Forum Replies Created
Hi Mel, I’ve recently been in contact with someone and are heading towards using a broker on my next deals.
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“Is it true the more you owe the more you grow until the bank steps in?”In regards to bills I find it easier to do as much direct debit as I can. This is basically because I’m o/s and not always able to access a computer to do internet banking. I also try to do scheduled transfers of money to various accounts from one main account so that I always know there is something going in and not everything going out. I can’t remember where I saw and I don’t use it myself, but there is a service that you can use to link all your accounts from different institutions and can see all the balances at once.
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“Is it true the more you owe the more you grow until the bank steps in?”Hi Sala55. Depending on how hard you want to play there are other options. I don’t know how far through the proceedings you are but remember she owes half of what you owe also. You have equity then reduce the equity. You need to juggle some figures to show that the only option is to maybe sell everything and both receive a small return or better both having to owe money (this is a paper scenario and can be tricky to do). Give her 3 options (1) take a smaller amount of money and you still keep the properties( they will increase later in value) (2) tell her she will owe money after selling everything (I’m sure she doesn’t want to owe money and having nothing to show). (3) tell her you will sell everything and you will share the proceeds 50/50 ( but make sure it’s a very little amount). Be carefully if she is vindictive, some people would rather sell everything and walk away with only 5K than see the other person have anything of value.
Is there anything stopping you from borrowing against the properties and reducing the equity and rediverting the funds elsewhere, so there untouchable?
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“Is it true the more you owe the more you grow until the bank steps in?”Hi Deborah. If you put a little more detail about what you exactly want to do, you will probably get a lot of good free advice here on the forum. Restructuring of finances is a little vague and needs more information, for example, refinancing of IP’s, buying shares or investing in other areas, trusts, taxes, etc.
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“Is it true the more you owe the more you grow until the bank steps in?”Hi F&B, If your dealing with lenders in some outer regional areas they do get transferred around. I think my lender has changed personel 4/5 times in the last 3.5 years, that I’m aware of. When I finally have everything sorted out I will post it on the forum. I think some people will find it interesting. It made me realise just how important it is to obtain good independant advice on anything you do in regards to investments. Even if you have confidence in your own abilities. There is always something you may have over looked or missed.
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“Is it true the more you owe the more you grow until the bank steps in?”Hi, Some PM do a good job and some don’t. As an O/s investor I need one. My last PM was a bit slack but a quick phone called to the previous PM same office and everything was sorted out. I think Erika’s idea of playing on the floor with the little one is better, than say handing over an eviction notice to a single mother with 2 kids and one on the way even if she is 6 months behind in rent.
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“Is it true the more you owe the more you grow until the bank steps in?”
Hi F&B, We meet again, so to speak. One of the problems I’m finding with doing this is if the personel at the lending institution changes. For example, I set up a situation with one person and when his replacement took over everything continued as before, then another replacement came and he disagrees with everything the last 2 have said and done and set up. Mean while you’re trying to buy more IP’s and stuck with a person who either doesn’t understand or doesn’t want to understand but plays a major role in your finances. I’m going to post the full details about what I’m talking about later and leaving it for the forumites to give their opinions.
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“Is it true the more you owe the more you grow until the bank steps in?”
Hi, It is possible to get 100% finance and more to cover all costs. This is done through using current equity and then using the same property as security for the IP’s. BUT be carefull. I did this and obtain 2 IP’s, although it suited the purpose at the time it doesn’t suit the purpose now. I got stuck with cross collaterisation of properties and when trying to negotiate to buy more IP’s the LVR of the current IP’s came into play. This saga continues but not here.
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“Is it true the more you owe the more you grow until the bank steps in?”
Hi Melbear, What are your approx costs of refinancing, and what would you do if the valuation is less than the previous one or still the same? Do you pay for the costs of refinancing or is that included in the new loan you take out?
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“Is it true the more you owe the more you grow until the bank steps in?”
Hi George,
I suggest you have a look at the number of bills that were past when GW was PM. I think you will find that you have probably received benefits from some of them. Also Australia is not the only country that has a single mothers/fathers pension. In regards to single mothers don’t sterotype them. Some of them have been abused, bashed or raped. Most of them try to do the best they can for their children. Have a look at the percentage of single mothers who are at uni trying to create a better life for their children and themselves.
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“Is it true that the more you owe the more you grow until the bank steps in?”
If I remember correctly Arty said Pinky is a witch so he would probably end up in a hot cauldron if he’s not too carefull. BTW, Arty is Pinky a black or white witch?
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“Is it true the more you owe the more you grow until the bank steps in?”
