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Mortgage Hunter
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February 14, 2006 - 9:37 pm
Some of these groups genuinely add value and work hard to find really good properties. I have also heard that there are still companies – esp in NZ – who simply readvertise whatever the REA are listing to their clients and take a comission off both sides.
Mic from Australian House Hunters is a good guy. As is Jacque from http://www.housesearchaustralia.com.au although she specialises more in the Sydney area..
I really don’t know any others well enough to comment and have never heard of Insight. Has anyone else know them?
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mortgage Hunter
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February 14, 2006 - 9:28 pm
If council approves you can build whatever you want.
Depending on the block site costs can vary enormously and you may find that with too much slope the wrong way it is just not viable to build and sell profitably – or even rent them out compared to buying something built. Remember that building should be cheaper than buying something new as someone else has done the work and paid the dead interest on the project.
Remember that as investors we buy with our calculators and our hearts[suave2]
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mortgage Hunter
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February 14, 2006 - 12:27 pm
I believe no but check with an accountant.
Some costs may be attributed against purchase of your first IP.
but again – speak to a professional.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mortgage Hunter
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February 14, 2006 - 7:43 am
Originally posted by samnash:
all good stuff to chew on, thanks guys.
My nuetrally geared investment house on the other hand gives me lots of cold hard cash each, and every week ,and the bank loves me for it.
So why sell it?
Maybe buy a few more. When you own $2M worth of IP’s $50K wont be an issue.
Just trying to get you thinking.
All the best
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mortgage Hunter
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February 13, 2006 - 4:09 am
Why dont you fix the awful colours and try to get higher rent?
Then make your loan IO and direct all cash into your homeloan. Even run an LOC model where you use your credit card for all expenses imaginable then sweep it clean from the LOC monthly during the interest free period. This can work well and you may knock over a $50K loan fast.
A step up might be to borrow $x00K from the home loan and buy shares, managed funds etc etc. Direct all income into the $50K loan until it is gone.
The bigger you think the smaller the $50K debt is.
You are on the right track by owning an IP tho – most people don’t.
Alternatively why pay out the debt? In 20 years time $50K will prob buy a TV set.
Just some ideas to get you thinking
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mortgage Hunter
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February 13, 2006 - 3:48 am
If the demand is there you might even make money selling as a duplex block if your plan is to sell rather than building yourself.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mortgage Hunter
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February 13, 2006 - 3:07 am
WC beat me to it.
I would be thinking of calling both of them. Imagine what this guy would do to an older person or someone really vulnerable.
I would have proably called their bluff about taking your stuff to storage and called the police the second they tried to reenter the propery – but easy to say something like that sitting in my office on my fat bum!
At least it has left you a little wiser for next time. The biggest disaster would not have been to learn anything from it all!
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mortgage Hunter
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February 13, 2006 - 2:53 am
As someone who has worked with a few investors for a while and even bought a the odd property myself let me offer some well intentioned advice.
Each week I get calls from new investors who have just discovered serviced apartments, retirement villas, studio apartments etc.
These are all difficult investments as you need a higher deposit and the resale demand isn’t as high. This is why the numbers always look good as they cannot be valued at a normal yield.
If you are after growth then my advice is to look at 3-4 bedroom middle class homes in coastal cities and major centres. Of course budget doesn’t always allow for this and you may need to vary the theme according to your chosen market and budget but I am sure you get my drift. Another tip is to buy in areas with mainly owners not renters. Better demand and also better suburb maintenance and appeal.
If you are after after cashflow then you may need to head inland to more regional centres. Don’t be lured out to one industry or mining centres without doing a lot of homework on the area’s future.
Now it is even possible to get both growth and cashflow and this seems to be the holy grail for many .[biggrin]
All the above is a huge generalisation intended only to illustrate my point. Readers may very well have found wealth through retirement villas etc.
Anyway food for thought!
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mortgage Hunter
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February 12, 2006 - 10:29 am
I think your Broker has either erred or is encouraging you to commit fraud.
