Forum Replies Created
Hi Steve
Well, I tested it out a few months back, and sure enough, a loan to our company/trust structure where we were personally listed as guarantors shows up on my husband’s credit file, specifically stating he applied as guarantor.
Perhaps you manage to avoid this because you have a good, long term relationship with a personal banker at one bank, so they don’t do a credit check every time you borrow money?
It seems we mere mortals do get checked… [
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FelicityHello all!
Well, where to begin? I’m a stay at home mum with a 6yo and 2.5yo, and we live on the outskirts of Melbourne. I convinced my hubby to buy an off the plan apartment in Melbourne about 5 years ago and a townhouse in Brisbane around the same time.
They did okay (basically positive after tax deductions) but I soon realised that getting more finance was going to be tough.
I dabbled in shares and options for a little while, and around that time my first clear investing goal was formulated – earn enough cashflow to replace hubby’s job income. Although I did quite well with options, it was very volatile, and I don’t think I ever could have convinced hubby to retire on that!!
So that was when I started looking around again and found wraps. Now, around a year down the track, I’m flat out with wrapping and loving it. Initially I wanted the cashflow, but the more of these I do and the more buyers I help, the more important the people are becoming to me. But that’s another story…
Anyway, right now I’m searching for ways to get more finance so I can buy #10 for wrapping.Keep smiling
FelicityThere was an article on deposit bonds in the latest issue of Money Magazine.
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FelicityHi Brent
I notice you said –“As for credit record searches and enquiries – I can remember Steve saying once at one of his early seminars that the loans he goes guarantor for don’t appear on his credit record.”
Are you aware of whether or not this has changed? I know that whenever we’ve gone personal guarantors for a loan to our company/trust structure, it most definitely turns up on our credit history. I’ve spoken to 4 different (very experienced) brokers, and none of them know of financiers who WON’T mark your credit history in this scenario. Even sticking to 80% LVR doesn’t change this.
I know I’ve already pursued this in another thread not too long ago, but I’ve yet to hear from anyone who has done this RECENTLY and not had their credit history marked, particularly above the 80% LVR.
Has anyone done this recently????
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FelicityYou read my mind Becky, I was thinking the other day that the “useful links” thread was getting way too long and it would be good to get all the links compiled into one simple document. Please say yes Steve!
And if he says yes, Sooshie, can we start another useful links thread for new links, and contain the link for Becky’s document in the first post as a starting point for newbies.Keep smiling
FelicityIt probably depends a lot on which government is in power and who they want to get on side.
Despite past evidence which showed that removing negative gearing created enormous problems for the little battlers in a short space of time, reality is that there are still plenty of charity organisations who regularly bring up the fact that the battler taxpayers are supporting the wealthy lifestyles of the landlords. Abolish negative gearing is a common catchcry.
So I don’t think we can truly say history will save us from seeing the same mistake repeated. Short memories are a very common feature in politics when there is mileage to be made by making a “popular” decision.Keep smiling
FelicityIt’s under Consumer Credit Information.
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FelicityNAT AUST BANK VIC & TAS made an enquiry on 25/2/2003 in reference to an application for a Real Property Mortgage account where you applied as Guarantor for the amount of $xxx,xxx.
This is a direct quote from my husband’s credit file, from when we applied for our first loan using the company/trust structure, with ourselves as guarantors.
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FelicityHi Terry
I did basically mean what you want on to say, which is that my information is that when you’re a guarantor for a company loan, your credit history will be marked. My broker had added, too, that since the collapse of the MI market, the remaining two were being a lot more careful and pedantic about the scenario Steve has outlined.
Perhaps some of the people doing Steve’s course this weekend will have some more to add!Keep smiling
FelicityI buy with and/or nominee in Victoria all the time, but then again I also then transfer the contract to my company (most times). So because there is a connection there’s no double stamp duty.
Not so sure how it works if you transfer the contract to an unrelated party.Keep smiling
FelicityWhat state are you referring to Mathew? These sorts of laws vary from state to state. In Victoria it’s not illegal, but you do have an obligation to maintain the first mortgage at a lower level than the wrap buyer’s mortgage. I’m not sure how enshrined in legalities that is though!
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FelicityHi Andrew
Another possibility would be to buy a house using a vendor finance arrangement. This would mean that you could put down $10k upfront to buy, keep the other $20k for when you’re ready to start buying IPs, and in the meantime you have a place to live.
I wrap houses in the Cranbourne area usually, where the weekly payment is about $100pw more than rent, depending on the house and the deposit put in.
I’m not trying to advertise, by the way, but just giving an idea of what you would be paying if you wanted to be in your general area and buy a wrap house.Keep smiling
FelicityI thought his explanation of why using negative gearing as your only investing strategy was a big mistake and very risky was excellent.
Must practice that and repeat it to a few friends of mine… []Keep smiling
FelicitySooshie
It’s rare indeed that I end up buying stuff at an intro seminar when I have no real prior knowledge of the speaker or his credentials.
I figure, for free, I can handle only walking away with one or two little bits of useful information.
Mind you, it’s not really free, the logistical exercise of me being there is enormous!!Keep smiling
FelicityI’ll say hi if I bump into you there Steve! [
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FelicityHi Vincent
It depends on how you think it should work!
The 11 second solution is not a guide to what your existing rental property should be paying, it’s purely a quick formula you can do in your head to determine if a property has a good chance of being cash flow positive.
Reality is that very few properties in capital cities have fitted this solution for a long time (and that’s probably where you have your rental property) because cashflow positive (mostly) has been found in regional areas. With the recent rapid growth in prices in regional areas, however, it’s not quite as simple to find cashflow positive property there either. But if you look, you’ll find it.Keep smiling
FelicityHi sooshie
no, it’s got nothing to do with the family going into hibernation – apart from anything else, my nephew has grown out of his asperger’s to some extent (and controls it better now he’s older).
They just don’t like our approach to life! Mind you, there’s a history of this – this is the 3rd time the in laws have disowned us, although up until now it was only the mother-in-law, this is the first time my sister-in-law has joined in.
C’est la vie!
Personally I love fairyland. And I definitely think Quasimodo and his Esmeralda must live there… heheheKeep smiling
FelicitySooshie
good on you for learning more and moving on in life! That’s the sign of someone destined for success.
About our nephew, well, I don’t actually know how he is any more, hubby’s family (parents and sister) have disowned us, we haven’t seen them in a lot of months now. Apparently they don’t like the fact that we think differently – we seem to think that life doesn’t have to be an endless battle to survive. So we must live in fairyland. Heaven forbid that any of that positive oulook should rub off on our nephews…Keep smiling
FelicitySo were you involved in obstetrics and gynaecology Sooshie?
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FelicityI have the one from Creative Real Estate and it’s fabulous!
You enter 3 variables ie loan amount, interest rate and loan period (ie 30 years) and it will calculate the 4th (ie loan payment – can choose weekly, fortnightly etc).
Incredibly simple and no need to remember formulae!Keep smiling
Felicity
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