Forum Replies Created
hi Mortgageman
thats true but you can mitigate this by using a offset account in that counrty and the interest is draw out of that account in there currency.
hence no currency problems the only worry is the exchange on the loan amount but if a long term loan then this can be managedhere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi cata
if you look at the yen or rmb loans you can take out the loan at a very low interest rate and then drop the first 12 month into an offset account at that bank and that does get away from currency fluctuations as you are paying the loan in yen there.
there are alot of hoops that you need to jump thru but they are currenty pushing for these types of loans out of asia.
and the yen/rmb loans are lot less rates of interest then a usd loan.
they can be done from here but are better done from there.
unlike Australian lending the higher the loan the lower the rate as they want you to lend more. I will forward an email to you for a wa broker that does this type of loanshere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi wealth4life
not sure what you mean by westpoint not sure what you understand of westpoint westpoint was a mezz funder and direct investing with cash and was alot more complicated then this little structure.
as for a promoter far from it this type of structure and investing is not usually available to the normal investor and unless you know something that I don’t explaining a type of investing does not need any formof license except the ability to talk.
with regards to looking at property here by all means people can look at any type of investing they like and invest as people wish my question is for people that look out side the normal markets to see opportunities that arise.
this meeting is to understand using unlisted trusts to invest as a group and sorry put if a group wish to get togther they do not need anything more the single goal and be like minded investors.
this is a open bulliten board and there are a lot of people that do look outside the normal investment and you do not need any formal qualifications to make profit.
you just have to have the understanding of what your doing and have done it before or are currently doing it.
all of which I do and am doing currently.
banks don’t give you guarantee on anything you have to make that call yourself
and not sure which bank you have dealt with that will give your capitol back plus interest plus back your investment on top.
I have been in busines for a very long time and deal with most banks and there is no such animal.
we all have our different types of investing and business I am interested in people that are already investing in this market.
And there will a few that currently are.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi Sanctuary
your idea is relatively good.
the best way to find out about a suburb is to talk to a real estate that you know very well and then get access to a rp data residex etc and the reverse check the growth for the last 5 years this gives a good historic growth for that street or area and that is a god bench mark.
buying a house and adding another storey is a good idea but you do need to amke sure youa re not over capitalising in that area.so it is not all up up and away.
there are lots of other ways of using 475k so be very carefull how and where you place your investments.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi dlpp
yes this is the first time this type of lending has been done in this format so it is a bit of ground breaker and so far so good.
with out going into the mechanics of it
it relativly a simple structure
you put a cash deposit in a lending bank here that has a lending institution in the counrty you wish to invest in and that lending institution then does a equity lend on the cash deposit for your purchase in that country.
no money moves
so no currency difference.
when the property is revalued in that country in there currency the equity is lend is cancelled and the term deposit is given back to the investors with minimal risk.
there is alot more to it then that but thats the basics of it.
it is not designed for the nz market as the risk factor are thought to be lower then some markets but for china
its for us ideal.
you are a little bit far to come to a meeting on it
but I am doing one for somesoft here on monday the 22nd.
any question post here and I will answer themhere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi as41
sorry but part of my job is to check the detail and there is alot of money to be made in the banks detail and it can be changed but its a bit late once you have signed.
all lenders are different and you do need to read the mortage document and understand it or get some one that does.
there are lots of hooks and clauses that can cost you big if you pay it out early
there are also lots that you can exploit so its not a one way street you just have to know what you are looking for.
banks can be
but they are the people holding the money so at some time you are going to need to lend so you need to read every line of the paperwork if not and you want the oh they are all the same so lets sign( and thats what they rely on) you are stuck and you have to pay.
My .002here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi ankitjain
not sure if this will help but a group called propertynet international
lankan bal ( a very switched on both real estate agent and investor)
email [email protected]
do both investing in india and sri lanka and have investors from there investing here and they should be able to answer your questions
02 98965000 ph
I have no involvement in there company and this is just for information.
