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ive always advertised my granny flat at http://brisbaneexchange.com.au/
ads are free. you could give it a go.
goodluck penguinchickthis ‘living off equity’ as Derek and terry have described is really exciting stuff….i know cos IM DOIN IT! YIPPEEE.
I found myself in a similar (tho not as rich) situation as you carpe_diem. widowed, 4 kids, a PPoR and juggling two IPs to keep them below the asset level to be eligible for Parenting Payment. AND i was managing this, but I was frustrated in not being able to move forward toward financial independance.
A friend invited me along to a Bill zheng seminar. He is the spokesperson for a group called Investors Direct. You can do your own google on them. Essentially they are brokers and they talk of drawing on equity to finance deposits for investment properties. I wasnt sure they could do anything for me but I emailed them with a ‘wot the hell’ attitude, giving them all my details.
They described, using a spreadsheet (making it easy for a dummy like me) just how through accessing my equity, and purchasing more IPs, but also spending further equity on living expenses and other costs, i can increase my assets phenominally. Ive been pretty p’d off with Centrelink so I was eager to embrace a scheme that meant giving them the flick. To think I have been madly trying to keep hold of my Parenting Payment when it is only worth 13k a yr!!!
So where am I now? I have freed up $400k of equity on my PPOR. Of that $130k is kept as holding ( for paying interest, renovations living expenses etc) ANd I get $270k to go shopping for houses with. YAY. As I have a no doc loan I have to put down 30% deposit but I can still find 3 or4 houses in and around brissy.
One of the hardest thing for me was getting my head around ‘using debt to service debt’. [wacko]Using the equity to make up the shortfall taht rent wouldnt cover. The other thing I find difficult is switching my leanings from cf+ properties to capital growth properties. As i love renovating Im gunna be lookin for the run down hovels in the good areas if you lot out there havent got there before me [wink]
I hope this is an encouragment for others out there who feel they cant get into IPs because they dont have a job.
goodluck to you carpy
I think we should all go invest in those inner city places that MD talks about TODAY!. We will increase demand, push the prices up and thus improve the value of the area. Of course then we can put the rents up and those undesirable ‘riskier’ low socio-economic tennants will be forced out.
What I am more interested in is: Are these cheap parts of inner cities going to stay that way? Demand for inner city property in Aust is very high. Perhaps these areas will see a turnaround as others see the value of city living.
As far as my own investing goes, I dont give a rats about the history here. There are any number of human rights issues we could take up with USA, Im not about to single this one out to the detriment of my own ambitions. These people need somewhere to live and they wont find a fairer landlady than me . [thumbsup2][thumbsup2]
hi there skippygirl
you can forget Centrelink. Puds idea is teh way to go.
I have had enough trouble with Centrelink and they bend no rules cos they are bound by govt legislation. And your friend is way over the asset level.
A few yrs ago I used the equity in my house to purchase two investment houses. Before I did this i checked with Centrelink over the phone…’oh no madam, it wont affect your benefit cos your mortgages outweigh the rent you will receive”.
I now owe $11700 from benefits that centrelink NOW say was unlawfully received. I dunno how they expected me to eat during this time.
Anyway I have refinanced the IPs so they are not beholden to my PPOR. Centrelink are happy and i can get my parenting payment back but they deduct $161/fn to pay back my debt.
Makes no sense to me.But if you do ring Centrelink, ring only once cos if you ring 3 times you’ll get 3 different answers. [confused2]
Goodluckhi there
I just don’t get why you would want to spend that kind of money on your home when you say you are scraping together every last cent and will live on baked beans for two yrs.I CAN understand scraping together every last cent and living on BB’s for two yrs if I was investing that money that was going to give me a fantastic return.
Or I CAN understand accepting a cheaper home that wont stop me from enjoying a comfortable lifestyle ie overseas travel and wining and dining
[wacko]
[lmao][lmao]
Well i think its a curious point about possessions and rent when someone is packed off to gaol.
However not really teh muslims you used as an example. They seem a rather close knit community and I’m sure someone would be there to help out their ‘brother’. Even if htey didnt pay the rent, Im sure they would pack up his gear.And what if someone is in gaol for only two months. Are they able to access their accounts to transfer funds and pay rent?
Hey I’m with you! I am here at 4am after waking up scratching from mossies also. Altho I have screens on most windows, I went to bed with teh unscreened french doors and front door open.
Your property mananger is rude not passing on your request to the owners. I’d put it in writting and demand that the pm pass it on to the owners. I rekkon he is just being lazy.
Then it will be up to the owner. Some are happy to oblige good tennants. Others think ‘well why didnt they check this out before they moved in?”
Thanks for the feedback. I’m thinking definitions have change over the years and they differ depending on location.
I guess I was mainly thinking of those townhouse estates where there is a pool tennis court manager etc. The BC always seems so exhorbitant. And I have never personally liked them with the big security gate out the front making me feel i was in a guilded cage. But some people love them perhaps I give them another look. With this aging population and the fact that there is a growing number of single occupancy make them worth considering for longterm.
thanks for the input
Ken
you have asked me to comment on so many points but i’m sure other formumites aren’t interested in our debating marriage and the personal foibles of mankind.While you make some very valid points, You place extremely high expectations on people. I’d say unrealistic expectations because you believe people can change their basic natures. People ARE selfish. There ARE conditions to love. But i assume you are coming from a fundamentalist christian view point that I don’t share.
There are probably people reading yr posts and soaking up the good advice but there are divorced people reading this that are offended by the implicataion of failure.