If you are in a defacto relationship then the FHOG is used.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mortgage Hunter
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February 11, 2006 - 4:25 am
It refers to a refinance of a property from another lender. This is the plum business – no purchasing involved and a repayment history is available. It also brings in new business cheaply.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mortgage Hunter
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Join Date: 2003
Post Count: 3,781
February 9, 2006 - 12:16 pm
Originally posted by Ko_starr:
Thanx mate. so stick with PI?
Did you understand my post?
I have no idea of your situation so cannot advise. Perhaps your accountant can help make a decision.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mortgage Hunter
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February 8, 2006 - 12:01 pm
Originally posted by Insan3:
Great – Thanks for that Simon.
So, Interest on Interest – so Ideally, you make absolutely no payments to the Investment loan, not even the Monthly Interest charge – I have never heard of this, outside of a Line of Credit with heaps of room until the max limit is reached.
And they arrange the loans in-house, similar to a broker? So it isn;t a case of ‘OK, we think this is an ideal place to buy – now go and find the finance yourself…’??
I know I should just give them a call, but I am a little apprehensive (as you can tell!!), that once I contact them, they will try and hold on to me.
Although – if they charge no fees, then I guess there is very little to lose….
Not really. They find the property and make some money from the vendor. Risk here is poor valuation and also that they are merely selling their own developments which are less about researching hotspots and more about flogging their stock to make the most profit.
They do the finance and make a brokerage fee same as me. Risk here is that they not be any better brokers than the average cowboy out there. Chasing best comission payer rather than best product for the client.
Many other companies do all of this yet still charge a hefty premium along with their comissions recieved.
The biggest unknown in my mind is the options writing. Perhaps our latest member can educate us on that part of the caper?
Please don’t take anything I have written as either a recommendation or a warning. I really know very little about this mob and until proven otherwise am giving them the benefit of the doubt.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
February 8, 2006 - 12:01 pm
Originally posted by Insan3:
Great – Thanks for that Simon.
So, Interest on Interest – so Ideally, you make absolutely no payments to the Investment loan, not even the Monthly Interest charge – I have never heard of this, outside of a Line of Credit with heaps of room until the max limit is reached.
And they arrange the loans in-house, similar to a broker? So it isn;t a case of ‘OK, we think this is an ideal place to buy – now go and find the finance yourself…’??
I know I should just give them a call, but I am a little apprehensive (as you can tell!!), that once I contact them, they will try and hold on to me.
Although – if they charge no fees, then I guess there is very little to lose….
Not really. They find the property and make some money from the vendor. Risk here is poor valuation and also that they are merely selling their own developments which are less about researching hotspots and more about flogging their stock to make the most profit.
They do the finance and make a brokerage fee same as me. Risk here is that they not be any better brokers than the average cowboy out there. Chasing best comission payer rather than best product for the client.
Many other companies do all of this yet still charge a hefty premium along with their comissions recieved.
The biggest unknown in my mind is the options writing. Perhaps our latest member can educate us on that part of the caper?
Please don’t take anything I have written as either a recommendation or a warning. I really know very little about this mob and until proven otherwise am giving them the benefit of the doubt.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mortgage Hunter
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Join Date: 2003
Post Count: 3,781
February 7, 2006 - 8:49 am
I am thinking that Phil wasn’t advertising for partners here but merely asking for advice on whether and how to do it.
Of course we cannot allow advertising here and if I thought he was doing so his post would be edited or deleted.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mortgage Hunter
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Join Date: 2003
Post Count: 3,781
February 7, 2006 - 8:47 am
I am thinking that Phil wasn’t advertising for partners here but merely asking for advice on whether and how to do it.
Of course we cannot allow advertising here and if I thought he was doing so his post would be edited or deleted.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mortgage Hunter
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Join Date: 2003
Post Count: 3,781
February 7, 2006 - 6:11 am
Derek is our resident expert and will no doubt reply once his spider sense starts tingling…
From my perspective I think that TIC is a mature company that applies a formula to help people amass a property portfolio.
No doubt some individuals can do it better but for the average person who would enjoy some guidance and peace of mind then TIC is worth considering.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mortgage Hunter
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Join Date: 2003
Post Count: 3,781
February 6, 2006 - 2:36 pm
Originally posted by Insan3:
What exactly is capitalising the Interest, and is it something that is allowed??
