Forum Replies Created
- rusty05 wrote:We've just been approved for a 0.9% discount with Westpac on a loan of over $800000 but the broker is hitting them up for 1% because the LVR is only at 42% – Worth a shot.
12 months ago my broker put my loan out for tender , Got 2.0 discount on a westpac commercial loan 0f 600000 wit h 50% LVR but the fees are high so need to be 75% drawn to be worthwhile. Yet another broker told me I couldnt qualify for a loan. CBA didnt offer a quote.
The plans to expand the airport are a good sign for Mildura, the surrounding areas such as Merbein and Irymple have had excellent growth in the last year, like 24%. 230k in Bendigo may only buy you an old high maintanaince house with miimal depreciaton plus you will have to pay stamp duty. Depending on your taxable, income but for less than230k if you go direct to a builder or developer, and cut out stamp duty and agents commission and get the building write off allowance ( which is on going every year) and a depreciation schedule, which mean 4000k tax back from the tax man every year , which you probably wont get on a 230k house in Bendigo. Also with a new house you can be a bit more choosey with tenannts . I have never had a vacancy in Mildura always had tennants wating to move in. Touch wood as I have a vacancy coming up in 2 weeks. You should take on englo comments about West side, it may be true to a small extent but personally I thnk it is just hype by the snobs wholive there trying to keep up their values. The areas that seem to be booming at the momment is the southern end near Irymple where most of the retailers are locating. The northern area near the river is hyped up and suppsed to be best once again I think it may be mostly hype. Just something to think about Bendigo may well be a very good investment I am just concerned that it maybe at the top of its cycle has it has haf some good growth overlast couple of years. It is possible get an older house and get gross yeilds up to 10% in mildura, that may give some small net + cashflow if income is critical that may help with the purchase of a house in Bendigo. Or with a new house that is neutral after tax you still maybe able to buy in bendigo.
DHCP wrote:What misfortune ???? I never said anything about misfortune? An ill wind blows no good. The property I wass talking about was going up in value about 10k a week that is why I was gazumped, but after about 6 months it had gone up in value 70k. ( I stil bought it the money wasnt the main issue, the main issue was the deception of the property being on the market when I was told it had been sold to me, other wise I could have bought another property) My advice was not to listen to your advice. Because it is very important to understand that No matter what the agent or vendor say assume they may be lying as you can get gazzumped anytime up until the vendor signs the contract in front of a valid witness. I think I was fortunate to discover the complete lack of integrity people such as solicitors and BAs have It was a cheap lesson some people pay that much for a mentor and dont learn as much. You are a bit hypocritical in one sentence you say listen and learn from those who have gone before, then you dont wont to listen and tell me not to talk of my experience. So I wont tell you my best deal was from a reluctant seller or why, or my best deals from motivated sellers was not from purchasing but from leasing or buying an option or a method I use were I lend money to the owner in return for the right to buy in the future for a certain price and conditions such as interest free insallments over extended time. My other advice is to repeat what Terry has said, Dont rush in. There will always be a bargain to good to miss and always be a better bargain around the corner. Have your finances in place. There is no right or wrong way, there are no rules, no such thing as luck but may be some challanges which make life interteresting and worth living, you are only limited by your imagination, there are no problems only solutions. If I put my advice into two words it would be , gonads and caution. I dont know his excact circumstance or requirement or the market he is in, so it is stupid to give specific advice. Each prospect has to be taken on its own particular merit at that particular time. It aint rocket science. No-body I know of has physic power and know for sure wether one property will perform better than another. I would tell patrick to get a good accountant a good mortgage broker, talk to builders, developers, real estate agents, go to auctions, monitor what houses do sell for, dont judge values on asking prices. Only he knows his aims and desires and what proprety would suit him and he can get to know the specific market he is interested in better than any-one. Property can be a forgiving investesment, if you get to know your values and repayments wont be too much strain you cant go to far wrong.
DHCP wrote:crusty wrote:DHCP wrote:they wanted more money as they had a higher offer. .
Learn from investors who've gone before us…deal with motivated seller only. I've used that strategy to all my purchases and it worked all the time. So what's a motivated vendor? Seller that is going through divorce, move to different state quickly or overseas for job, financially distress etc., etc., etc.,
They wanted more money because, you dealt with NON motivated vendor – you broke the basic rule.
Guess what? They GAZUMPED You !!!! Learned your lesson?
