Forum Replies Created
I think one major factor to consider is trying to keep your properties seperate rather than cross collaterelised.
Imagine you buy 3 properties worth 300k with 60k deposits ie 240k loans on interest only.
In 3-4 years they are worth 350k and you refinance to 280 (80%) drawing 40 k out of each.
You now have 80k.
you sell one and now have another 110k
you take your 190k plus another 20k which you have saved and put down 3 x 70k deposits on 350k properties
You now have your 5 properties all valued at 350k…Just an example. Hope it helps.
From my experience this so called property bubble is spruiked by companies who want you to sell off property and blow all your money on expensive share trading programmes.Not that investing in shares isnt a bad return either (so you can make enough for the next property deposit) but there really isnt any justification for a crash when our banking system is so strong. and of course those who arent intelligent enough to invest wisely to buy more properties and create better lifestyle.
Can property make you rich in 5 years?
If i sold my first investment property for what i was offered last week i would have tripled my original deposit in the first 3 years.
Maybe i should refinance to st george and then sell. Suncorp are so difficult. Anyone know of a bank who will take over a 225k loan on a 390k property without taking servicing of other property into account? Probably impossible.
Having said that im in a position where i was going to buy my apartment with my sister and she changed her mind. I feel like looking back after one year i would have been better off as i would be comfortably paying the mortgage payments and easily able to keep my investment property. We could sell in 2 years, take the profit, i would buy a house and she could buy her own place.
Might be easier to look at living in it for 3 years, selling, splitting the profits and going your seperate ways rather than complicating things with trying to split equity down the track.
Definetely a smart move to borrow money to pay 20% deposit rather than using parents for guarantor or joint loan.
You could make the arrangement you get the fhog as you are putting in extra money, the money your sis will make in growth if you select a good property will more than outweigh the fhog anyway.
I am looking at doing the same thing to purchase a property subject to sale but have a maximum of 3 months in a term deposit unfortunately. I fail to see why but thats the way it goes.
Hi Jamie, there is plenty of public transport nearby, near all the city unis, the tenant has been there for 4 years which says something good about it and its near plenty of bars and restaurants.
I could buy one with a car space but for about an extra 80k.Dan42 I live in Norwood and have been looking for 2 bedrooms+carpark in norwood and dulwich etc but there are very few with any change from 350.
The biggest problem i face is that due to high debts on PPOR i cant get any new loans or refi so i have to really on selling an apt in melb to purchase this one subject to sale and substituting the security on the existing loan, leaving money to offset and cover future costs. Im lucky enough that they are happy to wait for the sale but i cant foresee being able to find the right place in a short amount of time once my apt sells, or get a subject to sale accepted with a unit under high demand.
So based on the fact it would be approximately neutrally geared i would be hoping for it to go up from 300 to 345-350 in 3 years and this is really the only question i have.
Maybe i should ask the crystal ball.
