How Can Savings Keep up with Property Prices?
- Thread starter Oynas
- Start date
Just buy cheap. Our 3 cost $25k (+ reno) , $65k (+ reno) and the new one will cost $100k + $10k in fees for the land. Turns out the rent on the first two will pay for all three with a lot leftover and if we did it again the rent on the first 3 would have the first one paid off in under a year. Positive gearing is a good thing
How'd you manage that?
It was just a deal i got. No monthly fees, No nothing, didn't even have an establishment fee.
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Sheesh, lucky. We got slugged with around $2000 establishment fees including LMI for being over 60% (and then some deferred fees if we get out early) *and* are paying $16pm in fees. But then beggars can't be choosers. I should just work on paying off the smaller loan and say bye-bye to some fees. Or just let the rent do it and it'll be gone in a bit under 6 years ...
That's harsh. I personally would never take up such a loan. I just can't justify paying such monthly fees or any other kind of fees. I just refuse too!
It sucks, but one day you will..Banks will always find a way to get some kind of money out of you!
Never, I have one loan atm. No fees. My next one too will have no fees. All of my bank accounts i have atm, savings, transaction etc none have any fees attached to them whatsoever. I simply won't put my self in that situation.
You may not want too, but you can't possibly hold everything through them with no fees.
Even if it comes at the expense of a higher interest rate on a loan or a lower rate on your savings?? Bank's aren't in the business of providing things for free.
Gools
Oynas said:
As far as what you're aiming for, ie a $600K house, well you certainly 'swing for the boundary' don't you?
Not to sound like an a-hole or money - hungry vulture type, but I really don't see the point in kids buying their parents' houses. It's from an inheritance point of view. Who are your parents going to leave the house to? Why give them money now for something that they could do the upkeep on over a number of years and you pick it up when they're finished with it?
The other thing is yeah, parents are good for generous lending and vendor terms, eg 0% interest rate, can miss a few payments etc, but what does that really set you up for or teach you? You certainly can't get that in the real world.
I think you need to lower your sights and use your greatest asset (youth and time) to learn to make money out of property. Also, I tend to think parents like to see their offspring starting small and struggling a bit as it's something they can relate to as they did it themselves (or if they didn't have to struggle at the start, they'll always tell you they did!)
It was that or no loan at all, which is why I wanted to know how the heck you did it.
You certainly can't avoid stamp duty, conveyancing or the pro-rata rates and charges.
Well like i have already said, so far i have one loan, 2nd on the way and 2 accounts with them (CBA) and neither of them attract any fees whatsoever. Ive set it all up smartley. So so far so good!
So it is possible to do.
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So then what is the secret Niko...? Hubby the bank manager...?
I have the same with CBA but it's the package fee of $350per annum that enables no 'fees'...are you paying this "fee"...?
No, Im single and No it's not the $350 per annum package either.
Ahhh...I see... YOU are the bank manager...!
No i am not. I have just sent you an PM explaining my setup.
Buy as cheap as possible in the best area as possible.
The first home is not the last.
Peter
The first home is not the last.
Peter
Why not just share it..... or is it dodgy?
Don't really want too for whatever reason. But i have sent you a PM too.
It def is not dodgy.
Thanks Nik...!
I won't divulge the contents of your PM to me in public but it would help others if they knew how you did it... No real secrets really....
Onyas.
... we did as most here did, struggle with how "can we have a mortgage when we can't save quick enough"...well we became resourceful and made a move and have never ever looked back....you will do the same just do it...!
I might add that we (well I did) also had our heads in the clouds re: the "bigger/better than can afford" property in mind at the start but it was the wise Wife who prevailed and we started with the worst house on a great street and did extensions/reno.....it's still our main building block and for an initial purchase price of $142k plus $50k reno/extend it now brings $410/week and probably sell for low $400k's right now...but guess what...?
We 'aint sellin'...!
EVER...!
I won't divulge the contents of your PM to me in public but it would help others if they knew how you did it...
No real secrets really....Onyas.
... we did as most here did, struggle with how "can we have a mortgage when we can't save quick enough"...well we became resourceful and made a move and have never ever looked back....you will do the same just do it...!
I might add that we (well I did
) also had our heads in the clouds re: the "bigger/better than can afford" property in mind at the start but it was the wise Wife who prevailed and we started with the worst house on a great street and did extensions/reno.....it's still our main building block and for an initial purchase price of $142k plus $50k reno/extend it now brings $410/week and probably sell for low $400k's right now...but guess what...?We 'aint sellin'...!
EVER...!
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