Home Owners Advice

[Nightcrawler]

nah mate your Super Fund (whilst not a terrible idea as such) is going to underperform property investment everytime. Go see a home loans broker like Dan at Wizard Home Loans (Silver Bullet on SAU), Vange, your accountant, or one of Adelaide's top accountacy and advisory firms PKF Accounting (where my wife is a manager) and they will soon sort you out to making substantial amounts of money with almost no risk.

[chops]

I the view that saving a deposit is a waste of time IF you can get a loan without the need for a deposit (graduate loan, garantor etc).

Joel, BEWARE the graduate loan.

I have one of these for the home my wife and I are constructing at present.

They are great loans, but make sure you read everything.

Due to the structure of their repayments being indexed at 3%pa, and your minimum repayment not varying with interest rate, if you pay the minimum with this loan you CAN (not will but it is possible) be in a situation where your minimum payment does not meet your interest accrued for the month - you actually owe more than you did at the beginning of the month.

This of course is not an issue if you are on top of these things, aware of the interest charges and are paying more than the minimum.

As always, Andrew's advice is based on sound analysis of fact.

[Silver bullet]

Vange, Don't take this as digging at your post as its nothing of the like; but isn't it a bad time to invest due to slow market growth?

I would have thought the best time to invest is prior to the booms.

If you could just let me know when the next boom will be, that will be great

[Cubes]

You'll never be able to know before its occured, only as it starts to occur I would imagine.

[Silver bullet]

Andrew,

Curiosity.... IF one doesn't need a deposit to buy a house would you still recommend saving up a deposit? You know the old school save a deposit for your house etc..

I the view that saving a deposit is a waste of time IF you can get a loan without the need for a deposit (graduate loan, garantor etc).

My reasoning being; you save for a year or two, within that year or two the value of a house will rise.

Instead of enjoying the increased value of your property if you origionally purchased it you are now having to foot the bill and pay more for that property, so essentially wasting your deposit.

Also.. Any chance you could throw up a market analysis chart of Moana? I like the sea side of commercial road.

I can get great deals on 100% finance. (loan = 100% of house purchase price) you still need to come up with the enough to cover the other costs, such as government charges and mortgage insurance. If you get a first home owners grant, that will cover a lot of it, but it depends on how much you want to spend on a place.

I'm more than happy to discuss how much you need to save (if any) to purchase a property. Give me a call and mention that you are from SAU

Dan

0413 135 167

Wizard Home Loans (Adelaide Branch)

[Cubes]

Thanks Dan,

I hope the offer is still open in 6months time.

[Silver bullet]

Andrew (Nightcrawler) knows his stuff, this is what he does for a living. He is the go to man when I have property/market questions.

[Silver bullet]

Thanks Dan,

I hope the offer is still open in 6months time.

Call anytime mate, I'll still be there.

[mid life crisis]

dan do you guys do a line of credit loans ? i want to buy a property for investment soon or do you have other products that might serve my puepose

cheers mid life crisis

[vange]

dan do you guys do a line of credit loans ? i want to buy a property for investment soon or do you have other products that might serve my puepose

cheers mid life crisis

when u get that property give me a call and ill manage it 4 u

[Silver bullet]

dan do you guys do a line of credit loans ? i want to buy a property for investment soon or do you have other products that might serve my puepose

cheers mid life crisis

We sure do. There are also other loans that are available for investors. Need to pick a loan that will suit your current and future needs.

Give me a call

w 8232 4001 ask for Dan, if I'm not there, leave a message and I'll call you back

[Oosh]

After a short conversation with Darren last night I thought I'd resurrect this thread.

My situation is this, I'm debt free and I have a not so insignificant amount of money going spare, at the moment it's sitting in an ING account.

So in real terms it's not doing anything, just keeping up with inflation, but at least it's not going backwards.

Frankly it's burning a hole in my pocket, I've toyed with the idea of blowing it on a car, but I really should put it to work.

Buying a first house is the obvious option, however, I'm pretty happy with my current life-style and have little interest in being a slave to my mortgage.

Another is the stock market, higher returns, far more liquid, but obviously a higher associated risk and the time/stress overheads of managing it.

Closely related to that is using a Managed Fund, less return (fees), hopefully slightly less risk, but much more of a "set and forget".

But coming back to real-estate, another option I hadn't considered, was buying a first home with no intention of moving in, but to rent it out, continuing to rent myself where I am currently. And I guess it was this strategy I was hoping to get you "Property Types" opinions on, but feel free to comment on any of the above, and/or other options open to me.

Oh and let me state, I'm fully aware of, and understand, that anything you say shouldn't be taken as "financial advise", "contact a professional", etc, etc.

Just hit me with your considered opinions please.

Cheers,

- Ash.

[vange]

Invest in a rental propety. Currently we have a shortage of rentals available, and rents are going up. If you do ur figures right, u can find the right property in the right area, where it will increase in value and at the same time not cos your a fortune. (you can also use the first home owner grant! as long as u mvoe into the property in the first 12 months. - this is where we can help u, if we r managing it, we can make sure its vacant at the time you need to get in, with no extra charges )

I had a meeting with a company called "Investor Finance" yesterday. They are very good in giving you many areas to invest in. They look at what you have, and then tell you what you can achieve 1-5-10 yrs etc. They dont just tell youto invest in property, but other areas such as stock market etc, and different amount of risks. www.investorfinance.com.au

I will be holding a seminar shortly about investing etc, and i will keep you posted.

[Nozila]

vange holding a seminar, this i must attend. corporate clients/reserved/genral public?

[Deluxe]

you can also use the first home owner grant! as long as u mvoe into the property in the first 12 months.

I will be holding a seminar shortly about investing etc, and i will keep you posted.

Yeh i think he means not having to live in it for that first year, and basically not having that hastle, when your investment will return more than that $7k when selling later on! Basically buying for a investment only and NOT planning on living in it!

As for that seminar.......... what would be interesting, not only seeing Vange hold it but just for the whole interesting factor!

[chops]

How long will you be in SA Ash? This should definitely figure into any decision you make about property here.

[Deluxe]

How long will you be in SA Ash? This should definitely figure into any decision you make about property here.

Looks like he loves this place too much to leave now ............I believe he's gonna be a stayer!

Edited September 15, 2006 by Deluxe

[Oosh]

Yeah, i haven't signed a new permanent contract yet, but it's all but certain I'm in SA permanent now. Which is why I've started thinking more permanent thoughts.

Oh and Darren is right, under the scenario i outlined, it'd be purely as an investment, with little or no intention of ever living there.

[Nightcrawler]

You can't lose (in the medium to long term) with property Ash. Do it.

Make sure you find a property where the income covers the mortgage payments (generally the lower value a property, the higher the rate of return) so start small. If you can get the tenant to cover the mortgage, and you throw in $100 per week (make sure you get a flexible loan where you can redraw without penalty if you need to get some cash back out), and you'll pay it off in no time, and the value will keep rising indefinitely. The good news for you is, with the market a bit slow at the moment, there are some bargains to be had if you look around.

An ideal place for you to buy would be in the city there are plenty of new or refurbished apartments which rent out for very nice dollars to Uni students.

[Tangles]

lol I was going to say dont buy an apartment !

hehehe, yah I go with the student rental theory - look for a home near a main Tafe or University.