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April 4, 2008 - 10:48 am

In SA

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April 3, 2008 - 1:12 pm

Scott, maybe i didn't explain properly. The properties im shying away from are the ones that dont have a bc. I think there is some rule that if there are less than 5 units there is no need for bc and owners work it out amongst themselves.

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March 18, 2008 - 11:20 pm

formerly known as Ray White Valuers

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March 18, 2008 - 11:19 pm

Hi Nat the valuers the bank used were Propell Valuers – formerly Ray White Valuers. I wish you well with your valuation. Would be interested to know how you go.

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March 18, 2008 - 2:04 pm

gd17 where abouts are you looking ? (im from Perth) I agree with what Jeff said about the bigger the complex the lower the actual land component you are buying. I personally prefer to buy villas where you are getting in cheaper than a house but you also get some land value as opposed to multi level dwellings.

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March 18, 2008 - 1:17 pm

does anyone know if when valuing an investment property they take into account the rental on it? Because this valuation was done on my own home i think i missed out on the accuracy.

I have an investment property that i believe is valued at about $200k+, it is rented for $180pw. The yields in Geraldton are around gross 4% (if not less) now so working off that it would be valued around $208k.

I might just take that route if it could work better, means i get access to more equity than with my current home val.

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March 18, 2008 - 12:29 pm

wow Jackie that is a huge difference between the banks. Gives me some hope… I asked my broker what they thought of trying a different lender. They said that it wouldn't make any difference.

The valuer was Ray White Valuers in Perth, for Aust Central credit union.  Plus i hate to say this but i had a gut feeling it was going to come in off the mark after they sent a nervous young recruit to do the valuation.

I was to rethink, plus haven't asked broker the question but are they going to charge me for the val if i dont go ahead with them?

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March 18, 2008 - 9:08 am

thanks. Glad to hear it does make sense.

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March 14, 2008 - 9:00 am

Mikey, since we both agree that Adelaide is a good place to invest. (im from Perth). Do you know much about town planning in SA? In WA we have an R-code system with specific densities attached. From what ive heard Adelaide is a bit more flexible.

Could you shed some light?

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March 10, 2008 - 1:36 pm

Notorious? as in rough/high crime area? Is it comparable to say the Elizabeth area? I hear people from Adelaide that say dont invest in Elizabeth for that reason.

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February 27, 2008 - 1:32 am

ok, thanks for your input KY.

Im guessing you are in Adelaide. So what do you think of the areas of Hallet Cove and Christies Beach which property commentators are suggesting as top pics? or the Adelaide market in general for this year?

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February 26, 2008 - 4:48 am

Its the land that appreciates in value so why wouldn't it go beyond $250k??

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February 24, 2008 - 10:27 pm

Hi Turbo,

i started investing just over 4 years ago. We have $130k combined income. 2 investments are positively geared and the other 2 are giving me 5% rent return which im in the process of improving through renovations. All our loans are IO, even PPOR.

But yes im at that stage where i want to get my loan structure right so i can scale up.

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February 24, 2008 - 8:30 am

Ok, thats what i thought. So then, how does one benefit and keep investing by borrowing against equity to fund repayments on other investment debts? I know that this is only safe and works provided your portfolio continues to grow each year (otherwise you eat away your equity..)

I spoke to a couple of buyers agents once, a couple of years ago and they said that is how they service $1mill + debts whilst only making $40-50k income from their jobs.  I dont get it since you would still eventually reach a limit with serviceability wouldn't you? They were neg geared investors.

Or maybe im missing something? i guess they might be using lo doc loans…

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February 24, 2008 - 6:02 am

Thanks Terry, Richard.

Another quick question. Say i have a facility max approved at 335k however have only drawn down $300k, would another loan (to finance balance of purchase after using LOC funds for deposit) be assessed taking into account just the draw down amount or the full $335k even though i haven't used it yet?

I hope that makes sense…

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February 24, 2008 - 1:32 am

Congratulations Kylie, that is amazing!

Im not from Brisbane but i bought in the Armadale area of Perth back in 2003. It was all i could afford at the time and i had an aunt that lived in the area so i had a look around. yes it was and still is considered 'rough' and i think it has similar social stigma or outlook that people have of the Beenleigh area. However i dont regret it one bit, i made excellent gains and the area has so much redevelopment going on it has still got good potential.  I think even other better perceived suburbs have their good areas/streets and bad.

What im trying to say is, these areas are affordable and provided all the growth potential qualities are there they make for good investments. You just have to get past the general perception of low socio-economic areas.

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February 24, 2008 - 1:02 am

Hi TerryW,

If i may pick your brain…   how about my scenario?:

$250k loan owing on principal residenc, value $420k
4 investment properties loan total owing $596k, value $850k

I am thinking of refinancing our $250k home loan up to 80% ($336k) and having say $260k of it for personal home, and balance will be used for deposits on further investment purchase as well as some minor reno costs for existing investments.

Ive never had a 'split' loan before, can i set up one in this instance? have sub accounts so personal is separated from investment on a LOC? in terms of setting it up correctly for tax purposes?

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February 23, 2008 - 6:10 am

Hi
I have the same dilemma as you Paul, so i  cannot advise although im posting here while we are on the same topic.

Richard, im interested to know whether you believe a LOC iis a good product for investors. Im quite conservative with my investing and very diciplined with our budget so i am on the fence on whether to use a LOC. I can see the benefits of having flexibility to use the funds as a deposit on further investments, as all loans are stand alone. On past occasions i would just refinance one first, then take out new loan for the balance.

However i just hear a lot of people/brokers tell me to increase loan and use redraw facility instead. Which i know is cheaper but it still is not the same thing and not as flexible. Are LOC's really all that bad??

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January 11, 2008 - 5:22 am

since we are on the topic… What sort of things should one look out for with Line of credit products. what are the subtle differences?

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January 10, 2008 - 4:10 am

Also from WA here. Another thing is the rezoning can take many years to eventuate. Ive been told of a Perth council that are reveiwing their town planning scheme with proposed zone upgrades. They are yet to implement them and its been 5+ years. The process is lengthy with public advertising and referrals, and WA planning commission submission etc.

So it involves a lot of research unless you dont mind holding for a long time before zone changes. By the time they get closer to implementing the rezone the prices are already quite inflated.

But that said if there is specific strategy anyone has to share i would be interested to know it!