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 favorably"?

Cheers,
Emil

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 .

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

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

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 takes out a second mortgage (from what I hear at a much higher interest rate) and I'm the one that pays it.

So I end up with a loan of 240k to my regular lender at regular interest rate and another one of 60k to the vendor with higher interest rate.

Then, if I sell the whole thing for about 320-330k at 2% higher interest rate that that I'm paying for the 240k I'd still be around 100-150$ pw ahead.

Cheers,
Emil

Hey Paul,

Hi Paul,

Thank you very much for your comments .

In any case, I'd be more interested in a long term commitment. My "strategy" would be to first replace my job income with income from wraps and then balance wraps vs. buy&holds.

My next question, does buying a house first work this way: you look for a house and sign a contract that allows you access to the house. During settlement you advertise and show the prop to buyers and ideally you let them sign the contract with you starting on the settlement day. Do you make the contract "subject to finding a buyer" or something similar?

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 outside most of the time). So, is the lack of dining area a big problem?

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 of the adjacent lounge/living room. But that would still leave me with a 3brm house…

What do you think?
Emil

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 really that easy?

Cheers,
Emil