Melbourne West
- Thread starter zee
- Start date
zee said:
Is anybody buying out west? I guess some peolpe are becuase the prices are cheap so it suits their purposes.
We have about 20 invetsors registered with our investment buyers advocay services www.buyingmelbourne.com.au and NOT ONE is interested in the westen suburbs ( other than very inner suburbs like Yarraville, Newport, Williamstown.
Residex does not predict strong capital growth for the suburbs you mention.
It really depends upon what you are looking for in an investment property, but if you are looking for strong growth, you will find Residex recommends the inner bayside suburbs
Hi to Zee,
I am very proud to say that I have 3 investments in the Western suburbs and
could not be happier with the outcome.
Suffice to say it depends where in the western suburbs. Not all suburbs will
give you strong growth.
I have 2 houses in Sanctuary Lakes, and 1 in a new estate
called Wynham Waters.
All 3 are brand new homes that were developed ourselves.
The first has grown on average 12% per annum for the past 3 years.This is now a standalone with one bank, sitting on a safe lvr and has increased equity available.
The latest 2 have just been completed and revalued by the bank.
Both have been revalued by the banks at an increase of 20%
This is great news for me as I can now pull out my original 20% deposit and
reimburse my LOC to fund further projects.
For us the name of the game is to use our equity to fund projects and then
on completion revalue and get that working capital back.
This is where you need to do your homework and work out what areas will
help you get strong capital growth.
I guess you need to do your research and feasibility studies and work out
what area is best for you.
All homes are in so called Lifestyle estates with lakes, spa , sauna, steam room, restaurants and cafes. 2 also have 24 hours inhouse security patrols,and a golf course.
In all of the above the land was purchased off the plan 2- 3 years ago and this is where the growth was. Future capital growth is strong due to limited land availability and the nature of the estates.
Property is not meant to be easy and if it was everyone would be doing it.
Research research research.
King regards
Marina.
I am very proud to say that I have 3 investments in the Western suburbs and
could not be happier with the outcome.
Suffice to say it depends where in the western suburbs. Not all suburbs will
give you strong growth.
I have 2 houses in Sanctuary Lakes, and 1 in a new estate
called Wynham Waters.
All 3 are brand new homes that were developed ourselves.
The first has grown on average 12% per annum for the past 3 years.This is now a standalone with one bank, sitting on a safe lvr and has increased equity available.
The latest 2 have just been completed and revalued by the bank.
Both have been revalued by the banks at an increase of 20%
This is great news for me as I can now pull out my original 20% deposit and
reimburse my LOC to fund further projects.
For us the name of the game is to use our equity to fund projects and then
on completion revalue and get that working capital back.
This is where you need to do your homework and work out what areas will
help you get strong capital growth.
I guess you need to do your research and feasibility studies and work out
what area is best for you.
All homes are in so called Lifestyle estates with lakes, spa , sauna, steam room, restaurants and cafes. 2 also have 24 hours inhouse security patrols,and a golf course.
In all of the above the land was purchased off the plan 2- 3 years ago and this is where the growth was. Future capital growth is strong due to limited land availability and the nature of the estates.
Property is not meant to be easy and if it was everyone would be doing it.
Research research research.
King regards
Marina.
That's a great result Marina - you have done really well.
It's interesting how "lucky" you get when you have done all the research and hard work
It's interesting how "lucky" you get when you have done all the research and hard work
hey guys, we have one IP in Point cook right near park,wetlands,primary school and sanctuary lakes shopping centre. also there is only one set of lights between house and the city on the westgate freeway. this is our first IP and it has only become one as we are moving to the other side of the bay, it was our PPOR. The thing that surprised me during the period of letting the house was the number of good quality prospective tenants we had come through!! Doctors, financial analysts, business owners, young proffessionals!!!
HI Madmurf,
For example house and land package total cost is 420k.
I contribute 20% deposit from my Line of credit which is $84K to get the project rolling. The other bank will lend 336K.
On completion of building the estimate is now 520K value ( this is where your research and homework comes in. You need to buy where there is limited land and good growth rates.)
