Forum Replies Created
Not central because then it’s a pain to park anywhere…
Keep smiling
Felicity
Well, I put a request through the “Need Finance” link a week ago, and so much for the 48 hour response promised – I haven’t heard a thing.
Not a good start.Keep smiling
FelicityRob
Well, personally I would like to see it made an industry standard in some way!
Certainly contracts drawn up by my lawyer in Melbourne (he looks after lots of Vic wrappers) always contain this type of default contingency (unless I suppose I specifically requested it was removed). However I know he believes that a default clause is essential, otherwise you’d more than likely find yourself running foul of the Consumer Credit Code in Victoria anyway. Which would mean that in the event of a dispute the contract would be declared invalid. So it protects my buyer’s equity, and it protects me too!!!
I don’t know what would be required in other states.Keep smiling
FelicityOriginally posted by The Mortgage Adviser.:Can one of the wrap advocates plese tell me what is to stop the vendor giving nothing back to the buyer who just lost everything?
Hi Rob
I can only speak on my own behalf, as I can’t vouch for what other people do.
But in my contracts (drawn up by a legal expert) there are very specific steps that are taken in the event of a default. These include valuation of the property or even sale if required, what fees and charges are incurred in the process and it’s quite clear that any money “left over” goes to the wrap buyer, not me.
So if the wrap buyer defaulted and had maybe $5,000 equity in the property, they’d probably get very little after all the default charges and legal costs involved.
However if, as in your scenario, they had $150,000 equity, they would certainly get a large portion of it back.Keep smiling
FelicityHooray for Derek!
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FelicityI don’t think felly is planning on sharing the wrap pack.
What felly is proposing is a very common JV arrangement, I’ve done them myself. I have the knowledge and time to implement a wrap, my JV Partner has the money. By joining together we both win.Keep smiling
FelicitySF
To get back on topic….
I never dress up to see potential buyers. Usually jeans, pants, and even occasionally a nice tracksuit combination.
One of the things I DON’T want to do is intimidate anyone. I also drive a very average, 15 yo car.
I’ve also regularly had one or both of my kids in tow.
And guess what – if they want to buy the house, it makes no difference at all what I wear!! I think one of the reasons I have good relationships with my buyers is that I’m not that much different to them – I’m a mum, I have an older car, I don’t power dress etc etc
But it only works because that’s genuinely who I am, I must add.
In the end you need to be true to yourself, and people will sense that and feel comfortable working with you.
Currently I have a house available in a slightly more expensive area than I’ve previously sold houses – and I’m going with the smart casual (pants) look. Because that’s comparable to what my potential buyers are likely to be wearing.
I hope all this made sense, I think I’m waffling!!!!Keep smiling
Felicityiambored
Most of the property strategies in use in Australia today originally developed somewhere else (mostly the USA). It is always worth sourcing information from overseas and then modifying it to suit local conditions. Sometimes it can’t be done, but it’s amazing how often it can.Keep smiling
FelicityHmmm extracting a written copy of a valuation from a bank – sounds easier than getting blood from a stone……!
Seriously, though, in my experience they will ALWAYS tell you if the valuation is low, because then they won’t lend you as much as you want. Other than that it always seems to come in as the sales price.
I did manage to get a written valuation once – that was because I wasn’t going to go with the original loan company (long story!) and once they were satisfied that the valuation wasn’t the reason for me walking, they let me have it to satisfy the next lender.Keep smiling
Felicity“4,000 Bowls of Rice” which is about the Burma Railway during World War II – this book is specifically about the experiences of the 2/2 Battalion, and my grandfather was there.
“Eats, Shoots and Leaves” on punctuation – very funny!
“The Medieval Castle” non fiction book, so I can answer my son’s endless questions!
“Child Wise” on raising young kids.
Just finished API magazine.
Tintin books – yeah, okay, that’s what my son keeps choosing as his reader right now…. ahem….!
Dr Seuss books – for my daughter. heheheKeep smiling
FelicityIf the magazine is published monthly, and the stats come out quarterly, then they can’t really publish new data every time. So maybe this month their deadline was too early for the new stats.
Check next month!Keep smiling
FelicitySalubrious
It was a while ago, but I believe Amway used to be listed on the ASX. I remember coming across them in my dim dark days of share trading many moons ago.
don’t know about any others though.
I also think some of Si’s points are quite valid. It’s the old story of don’t shoot the messenger. Plenty of people have made good money out of MLMs, just as they have out of real estate, and share trading, and owning their own business… etc etc etc. In the end it’s not the vehicle (or the messenger!) that’s the crucial element – it’s the person driving the vehicle.
In the end, the 5% who have the right mindset to succeed will do so no matter what vehicle they choose. The remaining 95% will continue to try and shoot them down.
C’est la vie.Keep smiling
FelicityYes, Gavin, that’s how it works. It’s a heck of a lot simpler than trying to calculate exactly how much time remaining etc.
Keep smiling
FelicityGavin
I just look at the whole loan and calculate what the payment would have been from the start at the new interest rate. This is then the new payment.Keep smiling
FelicityOh no, ANOTHER type of gearing, AAAAAAAAAAARRRRRRRRGGGHHHHHHH!!!!
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FelicityHi Fern
Well, I remember the time you’re talking about, we were buying our first home, and we were paying 17%.
A lot of our friends lost their flashy big homes back then, but they still had all their nice furniture and new cars.
We still had our second hand furniture and old cars – and we still had our house, because we bought what we could afford at the time and paid it off as fast as we could.
In the end we all have to make choices about how to spend our money, and it’s those choices that make or break us.Keep smiling
FelicityJo
I still believe you need a bit of both in your portfolio.
The positive cashflow properties to give you income, which banks love.
The negative geared properties to give you the capital gains, which can then be converted into deposits for more positive cashflow properties.
Too much positive (usually with limited CG) means your equity builds very slowly and you run out of deposit money.
Too much negative, and your serviceability is stuffed.
By having a bet each way, so to speak, you can improve your serviceability and get capital growth to borrow against for more deposits.
That’s the theory, anyway!!!Keep smiling
FelicityHi Neil
I think your idea of a lease/option to purchase is a good one. The only snag is that it will probably need to be done with a third party, to avoid any suggestion of “rigging”.
The other possibility is that you sell the house to someone with vendor financing. So, for example, if the rent on the new house is going to be $250pw, making a monthly payment of $1083, then the loan repayments on the old house could be set at $250pw as well. If I was buying it, to continue the example, I would make 230 monthly payments of $1083, which would then go to you as your rent. These numbers could be fiddled with a little to account for rates etc.
Advantages – these are capital repayments only, so therefore there is no income to affect her pension; there are no agents commissions; legal costs are minimal; no ongoing liability for rates or insurance on the old house; mum doesn’t have to find any rent out of her own pocket.
I’m not quite clear on whether or not you actually want to end up holding both houses, but from your first post it sounds like you’re mainly interested in retaining the new unit in a good location. Boronia is a good rental market, so I think you would do well in the long term.Keep smiling
FelicityPart of the wrap buyer’s application is they have to request their credit history from Baycorp Advantage.
No credit check, no house.Keep smiling
FelicityUmmm I show properties during the day!
Keep smiling
Felicity
