Is this property in Sydney?

Regards

Shahin

I think it really depends on the area Claire – I have seen many suburbs where the 'bad areas' have over time disappeared.

A lot of investors of have done well buying in these areas undervalued and then riding the waive of demand which is quite evident in certain markets.

Regards

Shahin

What is the net operating cost per month to hold the property and what is the anticipated annual CG? 

As it is a townhouse you would be restricted in 'manufacturing' CG.

Regards

Shahin

I would look at contacting the FT. Which state are you in?

Regards

Shahin

Yes but since he doesn't have a vast range of options – doing a relocation loan via a building contract rather than an OB is one of the options worth considering.

Regards

Shahin

Not all over 55's development have management fees and also it depends on the area. There are many that are torrens titled.

Regards

Shahin

Also why units and why not a house? Are you doing the cashflow analysis on each property to determine the net operating costs?

Regards

Shahin

janeashley wrote:
Hi
Furthermore buying a newer unit comes with a higher confidence that there will be less or nil maintenance, however, the rental return will decrease as the area isn't as sort after. 

This is a huge assumption and one that generally comes back to back you. The thing with new development is that the strata starts at 'x' but…[Read more]

Also try Burton and Field (Liverpool office).

Regards

Shahin

Also that yield isn't extremely good unless there is scope for decent CG.

Regards

Shahin

As long as you do your due diligence which includes building and pest inspection I don't see a lot of issue.

However I would personally spend a few hundred dollars and go and inspect the property whilst making a day of it in the process.

Regards

Shahin

Hi Prudence,

Generally speaking although there are worse investments – I am not a huge fan of Over 55's properties. When you are calculating the yield you need to ensure that you are calculating all the outgoings especially one that it strata'ed rather than torrens titled.

Finance is also quite restrictive/limited/difficult with Over 55's. From…[Read more]

I did a reno some months back and plenty of good bargains via Gumtree. 

Regards

Shahin

Completely misread the question – I thought you wanted to borrow against your PPOR or another IP.

Regards

Shahin

Of course you can do this. Who advised you that you can't and why?

Regards

Shahin

What Kate said – also and this too is a big one, is the termite activity active or inactive?

Regards

Shahin

This may be helpful – 

http://www.gcc.nsw.gov.au/riverstone-41.html

Regards

Shahin

Fixing your loan should be about risk management not about trying to 'beat the bank'. Also remember that you don't need to fix your whole loan – you can split your loan into a fixed portion and a variable portion.

Many investors do this so that they have an element of risk management and also can take advantage of the usual variable features like…[Read more]

You have 3 options Madmax:

Option 1: Get your broker to call a bank that can do a relocation loan, e.g. St George and get him to structure the application in that way

Option 2: You can call a bank that handles this type of transaction such as again St George

Option 3: Find another broker

Regards

Shahin

There is no black and white answer – your banker or broker will need to structure your loans and put you with the lender thats suitable to your needs and this often includes the type of property you are purchasing and what you plan to do with that property.

Regards

Shahin