Forum Replies Created
Unfortunately, I am failing to recognise such opportunities on the various real estate websites.
I am not of course saying that there aren’t any opportunities Richmond, just that I am not recognising them.
There are opportunties but I am sourcing them in a different manner.
BTW Richmond, I do have properties for sale from time to time at market value in a good growth area in Sydney and I am able to sell them on little or no deposit.
Oops, [
] I hope this isn’t considered advertising.Pisces133
Guys there is no doubt that Interest Only loans are considerably better than P&I loans.
Firstly there is nothing to stop one to make payments to the lender on one’s Interest Only loan just as if it is a P&I loan.
There are several advantages.
Firstly by paying more than is required on an Interest only loan one (usually) is able to redraw the extra payments which have been made if at any one time one finds oneself under a bit of financial stress.
I have seen someone who had a P&I loan and, through no fault of his, he ran into financial difficulties.
As a result he was a few thousand dollars in arrears and under threat of being sold up by the bank !!!
If he had had an Interest Only loan instead of a P&I loan and if he had made payments as if he had a P&I loan he would have been able to avoid getting himself into trouble with the bank by redrawing the additional payments he would have made.
(An offset account would also achieve the same result).
Secondly, many people have a credit card and I read somewhere that the average debt per card is about $ 5,000.
If one had an Interest Only loan instead of a P&I loan one could use the spare money which one has left in one’s pocket each month and pay off one’s credit card debt.
This means that one can avoid the 15% interest (or more) being charged on one’s credit card.
On an average credit card debt of $ 5,000 this means a saving of perhaps $ 400 per year.
Not a lot of money ? Hey, how many times can one take one’s wife out to dinner with that kind of money ?
And in an emergency with no debit balance on one’s credit card one has access to some emergency funds as well.
Pisces133
Yes I found out that they are very selitive about advertizing.So their book wasn’t to help the little people but to get richer. The book tells you go to the site to swap information on buying and selling even that you can make money from people by letting them know about property for sale. Havn’t seen any evedence of this.
Good Bye
Richmond, I am not a journalist so I obviously do not you have your literary skills so let me kindly ask you what you mean by the words
‘shoving your successes down our throats’.I have seen plenty of posts by S.I.S.. He clearly is able to dedicate a lot more time than most people responding to posts and there is little doubt that he is very generous in going out of his way trying to help his fellow travelers along the winding real estate path with facts and advice.
So in which post does he appear to you to skite ?
I would actually be more concerned about posts by people who have big opinions based on no experience.
How will we website visitors be able to differentiate between the quality of the different posts without some background information being disclosed somewhere along the way ?
And at what point does such detail turn into ‘big noting’ oneself ?
Pisces133
Yeh, there are some funny things on that site S.I.S.
unfortunately nothing for nothing.
When I downloaded something from that site I believe that it also interfered with my computer
and changed something in my Internet Explorer set up so be careful.Pisces133
quote:
when I sign a contract as an offer to buy a tenanted house, I ALWAYS include the option to take vacant possession. That way, if the tenant is a problem, you don’t settle until the current owner gets rid of him. Otherwise, you can be obligated to settle with a squatting tenant occupying the house.ALWAYS ???
I note from a post of yours which you posted this month on the Somers website that you said :
“I am an IP virgin”.Pisces133
(a friend of Bear)Are you for real JackFr ?
Your first post I read as you wanting to know whether it is possible to obtain a + geared property in Sydney.
In your second post you are suddenly talking about wanting to rent a property
Then you say “nobody in the inner city… was interested in leasing”.
I cannot possibly imagine that it is impossible to find a property to rent.
Pisces133
>>There is still money to be made if you are willing to take high risks.<<
Terry, I bet that your client doesn’t consider whatever he is doing as ‘high risk’.
He obviously has a strategy, knows what he is doing, has a pretty good idea of what the loss is if whatever he is doing doesn’t quite work out and he even possibly expects a certain number of deals to turn into a loss.
