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Posting Guidelines - Real Estate forum

Discussion in 'Real Estate' started by Test Moderator, 6th Jul, 2005.

  1. Test Moderator

    Test Moderator Moderator

    11th Jun, 2005
    Here are some basic guidelines for posting in the Real Estate section of InvestEd.

    We have introduced these different forum topics to spread some of the discussion into specialised areas, hopefully making it easier for people to find and work with specific topics of interest. We ask that you spend some time becoming familiar with what topics and guidelines are in place for all of the forums.

    This "Real Estate" forum is for any discussion related to Real Estate and property in general. Any aspect of the process of researching, buying, selling, managing, renovating or building property can be discussed in this forum. This includes both residential and commercial property.

    Moderators may move your post to the correct forum if there is a better place for it to be. Please don't be put out by this, it is something we will do to try and help everyone.

    The descriptions below the forum names on the main page and the "posting guidelines" in each forum should assist in guiding you as to where to post.
    Lastly, don't forget the "Help and Feedback" forum... you can post requests for help there, and there are (will be) frequently asked questions answered on many topics.
  2. konan

    konan New Member

    20th Feb, 2011
    Hampton Park Vic
    Sell or rent out?

    Hi, i want to sell my home, had a valuation done and would be around $70k ahead after all fees. My problem is i wish to purchase another property, and will need to borrow around $100k but the area i want to move into means quitting my current job...find a new job is the obvious answer, but i wish to start a small question can i borrow without using my current home as security. Would i be better renting it out? im not savvy when it comes to real estate ...any suggestions would be most grateful col
  3. Ripe Wealth Creation

    Ripe Wealth Creation Member

    20th Nov, 2015
    Things to Consider...

    That is lot going on, in one hit Konan.

    If you change jobs and not in the same industry then you normally would want to be in the job for 3mths with such tight lending conditions as you have briefly described. Even if you remain in the same job it could be questionable, the other thing to take into consideration is the market in which you are selling (location) and the market in which you are buying (location) as there are different markets around Australia that may affect your decision greatly. Is it a growth market or a declining market?

    Now lending when it comes to starting a small business dramatically reduces options when it comes to lending and having less than two years financials so I would be hesitant to sell and suggest depending on the balance sheet renting your house out and renting where you are going - again you have to consider the markets in which you are going from and to - are you going to be renting for less than your mortgage payments now? Is the rent you would receive for your current place cover the mortgage repayments if rented out?
    if not when making rental application how are you going to get a rental before you manage to land a job or set up your business. I assume you have done a due diligence on the area you want to move to to as to whether your chosen small business will work there? I would be making sure I had twelve months living expenses (rent, food, utilities etc) before starting such a venture. I would also have written my business plan, marketing plan etc to help ensure the success of my business before taking a plunge and take into consideration depending how far the new location is you may not be able to rely on local contacts.

    Now having said all that I am actually a very positive goal orientated person and believe if you wont back yourself why would anyone else? So work out why your business idea sets you apart from others. How are you going to market that to attract clients. This will answer the business component. I would not be relying on getting a loan while starting a new business. I would also not hold onto a property that is costing me too much to keep AND trying to start a new business AND get a rental. You havent given enough information. Work out the good ol incomings and outgoings. Why do you want to keep the property - do you intend moving back to the area one day? Is the property going to see capital growth? Have you had a rental appraisal and taken into consideration management fees on your current place, also what maintenance may be required before you can let it out (new stove/screens/smoke alarms etc? If you start a new business you dont want a negative geared property, unless you have another income stream you havent mentioned - is it positive geared ? If not how much do you want to put in each week?

    Good luck and I wish you well whatever you decide

    Ripe Wealth Creation