Hi Waulok

Firstly welcome to the forum. Feel free to ask as many questions as you like that’s we are here for.

Secondly congratulations on seeing the light and moving upto the Sunshine State. We are a Brisbane Company specialising in finance and orgainising wraps for investors. If you need a hand with finance for the new house or want to discuss wraps at a later stage feel free to contact us.

In the meantime enjoy the chat and banter that goes on.

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

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

Suzanna

Like picja happy to offer you some help.

We have wraped over 120 properties ourselves and same again on behalf of investors so think we now what we are talking about when it comes to +cash flow.

Cheers Richard
[email protected]
http://www.fhog.com.au

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

Judith

I now we are a long way away but email is a wonderful tool.

I am a mortgage broker as well as a Director of the largest wrap organisation in Qld. Happy to help if you need someone.

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

Celivia

Kym is right about sub-divisions being more complicated than most investors appreciate.

Once option subject to you minimum boundary clearances is to re-align the boundary on your neighbours side incorpating the strip of land under your title.

You will probably have to purchase the property first to be able to do this or your neighbour may have CGT issues if he merely sells you a strip of land.

We have done this alot with many blocks in and around Brisbane but as always check the local Town Plan as to what you can and can’t do.

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

Hi Caribbean

Wish i could say “Welcome to sunny Qld” today but alas not.

We have our offices in Milton and feel that the Brisbane market is certainly starting to ease.

Auction clearance rates over the last 4 weeks have fallen and whilst certainly in some suburbs the activity is still frantic in others there is a definate softening.

With regards to Ipswich it is our pinion that you may have missed the market.

Most of our clients are buying in Regional Qld where prices are still affordable and in fact only recently have started to see price appreciation.

A recent client purchased a property through us on a buy / lease and hold strategy with a 60 settlement. The property was revalued by his Bank on settlement and had risen by nearly 10% more than covering his acquisition costs

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

Myydral

Happy to help.

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

Bear

As Eigentum writes higher the return higher the risk.

Whilst with a registered 2nd mortgage you do have the rights to execute your powers as mortgagee in possession in the event of default you will then have 2 choices”

1) Sell the property under your powers and repay the first mortgagee. You will get whats left.

2) Repay the first mortagee and become the prime mortgagee on the property. Whilst you might have slightly more security now this will still mean you have have arrears and will have to reschedule the loan over a longer term.

All in all is it worth the risk when you get similar returns in wrapping or adopting a buy & hold strategy.

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

Hi Gambeau

Considering it takes an hour to fly to Brisbane and another to fly to some of the regional areas within the State the simple answer is Yes.

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

belle

With equity you can always build cash flow.

Wrapping is an ideal way to increase your long term income and popular with many of our clients who consider capital growth in the major cities maybe a thing of the past in the next couple of years.

Happy to explore the options with you.

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

Hi creach

You mention that the property has doubled in value over the past few years and you are doing renovation work which I assume will again increase the valuation. Presumably you have increased your borrowing to carry out the extension work.

Wouldn’t your equity (being the difference between your borrowing and the valuation) have increased significantly with the doubling of the property value.

On the basis that your income can support further increased borrowing why don’t you arrange for your Bank to add a line of credit facility to your overall home loan taking it upto 80% of the after works valuation.

This means that when you have used all the funds up on your renovation you will still have access to further monies which you can use to increase your property portfolio. Draw 20% of the purchase price together with the acquisition costs down from your line of credit and have the 80% balance on a stand a loan debt secured against the new IP.

Keep doing this until you have either used up you LoC or you you feel that your income cannot service borrowing.

As the IP’s increase in value revalue and start again.

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