If, on the other hand, one buys a property in the hope (meaning ‘not knowing what one is doing’) of selling it at a profit that would be high risk (or gambling if you like).
Pisces133
Hi Lisa,
Someone else has already brought up the problem of only owing a 1/4 share.
My thoughts are :
1. What happens if you friend doesn’t want to sell in a few years time ?
2. It will be very difficult to sell a 1/4 share if ever you wanted (or were forced by circumstances ) to sell.
3. The interest on the $ 55,000 you need to borrow (to buy your 1/4 interest in the new place) will that not cause a problem as it will be more than the rebate (or discount) you will be entitled to because of your 1/4 ownership ?
[You will be required to pay market rental (less a rebate of 1/4 representing your share of rental proceeds)].
Yes, I know you will be receiving say $ 200 per week rent from your present house. But ………, that is only provided you have a tenant in the place !! Sometimes a house may be empty.
And, in any event, you still have a $ 100,000 mortgage on your present home. The interest will be eating up all or most of the rent you will be receiving.
I would suggest you seriously consider buying a house all by yourself so as to avoid any future problems.
You tell us that you’ve got already a $ 100,000 loan. That lender may be prepared to provide you a bridging loan which would enable you to buy the new place and provide you with time to find a buyer for your present home.
All the same, you will be up for two mortgages until your present house is sold.
The alternative would be to find a buyer for your present house and another house for you to buy all at the same time.
Difficult but …………. worth the trouble as you will avoid having two mortgages all at the same time. And probably your only way to proceed.
I note also that even if your new house is purchased for the same amount as you are selling your present house for there will be a shortfall nevertheless because of selling expenses, legal costs and stampduty for the new dwelling you are purchasing. Have you considered that ?
You could also just rent out your place and rent a suitable house yourself. That solution too will cause problems if you don’t have a tenant for your present house at some stage (which means that you would be paying rent and not have rental coming in to cover your interest payment.
All in all a difficult situation to be caught in.
If you MUST own a house together with somebody else let it be an investment proposition where there is at least a written agreement in place which sets out the rules between the partners (for example that you will sell the property by so and so date etc).
In your situation (being on a pension) the only possibility I can see for you making money out of real estate is to sell your present house and buy another house all at the same time but ……… look for a house to buy with a large backyard (preferably a corner place) hoping or expecting that at one time or another the property can be sold as a development site.
It isn’t a very nice situation to be in if one doesn’t have some money in reserve just for those occasions where something goes wrong.
Also, I fear that increasing your present loan would be a difficult thing to achieve on your present income.
One’s greed or desperation (or some unscrupulous broker pushing you) may well make you enter into a loan with a higher interest than the mainstream lenders (i.e. the banks) would charge and, again, in your present situation I can only see that a possible overcommitment may cause problems later on.
Another possible solution would be to buy a house in a different area where the prices are lower than what your present house is worth.
You may not like that but at least it may solve your child’s health problem.
No-one can really do more than make some suggestions but ultimately the decision (and possible consequences) will be yours.
I wish you well as there is a lot to consider.
Pisces133
There is absolutely no need to be licenced irrespective whether or not Bear ties up the property.
Pisces133
Hi Alex (and others).
There are meetings once a month at Five Dock. The next one is 22/1/2004.
They aren’t seminars so much as a general get together where different things are discussed.
I suggest you contact Tom Spillane for further details.
His email address is [email protected]
Cheers,
Pisces133
Moving a house some 400 KM ?
Pretty expensive and I would say the least of your worries.The further the distance the more chance something will be going wrong with the building.
The housemover needs a police escort, can only drive on weekends (at least that was the case many years ago) and is forced to drive at low speed.
As a consequence a long distance job means doing the job over two or three weekends with the house being left standing empty somewhere along the road with all kind of opportunists coming along to rip out what they like.
The responsibility is YOURS !!!
{Perhaps you should be camping in the house when it is abandoned for the next five days ? Alternatively find a suitable house which isn’t such a long distance away.BTW I still do think that there are good profits to be made in this area.
