Property in Australia

[happy]

Tamworth and back is a bit of a drive. Burning Mountain is so cool, I've never been there but its on my list of domestic destinations to go to @deborah.
There is a lot of money around Scone, due to racehorses and pastoralists.

@MrThatsDifferent: one solution to your dilemma is to move out, if you are fortunate enough to be able to find work elsewhere. I moved out to Australia's 3rd most expensive city  25 years ago and don't regret it for a second. Having grown up and lived in Sydney nearly all my life it was a bit of a scary decision to leave ( FOMO!) but I don't regret it for a second.

[Model96]

Head a bit further North to Quirindi and have a look at the plains from 'who'd a thought' lookout, the houses up there on the hill are probably even cheaper and much nicer than Mururrundi :)

[MrThatsDifferent]

Tamworth and back is a bit of a drive. Burning Mountain is so cool, I've never been there but its on my list of domestic destinations to go to @deborah.
There is a lot of money around Scone, due to racehorses and pastoralists.

@MrThatsDifferent: one solution to your dilemma is to move out, if you are fortunate enough to be able to find work elsewhere. I moved out to Australia's 3rd most expensive city  25 years ago and don't regret it for a second. Having grown up and lived in Sydney nearly all my life it was a bit of a scary decision to leave ( FOMO!) but I don't regret it for a second.

Thanks @happy  . Trust me, I’m thinking about it but a number of factors make it difficult, the biggest is my job is specific to Sydney unless my company lets us WFH indefinitely, which I don’t foresee. I won’t make what I make in Sydney anywhere else. My only hope is that housing drops 15-30% as predicted in 2 years. Oh and they get rid of stamp duty.

[happy]

Tamworth and back is a bit of a drive. Burning Mountain is so cool, I've never been there but its on my list of domestic destinations to go to @deborah.
There is a lot of money around Scone, due to racehorses and pastoralists.

@MrThatsDifferent: one solution to your dilemma is to move out, if you are fortunate enough to be able to find work elsewhere. I moved out to Australia's 3rd most expensive city  25 years ago and don't regret it for a second. Having grown up and lived in Sydney nearly all my life it was a bit of a scary decision to leave ( FOMO!) but I don't regret it for a second.

Thanks @happy  . Trust me, I’m thinking about it but a number of factors make it difficult, the biggest is my job is specific to Sydney unless my company lets us WFH indefinitely, which I don’t foresee. I won’t make what I make in Sydney anywhere else. My only hope is that housing drops 15-30% as predicted in 2 years. Oh and they get rid of stamp duty.

Yes its certainly not straightforward. By moving out I essentially limited myself to working in 2 or 3 less desirable locations and dropped status ( but not money)  in my career. I was pleasantly surprised that COL was a bit lower than in Sydney which I wasn't expecting.

[marty998]

Fixed my new $600k investment loan for 2 years at 2.59%.

Holy shit. At that rate, I have positive cash flow even after principal repayments and before capital allowance building claim.

Never thought I'd see the day.

[Murdoch]

Hi Marty,

Do you mind me asking which mortgage lender you went with?
I'm making an offer on an investment property and offering very low ball cash, or moderately low ball with finance.
If they take the finance option I'll be chasing a lender.

Cheers
Murdoch

[middo]

Fixed my new $600k investment loan for 2 years at 2.59%.

Holy shit. At that rate, I have positive cash flow even after principal repayments and before capital allowance building claim.

Never thought I'd see the day.

One of our properties is positive cash flow, before we think about the deductions.  Low interest rates make a good investment even better.

[marty998]

Hi Marty,

Do you mind me asking which mortgage lender you went with?
I'm making an offer on an investment property and offering very low ball cash, or moderately low ball with finance.
If they take the finance option I'll be chasing a lender.

Cheers
Murdoch

I’m with CBA. They’re not the cheapest, but their loans are the most flexible if you want to “do” something. Like fixing for example. Or setting up easy to use offsets. I love how much can easily be done through the app or Netbank.

Why would a seller care if you need to finance or not? They’re not going to sell for less just because you’re paying cash yourself. Whether you pay them cash or your bank pays them cash for you makes no difference to them...

[Murdoch]

Cheers Marty.
I figured that the cash offer would result in much faster settlement following due diligence, and had less risk of falling through if the banks did not approve the loan etc...
I'm not sure how many accepted offers fall through due to lack of finance becoming available to the purchaser though.
Would only matter if the vendor needed the money ASAP.

[marty998]

Cheers Marty.
I figured that the cash offer would result in much faster settlement following due diligence, and had less risk of falling through if the banks did not approve the loan etc...
I'm not sure how many accepted offers fall through due to lack of finance becoming available to the purchaser though.
Would only matter if the vendor needed the money ASAP.

If the IP is negatively geared (and they generally are if you've borrowed 80%) then a longer settlement is better. After all... why would you want to start losing money sooner?

I happily took a 13 week settlement on my new property, but then realised it was going to be positive so gave myself a slap on the wrist. D'oh!