Forum Replies Created
G’day Peter and Benny…
Another issue is that the lease back is with
another company…probably with a $2 paid up capital.One of the major baks are uncomfortable and giving Benny the run around, which means they will pull the pin on the deal.
Personally I would walk away and wait for a buyers market… the price is also inflated to guarantee rents …i dont like it…why not just a personal guarantee…they are hiding behind a company without assets to provide a guarantee….and probably not worth the paper it’s written on…
Benny, Please consider my suggestion offered to you last night… an investment of $200,000-$500,000 with a fully secured first mortgage at 15% pa guaranteed. This is vauable to you going into retirement. When appropriate after the Real Estate fall out maybe joint venture deals at bargain prices…in the meantime 15% in your pocket.
Lets meet..
Bill
Cheers
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Guys…
Is it just my observation…but the good Q’s & answers seem to come about 3:00am
BillBill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Peter…
I’m sure Mel will be as pleased as I am to hear the good news. Westpac Mgr helpful too.. most people are Peter…it’s just the Ba*****sthey have to work for is the problem.
I am interested to know if you went along with them and what sort of deal they gave your Mum & Dad?
I commend you for helping them out with bills etc’after all that’s what family is all about.
Also appreteciated your thank you.
Let us know the arrangements they offered as it may help me with future questions ont he Forum.
What’s your biz Peter?
Cheers and wish you and your Mum & Dad well
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]Hey Huey…
You from Vietnam?
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Jenny…
In many ways I feel happy for you that you fully understand the MCP. What you have described is my original Mortgage Control Program of November 1993.
I arranged for a computer guy to set up the program with my input. Originally the Advance Bank was sceptical but within a year referred their customers to me…Fantastic!
Then their Head Office stopped it from continuing.
The State Bank was the first to copy my Proram, then MLC followed by Citibank…after all the biz I gave Citibank I was pretty p****d off I can tell you.For 10 years I have watched the program do the rounds and my Irish mate “Seamus” has taken it to London. Working like a dream for him. Only recently, an Irish Bank has made LOC available and he is cleaning up in his home town.He has no opposition as yet in Ireland.
So now you can say you know who started the Mortgage Reduction Programs in Aussie, London and Ireland. Shoulda been paid Millions for it[
!]
Yeah I know it’s old hat now… but in 1993/94/95
it was a gold mine and my clients mortgages went in 4-8 years.Good luck with it Jenny
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Paul…
He no doubt did just as I had to when I started out in 1971.
Creative finance. That is I did not borrow more than the loan could be serviced by the rents. The balance I got the vendor to leave in on an unregistered 2nd mortgage…and that was 3 units.
Within 6 months I purchased a 1/3 share in 42 units at $550k(1972 dollars) plus costs… no money down. We had 90 days to resell as individual units to prove to the Bank that we were a safe bet…we sold and settled in 60 days… the rest is history.
Steve would have found it tough on the first few deals… but keeping promises and acting with integrity you can do it too.
I would NOT start today, but wait for this market to come off the boil…be patient…you may need to weait 1-3 years.
Cheers
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]Hi Mini…
Are you sure that you didn’t misunderstand what I was trying to say…
Extract from my post…
“I am merely suggesting that if you are overgeared today then sell now. If you wish to invest, common sense says to wait….when ???…no crystal ball just not today.
If your strategy is to Buy and hold and you can handle 8%+ then I agree that you retain. But if you wish to add to your portfolio I think that sitting on the sidelines will prove to be profitable…as you make your profit when/where you Buy.
So I don’t think that we disagree at all do we ?
Cheers
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Dino…
Thanks for the article appreciated you sharing it.
“This suggests inexperienced investors are still being drawn to the increasingly risky housing investment market.” I wonder why?
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]Hi Jessica…
Hope this helps…
“What this Power is, I cannot say. All I know is that it exists… and it becomes available only when you are in that state of mind in which you know exactly what you want…and are fully determined not to quit until you get it “
Alexander Graham Bell ( 1847 – 1922 )
Cheers
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Benny…
$14,000 gross return on $80,000 pp = 17.5% Gross.
Based on the figures you have been given please make sure of the following:
1)Evidence of the $14,000pa
2)The title ?.. as it sounds like you could be buying into nothing more than a “hotel room”.
3) Can you arrange your own Prop. Mgr. If not be extra careful…ask Alf in Adelaide his experience
4) With a 17.5% gross return it sounds like you could be buying a business rather than Real Estate and if so, then $80k is far too much..you would want a return of at least 30%.
Benny…it sounds to me that it is either the equivelant of a hotel room or really a business…if so…it is not Real Estate that you are looking at…just made to sound/look like it is.
If you are ever offered a return like 17%…it will NOT have any Capital Gain… Be careful
Cheers
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Mel, Huey,Pl and Paul…
LuckyPhil has a “hostie” on just about every flight into Canberra. So,if any Canberra arrival has ever been delayed, take my word for it…LuckyPhil has had to arrange for that to happen.
On numerous occaisons, I assure you, that he has been known to divert a Melbourne flight so that the inbound Sydney hostess doesn’t get to meet the Melbourne hostie.
If you knew LuckyPhil as well as I do, you would not fly Qantas. Because you never really know when you may be diverted “due to technical difficulties”.
What that really means is that LuckyPhil has just
preferred the hostie on another incomming flight.Trust me…I know him
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Guys…
Bloody hell Simon…that scale of costs is so difficult to go thru …It must have been designed by a Public Servant on overtime.
cheers
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Falcon…
Huey is right… but No1 is your best bet.
If you have an offset account with your mortgage “park” your money and savings there.
