Comments on: Waiting, waiting, waiting.. http://www.tocpcs.com/waiting-waiting-waiting/ Impossible? You Lie! Fri, 03 Sep 2010 12:47:22 +0000 hourly 1 http://wordpress.org/?v=3.1-alpha By: OzCableguy http://www.tocpcs.com/waiting-waiting-waiting/comment-page-1/#comment-45808 OzCableguy Mon, 01 Feb 2010 04:41:55 +0000 http://www.tocpcs.com/?p=592#comment-45808 Work out what the renovations will cost depending on how much it will increase the property value. Then compare that to how much you can sell it for as is now and how much a bigger home will cost you. For us, a block of land came up at the right price a couple of suburbs over in a higher growth area so it made a lot more sense to move than to extend the old joint. Mind you, the GFC happened almost exactly as soon as we moved so the last couple of years have been a major struggle but it'd pay off now if we chose to sell. Work out what the renovations will cost depending on how much it will increase the property value. Then compare that to how much you can sell it for as is now and how much a bigger home will cost you.

For us, a block of land came up at the right price a couple of suburbs over in a higher growth area so it made a lot more sense to move than to extend the old joint. Mind you, the GFC happened almost exactly as soon as we moved so the last couple of years have been a major struggle but it’d pay off now if we chose to sell.

]]> By: The Elite Geek http://www.tocpcs.com/waiting-waiting-waiting/comment-page-1/#comment-45688 The Elite Geek Sat, 30 Jan 2010 13:05:25 +0000 http://www.tocpcs.com/?p=592#comment-45688 Cars, I could agree with, the moment it leaves the showroom it's worth very little. Houses seem to be increasing in value (locally at least), but I also have not lost sight of the roller coaster that it can be. There's a few plans of attack ready, and the worst case scenario is a forced sale (which is after 'renting it out' - the granny flat and house *should* draw enough of an income to ensure the mortgage payments with minimal added by us). The concept at the moment would be to increase value, through the key renovations, to: a) get more enjoyment out of the floor space. b) update the exterior c) increase value, so a forced sale should be speedy and get the best possible outcome. Specifically with C, the addition of solar power and solar hot water will realise savings, which in turn pays the mortgage down sooner, but the exterior walls need to be replaced, so that's a forced expense - but, possibly a worth while one. One of the thing being done as part of the process is a valuation, which will focus on the current and theoretical future values, the increase in value needs to match the dollars input by +/- 10% to be viable in my opinion. The new internal layout is a no brainer though. Cars, I could agree with, the moment it leaves the showroom it’s worth very little.

Houses seem to be increasing in value (locally at least), but I also have not lost sight of the roller coaster that it can be.

There’s a few plans of attack ready, and the worst case scenario is a forced sale (which is after ‘renting it out’ – the granny flat and house *should* draw enough of an income to ensure the mortgage payments with minimal added by us).

The concept at the moment would be to increase value, through the key renovations, to:
a) get more enjoyment out of the floor space.
b) update the exterior
c) increase value, so a forced sale should be speedy and get the best possible outcome.

Specifically with C, the addition of solar power and solar hot water will realise savings, which in turn pays the mortgage down sooner, but the exterior walls need to be replaced, so that’s a forced expense – but, possibly a worth while one.

One of the thing being done as part of the process is a valuation, which will focus on the current and theoretical future values, the increase in value needs to match the dollars input by +/- 10% to be viable in my opinion.

The new internal layout is a no brainer though.

]]> By: OzCableguy http://www.tocpcs.com/waiting-waiting-waiting/comment-page-1/#comment-45580 OzCableguy Fri, 29 Jan 2010 11:37:47 +0000 http://www.tocpcs.com/?p=592#comment-45580 Sounds like banks are getting cautious and, dare I say it, responsible again. Debt = bad so being knocked back on a loan because they think you're getting a bit over committed may be saving you a whole world of extra pain if things ever go down the toilet for you. Back in the day when I worked for a certain bank we used to get people's statements of assets with their loan applications and slash them silly because (a) people tend to grossly overestimate the value of their assets, and (b) stuff never gets anywhere near its proper value when you have to sell it fast . Each item had a different formula for the calculation. eg Cars would be marked down like 50%. I think real estate was only like 10 or 20% but they'd still never let you borrow more than around 80% of the property value without paying mortgage insurance (which incidentally only covers the bank's shortfall and not yours if you're ever sold up) but never more than 90% regardless. Sounds like banks are getting cautious and, dare I say it, responsible again. Debt = bad so being knocked back on a loan because they think you’re getting a bit over committed may be saving you a whole world of extra pain if things ever go down the toilet for you.
Back in the day when I worked for a certain bank we used to get people’s statements of assets with their loan applications and slash them silly because (a) people tend to grossly overestimate the value of their assets, and (b) stuff never gets anywhere near its proper value when you have to sell it fast .
Each item had a different formula for the calculation. eg Cars would be marked down like 50%. I think real estate was only like 10 or 20% but they’d still never let you borrow more than around 80% of the property value without paying mortgage insurance (which incidentally only covers the bank’s shortfall and not yours if you’re ever sold up) but never more than 90% regardless.

]]>