m2 including balcony (smaller than what I would normally buy). It required 10% dep until 2010. The marketing company has a list of lenders who have familiarized themselves with the plans and complex, etc, and the lenders have indicated what they would be prepared to lend on the each of the various floorplans. CBA, Suncorp and NAB have indicated that they are willing to lend 80% LVR on my size apartments. The other lenders on the list have indicated 75-60% LVR. I am feeling a bit nervous at the moment in the light of lenders' credit tightening policies and beginning to wonder whether by 2010, the 3 lenders at 80% LVR might have revised policies in place which can only lend less than 80%, which might make the project diificult for me to finance. the worst scenario as to financing would be for me to have to finance at 60 or 70% LVR on conventional loans. It would put a strain on cashflow. there is the option of selling one or both at the time but I imgaine that would still entail costs, etc. I am wondering what would more seasoned investors would do in this situation? I am open to suggstions, recommendations, etc. Even though I've already paid the 10% deposit and signed the contract 3 weeks ago, should I approach the developer and see they will let me out of one to be on the safe side? In the current market, I might have to err on the safe side rather than on the greedy side? Terryw [6490 Posts]  Since most low docs require a 2 year ABN with GST registration it would be a good idea to register for one now, just in case. Also, since the settlement is long term, over 12months, most lenders would lend based on valuation, which may help if it rises. Maybe you could try to sell one of them before settlement too. Terryw   god_of_money [171 Posts] I don't get it. Why you overstretched yourself? Stuart Wemyss [611 Posts]  I agree with the past two posts. It sounds like you are over stretching yourself and taking silly risks. Building wealth isn't an overnight exercise. What's the hurry? Why do you need to buy two properties in the same complex? You should look for some geographical diversification. Can you pull out of one of the purchases? Cheers, Stuart ++++++++++++++++++++++++++++++++++++++ JNM [12 Posts] Thanks for your comments. While at the time it seemed a good idea but I realise now that it was not a good move. I have approached the vendor to see if I can get out of one since it was relatively recent. haven't heard back from them yet. I guess at the worst, I will have to try to sell one before settlement. maree_bradross [55 Posts] Hi JNM - could you email me please about your purchase. maree_bradross@yahoo.com.au Rhys_Roberts [34 Posts] see a lawyer and try to get out of the contract. will recommend one if you like. |
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In The NewsAuctions - lonely affairs? The global crisis is creeping into the property market with auctions becoming lonely affairs and Melbourne clearance rates falling. No Housing Revival Just Yet! Auction clearance rates slumped again over the week-end leading experts to advise investors that they will have to wait another year for a revival in the housing market. RBA Slashes Rate RBA announces the biggest rate drop in 13 years - down 1%! Today's TipThe more you do of what you've done, the more you'll get of what you've got <more> Active forum topicsShould I be buying now? Author: whiteknightoz Property Options Author: Firestorm_st44 Who's OnlineTake The Test
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