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It may also help to ask for references of your friend and to do some due diligence as suggested above
just a thought, but if you really would like to turn your property into negative gearing you may go to a bank or mortgage broker and ask to refinance it. You could then keep both properties and use the loan to buy a new bigger one. it really depends on your financial situation though…
Thanks guys for the links! very helpful!
re interest rate there are different schools about that. I found 1% above market or 2% about market rate to be quite popular.
re your secuirty: i would recommend to discuss that with your solicitor. I found that many people have a caveat as security and a unregistered second mortgage. the primary lender shouldn't be concerned, since they have the 1st mortgage. hope that thelps.
My friend also had a good experience with home staging and claims to have achieved a sales price $15,000 higher than market! I found that the only pitfall of home staging may be that some people overdo it and overcapitalize. Good luck and would be happy to hear about your result!
congrats the crest! good on you!
@kylermrice: I've been to a couple of USA investment seminars and found the returns quite promising since there is some good capital growth potential (long term), good rental returns (usually at least 8% net) and the aussie dollar is unusually strong which gives you a lot of purchasing power right now and should the Au$ fall in the future and you sell one of your usa properties, you'll make a lot of money. having said that I also agree that it is important to seek independent advice and to keep in mind that there are risks. Hope that helps.
Cristy, what I found helpful in making a decision is to be clear about your goals. What is it that you are after?-An extra income stream? then go for positive cashflow. Tax deductions? then do negative gearing. Capital growth: then do buy and hold. Big amounts of profit in short time: reno, flips, developments, vendor finance (although these strategies require quite a bit of skill). Also, networking with other investors may give you more directions. Hope that helps.
there is a way to turn a new home into big positive cashflow using a strategy called "owner finance". Which state are you based?
As stated before a broker may give you an idea which loan products are out there. Have you ever considered paying directly to an owner? This would allow you to buy the property without a loan and you could still try to obtain a bank loan some time later.
good on you jmsrachel for getting the license for free! I have often found that the less interested you sound during a negotiation the better your position becomes. this seems to be another proof for that.
I have heard of changes being made by laypeople before, but i would suggest to get an opinion on legality from your solicitor
Asking around in the metropolitan area of Melbourne a standard rate seems to be around 2%+ admin/advertisement fee
+1to mattsta, It is generally considered safer to take out separate loans on properties and not to cross collateralize. This way, in an unlikely worst case scenario, if a lender was to repossess the house it can only touch one house as the other is independent.
@your Broker: +1! the banks definitely recommend to cross collateralize since then they get more interest obviously, but it's for their benefit and not necessarily in your interest