Forum Replies Created
Do a search on Google for ‘investor dictionary’ and you will at least see a couple on the first page.
Pisces
Hi Danny,
I have no idea about prices on the Goldcoast.
Are you able to give everyone any idea what a unit, a townhouse and a house sells for in the preferred area ?
It appears as if you’ve got a good and well established record as a renter.
It would help if you had been able to get some money together as some sort of a (part) deposit.
I know that some wrappers sell to buyers who, in addition to the government grant, have at least say $ 3,000.Not because of the money so much as because it makes the would be wrappee a little bit more committed in their eyes.
From the little bit which I understand about your situation I am wondering the following :
1. aren’t you able to get a Housing Commission Department unit or townhouse ?
It may not be a bad idea to have yourself placed on a waiting list. It doesn’t cost you anything I don’t think.2. As your funds are limited you may be restricted to a lower priced property like (for example) a unit. I don’t know.
3. Alternatively, a house which can be split into two apartments one of which you can rent out, may possibly be the solution.
I can understand that sharing a unit isn’t so attractive as you would lose your privacy and, besides, who knows whether you and the tenant will be able to get on.
I guess that what is possible all depends on the price of the property (about which I haven’t got a clue as I said above.
If a property can be bought for say $ 180,000
the interest alone (at say 7 %) will be around
$ 250 a week so there isn’t any money left over to reduce the principle.If, heaven forbid, the interest rate were to rise then what ?
What do you think Danny ?
Pisces
>>Merely making a point about Wrapping. Hopefully he will realise this is an extreme case but could possibly happen.
Is that not what wrappers do? Charge a price above market value and charge 2-3% above variable interest rate.<<
Sure, your explanation makes a lot of sense, I don’t think.
Is that why you asked for $ 400 per week whilst the would be wrappee talked about being able to afford $ 250 per week ?
Pisces
Yeh, bad luck, Chefman, that you bought in a pocket which didn’t go up in value.
As it happens I’ve got some spare cash at the moment and I am happy to take the properties off your hands if you like. [biggrin] [biggrin]
Pisces
Let us be clear about one thing i.e. that if you deal with a bank direct you, sure as anything, are only going to be offered their product.
Furthermore it is quite possible that you will be gently pushed into a particular product because that happens to be to the bank’s advantage.
In addition to this there are many other good reasons why it is to one’s advantage to deal via a broker.
Remember this however, for a normal type of loan proposition most brokers wouldn’t charge a fee to the borrower so from that point of view it pays to deal via a broker.
Simon said : ‘I did get a coffee cup a year ago from a lender.’
Gee, you did allright. [king]
One lender offered to take me out to lunch a year ago if I brought in a (big) loan we were discussing.
I did bring the loan to him but I am still waiting for the lunch. [grrr]
Pisces
>>Pisces, don’t be angry its just my opinion<<
Fjficm, what makes you think I am angry ? I am merely putting forward my way of looking at things and you even have the right of reply. [biggrin]
You even have the right to tell me I am wrong and, if I see the light, I will acknowledge my mistake.
>>…… but at the end of the day it boils down to “What are my intentions”<<
The way we (i.e. you me. EVERYONE,) are made we all act first and foremost from a position of self interest. A good argument can be put forward for example that a woman like Mother Therese’s endeavours were purely motivated because it pleased her to help others.
If that hadn’t been the case she would have found a different line of work.
I am not interested one iota in someone’s intentions so much as in how that person’s actions affect me.
Why would I give a sh.t if a bad guy sells me a house as long as the terms are favourable to me ? Where do his intentions come into play ?
The other person is only trying to make a living, trying to survive and, if such a person is rather succesfull at it, trying to increase his wealth.
Why would that matter to me ? In the end that person cannot take it with him anyway and in the process he has been very creative thus benefiting a large number of people.
The one and only reason I responded to your post, Fjficm, was because it appeared as if there was a nice bit of character assassination in there which came through as rather self righteous on behalf of the writer.
In other words, your post concentrated on the person rather than on the good outcomes of that person’s actions.
