Forum Replies Created
Count me in – think it’s a great idea and admire your pro-activeness!!
[
]
MelCongrats Richmond!
Agree – it’s what’s you do with it that counts.
I blew heaps travelling around the globe in my 20’s while earning $50K+ and now am working hard to make up for it, but I do value life experiences highly too, it’s not all about money.
[
]
MelHi Sirendipity,
I notice you haven’t put any more posts up since this first one – hope you are still reading and learning.
Welcome to the forum!
[
]
MelAny news on this workshop?
[
]
MelHi Aussierogue!
Hmm – interesting – love name picking, just called our two little pug puppies Gus & Olive and they suit them down to the ground.
Personally I think you need to see the baby first, but my top votes on your list are Indigo and Zoe.
I also like India, Abby, Isabell and Madeline … not much help, sorry!
[
]
MelPS this is my first foray into Forum Fun – feels weird!
Hi,
To meet lenders criteria then basically only through a) having rich friends with very deep pockets or b) getting very high yields or short term equity gains that you quickly increase lends against and onwards and upwards, definitely get a broker onboard too. Some examples: 1) buying an old three bedroom house, doing a cosmetic reno and turning it into a 5 bedroom house through sacrificing living room/garage etc and renting it to students at $90+ per room, 2) buy block of 6 flats on one title, reno, split and sell 4 to cover costs, keep 2 and earn ‘free’ income and use equity for next lend … etc etc.
Minimogul’s a bit of a legend in this department, look around there’s heaps of ideas here.
[
]
MelHowdy Rod,
From a lenders perspective ‘serviced apartments’ are too hard:
1. If they are under 45 m2 living area (excludes balcony & carpark) no one will touch it, that I know, and most small serviced apartments are, so they need to be cash purchases – I think this is the main reason they don’t appreciate in value either.
2. If they qualify on space then lenders are still reluctant especially if income is from lease of your room only, ie not from pooled income of whole motel, because if you have a falling out with the management (eg over who pays to fix up a room trashed by a bad motel guest) then they won’t let out your room and you are dibbled.
3. Expenses as said above, including nasty little extras like clauses in your contract that you have to fully refurbish (carpets, curtains, furniture, bed etc) every five years – a lot of serviced apartments are on the cusp of this period and hence a big trap for unsuspecting buyers.If you are still keen and have done your due diligence and can put the deal together, the returns can be great – but buyer be very aware!!
That’s my two cents. Would love to hear from someone who actually owns one …?
[
]
MelHi Victoria,
I am also keen to head down this path, it seems a lot more challenging and hopefully potentially rewarding than buy and hold.
I’m doing a course soon – where do you live, I have come across a few good developers who may be able to help.
[
]
MelAaron aaron aaron – this is begging for a response ….. [
]Mel (One of the upteen brokers on this site not shy to tell people what we can do to help them, cos that’s what we do to help them …. [
]
[email protected]Hi Michael,
Seeing as you are still in your first trimester you’ll acquire about 120 properties at this rate – good going!
Re broker commission – lenders not only want to claw back commission from brokers but they are also smart enough to spot a pattern and if you are genuinely buying and paying off houses this quickly you may start hitting problems with getting new loans approved at all after 3-4 houses. They generally break even around 18-24 months, so you’ll be seen as an expense they can live without. Not discouraging you at all, in fact v keen to know your secret [
] but just a word of warning.Also to reiterate Simon’s point – tell your broker EVERYTHING!
[
]
MelHi Michael,
Always depends on the deal ie lower LVR &/or more security then less issues basically. If you are both going on the certificate of title of an investment it doesn’t matter who the applicants are or who’s putting up the cash provided you can show that all parties receive a benefit from ownership of the investment, ie a split of the income. I am less clear on O/O between unrelated equity partners, maybe Simon can shed some more light….[
]Cheers,
MelHi Angie,
Is your objective reducing debt or reducing dependency of investments all in one area?
Generally I tend to agree with Mr Macks – if getting your hands on more ‘cash’ to do more investing in other areas is the aim, then use equity where possible.
