Hi Rob
Believe me, I know there’s always a way! Otherwise I would have given up a long time ago on my property journey, and wouldn’t be where I am today.
Sometimes it just costs a little more to move ahead, that’s all.
When you add together lousy tax returns, FT investor and FT student, it’s not a good look for full financial loans!!!
That’s…[Read more]

Hi Rob
Unfortunately my accountant did his job too well last year – nice refund, lousy returns for full doc loans….

Keep smiling
Felicity

Hmmm I had replied already but it seems to have disappeared into cyberspace!
Yes Brahms, I am well aware St George charge LMI, I just paid the premium! But they self insure, which avoids the problem I have with being maxed out with GE and PMI.
I plan to do a few more loans through St George and avoid La Trobe again for a while.
I have looked at…[Read more]

Hi Rob
The fees and charges aren’t “hidden”, they’re just phrased in such cute terms that unless you actually sit down with a calculator and work them out, you really don’t understand how much they’re going to cost you.
I must admit that first time around I also didn’t realise that BOTH early payment fees would apply either, it took 2 readings to…[Read more]

Originally posted by wayneL:
Some insurances are outright scams.

But in this outrageously litigious society, I wouldn’t be caught dead without public liability and/or professional indemnity insurance.

http://www.tradingforaliving.info

Hear hear!! You can usually work out the costs of replacing a house, or a car etc etc but you can NEVER have a…[Read more]

The thing I find frustrating is that these break fees are often “hidden” in garbled wording or unclear statements. Some loans (not fixed rate necessarily) also charge you an early repayment fee if you pay a slab of the principal off.
My favourite is Latrobe Home Loans, if you want seriously nasty break costs that are not easy to spot.
You have an…[Read more]

Quote:
Originally posted by calvin@thirty4:
Hi I’m new and wish I had your problem! To repeat what I have been told at a seminar, where the present too had this problem, he diversified the owners. As in, one for himself, one for his wife/partner, one for the family trust and one for the company he owns (or one for each of the companies he owns),…[Read more]

Hi Delboy
I wouldn’t draw the same conclusion at all! [blush2]
Your level of cashflow profit is dependant upon the difference between your loan (and repayment) and the wrap buyer’s loan (and repayment).
So it’s not the price range of the house you buy that matters, it’s how well you buy that house that makes all the difference.
As a very rough…[Read more]

delboy
I sell houses for as much as $360 a week in areas where rentals are $180 a week.
So yes, it works. Most people (in metropolitan areas, anyway!) accept that it costs more to buy than to rent.

Keep smiling
Felicity

Hey Jo
Interesting question!
Perhaps by jumping up the bidding and knocking this couple out of the race, you’d be doing them a favour. If they’re cringing at every increase in the bids, it suggests they’re already bidding above what they can afford.
If you let them buy the house, you may be sentencing them to a financial commitment they just can’t…[Read more]

My heart goes out to her poor husband, they were insperable for 55 years, and he’s totally bewildered. Poor man.

Keep smiling
Felicity

g7
You can wrap anything. Having said that, obviously you have a bigger pool of potential buyers when the repayment is lower.
But I’ve wrapped plenty of houses in the $150-200k range successfully, so a low price tag is not essential.

Keep smiling
Felicity

Yes, this is exactly like a wrap! The only difference would be that your mum may do things this way out of love for you, and as long as she’s not out of pocket, she’ll be happy. In a wrap the wrapper does have to make some money from the transaction!
One thing you need to work out (and this will depend on what state you’re in!) is whether you’re…[Read more]

Ken
Why do you need private insurance to have a baby?
I’ve had two on the public system (partially due to health issues) and I have no complaints at all.
Various friends have had them at private hospitals with private cover, and have been gobsmacked by the bills they still received, even after all those premiums.
Maybe it’s nice to have your own…[Read more]

Hi Camel
I would guess that they have a formula they use, very similar to the suggestion I made in my original post. Being a much larger company than an individual wrapper like me, their calculations would probably be based on a lower interest rate. However the flipside is you need a much larger deposit then the average wrapper would expect.…[Read more]

But Camel, what’s in it for the vendor???
If I have a house that I have financed $200,000 at 30 years, 7% interest, my weekly payment is over $300 a week.
why would I want to lose $107 a week?
Now if you wanted to buy it from me for $500,000, at $384 a week, there might be an incentive for me.

Keep smiling
Felicity

mrsimba2
What’s your definition of “relatively close” to the CBD? I would interpret that as within 10km, say, and I think you’re pushing the proverbial uphill.
Plus you need to think about WHY a suburb is cheap. Usually there’s a very good reason! That doesn’t always mean things don’t change, of course, but I would suggest that instead of…[Read more]

Hi Apprentice Investor
It’s all up to you! People have been successful with both strategies.

Keep smiling
Felicity

Hi Camel
I’m not sure what to recommend you use to search, but I do believe someone posted some information on a thread a while ago which talked about financiers who specifically work with religions that can’t pay interest.
Otherwise I’m sure you could work out something with vendor finance.
I’m trying to think it through (from the wrapper’s…[Read more]

With the incredible growth in property prices over recent years, I think positive cashflow properties are MUCH harder to find. Yes, they exist, but for most of us in the major capital cities, they are not likely to be right on our doorstep.
This means that an investor has to make a commitment of time and money to go and search out these…[Read more]