Forum Replies Created
I might be misunderstanding the question but in canada we use vendor financing alot.It’s a great way to get into investment property if you don’t have alot of capital on hand . keeping in mind that the property must still remain cash flow positive even after all the vendor terms are met.The tenant is the one whom is paying down the loan.
hope i’m not off track
canadian daveDarren,
Thanks for the recommendation. All that is required for this particular “No-Doc” loan, the front page of the sales contract, a copy of the applicant’s drivers licence and passport and a completed application form.
It is preferrrable if people could contact me on [email protected] I can then email a fact sheet and an application form. It is also a good idea to check on how much the bank will lend in the town chosen. The bank assesses their risk and have ranged from 90% to 85%, to not at all in a couple of towns.
As I deal with 22 different banks and lenders I can also arrange a Line of Credit which can be used to drawdown deposits.
Kind Regards,
Greg Levett
Mortgage Broker
http://www.ald.com.au/gregSteve,
Appreciated your comments and taken on board.If interest rates go up, will this in fact be shown in property values? Like will property prices drop if the interest rate rises?
Thanks.
RHi Steve,
Looks like a good website, with regard to more info, heck, obviously it’d be great if you just threw up all your wrap strategies and secrets, but I do understand that the idea is to fork out 2k for the library.
Congrats on your successes, if you do a seminar in Perth, that’d be great.
Cheers,
RichieQuote:Hi Steve,Would like to know where you can find positive cash flow houses in melbourne, I cannot seem to find any that meet your criteria
what am i doing wrong
Thankssimone
Simone
You ask in you post ” what am i doing wrong” but in order for some assistance to be useful, you might give us an idea of what you are doing. A basic analysis of what you are doing should then reveal why you are not able to find these propoerties because they are definitely out there.
JW
Hi,
I’ve spoken to my accountant about this in some length.
This is how I do it. If I buy at $50,000 and sell at $70,000 I have potentially made (on paper) a $20,000 profit. However, I won’t fully realise the profit until the very last payment. I am actually realising it bit by bit with each payment.
Every repayment I receive from the client is part principle, part interest.
So, let’s say that at the start of the contract the client owes $63,000 (after a $7,000 FHOG). And the first repayment is $122.24. $115.10 is interest, and $7.14 is principle.
I then calculate the capital gain release income by:
($7.14 / $70,000) * $20,000 = $2.04.So for this first payment I have made the difference between the interest I have paid the bank, and the interest I have charged the client PLUS the $2.04, which is a portion of the $20,000 capital gain “released” by a principle repayment.
It is legitimate to “defer” this capital gain release like this *ONLY* if it will be viewed by the ATO that you are conducting a business. So if you only buy 1 or 2 properties, then you probably won’t qualify. However, if you have 5 or 10, then you probably will.
I am not accountant, so get some independent advice.
Hope this helps.
—
Eugene Ware
Property Investing.Com Web Developer
“Web-Solutions with a BUSINESS,
NOT a TECHNOLOGY Focus”
http://www.nextharbour.comEdited by – [email protected] on 24/05/2002 11:26:11 AM
Age may be or may not be a hassle – perhaps it can be used as an advantage in the context of psychology and identifying who was serious etc.
It really depends on selection and ensuring that your strategy is deployed as correctly as possible.
