All Aboard!!

[herewego]

I remember seeing in a number of threads where people have asked for advice on buying their first IP and a lot of replies (from seasoned SS contributors) were along the lines of "Just buy a reasonably priced house in a resonable location and put tenants in it". The idea was that you would learn more fom that one move than anything you will learn on the forum or from reading books.

Is this what Compleks is doing here? I am sure there will be holes in his set up that will mean it is not absolutely perfect but isn't it a step in the right direction. I don't know the area and I don't know its outlook but unless it is a *****-hole then, at a glance, he/she seems to be on the right track.

 

[Shadow]

perhaps you can contribute to this thread with some of your own thoughts on this purchase...

I don't know enough about Melbourne or about Compleks' personal situation to give him advice.

 

[locko24]

erm...

Yeah, anyway, congrats on the purchase mate!

 

[Aaron_C]

hobo I suggest you let other people make their own decisions, just as others let you make yours.

 

[hobo-jo]

hobo I suggest you let other people make their own decisions, just as others let you make yours.

I am not trying to make anyone's decision for them. Compleks has asked for assistance from those on the forum and little has been given...

Hopefully you can help keep me on the right course, as this will be my first property and it's all very foreign to me.

I'm going to need all the instruction I can get.

 

[Compleks]

 

[Compleks]

Alrighty then. Guess I should have my say here.

Firstly, big shout out to Jake Milne. He was nice enough to send me a message with his number and an offer to have a chat with him about recent events. Recent events being the the **** storm on page three

Props to Hobo-Jo as well. I have no issue with bluntness. I'm hear to learn and don't really care what format the lessons come in, as long as the content is relevant. No hard feelings at all.

I'll try and clarify a few things.

- Do you really think 2.5 weeks and looking at 5-6 houses is adequate research to take out a loan for more than a quarter million dollars?

Probably not to be honest. But what is? I've actually been on this forum since 2007. With an annoying thread history to prove it.
What have I achieved in the last 5 years? Nothing.
I've learned more in the last month than the 5 years before.

- Why is the loan $286k when purchase price is only $272k and you are paying 5% deposit?

I'm borrowing 100% plus stamp duty etc... Deposit will be from savings. Why? I just wanted to keep all my cash in an offset account.

- Why are you doing a 95% lend instead of using your available cash to avoid LMI? What amount of LMI are you paying?

Loan is about 105%. No LMI.

- Why are your parents acting as guarantor for this loan? Do you think it's a good idea?

I don't think it's a bad idea. The loan has been split 80/20, so the guarantor portion of the loan is only 20%. I already have that cash in savings, so parents can be released at any time.

- 1% off the asking price seems a high amount to pay given the weak state of the property market, did you consider letting the seller stew on a much lower offer before deciding to pay so much?

I made a lower offer, but was rejected. Maybe I was out negotiated, but I don't think the seller was particularly in any rush. In hindsight I probably should have tried harder to get a lower price, but we live and learn.

- Do you think 5-6 properties is enough to look at to really get an idea of the market?

Plus countless hours on re.com and domain. I could have visited hundreds of properties but I don't think it would have made a significant difference. I was comfortable with the property/area and price.

- Did you use a data company to pull up recent sales in the area in order to base your offer price?

I got residex reports on a couple of properties. This particular one was hard to compare as the land was divided.

- Had you considered using a buyers agent rather than traveling around with a real estate agent who has a vested interest in selling you a property from their own stock?

I hadn't, no. Next time I probably will, or at least see properties with multiple agents. I chose Ben based on the fact that he came recommended from members here, and from talking to him I think he's a good bloke.
Obviously he has a vested interest in representing his clients. But I did look at properties offered by all the local agents and didn't notice any real difference.
I'm still glad to have dealt with Ben, vested interest or not.


My biggest regret in the entire process is still spending 5 years here without taking any positive action. I'm enjoying the process and still feel good about actually making a start.
I'm comfortable with the level of risk I have taken, given it's a fairly cheap loan to service.

Is it the best investment decision? Obviously not... but whose first property was?
Time will tell how it pans out. But this is just the beginning.


PS.
I noticed some advertising on your blog Hobo. Any chance of me collecting royalties for my starring role?

 

[Shadow]

I noticed some advertising on your blog Hobo. Any chance of me collecting royalties for my starring role?

Yes, it's interesting that hobo-jo has ads strewn all over his site, yet in his earlier blog entry here, he lambasts another site for displaying ads. You'll also note from that entry that hobo-jo has developed a habit of using his blog to attack members of various property forums. You were just his latest target (he has published six separate blogs about me, including this one).

 

[hobo-jo]

Fair enough Compleks. My comments on this thread/blog were not meant to personally insult and glad to see you have taken them in your stride. We all have to start somewhere and if you are comfortable with this purchase as a starting point then so be it. I was just concerned about the gungho approach you had to the purchase with little input from long term regulars, must admit I missed your join date, so hopefully plenty of reading here over the past few years has readied you.