Are the almighty retirement question. Is that retire from the rat race, working or just from someone elses pay check and live on a passive income. If you retire and your doing property investment, then you still haven’t retired unless you have someone else doing the paperwork for you. As for me the dream was 32, but then a few years travelling around here and O/s plus getting married pushed it back about 13 years. The absolute dead line is 45 and that’s not too far away.
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“Is it true the more you owe the more you grow until the bank steps in?”
Hi NATS 12, I’ve just had 3 valuations done this week and I didn’t have to pay anything for them. They were all done with the lender who the present loans are with. 2 Valuations were about 15% under what the REA has said they would sell for 6 months ago and the other was 20% over. How they work out the valuations beats me.
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“Is it true the more you owe the more you grow until the bank steps in?”
Hi Everybody, One of my businesses in Japan and Korea is sending students to do homestays and we always have a shortage of good quality places to send students. As some people have mentioned having an overseas homestay student can be an excellent source of additional income. BUT please remember most of these homestay students want to be a member of the family and not seen as just additional income. Responsibility is a lot higher than just having a tenant. There can also be major language difficulties and cultural barriers. I check potential homestay families out very carefully and on average accept less than 15% of the people who are recommended to me. It is often said on this forum to make every situation a win win for everyone concerned and if you intend to have home stay students please remember this.
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“Is it true the more you owe the more you grow until the bank steps in?”
LHARDY, Time is always right for investing in property. It’s how you do it that matters.
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“Is it true that the more you owe the more you grow until the bank steps in?”
Hi F&B, There’s nothing wrong with your idea if that is the approach you want to take. It may not be the quickest way or save you the most tax or interest, but if you can manage it and do it then go for it. Your idea was what I was trying to do when all my friends were in the -gearing mode, when I first started investing. My goal was to acquire 6-10 props and have a passive income of 6-10K a month. I know this is probably a lot less than most people on this forum but it’s all the money I need to do what I like doing. With all the hype about + cash flow properties my goals started to change and I started to think about doubling and trippling this goal. Then my wife ask me do we really need to do all this? I’ve gone back to my original goal and when this is achieved, maybe I will find a new goal. ( a 20kg barramundie)
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“Is it true the more you owe the more you grow until the bank steps in?”
Hi LuckyPhil, thanks for the nice words. I’ve received a lot of advice and assistance from people on this forum and are trying to pay some of it back.
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“Is it true the more you owe the more you grow until the bank steps in?”
Hi Michael, An excellent post. My previous PM was excellent, but went on to bigger and better things (sales) same office. The new PM wasn’t performing up to scratch so a quick telephone call to the last one changed this. I followed this up with a call to the new PM and everything has been going excellently. What area of Melbourne does your wife cover?
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“Is it true the more you owe the more you grow until the bank steps in?”
Hi LuckyPhil, Yes, DHA will lease a property from you but it can be a long process. A friend of mind tried back in 92 and after 3 different assessments was finally knock back 14 months later, although another friend had his property accepted in 4 months. He then tried to resell 2Y’s later saying he had a DHA leased. They (DHA) didn’t take this too favorably and he had quite a few problems later on. I would like to know if there is anyone on this forum that has done.
Hi xyzzy, thanks for that info. I wasn’t aware of it, and it’s not my forte, but I’m sure it will help some others.
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“Is it true the more you owe the more you grow until the bank steps in?”
Hi Brent, I was back in D during July and spent 2 weeks catching up with friends and associates. Most of these people are in the upper echolon of P/Service. The US contingent is still on the cards. I’m not going to say the base is definitely coming but it is highly more likely than not. I believe the problem has to do with security arrangements at D /Airport and the port, although it is an international airport it is still a military base which a lot of people don’t realise. It is the only landing strip that can accommodate the shuttle in the southern hemisphere and Tindal is too far out from the port. Also the land around the hospital heading towards Leanyer is earmarked for DHA development. It would be interesting to see the proposed 2006-2010 defence budget earmarked for the NT. When I mentioned rural I was refering to areas the other side of Palmerston in Humpty Doo, Howard springs, Acacia and Berry springs. In the last 2Ys about 30 of my friends have moved out to these areas. At least a third of them have IP’s in Darwin suburbs. I also have a good rapport with a number of real estate agents in D and don’t get fed all the hype they generally dish out.
Finally, I can’t say for sure what will happen and what won’t happen and a lot of what I get told is hearsay, but this hearsay has generally been pretty acurate in the past. Like I have said before I hope D does take off as I have IP’s there, but I’m still checking out other areas.
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“Is it true the more you owe the more you grow until the bank steps in?”
