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?