Forum Replies Created
As above with lending, I see too many physical barriers. I do see that it can be done- Akin to winning the lotto……..
I would like to see some evidence, facts, and a real strategy that will work for Mum and Dad Australia in 2011. Who has the answer?
On that note: How do you go from 0 to 130 in 3.5 years? Can this really be done on an average income like Mum and Dad Australia?…..I will post this as a question, so please dont answer this here, as I do not want to hijack this thread…
http://www.birchcorp.com.auMore than that (creating wealth is not about saving interest or saving anything for that matter), we are saying to use the money on another property (appreciating asset)…. With all due respect to the above, be careful the way your capitalise interest.
Correct, I have never made a principal payment in my life. I consider the interest payment an expense or the cost of holding an asset. The principal payment that we are all hung up on, merely is money down the drain…. i.e. you are making $$$ on the appreciating asset, why do we need to throw more money in this direction?
An analogy: A child will grow with the right nourishment, when you feed your child extra they don't grow faster…just fatter (the abesity epidemic). The same applies to a mortgage. Why not feed another child…. or in our case another property that will also grow in value…. Now we are making money….. I hope this Mcknight guy that plasters his 0-130 stuff all over the side of this page does not steal this one……
Remember: You heard the child analogy from the Birch first…. I am going to call this the "abesity strategy".
That is correct, but what your bank lady failed to mention was that they require the date on the insurance is from settlement date (and when was the last time someone listened to their bank lady – no offence to those workers, but we all understand the banks are only interested in the bottom line- refer to profits).
Now the banks have a vested interest in the security property as we know. I am sure they would make you take insurance immediately if there was a risk this deal was to fall over….. Then again, the banks can sleep well at night knowing they have this HUGE risk, as they have very large pockets….
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http://www.birchcorp.com.auRemember: you will make money from your property whether or not you pay this off. Why struggle?
The item in life that makes you money is the growth of an asset, not how much you can pay off….. that is unless you have a ridiculous income.
There is no need to pay down any debt, you may be missing a several important points about property investing. I have never made a repayment in my life, yet retired (kind off- I work for fun now) at 33 owning my own house outright ($1M) with many IP's.
Don't sell, unless you want to live the same financial life as everyone who steps before us and talks about paying off their mortgage like it is the thing to make you wealthy, and then retires at 65 with just enough….. Not my idea of good living. I didnt go to work today???? That is the difference- but then again it is raining outside in Sydney- who would go to work….
This concept/ strategy is not suggested or marketed, it is actually in full operation around the country in many shapes/ forms.
If your accountant has never heard of this then you can find many who have……
It is simple science (I am an X-Science teacher), take away the fly and the maggot is gone. Does the house have fly-screens? Other than that keep the property clean.
ANZ are also 10 years i/o
Final inspection is to ensure the house has not burnt to the ground or like- hence you would not complete. The Deposit would be taken out of the trust account and you would go look for another….. So many scare tactics out there in the insurance world….. I am happy to hold my money until settlement….
If it is an IP or O/O for that matter, why would you not leave this roof- unless you intend drilling, crashing or smashing….
I can add that the LVR's have now improved (80%)…. It is game on inside this industry….
You are buying the land, the property is a bonus. As long as it is asthetically pleasing or you can give it a cosmetic upgrade I would have no hesitation in buying 50-60 year old properties…. Cracks are a common feature in this vintage. Refer to a structural engineer if you are in serious doubt?
Sometimes you can look too much into the stats and oversee the items that make you money…… You should buy when you understand an area and what is goood value. There is a lot more to investing then you can gather from a online chat….. I am happy to sit down with you at your earliest convenience.
Re: paying down the loan as quickly as possible, I consider this old school……..
The equity in your property will be good, as long as you meet serviceability- paper trail or not……
I'm NSW, Sorry….
Manage your own IP and the experience you will have in this game will be good…. who better to look after your $$$$ then you. I person you are paying $23.15 pw, how much do they really care, or to put it a better way. Do you care more????? I mange all my prooperties and hence are now a property partnership 9another benefit). All properties run very well with brilliant tenants, that I prefer to call friends….
A couple of nights out, a holiday, lots of beer and a nice bike?????? Ok, probably not what you wanted to hear….
Invest cautiously…
