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lozza123
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@lozza123
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Post Count: 81
May 3, 2004 - 1:07 am
Terryw
Sorry, I must be partly mistaken on that one.
I had just assumed on the rates & insurance, because it was a Lease, not an instalment contract.
However, I do know of people who don’t charge for repairs & maintenance items.
Lozza
lozza123
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@lozza123
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April 30, 2004 - 2:10 am
That’s it, Muddy…
You can only think about it, and research for so long… then you just have to bite the bullet.
Otherwise it never will happen.
Good luck!!
Lozza
lozza123
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@lozza123
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April 30, 2004 - 2:02 am
Hi Acey,
Well, I’ve been pretty big on goals lately…. I can especially recommend the Zig Ziglar tape set called “Goals”… it is very entertaining as well as explaining why you must have goals.
Also I bought some Brian Tracy books… I can recommend “Eat that Frog”, which helps you get over procrastination. Currently I am using Brian Tracy’s “Maximum Achievement Goal Planner”, which basically helps you to identify what your goals might be (this was the hard part for me!)
When you’ve worked out your three major goals, you then fill in a page each day, listing what you plan to do.
One thing I can suggest, is to at least have a couple of things on your “list” to do every day. At least if you do SOMETHING toward your goals every day, you’ll feel great because you know you’re always heading in the right direction.
One of my goals is to retire from work by the end of next year (I’m 35 now). Wish me luck!!
Cheers,
Lozza [biggrin]
lozza123
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@lozza123
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April 30, 2004 - 1:51 am
Hi Bearhunter,
Maybe this helps…
With a Lease Option, they only have the Option to buy at a later date, but don’t have to purchase if they decide later to rent somewhere else.
Also, the people leasing from you don’t normally pay maintenance & repairs, insurance, rates, etc. These would be your responsibility.
With an Instalment Contract Wrap, they are buying the property from you, so they take on all the expenses, and hopefully they may also add to the value of the property (eg. by doing up the garden, painting, whatever else).
Lozza
lozza123
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@lozza123
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April 28, 2004 - 3:45 am
“Electric”
Yes, to the best of my knowledge.
The good thing about a wrap with instalment contract is that (unlike a normal rental property), you don’t have to pay for repairs and maintenance, rates & insurance. (Generally the wrappee pays for all of those things)
Also your return is higher than rent, because it’s a mortgage payment, generally about 2% higher than you’re paying on your mortgage, and on a higher sale price.
Lozza
[biggrin]
lozza123
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@lozza123
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April 18, 2004 - 8:54 am
G’day Darren,
Check the Trading Post, as lots of wrappers seem to advertise in there… Or look in the local paper for the area/s you’re interested in.
Hopefully you might find something in your price range.
Good luck [exhappy]
Lozza
lozza123
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April 18, 2004 - 8:43 am
Hiya Swampy,
It’s always true… they only ever show the bad side of anything on TV…. otherwise it’s not interesting I guess!!
Imagine if there were NO terrorist bombings next week… I’m sure that wouldn’t rate a mention!
Lozza
lozza123
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April 18, 2004 - 8:38 am
Oh well, here goes: Might as well put in my 2 cents worth while we’re at it!
Rick’s Wrap Pack also has a guarantee… I think if your first wrap doesn’t make 3 times what you spent on the kit, you get your money back. You would have to check on his website for current info though.
Both Wrap kits offer mentoring… one by phone, one by email. Pretty similar I think.
Both come with an audio component. I have Rick’s Wrap Pack, and I listen to the CD’s in the car all the time! Can’t comment on Steve’s audio section yet, as I don’t have his kit. But I’m sure they’d be helpful too.
If you are really keen on wraps, you may as well bite the bullet and get on with it!
I acutally don’t know who Jamie Mc. is, so maybe someone else could enlighten us?
Lozza
lozza123
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April 16, 2004 - 5:09 am
Adrian,
I think these are the sorts of suggestions I can work on… you seem quite knowledgable for a “newbie”! [wink] There is definitely something going wrong in between us telling them to “drive by” and them ringing us back.
