Forum Replies Created
If you are good with the LOC and controllig your money, it is a great way to go. You have no non-deductible debt so don’t need an offset account. Just use the LOC for deposits and fees and get 80% I/O loans on your investments. Pump all money into the LOC to reduce debt unless you want deductions.
You are in a great position!
I am just about to buy 2.25 Mill worth of property in Sydney under this structure. Just wanted to make sure. No problems meeting the shortfall. Just was mainly concerned with ATO allowing deductions on properties not in the investors name.
I don’t think anyone would consider ‘unlimited’ finance as a bottomless pit of money accessible to buy anything they desire. There are ways to continually get funds made available for further investment but it will be looked at each time further funds are required. Most people will find that the well will dry up with one particular lender as their exposure limits get too high for that particular lender. Going to another lender will allow an investor to continue in most instances.
As long as Serviceability is adequate, the Security is suitable, the client has a good credit history AND the applications remain within the lenders policies and guidelines, there is no reason why the money won’t just keep flowing.
Use an interest only investment loan for each property you acquire. You need a new facility for each purchase unless you have heaps of equity. Use the LOC only for deposits and fees secured against your home.
Originally posted by delboy:Hi All
A question about financing wraps compared with normal IPs. Say you buy an IP and put a tenant in and it is +CSH then you should find it fairly easy to secure another loan from the banks for your next IP as you are earning more income plus you have whatever equity in the home. How does it work with wraps? Ok you have more income but you can not use the equity in the home and with most banks you can’t tell them that you are wrapping.
So when you have bought your first wrap, how do you go about securing a loan for the second, third, tenth etc.
Anyone!
Delboy[cap]Hi Delboy and Leigh
My broker’s told me that they risk their licences if they do not disclose everything to the banks, so the trick apparently is to find a financier that isa cool with wraps. As I am about to launch into my first of hopefully many ethical wraps, can anyone please confirm that obtaining finance from banks/institutions WITH FULL, UPFRONT DISCLOSURE is easy?
Cheers
Greg FThanks MA
You’re awesome!!
Does this mean, as a Qld resident, he has to purchase his PPOR in Qld. Are ther any states where you disqualify yourself if you buy your IP before you buy your PPOR?
Can you confirm that:
1. WA is not on for FHOG if you buy your IP first
2. Vic is the same as Qld, ie., he can buy his Ip and still qualify for FHOGThanks SO MUCH!! And sorry to be asking so many questions.
Cheers
Greg Fyack
Valued Forum Contributor [692 posts]
Posted 15/06/2004, 11:32:36My Guru is Jan Somers.
No high priced seminars, no wrappacks, no interstate rural properties. Growth v Cashflow balance.
Just good common sense. Her books are a MUST read. Follow here strategies and You cannot go wrong. Read the book on case studies. See how others have succeeded.
I wonder if any of those people are on this forum?
YES, I agree! I read Steve’s book after reading Jan Somers and I liked the theory of making money (rent) while buying property as well. For me it’s a get the first house ASAP, then see if I can’t use a combo of Jan and Steve’s strategies. I don think that I am the agressive type and, having read STeves ‘way of making more money rapidly’ is a bit beyond my comfort zone (even if I push myself outside it). Same goes for Anita Bell, to me she’s very aggressive but I doubt that I could follow in her footsteps (just not in me at this stage). THings could change in the future, but for now I’m learning and exploring and using a lot of Steve’s, Jan’s and Anita’s ideas in combination to, hopefully get what I want when I want it, learning from my mistakes (learning by mistakes) and still be true to myself.
For what they (the authors) have achieved, my hat off to you! Personality is as much a key to this as is the ideas and I have certainly gotten a tonne and a hlf of those from you. God bless you in your future endeavours!Cheers
C@30
My wife Niki and I work as school teachers, [grad]but our real “business” as per Kiyosaki’s definition is real estate. Since last July we’ve added another 12 Qld properties [shades2], and our portfolio now stands at 16:
* 1 future retirement house -CF
* 3 neutral CF
* 8 +CF as per 11 sec formula
Over the last 12 months, and largely as a result of reading Steve and Dave’s book, we have jointly progressed from being traditional buy and hold investors, and are about to launch into our new “multi-strategic” selves:
1. Buy and holds currently outside Family Trust
2. New +CF purchases inside new Family Trust
3. Wraps and Lease options inside Family Trust
4. Multiplication by Division strategy in a separate Unit Trust with a few like-minded friends (this is in the process of being set up right now)[biggrin]We’re currently researching NZ, WA, Tas, USA etc
I’ll let you know next financial year how our portfolio’s running.
Cheers
Greg FOriginally posted by lifeX:Hi all,
I have worked in many asbestos ridden workplaces and have an interest in this as such.
Your local council will have a booklet or guide with requirements for removing/disturbing asbestos. Ring them. Don’t rely on convincing opinions posted on this site that come across as facts when they are not. I have also heard that there is more asbestos in Burke Street, Melbourne than most asbestos ridden factories. (brakes still have asbestos) Be aware there are different types (friable/non friable) of asbestos that are considered to have varying degrees of danger.An interesting urban myth to note also, back in the day when grinding asbestos willy nilly was ok, the bloke working with it and inhaling heaps lived for many years without ever having a problem. But his wife who may have only washed his overalls once ever, would contract full blown asbestosis. Make sure you have asbestos removed by asbestos qualified removers. These guys aren’t cheap, but neither is a lawsuit for blatant negligence. It is your duty of care as a landlord to know local council asbestos requirements.
lifexperienceHi Life Experience
LOVE your codename!!! Your post proves you’ve “been there, done that”. Great advice.
