Forum Replies Created
Thanks Corey & Benny
Hopefully I hear back from the lenders today re options. Benny we will put your suggestions forward thank you. Yes, at this stage the funds will be only used for a deposit. Any lurking notions I had of throwing some at crypto are now well and truly gone.
I realize now my last equity split was under 80% so no drama hat time.
I spoke to a FP this morning he seemed surprised at the request for such a small cash out and said he normally only gets requests for these from people working with SMSF.
Another good learning experience.
Thanks all, I appreciate the guidance.
Regards
S
Thanks Corey.
Not really the news I wanted to hear, especially the outlay.
You implied a contract could assist the situation? So it is more to do with assurance as to the use of the funds rather than me proving I am across my financial situation? Would borrowing with the same lender for the buy potentially help?Cheers
S
Thanks Richard I appreciate your response.
It took me by surprise as it was not a requirement last time I cashed out an equity split. This is smaller than the last as well, only 45k.
What can I expect this to cost and what is involved? A quick trip to a FP or is there a bit more to it than that?
Regards
S
Hi Narinder
My two cents from a newbie investor that has their PPOR in Upper Coomera.
Jump on RE and search sold prices in Coomera, Upper Coomera and Pimpama. I would also suggest reading all the threads you can find on the suburbs in this and other forums.
https://www.realestate.com.au/sold/property-house-qld-coomera-126253042
Coomera is large and has houses ranging from low spec on 300sm through to 1M in Coomera waters. Pimpama is the next suburb out I have not spent much time out there but what I have seen is lots of houses on 300-400sm blocks. In Coomera and UCoomera there are good and not so good parts. Personally I would be looking at existing on larger blocks as close to the train and westfield as possible if I had to buy there.
SEQ is a large place, I would be looking well north of Pimpama or north of Brisbane in areas with better fundamentals and yields.
Hello everyone
I am looking forward to either invest in Pimpama or Yarrabilba. I am after the brand new home and land package. I am considering FRD Group. They are providing me 9 year rental guarantee. Is this group reliable and is there the rental or capital growth in these two suburbs. Location wise Pimpama is very strategic right in between Gold Coast and Brisbane. And very near the dream world theme park.
It also has a railway station nearby. Coomera development and Westfield shopping centre next door.
Does it make pimpama a better and safer place for investment??
Please guide and put me on the right track.Pimpama is now what Coomera was 10-15 years ago, fringe suburbs with land for Africa and there is still a lot of land in Coomera. Make of that what you will.
Coomera is just now getting the infrastructure that was promised 10+ years ago.Would be happy to know how it was all sorted out eventually 👍😎
Hi Ethan
It is all finally being wrapped up now, DA is submitted for carport and I have completed requested work from the BC for the bedroom conversion, once Approved sitting variation is back all work will be approved and submitted to council. I have certainly learned a lesson and am lucky it didn’t cost me more than a delay refinancing.
It appears the builder was happy with half the fee plus the DA fee, he was un-contactable for over four weeks until I threatened to share my experience of his services, everywhere I could and as often as I could online, as well as being in discussion with my solicitor regarding the matter. He phoned me the next day and we slowly got all the docs to the certifier and submitted the DA (this should have been done at the beginning).So what do you suggest I do about the final 2.2k I owe him? I did make comment that I just wanted the work finished and would fix him up once the work was complete.
He has paid 750 to submit the DA, I’m thinking I will square him that. that puts him back at what he appeared happy to walk away with over two months ago?
After a lengthy chat to council I now understand the whole process was backwards. I accept responsibility I should have better educated myself on the process before hand.
Cheers
S
Hi Benny
By that, I presume you mean that your friend is bound to pay rent in lieu of the broken lease? i.e. they are “in the gun” for rent until it is leased anew to another tenant
Correct.
Wait up though – if that rental uplift is minor (a few %), this could be understandable. e.g. If the lease your friend had first signed was about to expire anyway, then uplifting the rent by a small amount would make sense – otherwise they are locking in “last year’s rent rate” for a further year with a new tenant. But if the uplift is excessive, then I would think your friend might have grounds to oppose what the agent is doing.
They have been living in the property four months of a six month lease in a brand new 3 bed apartment (small block) in Southport paying $620pw. My opinion, it is an expensive average apartment. The agent put it on the market at $650pw once notice was given three weeks ago. There is a lot of interest but no one is signing at that price. It has just been doped back down to $620.
Perhaps the moral of the story is don’t break your lease? Do agents use situations like this to test the waters for rent increases when the is no loss of rental income?
Thanks
S
Hi Benny.
Sorry rookie error with the medium pricing, i gave you combined. 3 bed 325k, 4 bed 415k, hence I felt I could try to do better going in next time.