Thanks for the clarification re loan setup. I assume it's the 20% guarantor position that allowed you to avoid LMI?

I noticed some advertising on your blog Hobo. Any chance of me collecting royalties for my starring role?

ahaha apart from the small Google banner which I get around $10 a month from last time I checked, the other banners earn me a commission only if someone clicks and purchases some Gold or Silver. If you ever want to sink some of that spare cash you have into precious metals, let me know (I will make sure you get a good deal ).


Goodluck with the property purchase, hope the transaction goes smoothly for you.

p.s. Good use of the Anchorman meme!

 

[westminster]

In Compleks defence and has he has pointed out he has been thinking a long time about this. He has numerous threads on locations and how to do it.

This thread is merely his culmination of having his ducks lined up - with much input from SS Members - and finding the property that feels right to him.

You seem to have come out of the wood work this week to have a go at people, I'd suggest you get your facts straight before you publicly have a go at a site and its members. Somersoft is a not a trawling ground for you to find fodder for your blog.

 

[matto_]

What a turn of events.

I think suggesting that the "Transaction be cancelled" is amazingly extreme.

Each of your points are "valid" to an extent - but at some point you just need to jump in there and make a purchase. eg. How much looking is enough? Some say 5, some say 100. Or is it somewhere in between.

And then to post a blog about the poor bloke. Even though you removed the names - the intent is still there.

 

[oneguy]

Judging by your responses/clarifications, you have indeed learned a lot Compleks.

and I think your reaction to hobo-jo where you don't mind the bluntness is good, after all this thread is titled 'ALL Aboard!!!'

 

[Compleks]

Thanks guys.

Seems as though I've just been derailed, temporarily I hope.

Loan was rejected due to a default on my credit history. This came as a complete shock, because my history should be immaculate. Spent the last hour on the phone getting passed around from one call center to the next...
Information was finally passed on to the fraud department which will take 7 days to investigate and get a response. Hopefully this can be removed from my record.

I spoke to the real estate agent who is going to talk to the vendor. I assume I'll need the contracts altered to extend the 'subject to finance' clause and possibly push the settlement date back???

I guess all I can do now is wait.
Cheers.

 

[jim1964]

Thanks guys.

Seems as though I've just been derailed, temporarily I hope.

Loan was rejected due to a default on my credit history. This came as a complete shock, because my history should be immaculate. Spent the last hour on the phone getting passed around from one call center to the next...
Information was finally passed on to the fraud department which will take 7 days to investigate and get a response. Hopefully this can be removed from my record.

I spoke to the real estate agent who is going to talk to the vendor. I assume I'll need the contracts altered to extend the 'subject to finance' clause and possibly push the settlement date back???

I guess all I can do now is wait.
Cheers.

I had a hiccup with a black spot on my file recently,I dealt with VEDA directly,proved to them i was right,a week later they sent me a email with my file attached,and they had removed it.This was with a well known telecom company,if you try to deal with them direct..............you will get nowhere as we all know.

 

[westminster]

Thanks guys.

Seems as though I've just been derailed, temporarily I hope.

Loan was rejected due to a default on my credit history. This came as a complete shock, because my history should be immaculate. Spent the last hour on the phone getting passed around from one call center to the next...
Information was finally passed on to the fraud department which will take 7 days to investigate and get a response. Hopefully this can be removed from my record.

I spoke to the real estate agent who is going to talk to the vendor. I assume I'll need the contracts altered to extend the 'subject to finance' clause and possibly push the settlement date back???

I guess all I can do now is wait.
Cheers.

Yup it's all a waiting game. I had to extend my finance clause a number of times but I had a dead vendor (with a sympathetic Will Executor)
If you extend make sure you give yourself plenty of time with the extension, although it may take 7 days for the Fraud Dept to investigate allow some leeway in the extension.
I hope you are able to sort it out.

 

[Compleks]

Veda were able to give me the account number and contact details for the group who issued the credit card.

Probably a good thing I found out this way. Rather than having some debt collector come knocking on my door... haha

Timing couldn't be any worse really, the default was only about 2 weeks ago. Surprised I hadn't heard anything sooner really.

Will I need to get a new contract in writing, with the extended finance clause? Signed by myself and vendor again?
Cheers.

 

[westminster]

In WA we have a Variation to Offer document where both Buyer and Seller sign off on the changes.
This can be done via email - sign, scan, email and then Vendor does the same.

 

[Belu]

Daniel speak to your lawyer and ask them to send a request to the vendors lawyer - we have informed the vendor of the situation and then they decide if they want to grant the extension or not.

 

[Jake Milne]

And beware penalty interest.

 

[S.T]

On the flip side, you could use the fact that finance is denied to cancel out of the deal and chase another property once you've got your black mark removed from your credit file. But, seek advice from your solicitor.