Forum Replies Created
Hmm yes – but do ‘they’ invest all their eggs in on-paper property ?!?
What the heck – The Female Frank Lowy of luxury townhouse developments here I come …[
]Mel
Can I put down a three teethy smile option to adopt you in six months, providing your Richby30 endeavours are on-track …. [
] [] [] [] ?!?Keep posting your successes, and failures, and I’m sure we’ll all be rich inside 12 years …. good work Sonny!!
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MelThanks for the good wishes – hope so!
We may need them because as you say the numbers on buy & hold are a wee bit lean so my partner and I are gearing up to do some higher risk (prefer ‘informed investment options’) small development work first up, ploughing profits into buy & holds. Wise? [
]Mel
Can I adopt you?!
Go for it, but see a broker about the right type of loans for your plans. Yes as you say if the loans for IP that you continue to take out are self-servicing and obviously there’s enough savings/equity coming in to form deposit components for each new loan then there really isn’t much of a ceiling.
Do you know much about structures for asset protection – namely trusts with companies as trustees? Talk to an accountant or look through some relevant posts, lots of contributors have put down heaps of good points about them here.
Happy investing
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MelHi Del,
You sound like you are where my partner and I want to be in about two years time. We have set this time-fence on the period where we are happy to lend the max we can to get rolling, but after that sub-80% is much more attractive long-term.
Who knows what the future holds though …
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MelHi Fizman,
Don’t you just hate it when the debts sneak up! As another broker looking at your info I agree traditional lenders will not touch you at the moment. My 2 cents worth:
– don’t sell the house
– seriously consider selling the car and getting whatever you can afford outright (ie Bomb)
– knock over the personal debt asap (banks hate them cos they are basically proof you’re not a saver AND there’s no security on offer)
– and Terry’s suggestion of accumulating 6 months of On-Time payments against the mortgage, without that you are a sitting duck for huge interest rates on a refinance.
– ONLY refinance at the huge rate hike to invest IF you can find a steal with a 30%++ return from day one.Good luck [
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MelNu Gen, you are just trying to get triple posts to catch up to Westan …[
]Swaney the theory of a line of credit is something like this:
House value – $300,000
Amount owing – $180,000
LVR at 80% – 240,000If it’s an income lend, then providing you can service a $240,000 loan you could refinance with $180,000 basic variable P&I (cheapest rates around 5.9%) and $60,000 as a line of credit (at slightly higher rates about 6.5%) and when you find investments that suit your strategy (high +ve cash flow, fix & flick etc) then you can draw out the extra $60,000 out of basic a gigantic credit card, and only then do you start paying interest on this extra amount.
Make sense?
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MelA lot of self-employed people I know rent as they claim (rightly or wrongly, I’m not an accountant) a much larger portion of the expenses as costs of running their business, especially if involves other people working with them, storage of goods eg furniture samples for importers etc.
Otherwise I tend to agree that in the last 3 years owning and gaining capital growth for about the same money makes a lot of sense, certainly the smartest investment I ever made.[
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MelDaveo – 18 months ago that house you describe probably rented for $220 pw but only cost $200K to buy (approx $220 per week repayments on $160K lend) but in the meantime it’s grown by $100K in value ….. !!
Crashy,
To my surprise have to agree re reno option in the Bris metro area now, but like housing in general there are still some v good overlooked buys to be found on the outskirts I think.
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MelBrad,
As long as it’s known to be your place of residence yes I think you can rent to your girlfriend IF she has a separate bedroom in the house … might be wrong but I thought that’s what an accountant told me once – comments anyone??
However, if you are pretending not to live there and claim as 100% rental, refer definition of ‘rort’ …
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MelI am/was as total BLOCKer – addicted to that as I am to this forum – but yes always thought it strange that the worst whiny voice on the show put out an album, good luck to her I say, and how’s a $256K return on 11 weeks work for Ken & Barbie?! Mind you that may be chicken feed to some folks on this chatline ….. [
]. I have met someone who makes that kind of money renovating full time, but he has a lot of capital, so we’re still pursuing the small stuff +ve geared at this stage, hope the bubble holds!Mel
Hi,
Why not just get NAB to lend you 95% on the new IP, leaving the existing one where it is? Often better to spread around amongst different banks, but Del is right about ramping up no. of buys being hard if lend is greater than 80% – probably depends on your circumstances and strategy.
Happy investing [
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MelJust listen to you lot, tired of all those yummy dinners, clean clothes and warm tidy home already huh …. hang on my boy does most of that stuff, hmmm, maybe he’d rather have a rental too …[
]Mel
Welcome to sunny queensland – good choice! [
]Depends what you are looking for – high density unit, semi-detached, space to roam, new/renovator/renovated etc, and of course how much you have to spend ….
Any clues?
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Mel
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] ?!?
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]. I have met someone who makes that kind of money renovating full time, but he has a lot of capital, so we’re still pursuing the small stuff +ve geared at this stage, hope the bubble holds!