I have purchased sites from themhere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi Misty1
deposit bond for me are used when purchasing off the plan and not sure if anyone would accept at an auction
because the vendor wants a to know you can purchase at the price knocked down and be you can finalise the purchase and for me a deposit bind would not give me that security and the real estate would know that also.
bonds are relatively good to purchase where you want to minimise your exposure to a deal and still finalise with the min of you money in the deal.
yes cash and other formula is alot better then deposit bonds and have used them except as pre sales for some time.
hope this helps
my .002here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi mischa
you are asking a question that does not have an answer as the return is worked out if you are holding or you are selling.
my money in against money out is alot more then 100% but thats because of the structure to construct.
If you are looking at return on a project that is a hold the it depends on the growth that you are looking at for that area.
be very carefull when looking at return you can have a high cash flow return but not growth or high growth but not cash flow if some says they have both check the figure.its is hard to find property that is doing more then 20%
sorry not true most developments have a built in 21% profit margin or don’t do the development.
you can look overseas and I’m am currently doing that with the china project and the returns on that project are 100% plus return over 24 months and my money stays here but there are still very good money to made here
its what you are comfortable with .
it also depends on your risk management factor.
and Rikky not sure if my way of looking at margin is different to yours but 75 in plus 25 and the 140 out is not 100% for me its 40% 100 in 140 out is 40%
for me its 15 in( bank 80%) me 5( reno) bank the rest total me 20 bank 80 sell 140 me 200% on my cash in( thats with out cgt etc but using your figures).
and here is how I would really do it.
3.75k in(5%) delayed settlement with access.
all contractors get 10% upfront but wait until project is sold.
reno done and revalued 140k
lend 80% on 140k = 112k
give the owners the 71.25k and the contractors the 22.5 plus the 10% totals 100k and you have 12k tax free and the house
and you haven’t sold it.
and you have got not 200% nearly 300% and still the house.
after you have revalued and you then sell do you care you got your 300% profit and if you get another 1k your happy as you have already made your money.
lots of ways of cracking that egg.
I borrow the max and then leverage off that max level
so if I can get 100k out of project with no money in I’m happy but oh back to the tread
whats the return.
if you put no money in put get 100k profit, equity or cash out whats the return.investing outside of Australia is good but understand why, who and what you are investing in,you can find lots of investments with in australia that are just as good as overseas and in some cases better but it depend if you want to diversify which I do hence my move off shore I will do on most of my sites here more of a return money in money out then any us or bulgaria deal.
china no
as its no money in, no money out, and a 110% profit over 24 months plus holding the property and growth is unknown.
all with the use of equity lending on cash deposits.
This type of investing and the returns are not available here.
so in answer to your question returns are very hard to explainhere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi carlin
I don’t write books more do I run property investing seminars.
I do use a trust and company structure for each of my development sites and my investment structure is made up of multipul mini company and trust structures.
at the end of the day after you have read lots of bookds and gone to lots of seminars the best way for me is to setup a structure that you are comfortable with and meets your needs.
you do need an accountant to explain these structure to you and one that understands trusts and there will be one or two in adelaide you have to find them.
why because they are being paid for that advice a bulliten board or a book arn’t.
I could write a book on flying a 747 to the moon I don’t have to be a pilot nor do I need a plane to do it I am not a great lover of alot of books out there in book world hence I don’t buy them.
investing not just in property but any investing requires time and energy to research this you have done so you will at some stage have to pay for advice and that maybe at the stage you are now.
there are a couple of trust people on this forum cata and coastymike and there are alot of web sites on trusts and who sets them up you just have to trawl them and find one thats office is in adelaide.
I can’t help on the structure.
why
1. because they some thing that need to be setup to what your requirements are.
2. I am not qualified to give that advice(that’s not to say I don’t know most trusts and what there used for)
3.a bulliten board is for general information and for me I would never NEVER never use information on a bulliten board as investment advice it is by its nature general advice and a structure need to be setup by yourself with professional advicehere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi all
for me it would be relatively easy to find out who trustee was and then apply to change trustee at the end of the day until you wish to sell its not that important and should be able to be changed.usually acccountant are the nominee for a very good reason and that is if attacked you are outside the trust and so its harder to attack.
with out seeing the trust i on’t see this as a major problem my trusts are held by companies but with an accountant holding the nominee( or appointeee what ever they are called coastymike will know)
also if they have the property or ties
in a trust they don’t own them anyway they are held in trust for them thats the whole idea.
you can organise a company and you are the director of the company if you wish.
with regards to the lender and if the lend is in the name of a trust he will require to know who the trustee for the trust is.
the appointee is not the unit holders of the trust and the unit holders are the people that take the loan so the couple need to find out who the unit holders are and if thats the accountants then thats different but you will find thats not the case.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi Property WA
its not which bank will give you the 12 mil development loan because for me they all will.
its got to do with a couple of things.
