Hi Bruce
Don’t take this explanation as all inclusive, I’m booked into Steve’s course in November.
How it works (roughly) is that you take some equity (say $100,000) and use it to purchase a cash bond. This may last say 5 years at 5% a year. So each year you get paid $20,000 of your capital back plus 5%. You can spread these payments monthly or…[Read more]

Hi Sooshie
You may like to talk to Michael Yardney at:
METROPOLE PROPERTIES
Suite 2, Caulfield Corporate Centre
875 Glenhuntly Rd Caulfield Victoria 3162
Telephone 03 9532 8889 Facsimile 03 9532 8887
Email: myardney@metropole.com.au
He’s been in property development for something like 30 years, and I believe offers a service whereby he can take…[Read more]

Hi Kevin
You’re doing well so far, it sounds like you’ve pretty much grasped all these weird terms quite well! I have to point out, though, that not everybody uses them quite the same way.
But on the whole, I agree that most of the time when people talk about + or – gearing, they are talking about the situation without tax issues, whereas + or -…[Read more]

Whereabouts are you Sooshie?

Keep smiling
Felicity

My guess is GE.
I started an application with them 3-4 weeks ago. At that time their rate was 7.74%. In one week it jumped to 8.? % and then 9.2%.
And just to REALLY cheese me off (I was still making a reasonable spread at 9.2%) – they then told me they would no longer do 90% LVR in the area I had bought in. GRRRRRRRRRRR
I could cope with the…[Read more]

I’ll be brave and plunge in!
My first comment is that a lot of the information is similar, which in fact I find reassuring! But the strategies employed are different. On a very basic level, Steve seems to prefer long term wraps, with the intention of having cashflow for up to 25 years from each deal. These are usually sourced in areas where the…[Read more]

It’s definitely horses for courses.
If you’re happy to stay in your job and let your wraps business tick along, then you can reinvest the money in the mortages.
For me, I want the monthly cashflow to replace hubby’s income asap, so I will use the profit each month to help buy more properties. Then when cashflow has hit a high enough level that…[Read more]

The children are calling, so this will be short and sweet.
Best words of wisdom I can give you – START.
I know too many people who go into analysis paralysis mode, study every option, assess risk factors – and never actually do anything.
Work out what you want from your first investment property, cashflow, capital growth or some of both, work out…[Read more]

Thanks for your reply on this Steve, you’ve given me some ideas!

Keep smiling
Felicity

Thanks for the feedback Steve, sorry to have confused you! I’m a little confused myself!!! []
For now I will certainly insure the property up until settlement, but from my phone calls on Friday it’s the next step that’s the tricky bit. But perhaps if I already have insurance in place I’ll be able to negotiate a bit more. Sometimes it seems…[Read more]

I did mine snail mail a month or two ago, got it in around 3 weeks.
One thing you must watch VERY carefully with this, particularly since the changes to the privacy act. If a client obtains their own credit report, you are NOT ALLOWED to view it or retain a copy of it. Otherwise you are breaking Baycorp Advantage’s copyright. They retain…[Read more]

One of the hardest things to define, when it comes to negative gearing, is what exactly is negative geraing?
For me, it means a property that costs you money to hold.
My husband has a large tax bill, and we used new properties with big depreciation claims to reduce his tax levels. Overall, we were a few dollars in the black each week, so it…[Read more]

Woohoo!!!
Thanks!! []

Keep smiling
Felicity

Thanks for the response.
I wasn’t planning to enter the house when the people were there!
I only thought that if you did have problems, they had to leave etc., then it might be better to have a key to open the door once they’d left than wreck the door with a crowbar….

Keep smiling
Felicity

the details are:

Mark Game
Aylward & Game Solicitors
Level 9
193 North Quay
Brisbane 4000
07 3236 0001
Fax 07 3236 0005

I’ve used the services of Aylward & Game a couple of times (although not for wraps) and been very happy.

Keep smiling
Felicity

Another interesting article regarding the Melbourne property market was in The Age today too… hope the link works!
http://www.theage.com.au/articles/2002/06/06/1022982745223.html

Keep smiling
Felicity

I had some thoughts on interest rates rising, all based on total generalisations!
Obviously interest rates rising affects business, and that’s one factor.
But a lot of the purpose of rising rates is to dampen consumer spending, in particular borrowing for houses. The thing that I find interesting, is to wonder how effective this strategy will be…[Read more]

Hi Luch
SRO = State Revenue Office

Keep smiling
Felicity

Please refresh my memory – what’s are Rural A and Rural B properties?

Keep smiling
Felicity

Hi Stephen
I’m sure Steve is the expert on this, but I’ll have a go at outlining the way I believe he sets up his property wrapping structure.
You set up a trust, with a company as trustee. Each trust buys a number of properties, up to the point where it’s “full” – I don’t know what prompts this, but I would imagine land tax is one factor.
Then…[Read more]