Forum Replies Created
Best of all, managed funds in general are secured against . . . the wind!!
I suppose if you're good, you're good, though generally managed funds appeal to those who aren't that good..I agree, though the truth can hardly be construed as slander..
Acknowledging current challenges is one thing. The ability to moan with your head in the sand is another. The same ignorance that leads to many views and comments, is too often the very thing that maintains a persons inability to innovate. Educating yourself financially is the only sure way out of this.
To remove negative gearing, you remove rental properties. This creates an even higher demand for housing. If you make the effort to learn a market, you can always buy below value. If you make the effort to learn about mortgages, you can always find a way to have your house pay for at least half of it's cost, sometimes all of it.
I hear people say 'Don't buy now, it's booming and the market's inflated', others will say 'Don't buy now, property is going backward'. Ten years later, you'll hear them all say 'I wish I'd bought ten years ago'.
The next ten years will pass us by anyway. In ten years, will you be proud of the way you've innovated and the future you've created? Or, will you be proud of the myriad of excuses you've developed and social circle you've maintained that justify ignorant logic?
(With paragraphs?)
Hi Anita,
I find that you're often better to ignore advice when the advice ignores your goals.The reality with this type of thing is that it's usually the time line of arrangements that dictate your success for the short term. I've found that you're best to arrange the largest LOC total prior to financing the next place. Ignoring this can cost years of progress.3.75M may access 2.625M of lending via 70% No Docs. Less the 1.4M of debt = 1.225M of Low Doc LOC's.I find the trick is to access this first, prior to buying anything else. A mixture of lenders reduces the exposure of each and makes for less reluctance on their part. I'd consider splitting the lenders between those with different mortgage insurers.Once this is organised, (splitting lender exposure again) an option I'd consider is to take 30% of the new buy price (if 950k, its 285k) from one of the LOC's to fund the deposit from yet another Low Doc Lender to get your dream place. If after spending 300k or so from the LOC's to get the 950k place, that's still over 900k left in the LOC's.Now, I'm not sure where your places are, or if you need Low Docs to do it, though equity living obviously works best when your portfolio is making more than you're spending. With the new buy @ 950k (plus legals etc), your new portfolio is at 4.7M. If it averages 10% per year, that's 470k for the first year alone.Considering all income and tax back, the 900k could last for some time. If you could stretch it for 5 years, you may have another 2M in equity untapped. There's also the option of selling something in years to come, to reduce the debt on the new place if that makes you more comfortable.For many people, so called sensible living and budgeting becomes the norm, thereby removing inspiration. For often the same people, property was always the vehicle that was supposed to provide for dreams and their ultimate lifestyle. We all say that life isn't a practice run, though most of us spend it watching better lives on television.There's a lot of ways to convince yourself of any decision that fear or ambition has led to. Just make sure you consider all of you options and not just those options that fear will convince you of.Hi Anita,
I find that you're often better to ignore advice when the advice ignores your goals.The reality with this type of thing is that it's usually the time line of arrangements that dictate your success for the short term. I've found that you're best to arrange the largest LOC total prior to financing the next place. Ignoring this can cost years of progress.3.75M may access 2.625M of lending via 70% No Docs. Less the 1.4M of debt = 1.225M of Low Doc LOC's.I find the trick is to access this first, prior to buying anything else. A mixture of lenders reduces the exposure of each and makes for less reluctance on their part. I'd consider splitting the lenders between those with different mortgage insurers.Once this is organised, (splitting lender exposure again) an option I'd consider is to take 30% of the new buy price (if 950k, its 285k) from one of the LOC's to fund the deposit from yet another Low Doc Lender to get your dream place. If after spending 300k or so from the LOC's to get the 950k place, that's still over 900k left in the LOC's.Now, I'm not sure where your places are, or if you need Low Docs to do it, though equity living obviously works best when your portfolio is making more than you're spending. With the new buy @ 950k (plus legals etc), your new portfolio is at 4.7M. If it averages 10% per year, that's 470k for the first year.Considering all income and tax back, the 900k could last for some time. If you could stretch it for 5 years, you may have another 2M in equity untapped. There's also the option of selling something in years to come, to reduce the debt on the new place if that makes you more comfortable.For many people, so called sensible living and budgeting becomes the norm, thereby removing inspiration. For often the same people, property was always the vehicle that was supposed to provide for dreams and their ultimate lifestyle. We all say that life isn't a practice run, though most of us spend it watching better lives on television.There's a lot of ways to convince yourself of any decision that fear or ambition has led to.
