Advice on this property

[Starofdavid]

Ok I don't know if this is the best I can get so let me start of.

I would like to think about purchasing this 2 bedroom unit I saw in Regional NSW.
Sale price is $ 150,000

Rent s for $200 weekly.
I didn't ask the Strata Fees but I presume them to be around the $200 a month/$600 a quarter rate.

Now I plan to put 20% deposit down and borrow $130,000

I plan to pay the approx $4,000 stamp duty separately.
Now my broker has gave me these figures

5.65% variable on a 30 year loan paying back $174 weekly
Should I try to negative gear this IP?
I'm 45yo and earn approx 60k per yeara

 

[Cherry Pro]

Hi

I'm sure any of the brokers on the forum could get you a better variable rate (Where's Redom - he got me 4.44% on my loans recently)

If you can borrow at even 1% less than your current rate - you will be in slightly positive or at best neutral territory.

Are you putting the 20% deposit to save on LMI ? What's your strategy - seems like you are in the process of building your portfolio, you could consider paying LMI and stretching your deposit to another IP in a few months.

What amount of your disposable income can you put towards holding an investment property ?

 

[Starofdavid]

I can put about $1500 a month from my income towards repayments .

How much would LMI be approximately ?

 

[Nemo30]

Why do you like that property?

 

[Mick C]

Ok I don't know if this is the best I can get so let me start of.

I would like to think about purchasing this 2 bedroom unit I saw in Regional NSW.
Sale price is $ 150,000

Rent s for $200 weekly.
I didn't ask the Strata Fees but I presume them to be around the $200 a month/$600 a quarter rate.

Now I plan to put 20% deposit down and borrow $130,000

I plan to pay the approx $4,000 stamp duty separately.
Now my broker has gave me these figures

5.65% variable on a 30 year loan paying back $174 weekly
Should I try to negative gear this IP?
I'm 45yo and earn approx 60k per yeara

Looks like the CBA standard variable rate with no discount...
Rate is the last thing to look at but at $130,000 loan you might want to look at the smaller lenders and credit unions - rate of sub 4.50-4.80 ( which will help you with your cash flow) + it will have an offset account as well.

Choosing btw a 90% loan and a 80% loan will all come down to your future plans...are you planning on buying more later in the next 1-3 years? if so might be worthwhile going for a >80% loan if your eligible as the property is slightly positive + any extra cash you dont use you can offset etc...

 

[Mick C]

How much would LMI be approximately ?

around $2,000 or less....it will be added to the loan + you can claim it over 5 years.

 

[Starofdavid]

Yes thanks , I never looked into not having LMI, I always thought you must have the 20% deposit.
I will ask the broker if she can do that .

I like this property because I think for that price of 150k that $200 weekly rent seems good plus I plan to keep it long term.

 

[Mick C]

Yes thanks , I never looked into not having LMI, I always thought you must have the 20% deposit.
I will ask the broker if she can do that .

I like this property because I think for that price of 150k that $200 weekly rent seems good plus I plan to keep it long term.

Any CG potential or drivers ?

 

[superAndrew]

what is the vacancy rate in this suburb?

Andrew

 

[Brian84]

What happened to buying on the central coast where your boss said to buy

 

[Starofdavid]

what is the vacancy rate in this suburb?

Andrew

I'm not sure because it's in Tamworth NSW

Brian
I want to buy on the Northern part of the Central Coast (Lake Munmorah) about July I think once the McDonalds goes up and they expand the shopping centre on the highway.

 

[Brian84]

I'm not sure because it's in Tamworth NSW

Brian
I want to buy on the Northern part of the Central Coast (Lake Munmorah) about July I think once the McDonalds goes up and they expand the shopping centre on the highway.

I am hoping to purchase up the coast soon as well

 

[Terry_w]

Any CG potential or drivers ?

Mick's question is the most important. Without CG you will be going backwards.

 

[Starofdavid]

The 150k one is in Tamworth but I think I would like to keep that for at least 10 years.

The Lake Munmorah one on the Central Coast is 2 bedroom 269k which should go over 300k in about 2 years easily.

 

[Brian84]

Terry I have sent you a message

 

[Brian84]

The 150k one is in Tamworth but I think I would like to keep that for at least 10 years.

The Lake Munmorah one on the Central Coast is 2 bedroom 269k which should go over 300k in about 2 years easily.

Is the property on the coast the one for 269 and is a villa with the heading ideal place to retire

 

[Brian84]

Sorry advertised for 260k

 

[albanga]

Mick's question is the most important. Without CG you will be going backwards.

Terry I am curious why you believe someone purchasing for CF without growth prospects is going "backwards"?
Yes ultimately to become RICH you need growth assets, but these cost additional money to hold. A few CF+ properties in a portfolio can be used to offset this shortfall.