Forum Replies Created
And remember that legislation varies from state to state!
As a rule of thumb, you should always ensure that your loan is less than your wrap buyer’s. That way no matter when their contract is completed, you can always pay off your loan.
Personally I use IO loans at the moment because I want to maximise my cashflow to continue doing more deals. Certainly, however, when the IO periods start to expire, I will more than likely switch to P&I to maintain the gap between my loan and my buyer’s.Keep smiling
Felicity
Glad you’re back on deck Sooshie!
I agree, the regional areas of Victoria have skyrocketed in the last 6-12 months. I have only watched larger towns (ie 10,000+) but have been stunned by the growth. Even some of the poorer performers have had substantial growth. So much for the concept that if you accept good yields you forfeit growth!
In Melbourne, things have certainly flattened. The ripple had reached the edges in the last 6 months (when inner and middle Melbourne really slowed) down but even the edges are starting to slow down now too.Keep smiling
FelicityCongratulations Quasimodo! [
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Although I feel I must point out that in fact Quasimodo doesn’t end up with Esmeralda…. But I think in Hunchback of Notre Dame II he does get the girl – haven’t seen that one yet.
I only had kids to pretend that we have all our Disney videos for them…. []Keep smiling
FelicityWell, thanks to the wrap properties I’ve established, I no longer need to work. They give me the cashflow that our buy and hold properties didn’t (negative gearing – small positive cashflow after tax deductions).
So I guess that means I’ve “retired” to be a full time investor and mum.
Next step is to “retire” hubby, at this stage by the end of this year.
I haven’t done Steve’s seminar, but I certainly agree with many of his positive cashflow concepts.Keep smiling
FelicitySteve
I have a suspicion the same person is doing the rounds of a number of property investing boards under different names.
so don’t take it personally!Keep smiling
FelicityHi Terry
It may be worth contacting Prushka, they’re based in Mitcham, in Melbourne.
I’ve used them for our preschool collections, they take a chunk out of monies collected, but once you had the information over that’s all you do. It can take a while, too, but it’s better than never getting the money at all.
They don’t mind if you’re a small client, either!Keep smiling
FelicityHope you get a chance to do some reading while you’re recovering!
Sending you lots of positive vibes… []Keep smiling
FelicityI always thought the books were semi fictional too, but a great, simple read.
I have Kiyosaki to thank for making my husband understand good debt vs bad debt. Up until he read his books, my husband would NEVER have gone into debt for anything.
Now we have plenty of good debt, and although I don’t think he’s always comfortable with it, at least he accepts it as a way to move forward.
I think Kiyosaki is like any other motivational/wealth creation writer – take the nuggets of wisdom from in amongst the padding, and use them.
I’ve never found any book that is the be all and end all of books in this field, but every book I read usually teaches me something of value, and so I keep reading.Keep smiling
FelicityVery enticing Steve, well done.
My only suggestion – in one paragraph you refer to budding chartered accountants, in the next to budding investors.
Nothing major, but perhaps two different words would read better?Keep smiling
FelicityHi roofarmer
I’ve been interested in Jon’s seminar right from very early on – back in the days when it cost nothing except a small monthly fee. At the time I was busy doing other stuff myself with options trading, and so didn’t attend. I did go to the introductory session, where his strategy was very well explained.
I felt he was a genuine person, butI haven’t been in contact with him for a while.
Hope that’s useful for what it’s worth!Keep smiling
FelicityHi AD
Thanks for sharing, it’s fascinating to see the inside working of a creative deal.
Right now I’m stuck in the quagmire of needing some private funds to keep buying properties, and I’ve yet to source anything much. [] So not a lot of deals happening right now!Keep smiling
FelicityHi Rod
Yes, originally Michael Yardney was speaking, but then he ended up setting up a free night through his company Metropole, and the forum members were encouraged to attend that instead.
I’ll post details of the April meeting when I have some.
Thanks for pointing this out Rod!Keep smiling
FelicityWell, I know I’m thoroughly passionate about what I do with wraps, and with property generally. My poor husband!
