Offset accounts might be worth looking into. Money placed in this account will reduce the amount of interest on your loan and you can withdraw the funds as you wish. I did some calculations for my dad and he needed to have $7,000 kept in this account to break even with the fees charged by the bank.

Hi Craig,

Yes! Definitely still interested! :)

Do you have the program available?

Regards,

David

Just something that came to mind…

Why not ask the real estate agents around that area?

They’d probably know your target demographic a lot better, and can advise on what’s sought after, and what will give you the biggest bang for your buck…

Hey guys,

Just want to let you know I’ve managed to get a copy of the Siacci System.

Thanks Shane! :)

David

Hi ProperMental,

I am looking into using the Renovation Strategy as well, and from what I’ve learned, you want to focus primarily on ‘Cosmetic Renovation’ to add more perceived value than costs. The following URL might give you some ideas:

http://www.handyman.net.au/renovate-profit-10-easy-steps

I’m not an expert in this area but would be happy…[Read more]

@Corey Batt: Yup it works now, but I’m not sure how this relates to borrowing under a trust structure and going as guarantor. All this talks about is that you can increase your borrowing capacity by using different lenders. One of the graph is also confusing – says lender 1 $400,000 debt but the graph shows $800,000.

@Jaxon: Thanks for the valuable input. I’m going to learn more about Vendor Financing Strategy, and see if I can use this to access properties for Renovation to build up equity more quickly.

@Corey Batt: Are you still able to increase your borrowing capacity by structuring your portfolio this way? P.S. I can’t access that link you provided…[Read more]

Hi David,

I’m not sure about your current situation and how involved you want to be with your SMSF, but back when I had limited funds available in 2013 I found that eSuperfund was amongst the most competitive in price and offered exactly what I wanted.

https://www.esuperfund.com.au/home

Although it can be time consuming to go through their…[Read more]

@Terryw: Thanks for the clarification. I just didn’t understand how an entity could borrow money without proving any source of income.

@Jaxon: My goal is to make +$500 positive cashflow per week, and I’m thinking maybe this could be achieved by finding 10 properties yield $50 positive cash flow per week. Maybe renovate and increase the rent? I’m…[Read more]

https://www.propertyinvesting.com/topic/5031860-trust-strategies-to-increase-borrowing-capacity/

Great information there Terryw, but I’m still trying to get my head around how this works…

Let’s say you’d like to own 9 positive cashflow properties but the banks would only loan you money for 3 properties

You could get around this by setting up…[Read more]

Hey Jaxon,

Thanks for your kind words and sharing your words of wisdoms…

Those numbers definitely look quite enticing :)

I’ll probably need to work on educating myself first with Renovations, and probably start a project closer to home

Warm Regards,

David

So let’s say the SMSF has $80,000 and the member has $80,000, and the property is $250,000 and cost of renovation $25,000 – How would you structure the Joint Venture so that it doesn’t breach and sis act? Would either the SMSF, member or both be able to obtain loan of $165,000?

@Terryw: I’m not really sure – that’s why I wanted to learn more about the Sciacci System, and how their strategies can be implemented for renovations… Maybe this is more like an Option to Buy the property for e.g. $300,000, whereby you have early access to the property for the renovation, and then you onsell that option for $400,000? I don’t…[Read more]

If you were to purchase a $300,000 property in Victoria under your name, wouldn’t you need to pay around $13,000 Stamp Duty?

I was under the impression that with the Siacci System, because you never transfer the property under your name, you don’t need to pay stamp duty i.e. it would be the buyer of the renovated property that would pay.

What if you focus on just simple cosmetic renovations such as painting, changing the carpets, landscaping, which aren’t as risky and costly as structural renovations, but also hire out professionals in their trades that know what they are doing, and take out additional insurance for peace of mind? Maybe even offer to split the Stamp Duty Savings?

Hi Terryw,

In the July 2012 iClub Video series at approximately 20 minutes, David and Karen Siacci mention that you don’t need to go to the bank to purchase a property for Renovation.

https://www.youtube.com/watch?v=Om4knEBO7YE

They state that you can come to an agreement with the Vendor for a fixed price, have early access to the property for…[Read more]