Pisces133
Well Richmond, because it is X-mas which is a time of goodwill and cheer I’ll ignore the fact that you are a journo and will throw in a nice story which has some good advice in it.
There was a young greek couple who had been married about a year.
They were very friendly with another couple who had been married for several years.
The young guy gets his older friend aside and asked him for advice : Everytime I ask my wife to do something, make a cup of coffee, anything at all really, she replies ‘Do it yourself’
Yet, you only have to wave your finger and your wife immediately jumps and goes and do what you askher to do. Why is there such a difference between the way your wife behaves and the way my wife treats me.
Bill replied : Well Chris, this is how I trained my wife : the first weekend we were married we are sitting in the loungeroom and the cat brushed against my leg as it walked past.
I immediately grabbed the cat by the tail, lifted it up and, grabbing the sabre which was lying next to my armchair, in one swoop I cut off the cat’s head.
Ever since I only have to raise my finger and my wife does immediately what I want her to do.
A light went on in Chris’ brain so next weekend he and his wife are sitting around the coffee table in their loungeroom and the cat happened to brush against his leg as it walked past him.
chris immediately grabbed the cat by the tail with his left hand and, as he lifted it up, he grabbed with his right hand the sabre which he had strategically placed on the floor on his right side and moved to cut off the cat’s head.
As he did so he looked at his wife. She was looking at him with a smile on her face and, as she was waving her right finger from side to side through the air she said : ‘Hahaha, you should have done that a year ago’.
The moral of course Richmond, is to start training and educating your wife right from the start.
Cheers,
Pisces133
.
Any chance of seeing some photo’s Bear ?
Pisces133
>>maybe Kavita, you can introduce your friend from Parramatta to Guru and maybe she have a friend, who she can introduce to me.<<
S.I.S., last time I spoke to Kavita he told me that there was no way he would introduce a female to you as you refuse to pay a spotters fee.
Pisces133
>>Shaune and Rachel are only charging $1000 for spotting fees<<
These properties cannot be any good if it is only worth $ 1,000 !!!
Pisces133
I just had a look at the website Crocco mentioned and I would think that the vendor is asking too high a price.
One could say that he is looking for ‘suckers’.
The best way to find them are in your local newspaper and/or approaching the Department of Main Roads who from time to time may have suitable houses for sale (usually by tender).
I said earlier that there is a lot of work involved in this area. However, anyone who has cheap land available and who is prepared to wait for the right kind of house to come along would do very well shifting a number of houses onto one’s cheap blocks.
However, do your home work first before committing yourself.
That is, own suitable vacant land, check with council whether they have any problems with you doing this kind of thing, find a suitable house – not too old, priced O.K.- , get an inspection and a quote from a housemover and only thence negotiate to purchase.
Remember, moving the hosue is one thing, connecting the services and repairing the dwelling
is something else (which will end up costing a fair bit of money).Pisces133
Michael you can certainly repay principal any time on IO loans. You may be able to re-negotiate another IO period at the end of your 5 years, or refinance if necessary (but this will incur stamp duty costs etc). You should also realise that there is effectively little difference between IO and P&I if you are in the higher tax brackets, owing to the net payments after tax being similar to inflation.
Regards, JimI was amazed to see the low number of people who attended a recent meeting at Five Dock (which I attended).
I would have thought that with so many people frequenting this website and so many people living in Sydney there would be more than just a handful.
It means that a lot of people are sitting on the fence theorising and dreaming whilst writing posts but not really being serious enough about the subject to get motivated enough to hop into the car and invest a couple of hours.
(Is the reason it isn’t valued perhaps because it is free ?)
I travel once a month from Sydney to Maitland to attend a small gathering of four people.
I certainly don’t need any mentoring or, for that matter, someone to hold my hand but I do nevertheless get some benefit from talking to others.
Pisces133
] I hope this isn’t considered advertising.