I have to wonder how long yu have been married and how much you’re marriage has been tested. Can you and your wife get back to me in 30 yrs? Or perhaps you could write a book describing your successful marriage.
we are never going to agree so I’ll not bore other formumites further since we have detoured from teh original thread. Therefore if you wish to continue I will reply in private.
all the best
millyI don’t believe there is such a thing as unconditional love Kenkoh. (tho love for our kids might come close)
It must be wonderful to be so selfless and idealistic. Unfortunetly we have seen all too often what happens to the ‘nice guy’.
You can be the most hardworking, attentive, helpful wonderful husband in the world and you come home one day to an empty house and a letter explaining that wifey has left, been swept off her feet by some wicked libertine she met at the gym.
Are you saying you would continue to love yr wife in such a circumstance? nah….there are always conditions to love.
It’s all very well to go on about romance and trust but just remember seven yrs down the track when you.re eying off the pretty young secretary, ‘hell hath no fury like a woman scorned’. Wifey will want to hit you where it most hurts….the hip pocket! It wont be about greed for the goods, she wants REVENGE.
anyway im not cynical or bitter. I had a wonderful marriage to wonderful man but I cant help looking about and learning from the experiences of others. I’m a realist….not a cynic.
and then again Ive always rather liked a quote by Rachel Welsh: “No rich man is too old or too ugly”
well there aint no happy ending here folks.
Got a letter yesterday from solicitor with an attached letter from the Office of State Revenue that holds the stamp duty.
It informs me that there will be no refund of stamp duty because the “transfer failed to proceed as per your instructions” (according to section 15 of the act blah blah)
The solicitor had written a letter to them saying that WE had changed our minds about deal. This is utter crap of course.
I really hope dad has better luck explaining to Veteran affairs why he ‘gifted’ (as in paid out our loan) $155k to my bro and me than I had with Centrelink. Centrelink refused my appliction for Parenting Payment because the loan was seen as an asset. They informed me that we possibly took out the loan to give my father money and so it was viewed as an asset. Yeah right. Real logic to that.
i spose there is a legal ombudsman or something but frankly I am tired of thinking about it and attempting to fight beaurocrats.
cheers milly
Have 2 ips and heaps of equity but unable to finance a loan as I work only casually boohoo.
tis a good thought provoking post
millyIf i show you my package camder…..will you show me yours?
Go the Gross! I love reading his threads
This would be a lovely ‘leaving home’ gift.
says Celivia.
AHAH!ok i get it now! I know where you are all coming from! It has always concerned me that kids are often well into their thirties before they leave home. Buying them houses for their 21st mightn’t be such a bad idea after all. [biggrin] . I had previously thought of just buying them a backpack as a big hint.
milly
sorry Richard i mentioned your name in my last post but I really meant the depreciator.
hi there mkofski
Sorry i cant offer any advice relating to the specific question but I cant help saying that i agree with Richard.Education is teh best thing you can give your kids. I play the board game ‘cashflow for kids’ with my 4. The eight yr old told me the other day when i said I had no money to buy him some lollies that we need more ‘passive income’.He didnt learn that at school!
What do we learn when everything is given to us on a platter? I am a firm believer that it is through the struggle,whether it is learning to sail or buying your first crappy 2 bedroom shack that we learn the most and appreciate what we have accomplished on our own.
And ok I admit I’m a cynic but I rekkon with my 4 kids, one might actually appreciate getting a free house and use it to full potential. Another of the kids will probably gamble it away, another will sell up and go travelling and another will have a messy divorce in which he/she ends up losing teh house. If i had a fifth kid, they’d prolly be the junky and it all would go up in smoke.
Anyway I am sure you have wonderful children and none of the above applies but I thought I’d throw it in just as a consideration.
goodluck on your ventures
millyhi GR
http://groups.msn.com/PropertyInvestment
I liked the idea of this site because they arent affiliated with any company. They aren’t there to sell me books, seminars or mentoring programs.
However there is no way they they can compare with this site for resources and information. I think you will be hard pressed finding a better forum than this for what it has to offer. It is rich from the variety of contributors.
cheers
millygees I can’t believe that people with dogs dont want to find a home WITH a fence. I woulda thought it was a priority, dogs or little kids….ya gotta have a fence. I spose with no fence they will go crap in the neighbours yard so I guess that’s a bonus. But you’d think that it might worry them that rover might get squished on the road.
Anyway I rekkon give these tennants a miss. You may say that the dogs are the tennants legal responsibility but it won’t stop neighbours complaining to the agent when there is a problem.
Good luck
millyI live two burbs away from Banyo at sandgate. Last yr Dept of Natural Resources sent me a letter saying my land value was 510k. This year they sent me a letter saying it was now worth 475k.
Earlier in the year I had the house valued by a real estate agent who told me I would get between 400 and 500k if I sold it. This with the house, a huge renovated squeenslander, included.
Now either the DNR value is inaccurate or it is the real estate agent’s estimate (and god knows that was broad enough!)
I think the value of a property is in the eye of the beholder until it is sold for a price that someone else values it at.
But for the record Captn I agree its a great deal. Anything under 200k on the northside is a great deal. Best of luck
millyThanks C2 and Derek especially for great advice as usual.
I gave the solicitor a ring and politely enquired after a refund on the stamp duty. He told me ‘the wheels are in motion”.
yeah yeah I wonder if those wheels wouldve moved if I hadnt mentioned it.
As for my brother, since I have enduring power of attourney he leaves everything to me. He is my sixth baby after my four boys and my father. [confused2]
milly
