I’ve been thinking that too Matt.[8D]

Maybe we could get them made a liiiiittle smaller please Admin?[:p][^]

Cheers
Mel

Freedom, you could use the money from the sale of land to pay off your PPOR. Then you reborrow, or use as security to purchase IPs. this makes it tax deductible debt.

Don’t let the tenants know you are the owner – get it managed by a RE company.

Is the TV show ‘The Block’?

If you buy more properties in other areas later on you will be diversified. If you have done your research on your area, and know it will be good, then go for it. You can watch your initial ‘basket’ very closely!!

Cheers
Mel

Guru, I was guessing that freedom wanted to put money in to build up the balance, and then when there was enough, to purchase either shares or property. Sort of like the ‘forced’ saving plan, but putting it into the trust where the investing is going to happen from.

Cheers
Mel

Dom, it does sound good. It doesn’t meet the 11 sec (only just though) but if it is new, you’ve got depreciation to take into account, so can offset some of your other income, and result in a tax rebate.

It does look good[]

Cheers
Mel

Hi Ryan

The first thing I recommend you do is contact one of the mortgage brokers on this site and ask them to look at your whole situation.

You might be surprised, and find that you can actually borrow more in your current situation. At the very least, it will give you a better idea of what you need to do. I don’t know enough of your situation to offer advice, except that you need to factor in selling costs (CGT, agents, solicitors) as well as rebuying costs (stamp duty, solicitors, bank fees etc.).

Cheers
Mel

Doogie, the interest rates will not change that often. In fact, the most they can change is once a month when/if the RBA changes the rates.

So the direct debit idea still works well.

Cheers
Mel

I put my house in, and they ‘didn’t have enough data to work it out’.

It seems that they must use what you put in as your ‘guesstimate’ of value now, and compare with what others have said etc. etc.

Cheers
Mel

Hi Doogie and welcome to the forum

quote:

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1/ Pg 214. When you say that you interest margin in the deal with Mrs G was set by you to 2% …, did you mean that you would always be passing on the 2% addition to what ever was the current % rate

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Answer: Yes. It will always be above the wrapper’s rate from their bank.

quote:

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2/ Pg 215. In table 13.3 with the purchase price of $49500 and the cash needed of $10502 (with the clients deposit of $6500 taken into account), what did you do with the differnece from the bank loan amount of $39600 with the net cash needed of $10502 if the purchase price was $49500, to me it sounds like a surplus of (39600+10502)-49500=602. The reason I am reading this is that you said that that the investor MUST first own it, but then in your table it looks like you have account for the $6500 that you get as a deposit to enter into the wrap from the client against the startup of the deal…..sorry to confuse, but I am a little confused too!….

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The $602 being the difference between the bank loan + deposit – purchase price presmably would have covered legals and stamp duty?

Steve then gets a deposit from the wrappee, and (I think) pays it off his loan. He then would say that invested in that deal, he has $4002 of his own cash.

I hope this helps, I am feeling a bit confused myself.

Cheers
Mel

Hi Barb and Welcome

Who’s Bruce Innocent?

There was a post a while ago about how to buy it in the states and it works out heaps cheaper than buying it here, but I’m not sure how that works.

Rich Dad’s salespeople here in Aust are Pow Wow Events

http://www.powwowevents.com.au

If you buy their Christmas packs before the end of January you can get some good discounts.

Cheers
Mel