Scott,

You mentioned the VFA is working with the Gov’t about Title of the property.

I’m assuming you mean to get the title into the wrappees name.

Why?

What about protection for the wrapper. They are the one’s who have put 20% down, payed stamp duty and gotten a mortgage over the property. They also guarantee it, putting their own assets (ie. their own home), on the line, and as such, also deserve protection.

There’s nothing wrong with “The title shall transfer when payment is made in full”, as is the case when you purchase any other goods with credit.

Additionally, the bank the wrapper uses to obtain a mortgage over the property would expect the title of that property to be in the wrappers name.

If the title changes to the wrappee upon signing of the contract and settling, I’d imagine the bank would see that, realise they’ve lost the security over the mortgage, and demand the loan be repaid immediately.

In addition to that, the wrappee would also have to come up with the stamp duty immediately, instead of being able to defer it 1 to 3 years (or whatever) until the time they re-finance into mainstream banking, which is when the title transfer would take place under the current system.

You’d expect most wrappees to re-finance into mainstream banking within 5 years anyway, at which time they will get title to the property.

Problems would only occur for them if they stop making their payments. Currently, this would result in them breaching the contract and as the title is in the wrappers name, it would seem less of a headache repossessing the property in that case, than if the title were in the wrappees name.

G

Invest in People for a Prosperous Future!

I don’t particualarly like the ‘Buyer Enquiry Range”.

I recently looked at a property with a BER of 140k-175k.

With this property, the lower number was just to get people in the door. They weren’t interested at all in hearing offers at the lower end of the BER.

Interestingly, a couple of weeks later it was re-advertised with a BER of 125k-155k and again any offer on the lower end of that scale was scoffed at.

I think they assume that if you’re looking to spend ‘X’ amount of dollars, they should be able to get you to part with 10% – 15% above what you really wanted to.

Gordon

Invest in People for a Prosperous Future!

Finnie, one of our goals is to be in a position where we can work less in our jobs.

It helps if your partner has the same goals or is supportive of the idea. Bouncing ideas off each other and keeping each other motivated will help drive you to success.

Gordon

Invest in People for a Prosperous Future!

At $375 per month, the rent sounds a little low for that area. I’m in a shopping centre about 5 mins away, and the rents here are higher and with less traffic.

It looks like they’ve based their sale price on roughly a 7% yeild.

The thing to do would be to compare rents for other shops in the same area. At a guess, I’d say it would be at least double if not more.

Based on that, when the lease runs out, it may be possible to approach the current tenant about charging market rates or get in a new tenant who will pay the higher rents.

Translates into instant capital gain.

But.. I haven’t seen the premises, so it’s all speculation.

If I get a chance, I’ll go have a look for you.

Gordon

Invest in People for a Prosperous Future!

Hi Arty,

leased at $375 per…?
I’ll assume week not month.

If that’s Bayswater VIC, then it’s only 5 minutes from where I work.

Gordon

Invest in People for a Prosperous Future!

Spacious open plan living. Ample car parking area underneath. Solar heating for those cold winter nights. Small deck area for hosting BBQ’s. Magnificent 360 degree views. Excellent television reception.

Would suit first home buyer with an interest in mountaineering.

Gordon

Invest in People for a Prosperous Future!

Hi Dave,

Code Word “Banana”

You’ve got mail []

Becky&Gordon

Invest in People for a Prosperous Future!

Hi Maggie,

You can order the book on this website.

I think you go to the Home page and there will be a link.

I am half way through the book and am loving it! []

Happy Reading
Becky

Invest in People for a Prosperous Future!

Maggie,

Even though you are both in a higher tax bracket, don’t let this stop you from increasing you property portfolio as you can decrease you normal job slowly and then both of you can eventually stop work and become fulltime property investors and not be tied down to the typical JOB.

The only thing that negative gearing would do is keep you at work to pay for the properties.

In regards to having vacant properties in regional areas, you need to do your homework and visit the places you are considering, and talk to the real estates and locals, then you will get a feel for the environment and whether it is worth pursueing in that area.

Del, I’m hanging on, while everyone else has let go!! []

See ya later
Becky

Invest in People for a Prosperous Future!

Hi Guys,

I have been around this forum for a few months and I have learnt that their is more than one way to get started, you need some money to get started and it is preferable to have a permanant income when starting out, as the banks don’t like giving out Mortages without a steady income. I have learnt alot just looking around this website, if you look in the resources section you will find a wealth of information. The Fasttrack tape is excellent for beginners, I have purchased this one and found it to be a great starting point. Also try the search function at the top of the page to search for specific info this is very helpful.

Hope this helps
Have a great day []
Becky

Invest in People for a Prosperous Future!