Yep THe lesson learnt was that just because the vendor was motivated and is in a dire predicament that meant he had to get a placement in a nursing home pronto doesnt prevent you being gazumped while all the necessary papper work is being processed , or trying to be found ,and promises and words mean nothing. The other lesson learnt was only deal with the vendor even if he is on his death bed and never with a solicitor. Your are knaive if you think motivated seller always means motivated seller, It is real estate speak for lets motivate a buyer for an inferior property that maybe diifficult to sell. Just as cozy or renovators delight is. You are excluding yourself from most of the best properties if you only look at properties where ethey need gimmicks to motivate buyers. A good property will usually sell quickly anyway. A property should be bought on its merits, not because it is cheap. A motivated seller will only sell about 10k under realistic value any way, it is neither you arse nor your elbow in terms of buyiny property. Guess what the reason nearly every propery sells is because of divorce or because the owner is moving, I have bought many for that reason,usally at a whim, but I let them sweat for a few months and buy if I am still interested a fter a few months if they still want to accept my offer. Even tho they are motivated they wont let on if they know they have a quality property because they know the buyer wont offer as much. When I am serious I build my own it cheaper . One more thing you might care to remember there are no rules, as every circumstance is different. I dont blindly follow those the have gone before . The ones who do well dont say much. The want to be, who cant tell others how to. What worked one year wont neccessarily work the next every situation is different. I dont give a toss what others have done. Ive done it my way , perhaps it could have been done better, but I dont care I done it the way I want and have done better than most by being contrarian. In fact all the places doing well now with high yeilds and high CG are where all the experts ad nausem tell you not to buy.
DHCP wrote:If you tell the vendor to take it out of the market while you are under contract it will prevent you from getting gazump..that's how I bought several properties.NO IT WONT. You can sign the the contract, the vendor can tell you anything, say he is despperate to sell and wants to sell asap . but until he signs the contract he can sell it to who ever he wants for whatever he wants. This happened to me after wasting 2 days getting unconditionl finance and twisting bank managers arm paid the deposite signed a contract , the vendor wanted it signed and in 2 days or the property would go on the market. After weeks of excuses and BS why the sale wasnt progreessing. I get a phone call saying they wanted more money as they had a higher offer. This was through a high profile BA one of staff was disgusted and told me the propery was still being shown to other buyers. Yet this even happened by an agent that was supposed to represent my interest. Once the vendor signs the contract he can still market the property and they often do til after settlement is complete. What they say and what they can do are completly differnt. Also I have found the ANZ by far the most difficult bank to get a loan from even with very low LVRs. They did have tnhe toughest lending criteria.
II approached an agent I didnt like, told him what I was looking for tried to sell me houses I wasnt really interested in , but never mentioned the one I was intererested in and told me a whole heap of crap. I promptly went to the house I was interersted in the owners were packing up, said they were desperate to sell as they had to relocate, couldnt pay the bank and the rent for the new place. Told them about the agent, they said they wondered why they hadnt got any inquiry. I made an offer with some conditions they accepted and told the agent they were taking the place of the market. Same day went to some rental opens, interviewed some renters and signed up some tennants, who I found out latter were very close friends of the dodgy agent. I waited for months for the mud to hit the fan but never heard a thing. They never introduced me to the vendor even though they were obligated to.
Yep, get there advice than do the opposite. I have listened to a few over the last 3 years and the properties they all warn about buying and tell you not to buy, are the ones that have performed brilliantly, being towns with populaton below 4,000 people ,getting strong + CF and high capital gains. eg Robinvale, merbein,Irymple, Ouyen, murtoa Sealake and similar towns I guess people in the the know are not going to let the cat out of the bag, of the best performing properties. When these towns were suggested every advisor poo- pooed the idea and instead advised on putting money in a black hole.
What I can decipher, he wants 30% of people living on the street, and only people earning a salary should be able to rent a house, and they should be your spouse . And that somehow, relationships need to be managed.