And if it is not capitalising interest, but just extremely aggresive investment plan, how great would the risks be? They really try and play down the risks by stating they target high occupancy areas.
As for fees, the details I got in the email they send out (or the company who sent it to me on their behalf) –
No Outlay by you EVER.
So I assume they take something once you make some money from the plan….
Thanks for you help
Capitalising interest is where you dont pay into an IP loan at all – not even interest. Use all rent etc to kill your home loan.
Prob is you cannot then claim the interest on the added interest. Ie after year one your IP loan would be bigger as all interest is just added but only the interest on the original sum is deductible.
I must have a think about whether it may well be a viable approach even without the extra deductions…. they seemed to think it was if it killed your non deductible debt fast – second priority was to kill the non deductible capitalised interest. After that it is all good!
What do others think?
As far as risks go – they seem to advocate borrowing and buying to the max where needed to meet your investment goal. In a bear market this can lead to a forced sale with subsequent loss. They do have a buyback guarantee tho so they have addressed this concern.
They do claim to buy well with high yields and growth but this is a claim made by all marketing companies so take it with a pinch of salt.
They encourage independent vals so that rules out the traditional Gold Coast white shoe marketers selling inflated property with dodgy valuations.
So far it seems as legit as most companies of this type. The proof really is in the quality of the stock and whether it performs. Who can say?
So I have read the website and had a 20 minute chat with them. I am not in any way recommending them just advising of my findings.
Al lthe best,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
February 6, 2006 - 2:36 pm
Originally posted by Insan3:
What exactly is capitalising the Interest, and is it something that is allowed??
And if it is not capitalising interest, but just extremely aggresive investment plan, how great would the risks be? They really try and play down the risks by stating they target high occupancy areas.
As for fees, the details I got in the email they send out (or the company who sent it to me on their behalf) –
No Outlay by you EVER.
So I assume they take something once you make some money from the plan….
Thanks for you help
Capitalising interest is where you dont pay into an IP loan at all – not even interest. Use all rent etc to kill your home loan.
Prob is you cannot then claim the interest on the added interest. Ie after year one your IP loan would be bigger as all interest is just added but only the interest on the original sum is deductible.
I must have a think about whether it may well be a viable approach even without the extra deductions…. they seemed to think it was if it killed your non deductible debt fast – second priority was to kill the non deductible capitalised interest. After that it is all good!
What do others think?
As far as risks go – they seem to advocate borrowing and buying to the max where needed to meet your investment goal. In a bear market this can lead to a forced sale with subsequent loss. They do have a buyback guarantee tho so they have addressed this concern.
They do claim to buy well with high yields and growth but this is a claim made by all marketing companies so take it with a pinch of salt.
They encourage independent vals so that rules out the traditional Gold Coast white shoe marketers selling inflated property with dodgy valuations.
So far it seems as legit as most companies of this type. The proof really is in the quality of the stock and whether it performs. Who can say?
So I have read the website and had a 20 minute chat with them. I am not in any way recommending them just advising of my findings.
Al lthe best,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mortgage Hunter
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Join Date: 2003
Post Count: 3,781
February 6, 2006 - 2:18 pm
I spoke to them today.
Seems that whilst they advocate capitalising interest in some plans they fully understand that the interest on interest is not tax deductible. So no legal issues there.
Seems the CEO is a property wonderchild and has turned his hobby of showing others how to do it into one of his many businesses.
Nothing I heard sounded like a red flag. They sell at or below independent valuation. Charge no fees etc. I think they make money by getting a selling fee from the vendor and also comissions on loans etc that they help set up.
This is no recommendation tho as I know nothing more than what I learnt in a 20 minute chat with a nice older chap.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
February 6, 2006 - 2:18 pm
I spoke to them today.
Seems that whilst they advocate capitalising interest in some plans they fully understand that the interest on interest is not tax deductible. So no legal issues there.
Seems the CEO is a property wonderchild and has turned his hobby of showing others how to do it into one of his many businesses.
Nothing I heard sounded like a red flag. They sell at or below independent valuation. Charge no fees etc. I think they make money by getting a selling fee from the vendor and also comissions on loans etc that they help set up.
This is no recommendation tho as I know nothing more than what I learnt in a 20 minute chat with a nice older chap.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.