does buying many properties like steve does in a year mean we must have a lot of savings to pay for the deposit? (since the positive ones dont appreciate too fast to have the equity).
Yes I beleive it does. You will need money for deposts, dosn’t really have to be savings. Lenders will lend you 95% intially, but when you start getting a few, the lvr rate goes down. LMI companies have maximum exposure levels. (about $1mil with PMI), so you will have to bring it down to under 80% to avoid LMI.
You could also possibly get the deposits from sources such as friends/relatives, wrap deposits, option fees etc, as well as equity from any growth down the track.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
you could rob banks too
but I would not suggest it
lolSomeone asked me for an explanation of the abbreviations in my post. I’ve emailed back teh answer, but I thought I might put them here as well just in case..
LVR means Loan to Value Ratio (eg $100,000 property with a $90,000 loan = 90% lvr)
LMI means Lenders Mortgage Insurance. Banks generally only lend to 80% LVR so if you want a higher LVR, they will request you pay LMI and so teh LMI company has to approve you loan as well as teh bank. There are only 2 LMI companies which makes it hard sometimes.
PMI is the name of one of the mortgage companies. GE is the other.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Guys
Deauzie
it might work? Worst case senario, you get caught and go to the slammer. And then you have all this free time to look for property (on the net), but insections would have to wait for day release.Fullout
The past 3 years have seen cash positive properties appreciation far faster than the Hot markets of Sydney and Melbourne. So it has been easy to quickly generate equity to buy more properties. When i started in 1997 i virtually had nothing. One strategy i used was to borrow short term money from my mother which i would buy properties under market value then refinance and pay back mum, i did ten in one year on an income of only $30,000 (was working 4 days). How steve did so many so quick is fantastic i’m about to find out as his book arrived today. i’d better go and get into it.
westan
The topic ‘how to buy many properties?’ is closed to new replies.