Your materials alone would probably cost more than then the 15k a franchisee of a large building company might charge to build, as they get bulk buying discounts. you can also use their plans for free, they could have it done in 2 months reducing your holding cost, know all the contacts and get things through council quickly. And most of the good laborers and tradies probably are already working for them at cheaper rates for the consistancy of work and gaurantee of payment.
of course you need finance first, you have no idea what to look at if you dont know what you can afford. to know this you need a broker, before you get a broker you need an accountant, so you know which way to finance it ,and what level of gearing would suit your situation and how different scenarios will affect your tax and cashflow now and in the future. Your broker and accountant should work to-gether along with you .
rusty05 wrote:The way I see it, the balloon payment (or residual) is the amount owing at the end of the lease when you either buy the car outright (not so common but that's what we did) or need to get for it at trade in to finalise payment.From someone with a 4 year uni degree – I agree with the tradie thing… hats off to all the tradies on the forum!
or you can take out another lease on it . Have to laugh tho 250 kilometers a week, a lot . Its only 15,000 a year, or was thre a zero left off. A lease can be structured to match the amount you want to pay . I like too make them as long as possible to minimize payments but with no penalty for early pay out, so when bargains come along such as run out sales, I will have a vehicle that when I trade, I can get almost as much as I paid for I when trade up. You should be aware though that if you make a profit after claiming your tax deductions you will have to pay tax on it. So that 1.5k profit would only end up being 1k.
I know I am not the sharpest knife but why would you agree to pay rent to live in your own house to some-one who doesnt own it yet. Its your house till settlement..
If the vendor rejects that, you could ask if they would finance you for 20 or 30 k , or even more , even interest free, with payments in insallments or however it suits you. It could be in exchange for quick settlement. They would just need to take a 2nd mortage on the property, which can be discharged when you repay the money. It sounds like you are in a strong posisition to negotiate. YOU HAVE TO FIND OUT WHAT THEY WANT and why they are selling. You may be able to offer them more than they want in return for an interest free loan. They may not even want the interest as it may affect their pension, or may increase their tax rate and the amount of capital gains tax they pay, or just because it affects their ability to get a health care card. They may want interest paid but not until a different tax year, or at the end of the loan. Good luck.
For a rural property you will will probably need aboout 40% deposite. Not sure what Emma is talking about with mortgage insurance as a risk premium of about 2% is usually already built into the interest rates for a rural property. I would imagine their would need to be a minium amount of income earned from the property to claim a tax deduction.
Shape wrote:Catherine Cashmore from JPP JPP Buyer Advocates P 03 9523 1054 | M 0458 143 089| F 03 9523 1082 368 Hawthorn Road, Caulfield South 3162 [email protected] http://www.jpp.com.auI would endorse shapes suggestion of Catherine Cashmore, she as shown she has some integrity when she left another well known B A .
SHales wrote:What sort of LVR for rural property purchased at Auction?
Potential security which I have to offer is 1 x PPOR, 1 x res inv, $100K plus cattle.
No cash deposit (unless I sell the cattle, which takes too long really).
SShouldnt need to sell cattle, get a loan against them with a stock agent, they will do 100% loans.
JackFlash wrote:The figures below taken with the inflation figures show how much heavy lifting inflation does in pushing CG over time. 1960 – 1972 = 12 years 1972 – 1975 = 3 years 1975 – 1983 = 8 years 1983 – 1988 = 5 years 1988 – 2001 = 13 years The average inflation rate for the period 1960 – 2006 was 5.47%. A net CG average of only 3.23%. When you include the various taxes associated with property the actual real return will be negative. The problem with many of the figures I see bandied about don't take into account inflation and its affect on buying power. A dollar today that turns into 100 in 10yrs is of little consequence if it buys the same or less. JackJack that is the whole point of investing in property you borrow money the real value of your loan goes down more the higher inflation goes. So the amount you have to pay for the house goes down an average of 5.47% each year, if your net CG is 3.23%, you have an increase of 8.5% in your assets real networth plus perhaps 6% yeild, plus your tax deductions. Adds up to over 15% gain . Would you rather put money in the bank that you have paid tax on ,than pay tax on the interest received, if inflatioin 5.5% your going back wards quickly.
JacM wrote:Agreed. New accountant required. Your accountant clearly doesn't get it.
Also agreed get another accountant, effectively you will need to to earn about 30% more to have the same amount of money left in your pocket to pay the for the IP, than you will if you pay off the PPOR.
How long is a piece of string? It depends. How much you want to spent, your cashflow, your ability to get finance, your objective. There can be a vast difference between the same types. You are only limited by what your imagination. Obviously talk to agents consultants and agronomist. I would look at reliable low rainfall (300mm) light soils with consistent production record, you can make a fotrtune if you can produce in a drought when grain prices are high and you can buy livestock cheap or you could just sharefarm where you get an agreed % usally around 25- 33%, depends on how much risk you want to take and who puts in what imputs.
Thats interesing Terry, I didnt know that, I would assume that is 65k taxable non farm income , and not 65k gross non farm income. Do you have any thoughts or Knowledge on that ? I guess that would be 65k each for a husband and wife.
