Forum Replies Created
“Just as i thought………..no takers eh? Plenty of hot air though!”
Ever herd of going to a different state??????
Or looking a bit harder?????
Just becaue you can’t find the deals, dosen’t mean there not there.
You might have to even change strategies.
So sorry not everyone rushed to your post but many of us have better things to do.
Rgds.
Lucifer_auUsually with wraps we try to go for payments near the current rentals and yours is double + more, so this is the problem your facing. Perhaps reduce monthly and increase price of house, to try and get the monthly down a bit.
People see rent money as dead money, but they look at this kind of deal and they say – it’s much cheaper to rent… even if we are paying dead money… An thats what your up aginst.
Otherwise more advertising! I assume you have ot those big FOR SALE bandit signs up? Also add signs to telegraph posts (those with the pull of paper), and of ciourse you can always arrange a letter box drop, which can be quite inexpensive (arrange it with the local paperboy).
So basically drop monthly down and/or advertise more.
Rgds.
Lucifer_auHeres some info:
http://propertyinvesting.com/strategies/wraps.htmlAsk if you need any more details [
]:Rgds.
Lucifer_auCommercial property requires 30% down as banks will only lend on 70%. Also with the market slackening off a bit, you PPOR (Prinicpal Place of Residence) might not be valued as high as you need/like, therefor I would make sure I could redraw the $10K any time you needed it. Although banks like to revalue in 6 months blocks, if have seen them revalue in Syd, in 3 month blocks (during the RE boom).
Rgds.
Lucifer_auSnooze – found out that you can’t live on negative gearing?? Well unfortunately it’s true. As it has been said – How many negative geared IP can U afford?? 1, 2 or 3, Max?? How many positive geared properties can U afford?? As many as you can get!
Steve’s techniques are quite universal, and many other people teach similar concepts, some in more depth (as Steve’s book was more an overview – but still an excellent one. Education is one of the mosyt important things when it comes to investing, so read as much as you can.
Rgds.
Lucifer_auNSW – New tax taking massive chunk out of yields, higher unit vacancies, harder to get finance for certain property types, massive increases in price recently and market seems to be softening.
As for Wraps being illegal in WA – B.S. They are not illegal all you need to get is UCCC license and you can wrap. As it says in their media release: “Consumers considering providing finance through a mortgage wrapping arrangement should be aware that it is illegal in Western Australia without the appropriate license”. The bit about the appropriate license is the key point here. Or simply do a LO and no need to even get a UCCC licencse – easy.
Just a quick note the cost to get a UCCC License is $239. If you can’t pay this, then you pobably shouldn’t be doing wraps in the first place!
Rgds.
Lucifer_auDepends on the size of the room compared to the rest of the house. Find out what % it accounts for and use that for your tax purposes.
You may also have to draw up a floor plan to show the ATO.
Rgds.
Lucifer_auWell think of this way – it applies to homes under $400K and where can you get those in Syd??? No where.
But what about other types of housing?? Like units??? And who are Bob Carrs largest donators (to the state labour party)?? Why unit developers are… Fancy that – Now that is a surprise! And such a coincidence too!!
Or perhaps not…. Perhaps Bob Carr knows that unit prices will fall, but by keeping at the sub $400K level he ensures that when developers release new units they now have a new market, who now can afford to buy this type (and only this type) of housing…
Somehow I think it is the 2nd. We really should give him more credit, now only if he had the interest of NSW ahead of his own political ambitions….
Rgds.
Lucifer_auOn your website a_workaholic – $84,500, @ $150 per week (first one on “investors” section..).
After running Steves 11 second rule the property is basically a negativly geared property… In fact none of them meet the 11 second rule.
So please stop advertising the site, as simply it dosen’t come up to scratch for what most investors on this forum want (cf+ deals). If you have something meaningful to add please do so (this topic is on getting finance in NZ and you have provided no information whatsoever). All I can see is blatant advertising, which is not helpful.
Also please don’t spam my PM. Thankyou.
Rgds.
Lucifer_auBecause the sellers would expect to see them in that. They don’t want to see a guy in footy shorts selling th property, they want to see someone in a suit. Also it makes them look more professional (and perhaps physiologically, make them seem more knowledgeable).
Rgds.
Lucifer_auWell it depends – are you onselling them? If you are not (your using for business just keep the reciept and add it to your business expenses (if you have a company).
I’m am unsure about what records have to be kept if onselling (sales dockets, reciepts, etc – but this could be very time consuming; eps. if a hobby).
Rgds.
Lucifer_auTerryw:
Anubus
What if your were at fault and the insurance didn’t cover you. eg you may have done some electrical repairs without being a licenced electrician – and the tenant is electricuted. Or any of a number of possiblities.