Of course the front lawn is totally dead, what with the Stage 2 water restrictions down here. Maybe I should invest in some pot plants though…
I’m thinking I’ll leave the street address OUT of our adverts, so we can “hand-hold” them through, as you say.
Thanks everybody. I haven’t given up hope yet!!
Lozza
lozza123
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April 14, 2004 - 3:56 am
Just another thought…
A lot of the callers we have had don’t speak very much English. (The area is blue colour, and very multi-cultural too) I normally get my hubby to call back any phone messages that I can’t understand!!
Lozza
lozza123
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April 14, 2004 - 3:53 am
Here I go; I’ll try to answer everybody’s comments if I can!!
BTW, thanks everybody for all your input so far. Much appreciated.
INCJohn & Lucifer… I wasn’t aware that Int.Only was illegal.. our loan is Int.Only for 3 or 5 years I think, but I think we can change that at any time.. But isn’t that one way that some people “increase” their cashflow, by doing Int.Only, and then maybe revert to P&I later??
Maybe I missed a crucial point here!!
FW.. Thanks for your constant support and optimism. I need it!! I’m just a junior to this after all, I guess!! [cap] We’re definitely the only wrappers in the area, far as I can tell…
Adrian… To answer your question, I’m not sure! Maybe they SAY they’ll look, but never get there. I didn’t want to make actual appointments with them if they then didn’t bother to turn up. I just tell them to “Drive by”…
It could be the fact that the house over the road is bright blue and yellow and looks like a ship.. I know that would turn ME off!! (But I have a choice of areas I guess!) The rest of the houses in the area are all normal. It is a dead-end street, which means not much “drive-by” traffic.
Lucifer… I think your $516 repayment amount is wrong… because the figure I get using your numbers is $2066 a month, which if you multiply by 12 and divide by 52, equals $477 a week.
Lozza
[biggrin]
lozza123
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April 13, 2004 - 2:58 am
Thanks Scott, yes I will email you as soon as I get a free minute! Thanks very much. I’ll be in touch.
I didn’t see $470 being the biggest issue, because I know several people (inc. first home buyers) who are paying more than that in repayments on a normal home loan! But maybe that’s just my friends…..!
Milkie – another house of same description five doors down was sold for $245,000. Another one further down the road was advertised for $259,000 but it had a pool. I figured $257,000 was reasonable as a wrap price, as we have borrowed the $227,000 plus the stamp duty plus all costs.
Could drop the interest rate a bit, but I thought a 2% mark-up was pretty normal…?
Cheers
Lozza
lozza123
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April 12, 2004 - 10:49 pm
Thanks Guys for all the quick responses…
I’ll have to check my numbers and get back to you shortly, but I didn’t think I was being overly greedy… let’s see, cost price was $227,000 plus stamp duty nearly $10,000. I was working out their repayments on 8.99% P&I, but ours is on 6.99% interest only. I think the NET cashflow per week was no more than $100.. maybe I’ve got confused somewhere. I’ll do some numbers again tonight, I promise! Reducing the sale price didn’t seem to have much effect on their repayments anyway. But if I’m being greedy, it wasn’t intentional!!
Funnily enough, most people in the area seem to be on a reasonable income… lots of self-employed and stuff.
MilkmanJr — of course, I understand the principal of getting early access to the property. In this instance, being our first wrap project, I tried but failed to get this. We did advertise the week before settlement, and were ready to show people through in the first week of vacancy. I know that next time I can do better with this next time (if there is a next time!!)
We also did a letter box drop a few weeks back on bright fluoro paper… delivered to about 200 houses in the immediate area.
Maybe we shall have to try re-wording our advert.
Lucifer – what do you mean by “those with the pull of paper”?
So don’t give up then?? How long did everyone else take to get their first wrap all tied up?
