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Well it depends on –
whether the property is close
whether you want the hassle
whether you can be tough enough when required.A good property manager is worth their weight in gold – but you never have to pay them that much.
Regards
JohnInspired Finance
(02) 9944 7776As a guide – there is a relationship between house prices and unit prices where the unit price is just under 80% of the house price.
It is a guide only, but look at 2 brm houses in the same area of where the units are to se if they may be under or over priced.
But that only gives you a guide to whether you are buying well.
From what you have said, I would say you are more interested in lifestyle, therefore you should be weighing up other aspects of the two areas.
As to whether Sunshine as an area will also outperform – you will need to compare with neighbouring suburbs, or planned infrastructure. Due diligence is the key.
Regards
JohnInspired Finance
(02) 9944 7776Originally posted by foundation:F.
Thanks that was fantastic information.
I notice in your figures you did not mention compulsory super, which will in the long run add something back and even now is making a difference in the markets.
I would also add that it is Australians love of property that is helping to keep its population wealthy.
I am part of an investment group purchasing USA properties, and if you look at the market over there, the gap between the wealthy and poor is huge, and when you drill down to the reasons, there is a clear relationship based on their thinking in regards to ownership of a property.
So much so that to see a high flying property guru in the USA costs a few hundred dollars compared to a couple of thousand here. Market Forces at work ….
Regards
JohnInspired Finance
(02) 9944 7776Normally when purchasing the costs including stamp duty, etc equate to approximately 5%. Therefore for each property you need 105% of the purchase price.
In the case of a First Home Buyer the costs are lower because of reduced stamp duty. As a guide approximaely 2%. Therefore 102% of purchase price is needed.
200,000 x 102% = 204,000 less loan of 90% (180K, but can get higher LVR) Less FHOG of $7,000 (more in Vic) = $17,000 required.
The Baycorp default will play a part, so best you discuss with your broker.
Regards
JohnInspired Finance
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(02) 9944 7776We can’t give advice on what to do, but…..
2 Major purchases in a persons life are a house, and a car.
One normally increases in value.
The other normally decreases in value.Only you can answer if a car may be needed for income producing activities like work.
On the other hand, your low deposit plus baycorp default will limit your stategies.
Regards
JohnInspired Finance
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(02) 9944 7776Well there are some relative figures that need to be used here.
Back in those days average debt was a hell of a lot lower. People had loans of 50K to 150K
Now – 250k to 500k
Payments on 300K @ 7.5% are same as payments on 150K @ 15%
Yes over that time wages have increased, so that has to be taken into account, but so has inflation, therefore the cost of everything has gone up.
So at 7.5% there are people out there hurting, and we are seeing an increase in foreclosures.
Regards
JohnInspired Finance
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(02) 9944 7776Terry covered that well.
Just to add –
The worse the default the more you end up paying in rate.
The fact you are addressing it, definitely helps. From what you have written, where default is paid off by end of year 2007, it sounds like you may be paying it off. If so approach them to ask if they can remove it now. If you are paying it off, they may do so, and it does not hurt to ask.
Regards
JohnInspired Finance
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(02) 9944 7776Assad
Under Financial Services Reform laws we can’t advise you whether to sell or hold, unless we hold the correct license.
A finance broker can summarise your position and advise if you can afford to purchase the properties you intend to purchase based on serviceability.
If the properties are positive cash flow, then there is a good chance you can buy them now without selling. But without all the details it is difficult to tell.
Regards
JohnInspired Finance
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(02) 9944 7776You should think about educating yourself in property investing first. There are quite a few courses around, and some are better that others.
Be careful of the ones where there is little education, a lot of hype, and a lot more selling of their own developments.
Educating yourself beforehand could save you thousands from potential mistakes.
Regards
JohnInspired Finance
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(02) 9944 7776Celeste
When a Trust gets a loan, the borrower is actually the Trustee, and if the Trustee is a Company, then the Director/s guarantee the loan to the Company.
If you are the Trustee and you are borrowing the money for the Trust from NAB then you are on the application form, and therefore under their loan documentation, it is in essence cross collateralised with all your other loans, whether it is a standalone loan or not.
Hope that helps
Regards
JohnInspired Finance
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(02) 9944 7776Celeste and anybody else using a normal bank whether that is Big C or NAB
Check your loan documentation – they can do what they did to lorric33 anytime they want, plus a hell of a lot more. I have seen many stories like that.
Investors should look at some of the non-bank lenders, where the loan can not be adjusted, unless you are in default and that is a different story.
Many think their bank is looking after them, but investors like Loric33 take themselves outside normal risk profiles. A bank does not need to take such risk as they make enough money looking after clients who are within the normal parameters.
Regards
JohnInspired Finance
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(02) 9944 7776That is correct. It is from the date you signed the purchase contract to the date you sign the sale contract.
Whether there are conditions within the contract does not make any difference – normally they will be conditions to get you out of the contract anyway.
and like Celeste said make sure you have a buffer. Personally I prefer to sign the selling agents agreement at least one day after the 12 months.
Regards
JohnInspired Finance
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(02) 9944 7776Novo
To give you some idea here are some rates you may expect to pay
Lo Doc (2 Years+)
90% 9.55%
95% 9.70%
You may also find other fees and PostCode restrictions.In other words the costs are quite high, so take that into account.
Go to any property spruiking seminar and they always bring up money down deals. There are different ways to do them, but they are not that easy to find, as they are to roll off the tongue.
The hardest is undervalued property, the easiest is buying off the plan where construction may be 18 months + and capital growth in the area kicks in. Always – Due Diligence on the property is the key.
Regards
JohnInspired Finance
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