If reducing your debt or reducing your exposure in one location is the objective then yeah sell just enough to feel comfortable with your overall position but make sure you understand the loan break fees and tax penalties first, may not be worth your while.
[
]
MelMorning Andrew & welcome aboard [:0)]
It is great to see young guys & gals getting into investing. In an attempt to respond to some of your questions:
1) Yes you can. Option one is product like CBA’s Equity Advantage, where you can use your parents equity AND income to purchase property together with your name on the title (assuming they are willing!), obviously the more cash flow +ve it is, the less additional income is needed to service the extra debt – problem is it’s fairly inflexible and restrictive for long term investing. Another method is a 75-80% low doc asset lend where your parents ‘gift’ you the deposit and you sign a declaration stating you can meet repayments. There are many more options so I’d get a broker involved asap as there will be several ways to structure this and if you go straight to a lender their preference will normally be taking security over everything, which is probably not the best solution for you guys.
2&3) You can only get FHOG for owner occupied as you seem to know, and there is plenty of debate about what constitutes an owner occupied status – one night upwards. The pro for getting FHOG is the $7,000, the con is that you won’t be able to set the loan up as an investment loan with rental income that contributes towards serviceability, again see a broker. You can always have this as an investment loan and pick up an O/O house later on – if you living at home at the moment paying minimal rent I’d suggest go down the investment loan route and stay put.
4) Keep looking – where do you live?
Hope this is a start.
[]
MelHowdy,
I’ve learnt heaps from this thread – thanks guys, and in answer to Brenon I hear there’s a good book called ‘Trust Magic’ that explains it well.
BongoX2 sounds like you keep your accountant busy! I set up a trust with $2 shelf company in May and it’s cost me about $2,000, so given the many monies I hope to roll through it and the protection and tax advantages it offers I thought it was a great investment.
[
]
MelSimon – agree [
]Congratulations Amy, great to hear you had a happy outcome.
PS Simon are you doubling up replies just to get more posts stars?? That’s cheating!
[
]
MelBrett I saw from your other post that you too are an agent so was interested to see this response. As a broker I come in contact with lots of agents and am yet to find one who thinks much of Jenman at all.
I too struggle with the logic of addmiring anyone who’s path to success is through loudly & rudely disgracing and bad mouthing all & sundry in his own industry…??! Does he teach people what to look out for or just make people paranoid and aggressive with agents who’s role is simply trying to find the best outcome between totally conflicting objectives ie sale price: vendor vs buyer? Am I just a bit old-fashioned/naive – I really think a little bit of respect and manners goes a long way, and would stop half the problems and nonsense about aggressive win-lose attitudes in the first place.
I think 90% of agents are honest & hard-working and waiting for our calls …!
[
]
The Optimist MelI think it’s the credit people you get, rather than the bank. Some Brisbane CBA folk are just great, same for Suncorp Metway, Homeside (NAB) and Macquarie. To be honest we find that if it’s sent South because Bne centres are overloaded, things get hairy. Knowing the person to talk to that makes it happen …. makes it happen! [
]So in answer to the original question – I think it comes down to people, not whole institution.
[
]
MelGood point Terry, clawbacks hurt, especially CBA who clawback up to 18 months after settlement.
OzBravo – I think you are spot on too – complimenting my own vision of financial success was certainly a key reason I got into Mortgage Brokering, how about you? As an ex-ginger beer I like working with no.’s and as someone seeking a financially free and exciting future, not PAYG boredom till 65, I thought this industry would be a fantastic way to become a specialist in one of the key areas of investing, and it is a great service industry.
As a general rule I’d estimate that to get into mortgage brokering, unless you have a ready stream of potential clients, you need to have savings to cover minimum 6 months living expenses and startup costs of $10-$15K, more if you are buying into a franchise.
It’s good to be ‘out there’ !!! [
]Mel
[
]Now I understand – HousesOnly the commission rate is 0.6% to 0.8% – you’re missing a zero!!
[
]
Mel
]
]
] but just a word of warning.
]