Thanks everyone
Lozza
lozza123
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April 11, 2004 - 11:14 pm
Snapdogg (Steve)
Not all wrap contracts go bad! What it boils down to is the quality of the wrappees you put in there, plus the integrity of the wrapper!!
You and your wife would be choosing who goes into the house in the first place. If you select a wrappee who has no trouble making their repayments, and then (for example) they re-finance you in a couple of years time, then that sounds like a win/win situation to me!
Maybe you and your wife could meet up with some successful, decent wrappers (and I know there are a few out there!!) and she will see that it can work if you aren’t greedy and know what you’re doing!!
Good luck
Lozza
lozza123
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April 11, 2004 - 11:00 pm
Hi John,
If you’re a newbie, you’d probably appreciate a nice, simple response to your queries!! So here goes:–
There are two solicitors that everyone seems to recommend in Melbourne. They are Lewis O’Brien and Frank Libman, both located in Balwyn. I haven’t used Frank, so can’t tell you how good he is, but Lewis has been excellent so far.
Accountants — try to find one who specialises in property investing, otherwise you’ll be wasting your time!! I have met Dale Gatherum-Goss (he has a website you could check out), and he is excellent on trusts. He also has a few books which are written in pretty simple format which make a lot of sense.
And yes –> it IS hard to find +geared properties around here!! I’d say you won’t really find much around this area, unless (for example) it’s special holiday accommodation or say, student accommodation which is fully furnished, or something like that. That’s why wraps appeal to a lot of people… the positive cashflow!!!
Good luck for the future
Lozza
[biggrin]
lozza123
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@lozza123
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March 5, 2004 - 6:13 am
Joseph,
Are you in the USA? If it’s not over there, then maybe you can order it from this site! It was definitely a good read, and inspired me to go onto greater things.
Otherwise, try some John Burley books too.
Cheers
Lozza[]
lozza123
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@lozza123
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March 5, 2004 - 6:09 am
Much as I love wraps, I don’t know if Rolf was actually looking for a wrap, or just a regular positive cash-flow rental property??
Rolf – if you do go looking in Tassie, make sure you look into all the costs… I believe they have higher rates or taxes than some of the other states..(?)
Just make sure you account for them in your calcs.
Good luck! []
Lozza
lozza123
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@lozza123
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March 2, 2004 - 8:02 am
Chan$ and Westan,
I aim to be retired in the next two years!! Include me in!! Maybe I can help out at the kinder then. (Actually, I plan to do something to help animals… I have more of an affiliation with them than I do with toddlers!)
Let’s see… how about semi-retirement, which means you buy the occasional property, raise money for the local donkey refuge, and cruise the Caribbean when the weather turns bad here?? [] Sounds great to me!!
Lozza
lozza123
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February 13, 2004 - 1:53 am
Hi Kiwi,
What about getting a 90% mortgage, and then get the 10% deposit from one of those loan places… Not that I’ve ever investigated them, and I know some of them would be very high interest… but there are some in the newspapers that will lend you the money.
You could do a cash advance on a low-interest rate credit card maybe… I got a letter from Citibank yesterday offering me 6.9% for the first 6 months…
If you were wrapping the property, you could try to get a large-ish deposit, and that would offset most of the 10% you borrowed..?
Maybe the credit card thing is a bit risky for some
.
Or maybe — borrow some from other investors or relatives, just to get you started?
Lozza []
lozza123
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@lozza123
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February 3, 2004 - 8:09 am
Hi BeerBoy,
Yeah, this makes me want to scream!!
I went to my accountant for advice on property investing… he basically said “It sounds a bit risky to me…” and that was the extent of his help!
(Obviously, I’m now changing to an accountant who invests in property!)
I also get frustrated with Paul Clitheroe these days, because when he ever talks about property, it’s always in reference to negative gearing and investing for capital growth. And his other catch-cry, “DIVERSIFY!!”
I guess we’ve just got to stop listening to the masses and start making our own way, huh?
Good luck with your property investing (and your lotto tickets! [:p])
Lozza