Forum Replies Created
hey there… teh golden rule is about the same as the global percentage of wealthy people 2-3% of the world population are wealthy … do not need to work and make plenty of passive income to never have to work again in thier lifetime…. the same applies for students of the world. Of all those that educate themselves… 2-3% will apply the fundamentals successfully and get to the golden age of financial independance… the rest just never do it, give up after a couple of nasty spills or give up in the end before suceeding. It is a pity we do not all fall back on the age old child hood attitude of never say die…. If you fall off a bike when you are a kid do you give up???? NO yOU KEEP GETTING BACK ON UNTIL YOU SUCCEED!!!! – NEVER SAY DIE!!!-cheers
KiwiWhat is your strategy….. income today and less capital growth…. or little to no income today and capital growth later? Negative gearing negative cashflow,Negative gearing and positive cashflow, or positive cashflow?
the world is your oyster… you just need to define what it is that you want to aim for and make is crystal clear so that you do not deviate from the path you have chosen….
Best of luck…
Cheers
Kiwi[baaa]depends on how much income you wish to make and what time frame you wish to do this in.
Originally posted by The Mortgage Adviser:I don’t see the not being able to claim depreciation as an issue. The whole payment is deductible – as opposed to interest only – so the tax benefits are huge if you are looking for that. If you spend money on improvements / repairs (whichever one is permitted), they can be depreciated.
I think the point has been missed here….. if you have a home locked up under a lease option …. technically you are renting it … so how can you claim on any costs if you have not actioned the option to purchase the property? I do not even think you can defer losses as they are not related to any proeprty you own. however a good accountant should be able to sort out a ruling.
Originally posted by gilad:At the moment i don’t have enough money for property
That is an interesting belief…. It sometimes is not about owning the property…. but controlling it and reaping the rewards. – I have secured 300K properties for $1.00 each. how many can you get at that reate???? as many as you can get.
Here is an idea…. I do this alot. Why not instead of taking a mortgage…. take control of someone elses property (VIA Lease Option) and look after their payments….. here are the advantages:
1. No loan application fees
2. No Stamps
3. No duty
4. No capital gains tax if you sell it
5. less risk if you get caught in the wrong market… you can just drop the property and move on.
6. positive cashflow if you sandwich lease option the property correctly.
7. get any potential capital growth without the risks.
8. you can still buy the property yourself down the road if you wish.9. increased leverage and less overhead as lenders do not see any mortgage liability.
10. legal shielding as no property titles are in your name so technically you control it all and have no ownership.(title search will come up with nothing).
Not so advantage:
1. you are not able to claim and depreciation and other costs etc as you do not have the asset
I sometimes even negotiate capitalising the payments until I have completed the backend of the sandwich lease. – have fun.
Kiwi
[baaa]I sell all my houses privately – and wrap them to the best families. – I love chatting to the bargain hunters that are trying to find my heartbreaking story only to find that they best keep looking for the deal of the century. I also like it when the agents call up spotting for a listing…. and when I start questioning them on what there thoughts are on my home etc… I quickly eliminate any that I will even work with in the future to negotiate buying properties in the future [cigar]- I work with a lot of agents that I have taken lots of time to educate on how I like to work and we have done some creative deals that some would not even believe [biggrin]
Hey there,
Depends on what you are trying to achieve….What I normally do is set up a separate JV agreement for each transaction then you can negotiate all your terms and clearly define your role in each transaction. as you get better at what ever it is you do… (funding supply, negotiator, buyer and seller etc) you can clearly define your participation in each agreement, percentages for returns. this limits your risk and gives you more flexibity each transaction.
you should be able to check out he council financials and this will tell you where the budget is getting spent. things I look for is a stedy increase in property zoning approvals and building plans for new houses approved. Find out what makes the place tick… like call information centre and tell them you are thinking of moving up there and ask them what sort of industry is there and is ther a lot of unemployment…. best of luck.
I use this simple solution to put all parties at ease…… I show proof of the omrtgage and supply the direct account number so that hte payments are made directly into the account with the mortgage on it …. usually I just add a sub clause to my special notes section of the paperwork….. this way the wrappee knows that the only way the bank can foreclose is if there is no mayment made by themselves…… also why would a wrapper default on his own property when it causes all other transaction to be extremely difficult if you come up on the radar (in the banking system) as a bad payer.
Cheers,
Kiwi[baaa]I am very handy and can do most things from plumbing to building sub walls and installations of kitchens…. I honestly believe that If I factored into the equation of my time into each deal…. then I have only created a job for myself…. Now if I am purchasing a run down “charming” Property…… I just wrap it to a handy man nad let them do all the work… use thier labour as deposit and they get to have the house the way they like it before they move in…. works very well.
Kiwi [baaa]Depreciation is usually used if you are technically renting the propperty out… or you have Lease Optioned it to a party.
as a Wrap is not renting and is actually a contracual agreement to purchase on installments (thus a sales contract has been drawn and stamps if applicable have been paid…) no Depreciation applys.
How many properties do you have Robert?[biggrin]
Originally posted by terryw:The bank valuation should make sure you are no overpaying. I personally am not too worried about yield if there is potential for capital growth. Especially when getting vendor financing. Sounds like a good deal.
Terryw
Discover Home Loans
Mortgage Broker
Click below to email meThis all depends on whether you would like:
1. income now
or
2. Capital gain latermostly you do not get both at the same time…. however I have some properties that are getting the cake and eating it to so to speak….
Cheers,
Kiwi[baaa]I agree with the Mortgage man….. It is all about accelerated learning… if you can save yourself 10 years oin time by chatting to someone that has 10 years experience and can get most of the knowledge (theretical) in say 6 months…. does this put you in a better position to get real (physical and emotional) experience? – food for thought anyway, cheers Kiwi [baaa]
Hi there,
It really depends on how you have structured your papaerwork! I have wrappees that are paying interest only and know that they are waiting for the capital growth to create the equity they need to refinance. Of course I encourage them to make extra payments (with no penalties) so that they can refinance sooner. – there is flotilla of options and solutions … it is all about listening to what the persons challenges are and your job is to create a win -win out of it all so that all parties are catered for. Hope this helps- Kiwi[baaa]Sure ….. just make sure the so called 20% the vender is letting you utilise is not just adding onto the property price and overinflating it so that you get blinded by the fact that you are not putting any funds into the deal… it all has to add up or you could get Bit! ;o0 if you know what I mean…. nothing worse than getting stuck with a property that you can’t get rid off in an emergency unless you take a big loss on it. – be carefull and have fun. Kiwi![baaa]
I did and went without a problem cost me $100.00 for the kit and dispersments costs for all searches pests and buildings etc …etc. – Its all Good!
Suggestions are right on target so far. Avoid cross collaralisation and most of all try to place loans with different lenders thus that cannot call all loans as part of a discharge clause for any future loan applications….. you know the one ” all accounts including cheque, credit and other loans must be paid in full to discharge this loan..”
Cheers,
KiwiYip … absolute clarity in a JV agreement is a must and must over all the what ifs. also make sure a declaration is signed showing all paperwork has been explained by an independant solicitor so that there are no coersion ground later if it worst case scenario went to litigation.
cover your Butt…. and no-one gets it blown off when the bullets start flying :o)
