Forum Replies Created
Thanks Terry, that makes a whole lot of sense now.
That kinda only leaves the slow option of buying one IP, increasing equity and rent, than down the track buying another one.
Time to read more and get my head around it, work out where to from here.
Thanks for your help.
Thank you both for your information, it seems it is back to the drawing board for me.
So what are some of the better strategies out there?
I can't physically work at the moment, my partner does but has low income. We have great equity in our home.
Thank you for your reply QLD007 & Terryw. You have given me good information, which I am still getting my head around.
I am frustrated though as I was talking to an investor about a year ago who did the following for his retired mother who had little income;
Took out a loan against the equity in the house. I can't remember the amount but for this example lets say they borrowed $600K.
Put the $600k in an offset account and used it for the deposit on an investment property. Take out another no doc loan to purchase the investment property.
Rent didn't fully cover the loan repayments, but the remainder in the offset account was drawn on weekly to top up the difference.
His theory was that the property would appreciate in value faster than the $$ in the offset account went down.
Down the track the equity in the property has increased, he would get her to refinance against the higher equity.
His aim was to fund her retirement using this strategy.
What I don't understand is how she got the equity loan if she had no income??? I know it was either a no-doc or low-doc loan.
Terryw I guess it was an asset lend, so maybe I have missed the boat for this type of loan at a reasonable rate?Maybe this strategy worked then but won't work now??
You are welcome.
Hi karlm63
have you checked this site at the top there is the Online Shop tab, than view all products. I think they are in order. He also has a new book just released, “0-260+ Properties in 7 years”.
So order is:
From 0 to 130 Properties in 3.5 Years
$1,000,000 in Property in One Year
0-260+ Properties in 7 yearsThat will keep you going for a while.
[specool]
Thanks QLD007. Just on the matter of transfering to my partner, if we were married (instead of De facto) could we then transfer the home to his name only (currently in both) without getting slogged tax?
Terryw, that’s a good point, that extra paperwork will cost me.
Thanks guys! [thumbsupanim]
Thanks for the heads up Richard. [biggrin]
Any other stories out there??
I am hoping this thread will help more of us find great accountants and solicitors, and save members the time and effort of running around. So if you have a goodie, let us all know. [blush2]
Thanks John, that has put some interesting perspective on it for me. Like Celeste I thought the same.[hmm]
I went through the 15% rates back then, and I sure did hurt. Can’t stand boiled rice or 3 minutes noodles today. I remember when I got down to my last two bucks for the month. Always made repayments on the loan, although I got a whole lot skinnier back then. The thing is that I knew what was important to me, and I prioritiesed my goals to keep my unit. Yeah, I didn’t eat fancy meals, or ever buy a coctail, but I knew the cycle would change and rates would eventually come down.
So for the struggling home owners out there good luck (good prioritising). Back to basic meals, save money where you can, pay the morgage first, and don’t burry your head in the sand. You’ll get there.
Again, thanks John, I get it now. My 15% back then is the same as thier 7.5% now, only they have more money tied up in the deal.
Crickey!!
Foundation, I agree.
Been through that “recession we had to have”, survived the 18% interest rates (never want to eat 3 minute noodles ever again).
Never cease to be surprised when I hear someone (with a very average house and wage) say they have just spent $20k on a new whiz bang TV. Wow… that’s a deposit on an investment property they just chucked away.
Some people want it all now and aren’t afraid to be paying it off credit. They need to have a good long chat with thier grandparents about the recessions and depression they survived and how they did it. I know I can survive one, can they?
I had to go into the Council office and pay around $6 for it. I don’t think they do it online. Why not call them and ask?
I speak to Council and do thier searches for a small fee. Mind u, last one I did I only got the name and the address of the property I was checking. My partner suggested I write a letter and post it as they probably had a redirection service.
Turns out they did and they got my letter and they called me.
Unfortunately all down hill from there, but you never know unless you try.
Good luck with it. [happy3]
Hi Dare to Dream
I have found the library to be a useful source of information. Most often they have a website where you can search not only your local library but all in your local district. As a member you can do most of your looking from home and even reserve books and audio online.
