Where to buy out of these 2?

This should be a quick one. Any advice will be greatfully received

Strategy - all in place. Am looking solely for capital growth here. Don't mind if I'm slightly negatively geared. Saying that am definitely looking for a house on 600 sqm+. I've looked about everywhere and have come down to more or less 2 areas:

Mount Gravatt/Sunnybank (Brisbane) - $550ish
Brisbane's all the rage right now but am mindful I'm a year too late
or
Semaphore/Exeter (Adelaide) - $500ish
Only place in a capital city in Aus that you can get a house close to the beach and 20 mins to the city for $500k. Maybe I'm wrong but I haven't found much else

Pound for pound which do you think will go up most in the next 2 years?

Thanks!
 
Hopefully the former.

I bought a place in Mt Gravatt East when I was priced out of coorparoo/holland park in 2009. IM waiting for the bank reval today, but best estimates/appraisals seem it's gone up 25% in nearly two years and I paid top dollar. The Logan Rd side of the suburb in particular is hilly, scenic, easy access to city, Garden City and Carindale shops and abuts holland park west which in turn abuts the desirable inner strip to the CBD. Woolworths have bought out the shops opposite Logan Central for a Masters, I presume they have their finger on the pulse.
 
Oops - mt gravatt central, not Logan central. A very different and changing demographic. I figure the 25-34 majority age group professionals are about to start their earning phase.
 
Thanks Bran

How did it go?

Thanks for the tips on that area. Am going to use Andrew Allen as he is very highly thought of here

I've been banking with commbank for 5 yrs and its took them 5 weeks of asking more and more questions to get a pre approval. Was due to get it today but guess what - more questions. They take the ****. Am considering taking my business elsewhere.
 
Thanks Bran

How did it go?

Thanks for the tips on that area. Am going to use Andrew Allen as he is very highly thought of here

I've been banking with commbank for 5 yrs and its took them 5 weeks of asking more and more questions to get a pre approval. Was due to get it today but guess what - more questions. They take the ****. Am considering taking my business elsewhere.

Just talk with one of the 10000 brokers on here.
 
  • Like
Reactions: oc1
Thanks Bran

How did it go?

Thanks for the tips on that area. Am going to use Andrew Allen as he is very highly thought of here

I've been banking with commbank for 5 yrs and its took them 5 weeks of asking more and more questions to get a pre approval. Was due to get it today but guess what - more questions. They take the ****. Am considering taking my business elsewhere.

No need to take your entire portfolio elsewhere, but may be a smart idea to look elsewhere moving forward.

One of the most powerful and necessary ways to grow a large portfolio is to switch lenders. Not to avoid 'concentration risk' (separate issue) - but to keep borrowing.

Running the numbers for how two different banks will view you now:

Commbank will need to assess the existing 4 mortgages you have with them at 7%+ P&I repayments even if your paying 4.5%. Assuming its $1million worth of debt, that's a monthly expense calculation of ~$6750.

Whereas if you went to NAB with your preapproval, they would calculate your existing monthly repayment as low as $3750 (4.5% I/O).

This $3000 difference in your servicing per month is a massive difference. Imagine adding 50k+ worth of salary income to your borrowing power - that's effectively what you can do by simply switching lenders.

Often overlooked, but IMO essential part of growing a large portfolio.

Cheers,
Redom
 
Thanks Bran

How did it go?

Thanks for the tips on that area. Am going to use Andrew Allen as he is very highly thought of here

I've been banking with commbank for 5 yrs and its took them 5 weeks of asking more and more questions to get a pre approval. Was due to get it today but guess what - more questions. They take the ****. Am considering taking my business elsewhere.

It shouldn't take that long, has nothing to do with CBA and more to do with who you're dealing with. What's the reason for the delay? Are there any issues on the file?

I'm working on a complex application at the moment, property share with daughter and parents, parents on centrelink pension, daughter s/e employed <1 year. It's been declined 3 times and today getting approved after approx 2 weeks by someone high up the chain. It took some time. Waiting 5 weeks doesn't sound right at all.
 
