Hi Kris,

Call some brokers, they can give you a list of lenders that may have some flexibility on lending re non genuine savings. If you hit a brick wall, the best strategy is put the $30K cash in term deposit, in your name, for six months. After six months, reinvest it for a month, advising the teller you can’t re-invest the money for too long…[Read more]

Dear Quick chick,

In answer to your question, yes! The rent is to be reviewed annually. It has to go with the market.

Yes, there is a risk. What investment has no risk? Think about it, how many people have lost their cash investment. There they were squirrelling away every cent in the bank and before their very eyes the bank goes kaput.

To…[Read more]

Hi Quickchick,

You have a brilliant brain for math. That kind of analytical thinking is what you need.

Hi Matt,

Interesting question. If I bought it for $970K, I would have needed to use my own funds. The 20% deposit alone would be a whooping $194K. The increased stamp duty is almost a non-event anyway because I used largely the “buyers”…[Read more]

Sean,

I appreciate where you are coming from. Indeed, how to start saving is the key to creating wealth.

Here are some ideas:

1. Start with 10% of your NET income. Put it away into a separate account and refuse any offers of your bank to have an access card.

2. I never used to believe in the concept of “a lifestyle I have gotten used to.”…[Read more]

Hi Jake H,

You have received some very good advice. I will add another one. A conventional wisdom. There is more than one way to skin a cat.

Creating wealth has many aspects to it, you can certainly use all of them. Generally on a case to case basis.

Should you buy and sell? It depends. Some you buy, renovate and sell. Others you sold on…[Read more]

Dear Andy,

It sounds like a good plan. Speak to the owner with your good and genuine intention. People respond to that. Start with an offer of say, 7.45% (just an example) fixed over two years on a vendor finance term. Over two years, renovate to your heart’s content, increasing value but not overcapitalising. You certainly are on the right…[Read more]

Hi Matt,

Congratulations. The “wanting” is 80% of the battle. The rest is now about research and doing the maths.

I agree that the rule is to “Keep it Simple.” Don’t think too hard about it, over complicating it makes for analysis paralysis. You sort of end up not doing anything.

In choosing an investment property, I use simple rules:

1.…[Read more]

It doesn’t matter how much you dislike living in Sydney, keep at least one tangible asset in one of the most expensive places in the world. You can’t go wrong. With the number of migrants trying to squeeze themselves in this gorgeous city, and with the number of international investments pouring in, you’d want to keep a toe-hold, at the very…[Read more]

Hi,

Like Kent, I use term deposit as security for any home loans when I sell a property.

There is very important reason for this: You don’t have to apply for a new loan for every home purchase; thereby eliminating one more factor that could potentially derail your acquisition. You know… the dreaded, “Sorry, you can’t afford it” scenario.

Angel

Thank you Paul and Luke,

I’d like to post the information about the property here and creative solutions that I can think of. I hope you all can help with further suggestions or offers. To those who will email me directly, I’d be happy to email you the floor plan, the RP data valuation and the land valuation from NSW valuer office.

Here is…[Read more]

Hi,

Please email me so i can give you details of the property itself. Perhaps you can help me one way or another. Thank you.

Angelina

Hi,

What is “seasoning?”

Angel