I have been to a workshop called, “Breakthrough to Success”, where you spend the weekend working on your goals and any limiting beliefs you have which may inhibit your success. It normally costs $895, but I have some free tickets if you or anyone else would like them. I am now focused and really starting to change my life, so I am one happy camper. Just email me your details and I’ll email the information about it back to you if you are interested. [thumbsup2]
Other than that, ask around some of your friends may have purchased resources they may be happy to lend you. Or get toghether with like minded people and split the cost of any resources you purchase.
I prefer to educate myself rather than use a third party. But then, I’m time rich.[upsidedown]
I have been to a few meetings with investors clubs and have chosen NOT to persue this option.
Some questions I would ask before forking out your dough are:
Who is making a commission from my purchase?
Why do they always suggest buying in developments such as units?
Are they receiving kickbacks from the developer for selling you into thier project? If so, how much?
Is this club independant or are they operating on behalf of the developer?
Why do they often supply or suggest you use thier solicitors, accountants etc instead of using your own trusted proffessional???
Am I really getting my investment cheaper????
Ask a whole lotta questions of them and the industry before you trust anyone specific source with investment advise.
Again, I chose not to pursue this option as thier answers just didn’t feel right. It comes down to trusting your gut and what feels right for you.
[hmm]
Thanks for your advice Steve,
Jeff, DLPP and Kp thanks too.
My education is all the better from reading forums where such valuable information is shared freely.
From an observation point, I have noticed that the retailers “Sales” seem to be a continual thing now. Moving from one excuse to the other to have a sale and maybe snag a buyer. They seem to be doing it tough. Now with the rate rises, and of course ever increasing petrol prices, the strain is going to be too much for some retailers. The ripple effect is going to be very interesting.
[worried]
Thanks Terry and Catta
I’m just in the process of working out what my property focus is going to be and what I want to achieve. Once I decide whether I am going to focus on property as a business or hobby, I will look into discretionary trusts and company structures more.
Thanks for your comments, I’ll take them on board.
Housemender,
It is sad, I agree, but if you don’t steer clear of the investing subject with negative people, than you will steer of course. Then in years to come you may become negative and resentful of them.
You go girl!!! Think things through, do the research, then trust yourself. Have you heard the song that goes something like….”I get knocked down, but I get up again, you never going to keep me down”? [strum] Its a goodie to live life by I think.
Hi HouseMender
I can totally relate to what you are saying.
My inlaws belive in getting a good secure job and wasting the next 20 years working for a boss who doesnt appreciate you. My father-in-law got a gold watch on retirement and a lifetime of regret.That is how they lived thier life and they don’t understand anyone living thier life differently. They are kind and caring, though so full of negativity that they would squash my dreams in a second if I told them what I am up to with investing. (They are just scared for us.)
So I don’t tell them. They look at me as if I know nothing anyway. Yes it gets frustrating not including them in some parts of my life’s journey. I would love nothing better than to have thier confidence and joy that I am following my dream, and to discuss some of the details with them.
Ah.. but I can’t you see. What I am doing is outside thier comfort zone and they don’t have the confidence in me to know that I know what I am doing. So my choice is to keep away from negative people or away from conversations re investing / real estate, so I don’t get pulled down by it. (lead balloons can’t fly)
You know why they do it don’t you? They love and care for you, and don’t want to lose you, so they try to pull you into thier life raft (we’ll call mediocracy) where they belive you will be safe. Only the buggers don’t realise that you know how to swim and you are safe in the fulfilling waters of investing life. And that scares the crap out of them. They have to learn how to deal with it or shut up.
Like religon, investing is a very personal matter. Sometimes you can comfortably converse with a person from an opposing belief system and enjoy each others differing view, sometimes you gotta get out of the china shop beforre the bull runs you over.
I avoid the subject and will continue to do so until I belive they are ready. You may consider doing the same and if they don’t take the hint, maybe you can kindly say that you would prefer not to talk about it, and promptly change the subject.
I bet there are a lot of us out there who are also trading in silence.
[thumbsupanim]
Hi MikeBlue,
My old solicitor in Hornsby is honest and a great guy. Have recomended him to family as well, all of whoom have found him to be good. Family and myself included have done about 4 properties through him. We are all happy.
Let me know how you go.
Sal Sapuppo
02 9482 1288
HornsbyOnly wish I could find one like him in QLD.
[jerry]
