Hello People
I joined the site last week and have been highly impressed with the quality of posts and advice offered. I am hoping that some of you will be able to offer some of your wisdom in helping me get into second gear as I am stuck in first.
I purchased some land in QLD in Jan with construction of property due to be completed in Oct/Nov. The land has already appreciated and by all accounts I stand to realise approx 90-100k in equity when the property is complete. The property will be neautral CF but tax kickbacks etc should be a nice bonus for a few years to help fun new CF+ properties. I earn a reasonable salary but have been a terrible saver spending much of my money enjoying myself. I am ready for the paradigm lifestyle change but need to stick to my goals. I find that little results over time dilute my direction.
My predicament is this. I have little savings at this moment but could save 10k by Oct. I will also have some equity to use from my first IP. Here are my options as I see them:
Invest in the Wrap kit and educate myself further even when the latest news from govt is negative on wrapping?
Carry on Saving and combine with equity in Oct/Nov when first project is complete
Try and have my bank refinance my loan on current equity from the land to use as deposit on another IP
Use all equity and Savings in Oct/Nov to fund CF+ properties – maybe $80k used to fund 3 or 4 deposits?!?!? and then try to wrap them (If I wrap, do the banks look favourably to loaning more to finance more deals?)
buy 1 block of units in some backwater (Mt Isa or the like) in Oct/Nov and have all my equity tied up.When my equity is tied up, how do I realise more funds for more deals. I think it is wrapping or traditional savings or even new equity. If this is the case, negatively geared property is a great option for realising equity over a relatively short period of time. Does anyone use this a strategy to raise equity to fund deposits. I understand downturn in Australia but there must still be areas of QLD still ripe for the pickings.
This is a long post and I apologise but its all interesting stuff to me which I would feel honoured if you would provide your slants on.
Regards to you all O’ Wise Ones’
Mark
Well I’m not a fan of wrapping so can’t comment on that score. But just pondering on your first comment that “the land has already appreciated”.
This being the case, perhaps visit your broker or bank manager and see if you can use the equity you have in the land as security for another laon. The new loan being to cover 100% of the porpeorty to be purchased plus the fees as well.
PK
Thanks for your valued time. I shall investigate the feasibility of re-financing and see what i can do… fingers crossed!
Reagrds
Mark
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