There are some lenders that actually lend with full knowledge about wraps, both here and NZ. Other lenders take the attitude that the borrower can do anything he likes as long as he/she pays the mortgage. So due to the fact some lenders allowing the wrap with full disclosure, it is NOT illegal in Aust (in SA you don’t do wraps, but rather LO) or…[Read more]

The structure most people use is to have a trust, with a corporate trustee (a company that acts as a trustee).

That puts an extra barrier to people wanting to sue you.

Rgds.
Lucifer_au

I would pay off the credit cards, as they effect your ability for getting new loans, as well as having to pay a much higher int. rate.

Then buy more properties…..

Rgds.
Lucifer_au

They lost the game as soon as bidding stoped around $1.5Mil and they said is “what do we do now?”, they didn’t even have a plan if X or y happend – their only plan was that it would reach over their reserve of $1.6Mil, and when that didn’t happen they lost the game.

They had no game plan, and they were totally at the mercy of the RE agents (who…[Read more]

Apparently banks lend money too!!!

Different horses for different courses…

Rgds.
Lucifer_au

Allot of investors use trusts (and have a company as a benficiary).

Rgds.
Lucifer_au

Quicken is very good for wraps.

Quicken is easy to use, and usually accountants have it.

Rgds.
Lucifer_au

Banks go on either valuation or contract, which ever is lower. And because the owner is giving back 10%, the bank assumes that this 10% is takn off the contract price for lending.

You could always go back with a normal contract, with a side note (which of course is not inc. in the contract as it’s an entirely seperate issue). Of course you should…[Read more]

You can go fixed, as there may be rate rises in the future, but it’s getting hard to predict (high $A keeping inflation down, etc). Alternatively you can boost your cashflow with I/O loans.

Rgds.
Lucifer_au

To really think that everyone could own 130 properties is a fools paradise. Nearly everyone could buy 130 properties, but most people don’t want too, just as most people don’t want to be independently wealthy….

>”Also the government is about to review the Depreciation on investment property. That will blow up investing for good in…[Read more]

Perhaps you could borrow some equity sitting in your other places and buy more investment properties (perhaps start looking at commercial since you have so much equity avalible to you).

Rgds.
Lucifer_au

***Warning – Long Post***

Why should tertiary education be free? – please no tree hugging hippie ideals, a solid logical argument for it. I see no reason for it to be free, or for students not to pay some amount towards it.

>It’s NOT free, there is something called HECS and something like 97% of all students pay it off. What allot of anguish…[Read more]

CastleDreamer, while not either MiniMogul or Westan (and yes Queenstown is nice!), I’ll have a crack at the Q [], there are basically four ways: cash, equity, credit (personal loans/ credit cards/ LOC) or investors/family/friend monies/equity/credit.

Right now I’m using a LOC (though more like a credit card – 17% interest, but no security, so…[Read more]

Craig banks dislike lending on residential purley on the figures, until you either have a huge amount of properties (say like Steve McKnight has), or you have alot of equity (like a coupme of million)/large scale developments/cash. There are ways around (i.e. company in another spose name that employes you , 20%+ deposit, etc).

That being said…[Read more]

Anything that can increase the rent also (even with residential I have seen banks willing to lend more). Dolf De Roos example with the carport is excellent one.

And as people have said, renovations. Everything from a new coat of paint for one, two or all rooms, new kitchen appliances (stove/oven) to a new Kitchen, Updated bathroom (whak one of…[Read more]

***Warning – Long Post***

“In your Economics 101 textbook you will see that deficit has its economic place (e.g. to stimulate and economy) – contrary to the Costello line that it is the root of all evil. It’s just that right now, we don’t need the stimulus and people swallow the “Defecit = Bad; Surplus = Good” line that the Coalition use because…[Read more]

Well it depends on how much you tell the banks….

As for being illegal – No. But it is illegal not to honestly answer any questions on the mortgage documents, but if they don’t ask – why tell them????

If wraps actually becomme illegal through GOV legislation (rather than what others think is illegal) – lease options are a great way to go.…[Read more]

“Hi Derek, Can you tell me why you would ‘run away fast’ if there is a rental guarantee? Is this because they have basically built the rent intothe purchase price or insurance cost?? Just wondering.”

Most of the time it is, Mirvac for example gurantees to pay rent for 1 yr. The problem is that is indeed built into the price (One of my mates was a…[Read more]

Q: Are the books Mortgage Magic, Dolf on Property, and Surprising Lessons in Real Estate available?
A: Mortgage Magic, Dolf on Property, and Surprising Lessons in Real Estate are currently in production with a scheduled release date of mid 2004. Once available, we will send an email with all the details to everyone on our mailing list.

(It hasn’t…[Read more]

As crj says “Different strategies suit different people”, so only you can say if you are doing the right thing or not.

My only caution would be, that you can meet the costs of owning a negatively geared property (Please add income protection to that as well), and what is the intention?? To sell off?? Or to pay down the loan???

Just a few…[Read more]