I thought the bones were good with easy wins cosmetically. The block was flat with side access which is not so common in the aria, elevated so no flooding issues, close to train and school + the garage was a very straight forward conversion being under roof line, lined, no problem with heights etc (there are 3/1/1’s selling with less land, one living aria & just a carport for $320K). In saying that this suburb has significant pricing variances street to street. You can pick up a 4 bedder in the mid to high 3s in the less desirable streets. My one is in one of the better arias with more house proud OO’s so I felt it ticked a lot of boxes. Turns out the owners were motivated to sell as they had purchased elsewhere but being as green as I am property negotiation isn’t a strength I yet acquire. B&P came back fine after a termite scare that on second opinion was a incorrect call. so no room to move there.
I got all the small jobs done with a few extra days off work, I didn’t factor fatigue into the last few weeks, throw in some “added landscaping” jobs & a couple of weeks with the flu & the last couple of weeks were tough.
I will be conservative with value as it sits until a valuation comes back saying otherwise. I recon $380-$390. I would be very happy with that. I have generated imitate equity, I know my property inside out, know its sound and appealing to both rental & sale markets. Most importantly though is what I have learned & now know I can do.
Buy, reno, reval, hold and repeat is the plan.
I plan to save some penny’s, pay down some debt then look closer to Brisbane for the next. Logan is convenient though and I could repeat again I just think Bris will have better CG.
Cheers All
S
Property is now tenanted @ $425pw.
Thanks Matt
I got on to him eventually, apparently family health scare interstate. I am fine with delaying the work but the lack of communication is not on.
Yes I got on to gum tree & reported the account, had an email from him that afternoon.
Wont be using him again, was a one off purchase and install of an “as new” air con with full warranty at a very good price.
All in all this is the only issue I have had through out the reno & I’m looking to come in under budget.
Cheers
S
All holding expenses could be claimed in some circumstances while you are holding and renovating even though you are not advertising for rent but only where you intend to rent it out after finishing.
Hi Terry
Yes this is what I want to know. I am paying interest, insurance, rates ect while holding & renoing but is this and deprecation claimable as there is no tenant yet? The property is 100% IP & will be rented as soon as work is completed. I am just concerned that the expenses may require a income to be claimed against?
Also is termite barrier treatment 100% claimable?
Thanks
Simon
Hi Benny
Thanks for the reply. Questions answered.
Cheers
S
Thanks Benny
Thanks guys
It didn’t even cross my mind until the floods. That could have been a very expensive lesson.
Cheers
S
Hi Simon,
Sorry for adding doubt, Simon – but I wanted you to be sure before things went pear-shaped (and I could do with knowing more about it too – and that is where Terry comes in),
Regards,BennyHaha, all good Benny, I am enjoying learning more about it all.
So another option could have been to just leave the funds in the loan account? Would this be more like a line of credit?
Cheers
S
Hi Benny
I believe I am across the potential offset issues.
Just to draw a clear picture (I possibly should have done this at the start)
This is a refinance PPOR with a new lender, so no other money whatsoever, savings or wages go near it at this point in time.
There are two offset accounts & a loan split 3 ways.
One offset account sits empty awaiting me to place funds at a later date against my PPOR.
The other offset account is against the IO split of the loan for the $ to sit in and not cost me interest until settlement of the IP. This is were the money should have landed at settlement (of the refinance).
Am I correct in guessing you are suggesting I would run into further trouble if I put the IO funds in the offset against my PPOR? That is what I am picking up from your post? My understanding is even if the account was empty the offset interest would have the loan no longer solely for investment use, not good. If I mixed the loan with existing money in the PPOR offset it would be a bigger mess.
Thanks all
S
Thanks Cory.
I phoned the bank and explained what I wanted and how I wanted it done. They were able to do it with out closing the account & there is a clear trail of movement on all accounts.
He did seem a bit miffed that I wasn’t happy with him moving the redraw from the PPOR to the IO offset.
They continue to claim it must have been where the broker directed the funds, so off to talk to them now.
Good lessons to learn however unnecessary & frustrating.
Cheers
S
Ignore what the bank is suggesting they will make things worse.
You need to pay off the loan and reborrow.Ok, so this is what I have done, I moved the 53k back into the IO loan (effectively paying it back) & then drew the 53k directly into its own offset account where it will sit until settlement of the IP next month.
Problem solved?
Thanks Terry
S
Thanks Terry, I will get on to my broker this morning.
Now I’m not sure I understand?
have the finds redirected back to the -53k or just move it to the offset & reverse any reduced interest resulting form the funds sitting in the PPOR account.
The second option is what the bank is suggesting.
Thanks for your responses, I really appreciate it.
S
