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I think where the cycle is in any investment deal is important, if i may quote several authors, you make your money when you buy not when you sell. Like all markets the property boom will bust (historically proven) and there will be people that will think like Hillary that they will clean up and buy out the market at any time (ie anywhere on the cycle). Good for her if she does but you have to make the numbers work like mitch says and you have to buy when supply is greater than demand i.e. at the bust period of the market. I believe the market will crash (some areas worse than other – inner city etc) and as for holding of well thats something you have to be comfortable with, that deal may be out there or could still be comming. Just remember noone can predict the future (including me – I may be wrong[8])
[8D] Hi everyone, just a quick idea[?],
sounds like we should get together for some beers and a general discussion on Perth property investing. Anyone interested and can think of a time or place, I will gladly come and share my views.Hi Robert,
I have done some research myself and my understanding is that you can live in the house for as little as 1 day on the basis you have made it your PRINCIPAL PLACE OF RESIDENCE. This is were it can get tricky because what do you call your principal place of residence. According to FHOG it is where all your bills are addressed to, your furniture, your personal affects and where u have resided. So there is not set time frame to reside at the dwelling, however I would also make sure that you have meet this commitment as there is nothing worse then having the money taken back off you again.
The reason why FHOG is open to different explanations is that every situation is different eg, you buy a house with a tenant with a lease agreement that still has 9months to run, you cant just kick them out and move in to meet the grant requirements, so they grant stipulates that as long as within 12 months of purchase you make it your principal residence.
Hope this helpsHi all,
I am also 22 in Perth just starting out and would love to be apart of this team/pool of collective people. my email is [email protected] if you would care to contact me. Take care allHi all,
I too am also in Perth and would like to talk with like minded people regarding wraps and property investing. Any discussions on any topic would be great.
I went to Ricks talk about 3 weeks ago and he mentioned that the way to get around a credit license is to include the interest in the selling price. ie if you onsell to the purchaser for 130k then add say 15k for interest so sell at 145k and dont charge them interest for the loan. So you still collect the interest and avoid getting a license. However if you are in this game for the long-term just get a license for around $250 and accept the waiting period. Also if you try the above, get your lawyer to look it over.Just like to say Hi Brett, you seem to be in a similar position as me, i.e. 22yr old, studying and in Perth. I too took a keen interest after reading Roberts books and also have been trying to get my hands on anything and everything that resembles wealth creation.
Anyway introductions aside the risk involved in wraps = profit, u take the risk u reap the profits. The way i look at it is that with a wrap if the wrapee defaults or goes bad, at the end of the deal u still own the house to either, rent, sell, live in or find a new wrapee. The only catch is make it full proof by your lawyer and get good tenants that wont wreck the place.Thanks everyone, I guess what I learnt was that the property dosn’t have to be next door it could be anywhere in the state or Australia as long as the price is low and attracts the right rent. Correct me if Im wrong, but is it immposible to have a property with capital growth and with positive cashflow or is there a trade-off between the 2?
Thanxs for your replies they have helped me broaden my horizons and live outside the square i live in!Thanks for the advice, I guess you got to get in there and go for it (as long as the numbers work). My next question is and I suppose what everyone wants to know is how do you find that deal. I have been looking and there are no places in Perth that you can buy for $55k, the cheapest I have ever seen was $85k and it wasn’t going to generate a positive cashflow. I always hear people saying the deals are out there you just have to look, where else can I look??
