Hi there

The only way you're going to get an accurate idea of how much your house is worth is by getting it valued by a certified valuer.

Depending on the bank you're with, you might be able to arrange this for free without submitting an application.

Otherwise, you can always commission your own independent valuation – might cost a few hundred dollars.

The only way you can find out the break fees is by calling your lender and requesting a payout figure.

Cheers

Jamie

Hi Brent

Welcome aboard.

1. You need a minimum of 5% plus enough to cover purchase costs such as stamp duty and legal fees. As a guide, use 10% of the purchase price to work out roughly how much you require. Note – some locations require more than a 5% deposit.

2. I don't know the area that you're looking to purchase in but I doubt you'll experience decent growth in a $100k property. Properties like this are usually found in regional/remote areas where growth isn't usually that strong. That's just a generalisation though.

Cheers

Jamie 

Hi Ellifent

Welcome aboard.

Sorry to jump on the bandwagon – but I'm not a huge fan of OTP either.

One of the biggest issues is finance.

These aren't the types of deals that you approach with only a 5% deposit. Ideally, you need a decent deposit so if there's any issues with the valuation or hurdles with bank policy – a larger deposit will broaden your scope of available lenders.

So if you do decide to go down this path – save as much as you can before now and settlement. 

Cheers

Jamie

I don't think this will be the last we hear of this…….

Cheers

Jamie

Yeah it's there one year fixed rate – it's down to 4.79% 

Probably more of a marketing ploy than anything. It rolls into their SVR with a measly 0.7% discount  after the fixed year.

Cheers

Jamie

Don't fix in an attempt to beat the variable rate – it doesn't usually pan out that way. Instead, fix your loan (or a portion of it) if you need the certainty of what your loan repayments will be each month.

Having said that, sub 5% rates are quite low and we're seeing a lot of clients fix at present.

It's hard for anyone to guess where fixed rates are heading.

Jamie

Hi Corie

no worries re the advice about the valuations.

I agree 100% with freckle – tread carefully.

Cheers

Jamie

Hi Jase

Are you sure the PPOR is going to be $16k in the red each year? 

What rate is the loan?  Is it IO or P&I?

To lower the costs while you're away – I'd set it up as IO if you haven't already.

Cheers

Jamie

Hi Corie

First thing to do is ask the broker to challenge the valuation – sighting the other properties he financed as comparable sales. He/she will need to come up with three comparable sales within the last 6 months.

Secondly (and do this at the same time) – have your broker arrange a couple of upfront valuations with different lenders. I'm not sure how many valuation firms are on the ground in Gladstone but if you can land a different valuer the result may be different.

Lastly – do you need to come up with the additional $15k or can you boost the borrowings with the lender?

Cheers

Jamie

Hi Jay

If you're keen on the property – work out exactly how much you're willing to pay for it. Present your initial offer to the agent sighting your reasons for coming to this figure – including the valuation you commissioned, the time it's been on the market, the issues identified by the valuer, etc. Perhaps start off with an offer that allows you to move up a couple of times to reach your final offer.

If the vendor is unwilling to sell at the price you've offered – walk away and look elsewhere. Another deal will present – they always do.

Cheers

Jamie