WF

Terry is as always bang on. 2 other requirements are now required:

1) That the wrappee has repaid a total of 10% of the Installment Purchase Price including both principal & interest i.e installment price $200k repayment to a level of $20K required that is $1667 / month.

2) The wrappee signs a Statutory Declaration confirming that he / she is upto date and does not intend to terminate the contract.

The FHOG becomes payable the later of 1 year of 1) above and subject to 2) above.

Cheers Richard
richard at fhog.com.au
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

Lisa

Undertaking your first wrap or IP purchase is undoubtedly the hardest one.

When we started in 1996 I remember not sleeping for nights wondering if I had done the right thing and whether the purchase would make his loan repayments. Having completed over 148 wraps since then I never loose a seconds sleep these days.

As Red said if it was easy everyone would be doing it. Just remember along your wealth creating journey you will make mistakes. The most important issue is that you learn from those mistakes and don’t make the same mistake again.

Ensure that you carry out your own due diligence talk to others by all means but the bottom line it is your decision and one you have to happy with.

I have seen some many wouldbe investors sit on the side line for years watching the property market go by and wondering why they hadnt got anywhere.

You have start somewhere be patient and thr right deal will come around.

Cheers Richard
richard at fhog.com.au
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

15 years is nothing in the UK Bear Stearns was the first Bank to offer 25 year fixed loans back in the early 80’s.

Still I agree with Steven’s sentiments it’s a bloody long time.

Cheers Richard
richard at fhog.com.au
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

Depends which State you are referring to.

In Qld for example the purchaser is now required to provide a Stat Dec confirming that the loan repayments are upto date and that you do not intend to default in the instalments.

Given that the Grant is not payable until either:

1) 10% of the Instalment Contract Price has been repaid.
2) The Contract has been on foot for a minimum period of 1 year.

So if you default during the year you will not receive $7000.

In all of our Contracts the Grant is payable as the deposit so if it is not received when due the purchaser is in default of the contract and specific remedies apply.

Cheers Richard
richard at fhog.com.au
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

Jordan

I dont now where you have been but i would never pay 5% for an option fee.

I have been developing in Brisbane since 1994 and never paid more than $10000 as an option fee.

One of the projects we are developing at the moment is a child care centre and worth over $3M at present. We have paid to date $3,000 with a further $3000 payable in 3 months time.

Cheers Richard
richard at fhog.com.au
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

Fire

If you now Brisbane you now the area I am talking about.

I took an option on the Nundah Bowls Club for which we paid $1000. The underlying Contract price was $800,000. Subsequently sold the option for $1,350,000 to another developer.

The property was then sold twice more and the current developer paid $1,800,000 for the same property.

It’s ok I am not disclosing anything which isn’t available by searching RP Data.

Currently I am in the process of negotiating 2 Options on 2 separate development sites. I is a child care centre in the Valley.

Take my word it can be done on a regular basis you just need to now your market and the Town Plan.

Cheers Richard
richard at fhog.com.au
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

Things in Qld are different to what Terry & Scott have mentioned about Vic.

In fact in Qld the rules changed again on Sept 1 04.

Which State are you referring to.

Cheers Richard
richard at fhog.com.au
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

KP

Find it hard to beleive that Adelaide / Macquarie wil finance wraps as both full ymortgage insure there loans and no MI Company will accept a wrap.

NAB have done over 140 deals for me although must admit they are holding rather a large amount of security and the deals are done at HQ now.

And your take on the fact it is normal financing a wrapped property is slightly niave just ask Terry or Simon or one of the other finance brokers on the site.

Cheers Richard
richard at fhog.com.au
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

Steve

Not trying to appear smart but surely if you have received advice from your Accountant to apply for an ABN and register for GST wouldn’t he be doing it for you in the entity which he considers most appropriate for your financial circumstances.

Whilst I concur with his recommendations if you are purchasing a Commericial Property i think you should consult him for this specialist advice and not try and make application yourself.

A few dollars spent in expert advice now could save you 000’s down the track.

Cheers Richard
richard at fhog.com.au
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found

Grreg

Theory is fine but a QS may not realise how building costs relate to supply & demand of labour.

Certainly in SE Qld if you used that yardstick you would never start any development. Any builder worth his salt has enough work for the next 6-12 months.

It all depends i guess on your start and finish dates and how much lead time you can offer a builder as to how attractive his pricing will be.

Cheers Richard
richard at fhog.com.au
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found