1. whats the profitability of the project at the end (min21%)
2. who’s the builder and whats his experience
3. pre sales or not
4. what the experience of the developers and have they done this size and type before.
5. where is it and can you show that you can get the sales at the end.
6. who trying to get the deal for you and do they know what they are doing.
7. you need a full marketing business proposal
8. which for me is the hardest one do you know what your doing.
and this one is not to put you down but you must be harder on your self then anyone else in the project and if you don’t know what your doing ( thats ok ) get someone that does around you.
a 12 mil lend to some is not a large lend but a 12 mil development is alot of head aches and is not for the faint hearted.
and if you can answer all of the above leave it in the ground or it will be you thats next to it in the ground.
I have builders that have gone 10 units 5 units 10 units and then the 20 units site and these are very experience builders and they nearly kill them, so for a novice to be asking where can I lend 12 mil forget it.
funding is not the hard part ( it is for the builders but not for me) for me looking at them the building is the hard part ( but we all have different prospectives.
if you wish to go ahead then get all the above and 80% of the banks will lend on a 70% land and 70% construct and at 12 mil its about 30 units so thats 10 presales from non related people. and you will need to put in 3.9 mil into the project roughly plus stamp duty and gst and legals and da/cc costs and account keeping costs
and won’t go on any longer as there is a list that they won’t lend youhere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]dr x
what about
$investex
hope it goes wellhere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi matthewsteger
couple of things to understand.
1. extremely high interest rates, low rental returns, and higher tax? can’t happenwhy because when you get high interest rates
the rents have to increase to cover the returns and by doing that you can’t increase tax as well because people slow down working to meet the loss of wages.
the idea is simple get the worker to work
to gain a wage that will then flow thru to the avenues that you want that money to go to.
and to do this if you spend to much on new cars and houses
the goverment say put up interest rates to slow you buying those items.
if you stop buying new cars the goverment says lower interest rate so you have cash to buy new cars.( there is a little bit more to it then that but you get the drift)
as the rents move up to release that rental pressure you need people to buy new units but you also don’t want to reduce rates so thats whats called balancing.
we have one of the highest interest rates in the world and by the reserve banks balancing and not allowing asian banks in here to drive down our rate it is keeping us above water.
I don’t see our rate increasing above 2% within the next 3 years as long as china keeps meteor flight in growth
as there banks lend at 1.5% and they don’t look at us as they are growing to a rate that they don’t need to.
and the reserve nows it.
push up rate over 7% and the asia banks will say oh lets start lending here.
higher taxes
they are on the cards but I think for self managed superfunds and retirees(I’m in that group but will off shore mine)
our market is small and will always be seen as such
you will have the 1% movements but the big question is will asia keep going like it is and pulling our commodities along with it or will it stop.
and that I am sorry to tell you is better guess at the moment then winning lotto
oh and lotto this week was 5 million some of the chinese projects are worth 2 billion and still we can’t guess this question.
crystal balling is good but mine is a little clowdy and I can’t buy a new one.
you need to adjust to your market and for me I will be very suprised if rate move over 1% by jan 2007 and another 1% by next jan 2008
but if asia crashes then all bets are off.
one thing that I do see is that your will have a cronic lack of rentals in sydney first and melbourne next and this will be this year.
so if you have tennants moving out have a chat with your agents with regards to enquiry levels and its a time to be moving the rates up. they are move relatively quickly up in sydney.
a 2 br inner suburbs in sept 2005 was 350 per week 2005 same unit is running at 400 and has 13 people wanting to rent it and will be a dutch auction soon.
not sure about the 2009 time frame as I haven’t seen the data and what its worked on.
hope its not on bob and pauls the recession we need to had.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi ptn
simple answer get an account that knows trusts and understands them if this one is telling your to go off and buy as you wish is simply wrong and if you are going to buy in a trust structure you need some one that understands trusts.
there are many that float around here cata is one and coastymike is another and for those I forgot sorry.
