Thanks Richard, I'll ask him. I just thought I'd do that in due time i.e. let's get the first deal done first (he's currently looking for the right loan for that).So what if I founded a company for "wrapping business" that acts as a trustee in which the wraps are kept. Would the lenders look upon  this constellation "more…[Read more]

Hm, sounds a bit complicated. I wonder what's the reason for this.So I take it, if the wrapee decides to cash me out before the 12 months and 10% of his contract price has been paid, the FHOG will not be payable, yes?Does that mean that if he decides to get out early he should be able to put in the 7k himself?Should I put a clause in the contract…[Read more]

Cool, thanks Richard.Would I impose if I asked you to have a look at the new threads about wraps which I posted this morning in the "Creative Investing" section?Cheers,Emil

Thanks Richard, helpful as always Ah, I seem to be getting it. I still do not understand why some lenders insist on ABN though. I mean it's just a number, you can just get it and not do anything with it for years right?And another one: do I NEED an ABN if I just "live off wraps"?Cheers,Emil

Thanks Richard .I'm now PAYG but at some point I might become self employed (I hope to be able to replace my income with income from wraps/lease options).So, if I just applied for one today, would that have any (negative) ramifications for me? I just want an earlier (ABN) start.Cheers,Emil

Hey Terry,Thanks for the answer.I'm currently looking at the possibility to get a personal loan to cover the deposit. I'm currently in the process of creating wrap scenarios which I'll discuss with my mortgage broker. I'll then see what finance options I have available. By the end of next week I'll have applied hopefully. In any case, that 2nd…[Read more]

Hi Xenia,Thanks for clarifying.So the vendor can take out a second mortgage on a title that is not on his name but on mine? How does that work? How much more interest do they pay for that?What is usual in these cases, do I just cover the vendor's second mortgage payments? How do they make sure that I pay regularly?Cheers,Emil

Hey Kelly,Thanks for the confirmation. Have you or do you know anybody who has done this successfully?One question I still have (i.e. the vendor will have it): What happens if I as the buyer default? I mean the bank is the first to get their money and then, the vendor gets his from what's left? What if I go bankrupt? (of course I don't intend to…[Read more]

Oops, perhaps I should clarify.I'd like to buy with this approach and then sell to wrapee. But forget the selling for now. Let's concentrate on me being the buyer of a property. I want to buy it with no money down.So from what I hear, what I described seems to be possible i.e. the vendor does a "deposit vendor financing" on me for the 20%. He…[Read more]

Thanks again Paul .Cheers,Emil

Hey Paul,Thank you, you have been most helpful.I'm thinking of getting Rick Otton's wrap pack for starters. Other than that, it's hard to find any decent literature on the subject. Of course I've read Steve McKnight and Craig Turnbull but, at least in the books, they only scratch the surface. What other source of info would you…[Read more]

Hey Richard, thanks for the answer.What do you mean with "managed properly"? What is there to manage when a house is sold to a wrapee, I thought he takes care of everything from then on e.g. rates & maintenance? I'd just have to take care of insurance, right?The big unknown for me is the process of reposession. I hardly believe that goes smoothly.…[Read more]

Hi Paul,Thank you very much for your comments .You say 300$ per month? How much interest do you charge the wrapee over the interest you are paying? From what I hear 2% is ok. So for a house that cost me 280k@7.5% interest which I sell for 300k@9.5% (both P&I@25 years) that gives me: 2069$ vs. 2621$ equaling 552$ per month positive. Say the wrapee…[Read more]

Hi Fidel,
I’m just a beginner but here is what I’d do (I think 30% deposit is too much):
Situation 1: not enough equity, enough cashflow:
– either wait for equity to build up (maybe 6 months and then revalue)
– or add value by small and cheap renovations paid for with your salary and revalue then (paint etc.)
– or get a 95% loan (sure with…[Read more]

Thank you both for your comments.
Yes, it would be a small room (2.30×2.30m), but enough for a single bed & desk (or a small wardrobe) I think.

The only problem I have (besides getting a reliable tradesman) is that if I make it a room, where will the people eat i.e. there will be no dining area then. (I personally don’t care because we are…[Read more]

Hi Debbie,
Thanks for sharing this info. So could you tell me the difference (in $$ or percentage) between what increase in value I could expect when adding a 4th bedroom or adding a study? How “valuable” is a study?

Cheers,
Emil

Hmm… I myself wouldn’t use the dining area and I won’t miss it. It just sits there, an unused space. And because I’m also planning to add a pergola which would serve as an outdoor dining/whatever area it should be fine, I think.

Another option I considered is to remove the walls of the current dining area completely and thus increase the size…[Read more]

Cool thanks. I don’t intend to sell. I’m just interested in what the valuer would say. My wife and I personally don’t need that extra room. I’m doing it just because it seems to be an easy/cheap job but it would add good value.

My intention is to move out in a year or two and rent it out anyway.

So, is there somebody in Brissie who can recommend…[Read more]

Hi Julie,
Thanks for the quick answer.

All other bedrooms have built-ins. But if I added one to the 4th bedroom/study, it would become too small. Now one can easily put a single bed and a desk there.

So, am I right that calling it a “bedroom” would make the house more valuable (“4brm house” then) compared to calling it a “3brm+study”? Is it…[Read more]