Hello all investors ! I hope you're doing millions of $$ today
Is there anyone currently buying off the plan apartments in Mawson Lakes ??
My partner and I (new investors) are looking for investment options to get started, and we want to compare different options, suburbs, etc.
Because of our temporary resident visas, we have to go through a process with the FIRB to buy a property and after a month we get the approval but the max LVR woud be 80% , which is not very affordable for us now. We'll get our permanent residency in 12 months time from now.
But I wouldn't like to sit and wait, while the economy is still moving and moving. So we've been considering to buy off the plan. We found Aurora Apartments in Mawson Lakes, which will be finished by December 2011 and by then we will have the permanent residency so we may be able to access to more LVR. The information I have so far is that the requirement is basically the 10% deposit (30,000$ approx) , no bank preapproval. We have saved part of the deposit, we could borrow the rest from the bank and by january 2011 that would be paid off!
Another option could be to buy a land or a house of the plan, but then we would have finance issues as mentioned before.
As far as I understand, as a part of our due dilligence, we should find out what the demand of those apartments would be by december 2011, who the buyers of that area are, if they prefer apartments or houses, information about the builder, properties cycle, etc.
I found some historical information of purchase prices in Mawson Lakes on realestate.com.au but I need more, and I am not sure where to find data of demographics for example. I know that there will be government people relocated from Darwin to the northern suburbs next year so I think this could be positive for Mawson Lakes.
We are aware that the decision must be made based on numbers and facts instead of "because we can do it", so we're doing research.
All opinions are welcome !
Cheers
Alex
Hi Alex
One way around your visa and associated low LVR challenge would be to "buy" a property on a Rent To Own (RTO) basis. While you'll normally pay a premium to buy with a RTO it does get you into a property now, at a fixed cost and usually for quite a low deposit.
The legal paperwork for a RTO is a residential lease and a call option. People on temporary residents visas are allowed to enter residential tenancy agreements, so no problem there. With the call option, you'd just have to make sure that the term of the option lasts longer than the time you get your permanent residency, as you won't be able to exercise the option until you have permanent residency.
Some places to find available RTO properties are:
1. in the classifieds of your local community newspaper and
2. at http://www.renttoownhome.com.au (we don't own this site but we do advertise there)Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Hi Paul,
Faaaaaantastic ! This sounds great, I'll check the details on the places you mentioned and I will consider it . This advice worth gold !
I keep telling my partner that today the lack of knowledge is equal to let opportunities go.Thanks very much!
Cheers
Alex
I have been reading few hours and I have found great potencial to buy – renovate and sell/rent in this RTO option
Course that assumes that the vendor or another potential investor is prepared to buy / sell you the property on these Terms.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Good point !
I’ve been also considering something in Christies Beach, SA.
And I just realised of the section Stock on Markets at the end of the API magazine, it has some interesting figures per suburb !
Now I found out that there are many developments in Mawson Lakes !
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