That attitude caused you (so it seems to me) to put forward an unreasonable, undefensible, proposition that a person like Mr Otten acts in an unfair manner if he insists that the wrappees obligations need to be adhered to.
I note that you haven’t as yet addressed what I said when I asked you to tell us why one would condemn an individual but not the banks when both parties’ actions are motivated by a need to avoid going under.
Regards,
Pisces
>>Bringing this back to property – or at least investments – knowing more than the other party is a key point in many negotiations. If you know you can redevelop the land for a profit then you don’t tell the seller about this.<<
Aceyducey, so many people go on about the vendor not receiving the right kind of price.
Let us look at a farmer who grows wheat. He sells the wheat for a certain price and the buyer goes throught the process of turning it into flour and passing it on to the next person who turns the flour into bread. It then is distributed to shops who put their margin onto it as well.
If a loaf of bread is say $ 2-00 and the wheat required to make the bread was sold by the farmer for 10 cents, does that mean that the farmer was underpaid ?
So many people appear to think so different from you and me.
BTW, the three conclusions you drew is just one way of trying to understand the universe. It may be correct or it may not be correct. We don’t really know of course.
Pisces
>>Firstly, why are you refinancing? Break costs on fixed interest will be huge, and savings will be nowhere near what you are told.<<
Wrappack, I think that what you said about the breakcosts is incorrect.
Presumably the fixed rate loan was taken out before the recent increase in rates.
Therefore the present fixed loan rate would likely be higher than the rate which is presently in place for this loan.
Therefore the bank’s economic loss caused by someone repaying a loan is non-existent (as far as the bank no longer being able to obtain the same rate again is concerned).
So I doubt that there will be a huge early repayment penalty to pay, if any.
Perhaps Stingray can tell us what his bank is talking about in this regard ?
Secondly, your suggestion, Wrappack, about the borrower arranging the valuation may not be as helpful as many lenders will not accept a valuation unless they have actually ordered it !!
Pisces
>>You could just get a couple of valuations done (and average them), and add your margin to this (20%) for the tenants purchase price.<<
I would have thought from all the reading I’ve done that usually the wrapper endeavours to buy the property below what the market value is and thence add a margin on. !!??
I do realise of course that in this particular case the vendor already owns the property.
A 20% margin on top of the market value seems rather hefty to me. ?
Another way of doing it is as follows :
Some 20 years ago I ran into a vendor who wanted to sell a property and the price is left open, being determined at the time of purchase + say 5 years, with the profit (being the difference between the valuation figure in 5 years time and the value of the property at the time of the agreement) beign shared equally between the vendor and the purchaser.In the meantime the tenant/buyer is paying rent to the vendor at a higher rate than normal and this excess part of the rent is put towards the deposit for the buyer in 5 years time.
The vendor in the meantime has a tenant/buyer in the premises who one would expect will look after the property.
A win/win situation all around.
Pisces
Hi Danny,
It may be helpful if you would provide a bit more detail.
For example, what, if any, deposit do you have towards a purchase, how many bedrooms you are looking for, whether you are eligible for the First Home Owners Grant, even what your gross income is and whether you have any defaults noted on your credit file.
As you appear to have used your own name instead of creating a ‘handle’ (nickname) you may not be
so happy to put your details up publicly for everyone to see so we understand if you fail to do so now.Regards,
Pisces
Yack, if you are joking it is a post which is in rather bad taste. Here is someone who is serious about getting a house in some way and you are trying to confuse and send up that person with some rubbishy story.
On the other hand , if you are serious then, based on the figures you are quoting, it appears to me that you are everything that you accuse Rick Otten of being i.e. a rip off merchant.
I specifically note your post in the thread titled ‘Tonight 8 pm on ABC Rick Otten’ where you said and I quote ‘I would not pay a higher interest rate and more for the property. I would fix my issues with the Bank.’
My conclusion is that you think that someone who
wants to become a wrappee is a fool rather than a person in need.It also would indicate (judging by your conditions) that you are nevertheless prepared to take advantage of people in unfortunate situations.