Wow thanks for the responses guys

You'll wish you never asked. Here goes:

As mentioned before I've always been with commbank. Me and mrs are both contractors and have a Trust. All our income goes to our Commbank Accounts. 1st IP mortgage done through broker. He got us a commbank loan. When I went in to the branch to sign the papers the Branch manager says next time come direct.
So this time I go direct. Provide everything to their mortgage guy. Takes 2 weeks as he says its more complicated than normal as we are contractors. he verbally says should be fine for approval. 2 days later he calls and says its too complicated for him and he's sending it to his colleague who specialises in these apps. She says as my deposit is in pounds (inheritance in UK) I can't use that (needs to be in my account as genuine savings for 3 months) and need to use the existing property as collateral. First I've heard of that. Tries to get me down that route as 'will save you mortgage insurance'. She says its a Mortgage insurance requirement. Shahin on here tells me she's wrong. Get back to her and let her know thats a requirement for buyers purchasing 1st property, not subsequent properties. Then she finds a way around this.

I have another 2 weeks while she goes through everything with a fine tooth comb. Often asking for docs already provided because as you know they haven't done much of a handover. She says 'I'm being thorough so when I send it to the assessor they will have everything they need'. Ok cool I go with it.

Now they've sent it off the assessor has come up with 2 more questions that are holding things up. 1st he wanted my rental ledger (for the property I live in). Then they see my wifes contract at work is called Surname Consulting instead of Surname Family Trust so they're asking for financials for the Surname Consulting. Have told them this does not exist and its a mistake on the contract. All of our salaries go to our Commbank acccounts but boy it hasn't counted for much. Its like I've applied for 3 loans

What an essay. Now waiting to hear back again - probably with more questions.
 
Would of changed bankers/brokers after first discussion. Sounds like you have been stung with someone who has no idea.

Funds overseas are fine if in your name, they can count for genuine savings. Have to assume the LVR is above 85% as gen savings doesn't apply under that. Make sure you're not x-coll as pLMI is involved. Your existing equity in your current property can count towards gen savings as well.

Shouldn't be this hard.
 
Yes my thoughts exactly. After I pointed this out they are now inc existing equity as genuine savings. Thats how they got round the overseas money not being in my name. Just got that transferred 2 weeks ago

Thanks for the advice. Will make sure I'm not x-coll.

You're right after the first discussion when you realise someone is clueless its probably best to make a move then. Apparently 'we are nearly there'. Lets see what they come back with today
 
We were let down by our broker recently and after three months (very looooong story) we jumped into an NAB loan, took everything in Tuesday and funds in account following Monday. I wouldn't normally go direct to a bank, but we were getting desperate to get this sorted. I would still use a broker for next time rather than risk a bank hitting our credit score.
 
This should be a quick one. Any advice will be greatfully received

Strategy - all in place. Am looking solely for capital growth here. Don't mind if I'm slightly negatively geared. Saying that am definitely looking for a house on 600 sqm+. I've looked about everywhere and have come down to more or less 2 areas:

Mount Gravatt/Sunnybank (Brisbane) - $550ish
Brisbane's all the rage right now but am mindful I'm a year too late
or
Semaphore/Exeter (Adelaide) - $500ish
Only place in a capital city in Aus that you can get a house close to the beach and 20 mins to the city for $500k. Maybe I'm wrong but I haven't fomund much else

Pound for pound which do you think will go up most in the next 2 years?

Thanks!

Where to buy- Sunnybank yields are pretty low, I just calculated mine based on current market value and rent and it is 3.9% this tells me the suburb has already run quite hard when much of BN was flat. It's very popular with Chinese buyers and along with Eight Mile Plains is at a premium compared to other middle ring suburbs at a similar distance from the CBD. Who knows it could have further growth left as a lot of properties are being subdivided, Sunnybank Hills seems a little cheaper. I would consider adjacent slightly cheaper suburbs first unless you can get a good deal IMO
 
Thanks for the advice Hugh and Wylie!

Today they got back to us. Wanting interim financials for 2014/2015 from June to Now. I've had enough. I asked the lady - 'if I get my accountant to put this together will that be enough to get me a loan'. her reply 'Oh they will assess your application based on what you can provide'. So I jump through more hoops, and they'll come up asking for something else. I even said 'Just say no, that would be easier than 6 weeks of this'

Anyway, I understand the big picture. Everyone has problems with lenders and you need to work a way around these things instead of whingeing (which I've done quite well here ;-)).

Am going to get onto a good broker I know (Shahin) who knows what they are doing.

Redom - you know your stuff and would have gone with you but I've known Shahin a few yrs and he kind of mentored me early on in my property journey.
 
Back
Top