Craig Vaughan

I understand where you are going. But the question is this - if they pay the stamp duty, where are they paying it from? that is the key here - if they pay the stamp duty then they must be paying it from somewhere (ie, its not free money). So they add it to your loan which in turn increases your loan amount up and therefore increases the LMI up.

I totally get what you are saying, LMI is a bit of a rort in some senses - ESPECIALLY when you go over 90%. with a 10% deposit plus costs LMI is reasonable - once you have less than 10% is obscene.

the troubadour

All important considerations in an over inflated housing market. Any borrower should do the sums with regards to how much money they will be required to repay over the time of a loan. Pretty scary amount in many cases. Also factor in interest increases because as day becomes night, interest rates will go up. Always amazed how many get caught out when this happens.

commonwealth

i'd say add 2% in your assumptions and cashflow calculations, assuming you put all your money in an offset mortgage account. if not, make it +4%.

ahmedwaseem2000

Yeah - seems like every one calculates it the same way and with different rates. Anyway, do you know if income protection insurance is mandatory for the home loans? I have read in another website where people were telling its mandatory but neither NAB nor westpac has mentioned to me that its mandatory to have the loan. And is it worth having it?

commonwealth

I've Never heard of income protection insurance as a loan requirement.

ahmedwaseem2000

Well, neither of the 2 banks NAB & westpac mentioned about any such requirements. It was in internet I read about this. so, checking if any one had any such previous experience.

commonwealth

Ring a broker

Alfresco

+1

Craig Vaughan

There is no such requirement in Australia. Lenders mortgage insurance is required for loans over 80% but there is no requirement that you take out personal income protection or life insurance.

There simply is no requirement.

ahmedwaseem2000

I recently visited a property and felt good about it. The construction seems to be like 55 years old in blacktown area but its been completely renovated. Are the builders usually reliable? my worry is, do they sweep things under the carpet to cover up only to sell it?

Bermudashorts

Somebody might, that is why you get a survey done.

ahmedwaseem2000

can you suggest who does this kind of survey? or where to find the companies who does this?

bcworld

http://sydneyprepurchase.com.au/ ...or similar.

ahmedwaseem2000

How much are the property agents trustworthy?

I had three different dealings with 3 different agents for as many properties. In the first instance when I was inspecting the property the
agent was telling every one that he has already got 2 offers for the property. When I went up asking if I can get one day for making the decision he said
one day is too long and I might not be able to make it if I wait for one day. I felt a bit pressurized to put in my offer immediately but I decided otherwise
and the property was still in the market next week also so it was making me think were the offers real?

In the second instance, again the property agent was telling everyone that he has got an offer for x amount and if you bid same offer, then you will get the property.
I asked him why does he say that, as the owner already has accepted the offer from that person and also that person has got the bank verification done. So, he started explaining me that the person was
following wrong process so he might loose out on time and I would get the property if I follow the right process. I did offer in the haste but pulled it out the next day before it was accepted as I was considering another property which I went for inspection after offering for this property. Now, even after 3-4 weeks I still see the same property available in the market. Did this guy really had any offer in the first place?

Finally, one property was going in for auction. when I asked what is the price guide, he mentioned that x-y is the range. then I checked if I can offer for this property he said yes.
And I did make the offer. When I made the offer he was checking with me if I can go above that price. I said yes I can but first I would like to get a response before increasing the bid.
However, after making me wait for 4-5 days he declined the offer stating that the owner wants to sell the property in auction only. I couldn't go to the auction as I had dropped the idea of
buying that property for personal reasons. When I checked the domain auction results it was mentioned N/A for this property. and next week when I checked for the property it was still in the
market for sale and also, it is available even after 3-4 weeks.

this makes me think property agents simply pressurize the buyer for the property that they are trying to sell. Am I right in my thoughts or am I missing something here?

NickyC

No, you're not missing something. You've seen all the tricks that agents play.

Never believe anything an agent tells you until you've verified the information independently. Just remember that the agent is not working for you, they work for the seller.