Forum Replies Created
They’ve had this in Canada as long as I can remember. You can borrow up to 20K from your RRSP (like the super) and have to pay it back in installments over a set number of years. Don’t now all the details, but it seems to have worked well. I have quite a few friends that have used it to purchase a house.
One difference – in Canada the RRSP is completely self funded – your employer does not pay into it.
Sheryl
The email address is the first post is wrong – it’s likely:
I’m in for a Brisbane get together!
Sheryl
[email protected]What contract did you mean to sign, vs the normal contract you signed?
It might be best to talk to your solicitor to see what options you have. Did you have the discounted agreement in writing anywhere? If you friend is reasonable and accepts the error, he might happily let you rescind and redo the contract. However if there is confusion you might run into difficulties. This is why it might be good to spend a few hundred dollars on legal advice first to see what your next steps should be.
Do give us a few more details, others here may be able to offer some more detailed advise.
Cheers!
Sheryl DuruzHere’s the link to this product of Steve’s called the “BuyerBeware – Five proven templates delivering critical information to protect you from buying a property investing lemon!”.
https://www.propertyinvesting.com/resources/1
Cheers!
SherylThis happened to us recently – our add did not appear the day it was booked. We called the paper and they are running it twice for us (once free) to make up for it.
Call the company, let them know that you didn’t get what you paid for. They should be able to offer you something – partial rebate, discount on next purchase etc.
If you’re reasonable and friendly most companies will go far to keep you a happy customer. Being friendly but firm is important.
Cheers!
SherylThe best search engine ever is the free one you can download at http://www.copernic.com
It searches almost all other search engines simutaneously, clears out duplicates and orders the results in terms of how good they are! Try it!
Cheers!
SherylPiers and I have about 12 trays of wheatgrass growing in the backyard!! We juice it almost everyday! YUM!!
It’s best diluted in water or mixed with other juices to hide the flavour! Yes it does taste like grass!
One delicious drink – wheatgrass, fresh juiced pinapple, and the water from one coconut (also fresh). I call it my wheatgrass pinacolada! YUMMY!
Sheryl
LMI = Lenders Morgage Insurance
This is insurance the banks take out to pay off their lose should you default on your mortgage payments. The LMI pays the extra if the bank sells your house and they are still out of pocket. You don’t see money from LMI ever.
If your LVR is over 80% or you are doing a low/no doc you are often asked to pay for the LMI. Otherwise the banks pay (if they take it) and you don’t really hear about it. Some people make the mistake of thinking if they are not asked to pay LMI then there is none on their mortgage, but this isn’t always the case. Also of note – some banks have a big enough portfolio that they choose to self insure (things average out and it’s cheaper NOT to get insurance). I think CBA does this.
Regarding refunds – I found one mention on an Australian website – http://www.gemico.com.au/lmi_whatis.htm
* Mentions that a partial refund may be available if you pay back the loan within 2 years. Sorry that doesn’t relaly help.
I’d contact your insurer directly and see what they say.
Cheers!
Sheryl Duruz
[email protected]You can get a copy of the auciton contract prior to the auction. It’s unconditional – no cooking off period, no finance clause and no pest clause. Basically if you’re thinking of bidding, you need to get finance arranged and inspections done prior to bidding. I’ve always through that a bit of a scam – EVERYONE independantly paying for their own inspections – but that’s the way it works.
If you want contracts you can back out of if needed you’re better off not buying at auctions.
I have heard though that you can negotiate different clauses prior to the auction, but this is usually restricted to closing date and deposit amount.
Cheers!
Sheryl
[email protected]I did a search using the engine at http://www.copernic.com and found the following options for you:
http://www.interestsavers.com.au/ $99AUD
http://www.statementcheckers.com/hdeluxe.htm $99AUDSounds like using one might save you more than $99!
Cheers!
Sheryl
[email protected]PS I have no association with the companies above
Here’s one for you – http://www.gatherumgoss.com
He’s very knowledgeable on property and wrap transactions.
Cheers!
SherylHey Bear1964!
Wrapping is not illegal in SA. ISC have a limitation of allowing only 3 installments I think, which makes them unusable for wraps, however lease options are perfectly legal and used to do wraps in SA.
I know there are some vocal critics of wraps in SA politics, however the sweeping opinions expressed on this so called ‘illegal property move’ have not been accurate. There will always be opponents (like Jenman), however if you approach wraps openly and ethically you will be doing good. If this is a way you could get started don’t discount it too quickly – also you could look interstate.