Do you think my conspiracy theory re state govts offloading their stock of asbestos buildings to unwary investors stacks up, or am I just paranoid?
I know the difference between Proof and Hypothesis, and I loved your comment:“Don’t rely on convincing opinions posted on this site that come across as facts when they are not.”
At present there are no laws that I know of requiring me to remove asbestos roofing sheets (which are still in pretty good nick, by the way) or internal/external fibro wall panels. I’m just wary/concerned about:
1. Future changes to laws
2. Future lawsuitsI suspect you have a lot more wisdom/knowledge to offer, [buz2] and I’m just trying to tease it out of you [grad]
Do you or any other readers know a good Aussie lawyer with expertise in this area?
Cheers
Greg FOriginally posted by Qlds007:Sam
Which State are you in.
Cheers Richard
richard at fhog.com.au
http://www.fhog.com.auHi Sam and Richard
My wife and I live in Qld and we’re about to put our money on the line and buy Steve’s wrap pack, and do our first wrap.
Three quick questions:
1. Do we have to become Credit Providers in Qld to wrap?2. Will our clients still be eligible for FHOG
3. Richard, I noticed your address at fhog.com.au
(www.fhog.com.au). I heard some changes to either FHOG or Qld Stamp Duty are coming on line in August this year. Do you have any information on these changes?Cheers
Greg FOriginally posted by Qlds007:Sam
Which State are you in.
Cheers Richard
richard at fhog.com.au
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundOriginally posted by RussH:If we were to eliminate the asbestos on all these properties we would have another building boom.There are literally thousands of state built homes from the 50,s onwards that were built from asbestos.The government still owns a great deal of these homes but I dont see anything being said about the dangers to their tenants.
If someone is able to sue a landlord because they lived in an asbestos residence then the government would be in very big trouble.
Russ.Hi Russ
I wonder if anyone has any statistics re Homes West or other State Government Housing Commissions SELLING OFF their cheap, asbestos-roofed/walled at BARGAIN BASEMENT PRICES?
DO STATE GOVERNMENTS HAVE A DE FACTO, UNDISCLOSED POLICY TO QUIETLY, “SOFTLY SOFTLY” OFFLOAD THEIR “PROBLEM” HOUSING COMMISSION PROPERTIES, and then 5-10 years down the track pass legislation requiring owners (people like us) to do the expensive renovations? A sneaky way to offload their $ financial responsibilities $ to taxpayers?
I work as a teacher for Education Qld, and for the past 10 years or so the Qld government has been required by law to replace all the “dangerous” roofs on their state schools.
It’s been a horrendously expensive exercise for state governments, so I suspect they may see that selling off their asbestos-ridden properties is the smartest way they can go.
Greg F
Fjficm, even if there is an additional charge for having subaccounts it would, in my opinion, still be worth your while so as to make thing easier for your accountant at the end of the year and therefore hopefully it will cost you less in accountant’s fees.
Pisces
As it obviously isn’t the only property for sale why not walk away from it ?
I have seen reports which state that they are dangerous to one’s health just as I have seen reports which say that there isn’t a problem.
Both reports were by scientific experts. Work that one out. Which report do you trust ?
One thing is for sure and that is that it isn’t so unusual for unscrupolous management of companies to play down dangers so I would be very reluctant to take notice of reports which say there isn’t a problem so wouldm’t it be smart to err on the side of caution ?
I certainly wouldn’t want to live near such a high frequency power line nor would I want my tenants to suffer.
Pisces
Some time ago Gatsby you posted and talked about
wanting to lose weight.I have since read another post of yours in which you said that you lost some 30 kilos or so.
Congratulations.
You haven’t as yet told us how you managed to do that ?
That is eating this and avoiding that as well as keeping your motivation high.
Pisces
Becoming a partner for a while with someone else may well be better than buying a wrappack to ‘learn the ropes’.
Felicity (FW) who posted in this thread for example is an experienced wrapper (as are no doubt many others) so that may well save you the outlay AND get the practical experience which a book cannot provide you with Ted.
Pisces
>>I just bought an apartment without parking. <<
Even if many poeple use public transport they, like yourself for instance, they may nevertheless have a car sitting at home.
It isn’t so attractive to have a car out on the street in Wooloomooloo because of breakins by eight year old boys and if one has a unit in the vicinty of say Green Hills one may have to walk a long way to find a carspace out on the street.
Things get even worse in times where there is an oversupply of units for rent and people can pick and choose.
I wish you well but in my opinion it would have been better to spend a bit of extra money to buy a carspace.
If it is a newish building I am surprised that units have been allowed to be built without each unit having a carspace.
Pisces
What’s up with Prechter ?
Pisces
Jack, why not join (or start) a real estate group so as to get the momentum going ?
If you are in Sydney there is actually such a group and, lucky you, there is a meeting tonight.
Pisces
I really thought that I posted to this thread yesterday.
Hmm, one of life’s little mysteries.
Why layby. Put the money in the bank and keep saving there.
In the couple of months (or weeks) it takes to get the full amount together some retailer may well have your favourite item on special and you can save MONEY.
Pisces
