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 been released yet).

Rgds.
Lucifer_au

I would hearlty recommend John Burleys book – it could literally save you thousands. While it dosen’t have that many “creative financing” techniques it will give you solid level 4. I cannot tell you how important it is to understand the steps as you could be doing very creative level 5 dealings but blow it all because you base is so poor (i.e. your base is level 4, where you take control of insurance, super, how to pay off all consumer debt inc. house in 5yrs, how to really take control of your own finances, etc).

If your wanting to get rich quick without real work (i.e. getting level 4 down pat) it won’t probably interest you…. If thats your plan all I can wish you is good luck. Otherwise it is a fantastic read.

I have never read any of Turnbull’s books, so I can’t really comment about them…

Rgds.
Lucifer_au

You also have to remember that Uni holidays last for about 3 months (Dec->March), so you will have to factor that in. Also perhaps reduce the rent a small amount and take a larger deposit to cover any damage.

Also why not buy another property around the area for $250K+ and do the same as the other people are currently doing. Also you can add great services (cable TV, Cable/DSL internet, etc whiuch can boost the rental return).

Rgds.
Lucifer_au

It seems tops! I calculated my COCr a bit higher (by hand), but certainly in the accetable range anyhow .

I think many people (esp. on dial-up!) would be turned off with the 23MB .NET D/L. Even on ADSL it was round 6mins (at a very high D/L speed…).

Also can you put in a capitlisation tick box (as I get all my loan costs where possible). This could add to a saleable difference…

Lastly my help file executor has become corrupt so I couldn’t look up (or figure out) your ‘Deductions’ section, with the ‘memory’ (1,2,3,4,5 boxs) section, but I guess with the help file all would be explained.

Rgds.
Lucifer_au

I can see it become one large spam topic – and if that dosen’t happen – can you imagine how many people will be using ‘spambots’ to advertise… well everything!.

Rgds.
Lucifer_au

Lucifer, it is my understanding that there isn’t mcuh difference these days between investment and owner occupier loans.

->There is if you want FHOG.

“Also, the bank should be more than happy to see written down anything about extra income to support the payments. It may help the loan across the line.”

->The Bank will want it to be put down as a IP loan, rathr than a normal housing loan, making it more diffiult to get FHOG. Also it’s harder for valuers to define a rental income from say just one room.

“Banks still do accept guarantors, but they will assess the income of the guarantors. Unless there is none, they probably will still let the deal across.”

-> According to my Mgt Broker they will accept it, but it won’t make a major difference in whether your loan gets accepted or not.

“Don’t forget the CGT ramifications. If the property is only in your sister’s name and she lives there initially then she can exempt any capital growth from tax. A 50:50 arrangement will expose half the gain to CGT.”

-> If you place it into a trust/company structure, your parents could buy the IP (i.e. the bank will look at their income) and your sister could pay the deposit, but she still keep the FHOG avalible. Shares could be given out to your sister, and a family RE empire could be born!

Rgds.
Lucifer_au

Banks want to see long term stable income, and so currently they wouldn’t lend to her (unless she went with a 20% or more deposit, and even then they might not lend the money req.).

Banks also don’t like going Garauntor mainly because if she stops paying they might be forced to liquidate the property holding of the garauntor (i.e. the home you live in), also there are certain legal issues banks don’t want to deal with if possible (usually they will accept it, but this will have no major bearing if bank finance is approved or not).

A possible way of doing it is to go 50/50 into a property deal, that way the bank will feel a lot more comfortable. You would also be able to start a trust with company trustee to stop your assets being involved in any personal lawsuits.

Or she could wait (while holding a job) for a month, banks would probably lend to her, without needing garauntors, if she had 3 payslips.

I would be making services of a mortgage broker for this kind of deal mainly because lack of a job and the short time if she is employed again.

So anyway, summing up 50/50, very large down deposit, or wait approx. 1-2 months get income from employment and then approach bank through a mortgage broker.

Also factor in repairs and higher vacancy rate than normal property.

Rgds.
Lucifer_au

A trust is an entity, just like a corporation (or company), as an entity it is seperate from you.

Usually a trust is used to avoid have to pay the full 30% CGT that companies have to pay (individuals & trusts only have to pay 15%). It is also used for asset protection, as if you are sued personally it can be much more difficult (almost impossible) to claim assets from your tust. Usually you hace a trust that holds the property and a company as the trustee.

A LOC, is a Line Of Credit. It is where a bank allows you to borrow at a ccomparible low interest rate (compared to credit cards, etc) from your property’s equity very quickly. You have to set it up with the bank before you can use it. As you can imagine you can quickly put a deposit on a property without having to save up.

Rgds.
Lucifer_au