accountants are good at what they do but you can’t be good at everything so if you want to know trusts go to some one that does them.
oh and I’m not going into why I think that they way you structuring the above is wrong but there are a couple of alot easier ways of structuring it then that and I am sure they will tell you.
post again in say 5 days and if not I will post here what I think is a better structure for you to work off but they cata and coasty mike are a little better then mehere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi GeoffBeck
not sure if I agree as I float between both and have read the tread and I think I’m mentioned in it in some part
I think it is good to have discussion on any matter I for one must admit that I don’t come here as often and yes when I do come.to have the format changed and having to scrol thru posts that I can’t answer is annoying.
time is very important to some of us and we don’t have as much as we like.
to vent want you think is in someways is a good thing as you can see where your mistakes are
I have no yes men or women in my group and I may not like what they tell me but take it on board and decide from that information.the last thing I would want is
yes its great
yes thats great and its not
people move around lots and for me the results group should be there but if you are not a member then when it logs me in under my name and access code it should drop off that part on the screen
or I get three pages of posts that sorry but I’m not interested in as I can’t answer them anyway.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi aaronwhittaker2003
couple of things
1.not sure about the guru it as I haven’t seen one for a while, last one I saw was riding a unicorn. but will give a couple of suggestions.
first get a off set account and pay into that you can get 1 for each account the follow the advice with regard to the ppor.
second not sure why you would post on a open bulliten board for half the planet to see( africa has very limited access to the net)
with I don’t have investment properties for tax purposes sorry but you do or you don’t and tax is not the main reason for that structure nor should it be.
if you are using a trust structure then again its for a investment reason not for tax reason have a chat with your account and he will tell you why you change your idea’s on this point it is very important.
when will you be over your head this I can’t answer because i don’t know your risk profile we arte all different if I did post my over my head position you would have a heart attack on my behalf but for me I’m not over my head yet.
may not have answered your question just given a few pointers.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi mspartal
The answers so far have been right and i would also add learning the first step is the hardest for anyone to take there is always the (am I doing the right thing) but with the fiurst purchase as it is a learning curve it should be buy the cheapest thing( least loss)
I f you end up making a profit and looks to me like you will in perth thats an added bonus.
you have not said how or what structure you havre put in place for this purchase but again thats learning.
for me the most important is now to learn from this purchase hone your buying procedure and If with dazzling with regard to the pencil and calc.
thats all you need oh and a sharp mind
good luckhere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi Rexilla99
With regards to these developers 25% is high but is not impossible to achieve as they would have to have a min of 20% in the deal to get lending,
it seems funny that they can give you this up front beacuse why give you 25 % when they could caveat lend at 15 % for 3 months max and thats top mezzanine finance, high risk lending so for me sounds either these guys are not all over Australia or don’t know from a finance point of view what they are doing. both of which would be a cause of concern.
can you lose your money by othe you could and you have not told me, what security you will be holding for this type of deal I would require, caveat min 2nd mortgage signed and dated but not registered and a option on a completed unit as a presale as a min requirement and a personal signed quareentee by a director of the company you are lending the money to.
I had a person looking at 100k with a 10 to 1 return with no security thats alot better then your deal, would I lend no why ,
no security no lend for me as I’m an investor not a loser.
these deal will come up and some can be good but you need to make sure that your —- is covered and you will get your money back and won’t be a case of oh we have to wait until completion and then you will need to wait until we sell so many units or what ever.
not sure if this is also a one on one negotiation if its not the developer would have asic having a chat if they raise more then 2mil or more the 20 people lent them 10k thats 200k which will give you the money to start a duplex currently.
for me check it out alot more and don’t pay a cent unless you get it on paper and only then when the above security is in place and these guys won’t let you lend if you tell them that you want that security and if the do then your position is secured.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]hi dazzling
new I would here from you again,
good to hear, well done and hope it goes well.
I am on target with mine,one in the bag lend going thru 80% gross realisation lend 10% rate 7 town houses looking at sand with a mariner up the rd and working on a berth.
second is in and working on getting it out of lenders mine don’t have any rubbish just lots around my desk.
hope you get your deal and it works out ok looks like I won’t be getting over there in the near future for that scotch.
great to hear you are out there putting deals together and if you are over this neck of the woods give me a call.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