Bank will now take into account the new value of 520K. They will lend you 80% of that which is now 416K. So we upstamp the mortgage for $80K.
I will then transfer this 80K into my original Line of credit and use the funds for another project. This is quick and efficient use of equity.
I hope this makes sense.
Kind regards
Marina.
For example house and land package total cost is 420k.
I contribute 20% deposit from my Line of credit which is $84K to get the project rolling. The other bank will lend 336K.
On completion of building the estimate is now 520K value ( this is where your research and homework comes in. You need to buy where there is limited land and good growth rates.)
Bank will now take into account the new value of 520K. They will lend you 80% of that which is now 416K. So we upstamp the mortgage for $80K.
I will then transfer this 80K into my original Line of credit and use the funds for another project. This is quick and efficient use of equity.
I hope this makes sense.
Kind regards
Marina.
Hey Marina - Does this affect your credit rating?
Marina said:
Thanks for that Marina
No worries about doing the homework the my block has already gone up.
Just about to start building.
Now if you increase the mortgage up to 80% LVR do you now claim all that new increase in interest as a Tax deduction?
Is it one loan or a IP Mortgage and LOC on the IP?
Is your original LOC from a PPOR and did you claim it as a tax deduction.
Cheers
madmurf said:
Hi to Madmurf,
Well that is good news about your land going up. I would love to hear about
your building costs and land costs etc. How did you structure the deal,did you use the one bank etc?
Now to answer your questions I asked Bank A for a revaluation on the new IP and they offered me an extra $60k. With this 60K I will reimburse my LOC account which is with bank B.The 60K that was taken from this was used as deposit monies for the IP
So instead of having 2 separate loans for the 1 IP, I will now have only 1 loan -100% financed by bank A to 80% LVR.
I will now claim the interest on this, but there is nothing to claim on the LOC.
I do however hav 60K available in the LOC now to use towards another project.
To answer your 2nd question there is no LOC attached to the IP.
Line of credit is attached to the PPOR, and any funds withdrawn for investment purposes are tax deductible.
No rents whatsover go into the LOC, I instead have an offset account where
rents are paid, so as not to muddle up the LOC.
Kind Regards
Marina.
.
ralph wiggum said:
Hi Ralph,
Apologies for the delayed response.
As far as I know, everytime you apply for a loan you get a hit on your credit
reference. Not sure if it affects your credit rating as such, but I know that
if you have way too many hits, the banks would not look at that favourably.
I think you need to ask a mortgage broker about that.
I am very paranoid about mine and keep it in good nick, and try
not to apply for too many loans.
I also, on a quarterly basis, request a copy of credit records through baycorp,to make sure no unauthorized credit has been applied for.
Kind regards
Marina
HI,
Thankyou Aceyducey for the explanation.
I am not claiming interest on more than the cost price. I am not sure
where you got this idea from.
I had hoped I explained myself clearly in my earlier post.
The 60K that was applied for via the re-valuation went to my LOC account to
pay out the original 20% deposit costs for this particular IP.
So instead of having 2 separate loans with 2 banks, it is now fully financed
with the one bank and there is absolutely nothing to claim on the LOC.
If my property had not grown so quickly then I would still be holding 2 loans
with 2 banks, which makes accounting a lot harder for tax purposes.
Kind regards
Marina
Thankyou Aceyducey for the explanation.
I am not claiming interest on more than the cost price. I am not sure
where you got this idea from.
I had hoped I explained myself clearly in my earlier post.
The 60K that was applied for via the re-valuation went to my LOC account to
pay out the original 20% deposit costs for this particular IP.
So instead of having 2 separate loans with 2 banks, it is now fully financed
with the one bank and there is absolutely nothing to claim on the LOC.
If my property had not grown so quickly then I would still be holding 2 loans
with 2 banks, which makes accounting a lot harder for tax purposes.
Kind regards
Marina
Alvinn said:
HI Alvin,
Both Hubby and I have been investing since 2000, myself being the leader of
the pack, and luckily a very supportive and understanding husband.
Your dog is gorgeous. I had a siberian husky and an alaskan malamute, but
both passed away a couple of years ago.
Kind regards
Marina.
