“Hellman I’m thinking this is not in Australia”

It’s very similar to something I’ve just done in Aust.

Hellman

Buy 10 of these:

8plex =$80K

Use $20K to renovate

Rent each place out for $100.

Rent Return is $37,000 after expenses.

Revalue get a LVR of say $90K. Loan @ 70%.
Meaning you have $63K pulled out.

Get Loan on property pay $6,000.00 in I.O.

Pulled out $63K + $30K in rent.

x10 = $930K back into your pocket (for a CoCR of 93% for first…[Read more]

Dog_tooth,
Pre nups are legal in Aust (form a article), with te words from a lawyer:

Prenups have been legally binding only since December 2000, they are largely untested in the courts.

To make sure they are watertight, all assets must be disclosed and both parties need to take independent legal advice.

Prenups don’t affect the rights of…[Read more]

Your right. I was comparing it to the price they could of bought it at to now (thats why I put in “(from the orignal pirce)”, but perhaps I should re worded it somehow….)… Actually I thought the were offered it for a certain price, but actually it was much lower… over 800% (Dazz – u can work it out per yr, thx. mate [biggrin]).

But in the…[Read more]

ilearner,

Heres a little story. I knew some people who were offered a wrap for a place they rented back in the 1986. It was in a suburb called Newport in NSW.

They declined (although it was a good price).

Just recently the house sold for $1.65 Million.
Let me repeat that $1.65 MILLION.

Yes the price was a tad high compared to other houses and…[Read more]

I agree with Mobile Mortgage. Get a loan on your PPOR (your home) to purchase the new invetment property. Remember that your total property is worth $925K and you debt levels at $475K which means you are only have Loan to Value Ratio (LVR) of 50%. which is quite low in my opinon.

Just make sure that you are making enough to cover mortgage…[Read more]

Thanks to KenKoh2000 & meilin08 for their insights.

I don’t have much to say except that I was listening to one of the most famous RE apartment sellers in the World, Donald Trump, when he said something that I could relate back here.

He basically said that luxury apartments are a specialised market that can have very high growth rates. Supply of…[Read more]

It really depends. Usually banks take 70% of rental income. Some banks take into account negative gearing (from memory) NAB is one).

Usually they don’t inc. things like tax back from repairs, etc. Unless you make a special case to them (and you are a wealth indvidual that needs to save alot on tax).

Hellman

It means that an investment canly only have 20 investors before a prospectus must be issued as well as not raising more than $2Mil for the first 12 months.

Hellman

There are two major Mortgage insurers in Aust.-
GE Mg’t Insurance & PMI group (http://www.pmigroup.com.au).

You can check the website of PMI and find out wether they will do you area by checking the Location Wizard. Usually if they can’t do it GE can. Also St George have their own mortgage insurace.

Hellman

?????

Please Explain

????

Hellman

Is it possible to find +CF property? Yes.
Is it difficult to find +CF property? Yes!

When Steve wrote his first book property prices hadn’t jumped to the level where they are now. I suggest you read Steve’s 2nd book where it talks about creating +CF proerties rather than simply buying them (as it is very difficult to find them). If you just want…[Read more]

Usually I have found most ‘professional’ investors (full time investors) have a company as the truste of the either a Hybrid trust or a Discretionary trust.

Hellman

-Educate yourself.

-Get a plan for each and every property.

-Don’t pay too much unless u have a damn good reason!

-Double your due dilignece if you plan to reno, build or develop! (and perhaps double your costs as well!).

4… But the 4th one was more practical.

Hellman

Cata is right.

In the end in my opinon it just comes down to doing what is right. As an example have a look at Rupert Murdoch with the settlement he had with his wife.

Instead of going to court (and yes the Family Court could split the shareholding on News Ltd/Fox apart) they decided to form a trust for the kids. Of course she is supported…[Read more]

Great post Dazzling (I knew thos red stars ment something! [])

3) There shouldn’t be any copy right issues (as leases are pretty standard things). Usually you can buy them through your RE agent or Real Estate Institute. Otherwise it’s just a normal contract between two biz’s. In my area I get away with one page specials! (though the margins are…[Read more]

I with Cata on this one. Locking your money away until you are 55+, with the Gov. changing the laws every single year (for example the Gov. just bringing in TAP’s, which is causing much confusion and headaches for investors), is in my mind not that great a deal unless you were making some spectacular return Or you could pull it out and invest into…[Read more]

I would NEVER do what is knows as a kitchen table close on a wrap.

PaulDobson is right, and in my opinon they look sloppy and unprofessional. Also people will take the wrap alot more seriously when they have to get legal advice, and so in fact, could be less likly to default.

Hellman

If you can buy at enough of a discount then renovation can still be way to make money. But it would probably be through equity (as buyers are demanding $$$ off before they commit).

Also on small projects (say sub $400K mark) not overcapitalising is very important. As there is not as much margin and your buyers are acting on price to a degree…[Read more]

CGT does not apply to wraps.

Hellman