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My problem is FINANCE. I have 6 one bedroom units in Maylands Perth and a house in Dalkeith Perth. I did own another two units outright in Maylands which I sold to fund a purchase in Hong Kong. I have read the book 0 to 130 Properties in 3.5 years but didn’t find what I was looking for in terms of finance. Basically if 130 properties average $50,000 each with say 10% deposits not including other costs then just the deposits come to $650,000. My units are positively geared. That is purchased for $30,000 to $50,000 each and earning today rent of $110 per week each. Dalheith is rented buy negatively geared. a small drain only. The units are valued at $100,000 each and Dalkeith is valued at $1 million. Purchased for $640,000 with a $200,000 deposit. Banks will only take 50% of the rental and finance units to 66%. Under 50sq meters all in the same block is considered an exceptional risk by the Banks.
So how do I buy many more units positively geared and get the finance. I assume it will require a property rollover process using capital gain for future funding.
Stephan Holle
The only way to keep buying is to keep coming up with deposits. This can be done by saving madly, and/or capital growth, increasing value, buying and selling (at a profit!), wrapping, etc etc.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
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