What is it that you don’t understand when someone says ‘I can afford $ 250 per week’ ?)
Now I don’t really think that you are so callous as this second scenario would make you out to be so I must go for the first scenario i.e. that you are playing a joke in bad taste.
That however also doesn’t really put you in a good light as it also implies that you are displaying an arrogant contempt for the weak rather than showing some compassion.
There is a third possibility i.e. that you merely wanted to make a point to show how (you think) Rick Otten goes about his business.
Well the news is that by responding in the way you did to a call for help by a would be wrappee
your post still shows an utter disregard for the feelings of some people more (financially) unfortunate than yourself.Sorry to be so harsh on Easter, hopefully a time of goodwill.
Pisces
Good one George
Pisces
It would also help if you made a list (to give to the valuer when he comes to value the property) of comparable properties which recently have been sold.
Unfortunately the details a valuer collects is probably about two months old so go and do the rounds of the local agents to ask them whether they know of any comparable properties which have been sold recently as the valuer may possibly miss out on these details.
Pisces
>>First, I love you, Pisces.<<
Well, before I respond to that, first give us some more explicit personal details.
Gender ? Age ? Financially sound ?
Own home ?
Single ? (I hope so) [inlove]
Long service leave coming up soon ?
New Zealand is a nice place to holiday. Where did you say it is where you own a property ?
Pisces
Well Alpina, there is no doubt in my mind about it that the better dollar value is an existing house.
Pisces
O.K. then.
Have a nice Easter.
Pisces
I think we are diverging from the original topic
Fjficm but here goes :Fjficm, you said (talking about Otten) : ‘However, we at the back of our minds know that his intention was only to make himself rich and if the battlers don’t make the payments then there’s hell to pay for.’
Firstly, one particular kind of action (making money wrapping) can at the same time have a benefit putting people in houses.
Even if that isn’t the main motivating reason for wrapping by the wrapper (and even if that is now held out to be by the wrapper ) so what ?
Secondly you then go on to say : ‘However, we at the back of our minds know that his intention was only to make himself rich and if the battlers don’t make the payments then there’s hell to pay for.’
I just think that what you are saying there is rather illogical. Your expectations are so unreal.
Think about it. A wrapper doesn’t have virtually unlimited funds to buy properties so by necessity he needs to borrow in order to buy.
So if the wrappee defaults the wrapper has to take steps or else the whole enterprise will fall apart.
Why do you attack the wrapper and not the banks for similar behaviour ?
Are you really implying that the banks act in such a philantropic manner whilst a wrapper doesn’t ?
The banks of course don’t. They couldn’t because their money is borrowed money so they cannot give it away.
The whole thing is so silly, so unrealistic and has been discussed before on this site.
Please let us return to the topic of the first post.
Pisces
>>Wowow, talk about spin!<<
Sparx, there is a saying that goes like this : ‘Politicians are corrupt and, if they are not, they soon will be.’
The moral of the above saying is that one continually needs to question one’s leaders’ actions.
And, in the event it is correct that Carr has committed a crime, he ought to be held accountable, never mind the position he occupies.
Nothing is holier than the Truth though you may agree to differ about that if you think that Carr would be holier than the truth.
Some precedents have actually been set about taking people of Carr’s stature to court.
In July 2001 the Federal Court found Northern Territory Chief Minister, Attorney General Denis Burke, guilty of contempt of court.
And in 1986 former New South Wales Premier Neville Wran was found guilty of contempt of court back in 1986.
Pisces
That just goes to show you what it is we are talking about Aluminati.
One moment we all are real estate experts, the next thing you know is that we suddenly are talking about life mysteries.
Pisces
Afloat said : ‘I wonder why you are considering getting out of wholesale properties Pisces’
Hahaha, that’s funny.
When I said ‘I am thinking along the lines of finishing up with properties at wholesale prices.’ I didn’t mean it the way you interpreted it Afloat.
I better correct myself my saying it in a slightly different manner.
So here goes : ‘I am thinking along the lines of how one can finish up with (buying) properties at wholesale prices.’
Cheers,
Pisces