TerrywAnubus:
If you do that you deserve to be sued and lose.
As for insurance companies going broke – the exception not the rule.
Ins Co. not paying – check the policy first.
My reply:
If you are sued for any number of reasons (but in this example not something to do with property), you could lose it ALL. It dosen’t matter if you have insurance or not, as you cannot cover every eventuality know to man. So lets just say, you go to a pub and drop a beer glass on to someones foot, unfortantly for you, that person is a ‘foot and hand’ model who relies on her hands and feet to make income, in fact she does very well out of it, but now she can’t, so she sues you, you lose and she gets to take a house from you, or perhaps two or three! Don’t worry though.. thats a real life example I gave, so it can’t possibly happen to you…Also insurance companies tend not too like paying out… So if they (not you or anyone else, but them) don’t think you have followed the rules, you aren’t protected.
Using Terryw example say if you need some electrical repairs done, and you ring up an electrican (but he has recently had his licence terminated, but lies to you, saying he does indeed have it), the insurance company will quite happily pay it out and then demand you pay them, since you used an unqualified electrican. You sue the guy, but he has no assets, so you can’t pay back the money. You lose ALL your assets – every single one – Period. So much for insurance, but hay check the insurance policy again, maybe they have a clause that protects you but not them, or perhaps they like dislike trying to recover money they have paid out….
So right now, you are basically entirely ‘naked’ or totally unprotected. Thats a great risk minimisation strategy….
Next time make sure you know your stuff, because you need to do a lot more learning on this topic, because the advice you have given out while better than absoultely nothing could be extremly dangerous.
Rgds.
Lucifer_auSo you’ve got 75% of customers happy with their broker, and less than 5% of complaints are about costs…
“It’s easy to use those words when we don’t like what we read.”
What don’t I like about this article??? The fact that most people are happy?? The government wants to intervene?? Most complaints aren’t even on this problem???
Yet why write an article about this, if most complaints are not even focused on this area??? Why not write an article on the major reason for complaints?? O’h cause it is easier too… As I said before – Media Beat Up.
“But then again, I have never received an overseas trip!”
Become a loan Nazi – ‘No more loans for Your bank!!!!” You could get one then.. perhaps… Heres hoping ;->.
Rgds.
Lucifer_auWhatever the lower of the two, so for example you might buy a property for $200K, but it s worth $230K. The banks will only lend on the $200K (and vice versa). Mortgage insurance only applies to how much you are borrowing not how much spare equity is in the property (so if you borrow over 90% you will be paying mortgage insurance, even if you have $30K in equity – it is irrelevant to Mortgage insurers).
Rgds.
Lucifer_auWhat about development opportunities?? Find out how much development the council will allow, just another way…
Rgds.
Lucifer_auBasically what Chan$ said – another example would be a commercial store front with a large car park out the back, add some self storage lock up garages on the unused section of land.
Converting a wharehouse to student accomidation.
Etc,
Rgds.
Lucifer_auYeah those brokers are sooo bad….
Hell, I got 97% lends on 5 houses through my broker… and of course they never deliver!!! Good luck getting that going through a normal banks process….
And of course the banks always give you the right info, just go here and see: http://propertyinvesting.com/forum/topic.asp?TOPIC_ID=9044
I would highly recommend you go to a mortgage broker, as almost 50% of all new loans that are taken are done through a mortgage broker. Also often you don’t have to pay an application fee, or you might get another discount. Find one who suits your goals, if they don’t – move on (also banks pay the mortgage brokers so don’t pay any ‘fees’ (unless they are actually from the bank – like loan application fees)).
Rgds.
Lucifer_auYou should go and see Anthony Cordato, if in Sydney. He gives you the contract and an hour of his valuble time. I highly recommend you see him.
His contact details are- Ph: 02 9290 2773; Address: Lvl 10, 16 barrack St, Syd, 2000.
I could post the contract but since this is a legal document that must be upheld in court, I suggest people don’t as one wrong clause could be extremly detramental.
Rgds.
Lucifer_auMY INITAL ADVICE IS THAT U STOP USING CAPSLOCK!!!
We need some more info, state (there are two Rockhamptons I know of…), as well as strategy (wrap/buy & hold, etc) and lastly prices and how you are going to buy a IP (deposit, equity, etc).
Rgds.
Lucifer_au“Say a 50k property with $120 rent. With interest, some repairs, landlord protection insurance, rates, and all the costs associated with borrowing (including valuation), QS report, property management costs, that would be around $10 profit a week- net.”
You sure??? You can also get I.O. loans, givng you some extra cash, this should come up to at least $35p/w profit as a bear minimum, , if you need repairs, get it revauled pull out equity and repair it (and still collect your $35- p/w…)..
Rgds.
Lucifer_au
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