Cheers!
SherylHere’s another company that does online company AND trust setup. It’s a new system and linked directly to ASIC. You fill out the forms online, print and sign your paperwork, then send the forms directly to ASIC. About 10 minutes later you have your company ACN and are ready to go! Cost is only $137.50 per company and per trust plus the $800 ASIC fee.
Cheers!
SherylSomething to kep in mind – most properties NEVER HIT THE WEB SITES! And alot of what’s on the web sites is months old (left there to bring in business).
We even met one agent that only advertized his expensive ones, all the <115K properties were by word of mouth.
Talk to agents and keep looking. They are there!
SherylPiers and I just bought one.
Purchase Price: 70K
Rental: $165Beats the 11 second rules by quite a bit!
The part of your post that is factually inaccurate is the assumption that these houses are renting for more than they are worth. The example I gave you there is a standard rent! Nothing special for that area. Keep in mind that the yield on city areas is much less and will hardly even meet the 11 second rule.
Cheers!
SherylI’ve never understood why they don’t have a template for amortization included. Actually I just searched – they do! Go to http://office.microsoft.com/templates/category.aspx?categoryID=CT062100761033&CTT=1&Origin=EC790000701033&QueryID=WW74_J5FD – they have multiple downloadable templates. They even have one for extra payments, which I know some people find hard to calculate! The Microsoft website is a great resource for templates on just about anything!!
Cheers!
Sheryl DuruzPS Something to watch is when interest is calculated – I’m not sure what’s correct or if this even matters as long as you disclose how YOU calculate interest (eg beginning of period, end of period, daily etc).
Many people have the credit and the money, but not the knowledge, confidence or time to go out and do it themselves. Most people are THRILLED with a 10% ROI. The idea of a 25%+ investment is very exciting!!
It’s all about selling the service you are offering, and putting the structure in place to protect yourself (eg having them sign the JV before introducing them to the property you have found).
It is possible, and this is how most investors that do many wraps structure their business.
Cheers!
SherylBuying with no cash or credit:
All you do is find an investor who likes the idea of the returns you can get. For Wraps you can often offer the investor 25% + on their money, which is very attractive. You have a Joint Venture Agreement drawn up between the two of you. The usual cashflow split is 50/50. Some investors have done JV’s for Buy & Holds as well. You can also do a combination of the following two points:Buying with no cash
Borrow the money from someone for a fixed return, and get the mortgage in your name (or your company name). Interest rates of people I know that do this vary from 8-16%, usually paid quarterly. This is usually just drawn up as a personal loan. You can also arrange to have the seller leave $ in the deal for a fixed return, which is often more attractiv than the interest rate they will get in the bank. This is usually documented by the solicitors, with a lump sum payment in a few years to clear the balance.Buying with no credit
Two options. First – bring on a partner to sign for the mortgage only. Document it with a JV agreement. The investor usually gets a smaller fixed amount, since they have no cash in the deal – maybe $50 – $100 a month. Second – go for a low or no doc lending product. If your deal is good enough the higher interest rate does not matter!!This is only the beginning. Real estate is exceptionally flexible… it pays to look for creative solutions.
Hope that helps!
SherylBrisbane QLD
[email protected]Personally I believe your moving in the right direction; it’s great to brainstorm creative ways to make extra money, however I think this is one better left alone.
My opinion: you need to talk to the bank you work for; the opinions of people here don’t count for anything when you’re looking at what’s accepted, legal and ethical in this specific bank.
If you are hesitant to talk to your managers – ask yourself why.
It sounds like your heart is in the right place – keep looking for opportunities, and you will find them! If you met these people outside of your role at the bank this would be a very different situation.
Sheryl
Out your offer in NOW before you lose it, and include a 21 day finance period. With the leverage of a good deal behind you you WILL find a way. Why risk losing it by searching for all the answers before getting it under contract. Piers and I bought a propery earlier this week, and beat out two other investors (one who was getting finance arranged and the other who was doing a pest inspection BEFORE putting in her offer).
Putting down 10% when the contract is signed is old news! We only put down $500 on this property (purchase price 70K). Some investors are only putting down $50! That made the agents a little uncomfortable though, as you could imagine it would.
In Canada the money you give with the contract as insurance to the seller is never the full amount of your deposit needed at closing.
That’s my 2 cents!
Cheers!
Sheryl Duruz[email protected]
Brisbane QLD