Recently I had a RE agent approach me about a property he had up for sale, tenants wanted to buy it but couldn’t get finance. I looked at the numbers, talked to the tenants, it worked, I was in daily anticipation of a refinance happening, so I put in the offer – accepted
2 days later the refinance was knocked back by the mortgage insurer – we should have lived in the suburb next door…. [xx(]
To say I was in a panic was an understatement, there was no way I had 20% on the deal. I gained lots of great advice from my mentor, including the advice that sometimes you have to let a deal go.
Problem was, I’d met the people, they’re great people, and I was determined they were going to get this house. Yes, I’d become passionate about the people, not the property.
After many many MANY hours of pursuing possible ways to find the 20%, I’ve ended up with one investor putting in 10%, someone else giving me a short term loan until some FHOGs come through, and it should settle next week (if the bank can get their act together!!).
The people are ecstatic, to put it mildly. I’ve never been called so many NICE names in my life.
And that’s why I keep doing this – because of the people I can help. I love property too, and have plans to do other stuff for long term assets, but wrapping will have a place because of the kick I get out of seeing people buying a home when they thought they’d never be able to.
Oh, and as a final note, on our 5th attempt we’ve found a bank willing to do the refinance, so now I can buy some more houses!!! hoorayKeep smiling
FelicityMark
I have a different viewpoint to Steve’s – I wouldn’t be without landlord’s insurance!! Perhaps further down the track when I have heaps of passive income coming in it won’t be so important, but right now losing a few thousand is more than my cashflow can handle….
I’ve had 3 claims on insurance, none of the “tenant from hell” trashing the place types of claims, my property managers do a much better job of screening potential tenants than that!!
But one was where a couple split up, the lady remained and went a bit loopy, seemed to think she could stay for free. Another was younger friends sharing, one fell in love and decided to follow her man overseas, remaining girl couldn’t find another person that she liked to share and moved on breaking the lease. Third one was a father and son sharing, son moved interstate, father lost job….
In the end, Steve’s right, it’s all about your comfort factor. None of these were big claims (2 different properties by the way!) but 3 chunks of a couple of thousand dollars would have severely dented my “sleep at night” factor.
Also, and probably most important, I think one of the MAIN reasons to have landlord’s insurance is for public liability cover. This may not matter so much if you have a house with building insurance, but if you have a unit under a body corporate structure, you DEFINITELY should have your own public liability cover, as it probably won’t be covered by the body corporate’s insurance.Keep smiling
FelicityFor me, whether I use IO or P&I depends on where I’m at.
Right now, I’m trying to build up cashflow by buying lots of properties to wrap, so I want every cent I have to go into deposits for more houses. Therefore all of my loans are IO right now.
Once I achieve the goals I have written down, then I will start to pay down the underlying loans on the properties and so increase the cashflow without having to buy more for now.
So right now I use IO, but ask me that question again further down the track and the answer will have changed. []Keep smiling
FelicityHi Perky
The question is a good one, but the problem is that there’s no really good answer.
Over and over I’ve seen one person say “oh, I go to x bank for all my wraps through x package” and then someone else says “I approached them and were told they don’t do wraps”.
Nowadays it’s not a case of which financial institution you use, it’s more a case of who you can find in a financial institution who will support what you are doing and help with finance.
This is why I have a broker – because she does all this footwork for me and brings me the results. And the same thing applies – different brokers have different contacts, and so will probably be able to swing you a deal with different banks.
It’s all part of the fun! heheheheKeep smiling
FelicityBob & Sandy
Do a search on “Investment Institute” for some excellent messages on this subject.Keep smiling
FelicityHow about taking an investor on board, one who will lend you enough money to get you down to an LVR you can borrow at (ie 80%).
You can then either work out a profit sharing arrangement with the investor, or pay them a straight % return on their funds.Keep smiling
FelicityA group of property investors who started out posting on the ninemsn forum get together once a month in Melbourne. It’s reasonably unstructured, lots of opportunity to chat, and occasionally a guest speaker.
There was a meeting a couple of days ago, but if I’m not stepping on any toes, I can post a message when the next one is to be held.Keep smiling
FelicityWoohoo!! a baby boy, congratulations to you and partner. [:0)]
Keep smiling
Felicity
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