Saving 6%+ on your mortgage is as good as earning about 10% before tax. A better option is to get the Bank to include a Line of credit as part of your martgage… like a sub-account: Park your money in the LOC and only use it for investment down the track….add toas often as you like and save 6%+ on your main mortgage account.
Cheers
BillBill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Karl….
Please take Simon up on his offer and call him.
I was about to respond to you, but better that you speak with Simon. I am sure we would both tell you the same thing mate.
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Sala…
Facts if I understand you correctly:
You own the IP, Debt was $64,000 and you borrowed $63,000 against this to purchace the house in joint names?
As you paid $400 + costs and will have more costs in a resale the Matrimonial Home is a line ball situation…No profit/No loss.
I think any reasonable person would consider that you are entitled to have your $63,000 back from the sale of the family home. But, by the time you pay the Bank out and Selling costs + legal fees you will get Bugger all from the resale.
Mark up on Jewellery is at least 400%…so it’s resale value is probably 20% of what you paid…so unless you’re talking of $100k+ forget the trinkets.
You must keep up with the payments on the Family home…you will pay for it with a blemish on your CRA if you don’t. Go and tell the Bank where you’re at…but don’t miss any payments.
That leaves the IP…You have got it…She’s gotta get it. How about a Counter claim ..match her $100k plus the $63k equity of your IP that was used…$163,000 all up. She could come back at you and want 50% of the $63k , but if she does
that is 33% of her current claim. Get your Solicitor to spell it out to hers and the advice should be ” Be reasonable girl or you’ll get nothing”Best of luck
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Westan…
My reference to selling in early ’94 to August’94 was perfect timing for the Canberra Market. Many times since 1970 the Real Estate Mkt. in Canberra was running it’s own race.
Be assured that the market in ’94 crashed in September as the number of rental columns in Canberra times ran up from 18 to 44. It was no soft landing. $280k in ’94 to couldn’t be sold at $210 in ’96 yet today $450…. maybe $360 in 2004?
I am merely suggesting that if you are overgeared today then sell now. If you wish to invest, common sense says to wait….when ???…no crystal ball just not today.
If your strategy is to Buy and hold and you can handle 8%+ then I agree that you retain. But if you wish to add to your portfolio I think that sitting on the sidelines will prove to be profitable…as you make your profit when/where you Buy.
See you, in maybe late 2005? What do you think?
Cheers
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’ay Truska…
Well done!
Have you also done a multiplyer for 7%-9%?
What about 15,20 and 25 years?Be interested if you have…if not a little job for you.
Thanks
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]Hi Leigh & Peter…
Apologies if not clear.
Simply this…
As those perhaps trying to sell, and can’t get the price the want…decide to rent out the property instead. As more and more do the same they add to the growing Rentals… they don’t like what the agent is telling them, fewer buyer inspections etc. so they list their property for rent and withdraw it from sale. Worse, some try and do both at the same time.
I researched a couple of areas using this method..namely Campbell, in the ACT and Cowra.
To do it effectivley, get the past 3 months of Saturdays papers and talk with Agents. You may find as I did, that those two areas now have “For Sale” signs removed and “For Lease” instead.
They are vendors that can’t get the price they were dreaming of… and try to rent the property instead.Just prior to a peak in Canberra, August 1994
the number of Rental columns grew from 18 to 44.
From then on it was downhill…prices fell 25% over a relatively short period. Some units, and the bottom end of the market fell nearly 50% and towns within an hour or two suffered the same fate.It may not be happening in your chosen area as yet, but I wouldn’t mind betting that if you do your sums (means the same thing Leigh) you may very well sit on the sidelines and wait, as a buyer…or sell before the crowd does if you are highly geared, unsure plans,or getting that “gut feeling”…then yes, it’s time to leave the party.
Nobody is going to “ring a bell” for you, so you must find your own early warning device…. mine has been ringing loud and clear for the past 3 to 4 months.
Cheers…
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Phil…
I realise that mortgage payments are made with after tax dollars….however consider 3 things:
1) Forced savings…bit like your super.
2) A Roof over your head
3) Tax free CG….over time.
4) Yeah, Im Irish, just another thought… You have security of tenure, and renting ain’t much fun, ask around.
(5) Can’t count either…Finance your investment RR another way with OPM. You contribute your skills in exchange for equity.
That’s my 2 Bobs worth.
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]G’day Alf,Luckyphil,Mel,Cashking and Kay…
I agree with Cashking re a 20/25% fall across the board. Perhaps with the exception of Blue Ribbon Waterfront. Some areas, Regional/Country towns may very well fall much more.
However, Alf and Phil…Do not sell your family home….cost of buying/selling again is my reason.And it IS your home…not an investment. Of course over a number of years it will prove to have be more than a roof over your head.
But Alf…when you have an investment that only increased in value by 15% in a Big Boom, what in hell is it going to do in a property slump/slide? That’s why I have no hesitation in suggesting in the strongest of terms to Sell Now.
Compare it’s pitifull increase with the huge gain in your own home.A loss is a loss even on paper if you hold. I am not emotionally involved in your Investment Alf…that’s why the solution is as clear as day.
If you divide the 15% by the time held…it is a liability Not an anvestment. By the way did the MCP arrive okay?An example is in the share market…traders live in hope that the market will “work itself out”.
A little while later they then see what should have been obvious weeks/months earlier..EMOTIONS cloud our judgement. It will increase in value, but NOT ast 7%pa..it’s already proved that Alf, but the other opportunities that will surface in time make that investment an easy descission…….when it’s not my property.Cheers
Bill….without emotion
ps.LuckyPhil…to avoid CG you must live/retain home for 12 months and a day. But don’t sell nyway.Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]
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