Forum Replies Created
Hi John,
You’ve been given really good advice! There are property management courses available. I’d read the posting about Bad tenants..perhaps put yourself in that persons shoes and see how you would handle it. It’s enough to scare me off! You might be really good at that sort of thing…
Which ever way, I wish you luck…it never hurts to learn!?#?!Cheers [
]Sooshie
There are no problems, only solutions!
Hi SG,
I remember thinking the same thing, and when I found out about it through a magazine advert, I thought it was a scam. It is no such thing, so browse through the postings, there is a lot of info available. If your in the market to make some money with very little down… and you have time to kill… Welcome to the club!
Cheers [
]Sooshie (aka Den mother [:0)]
There are no problems, only solutions!
Hi all,
I’m not sure how you will take this, but I’ve always believed that if you buy for lets say a house worth 80K and wrapped it for 30% mark up at 104K, well to me that IS considered a Capital growth..albeit an inflated and manipulated capital growth price for the area (probably), but you’ve essentially fixed in that price for a number of reasons.
1) You want the repayments on the property that the wrappee pays to be greater than your repayments on the mortage itself and
2) Lets say the wrappee doesn’t pay you out for 5 years…well in that time the property should have risen in value and basically by putting a 30% mark up margin on it when wrapping it, you are accounting for some of the capital growth you’ve lost by wrapping it before the natural capital growth occurs.Am I mistaken here? if I am please let me know.
Another thing I’ve noticed and I will give Traralgon as an example, is that a couple years ago you could purchase a decent wrap house for 40K, now looking for the same house is 60-80K. I’ve found that when there is strong growth for houses, even if it is wrap investors purchasing them, the growth in that area increases. When wrappers leave that area and go elsewhere, that new area will follow the same trend etc… Anyone agree?
Cheers
Sooshie [
]There are no problems, only solutions!
Hi Felicity,
I guess you could always have a short term lease…or you never know but the people wanting to rent it, may actually be potential wrappees..
Oh well its worth a try…otherwise your carrying the mortage on your own back..It’s probably a tax deduction (as a loss of income) but I’m not sure.
Hope the phones pick up soon
cheers
Sooshie [
]There are no problems, only solutions!
Hi Steve,
If I can help in some way, let me know.
Cheers
Sooshie [
]There are no problems, only solutions!
Hi,
Firstly Thanks Lance,
I was almost in the deep end with this one….
Good luck Brett, if you read the posting about bad tenants, you will realise that problems do occur and no investing (that I know about) is risk proof. Just follow the rules and don’t take unecessary risks. From a legal perspective cover yourself, spend the extra dosh and get a good lawyer who knows about wraps. Get a good lender and get cosy with the agents and the bank. Do your foundations first then
build the walls and roof (so to speak).Hubby and I are also having a little kink in the wrap business. We are happy to ride the waves, but you need to ask yourself, AM I?
Food for thought
Cheers
Soosh [
]There are no problems, only solutions!
Hi Felicity,
Your not the only one apparently…like with everything in life..the rollacoaster syndrome applies…
Thanks for your link in tax deductions…
Cheers
Sooshie [
]There are no problems, only solutions!
Well Hello all!
Hope you all had a nice weekend [
]
Here’s a link Felicity posted under Tax deductions:
http://www.gatherumgoss.com or direct link to it http://www.gatherumgoss.com/shopping.htmand Tara posted this one for info on tax:
http://www.ato.gov.auI’m fighting with the computer with a 1 year old…can you believe it???
Got to go
Cheers
Sooshie []There are no problems, only solutions!
Hi all,
This maybe a stupid and uneducated question, but why can’t you just prepare a section 31 and sell the house if they haven’t signed a contract?
Or as AD suggested give them an incentive to move. Get them into a plush hotel for a few days and then change the locks.
Sorry your having so much trouble Linda [
!]Try and keep +VE
Sooshie
There are no problems, only solutions!
Hi Brett,
Where as I am no expert on this, the properties are usually at a lower cost price i.e. depending where you are for a very rough example … Wrap house prices bought in Traralgon b/w 40-80K, Moe 50-80K, or Geelong areas 85-110K etc… The rent for these areas might be anywhere from 100-180 dollars per week. The idea is to keep the repayments on the wrap property, lower or at the current rent price the wrappee is now paying. This way their money is not ‘dead’ money but going towards their own ‘foot-in-the-door’ so to speak, but it’s not costing them that much more per month. The venture is still are cash +ve but the difference in interest rate is your income and the repayments for the wrappee is lower than their rent…thereby win-win for all.
It may not always work like this and when you qualify someone for their eligability for a wrap its important to note how much they are paying in rent per week and what thier income is. If they have no income, well the risk is skyrocketed…
I hope I am not confusing you more. Perhaps on Monday, when Steve is in the office..(hmm Hmm) [] He might reply and put me out of my misery… Just kidding! [:0)]Cheers
Sooshie [
]There are no problems, only solutions!
Hi Brett,
Welcome to the forum! You’ve got the understanding of wraps very quickly it appears [
]. There are risks involved as with all forms of investments. There are ways to minimise these risks.I just want to clarify your question
quote:
If this is the case (and it may well not be, hence why Im asking) isnt that a little risky?I want to ask, risky for whom? The investor or vendor financier or the wrappee? The answer to the question depends on your clarifying answer.
We qualify all the leads before just handing over houses to anyone and there is a process we go through to do this.
Sorry if I’m slow this day, but the boys kept me up till 4am.
Cheers
Soosh [|)]
There are no problems, only solutions!
Hi there,
Are people in Vic still getting good responses from their advertising or is it a little slow at present?
I was wondering if the correlation of X-Mas has anything to do with the slow down. I noticed talking to some real estate agents that things are slowing down getting closer to holiday period and I wanted to check if the same trend applies to applications for wrappees?Just curious
Have a great weekend!
Sooshie [
]There are no problems, only solutions!
Hi there Dave,
There are people who will let you be their money partner and will do the work for you, but of course you don’t get all the profits. This may be an option for you depending on how much time, money and stress you have. This way you don’t have to look for properties and make sure they work, ’cause someone has done the homework for you.
Knowing nothing about Perth I’m not sure whats there, but remember ‘There are no problems, only solutions’ and I’m sure there is a property with your name on it out there!Oops! I forgot to sign off
Sooshie [
]There are no problems, only solutions!
Edited by – [email protected] on 22/11/2002 10:13:06 PM
Hi,
I’ve lived in those suburbs for all my life basically.
Do you get the MPG (Melbourne Property Guide) comes out every Wednesday? I know my mother in law who lives in Ripponlea area had trouble getting it. However it has a huge property section of local agents. The area has already experienced HUGE capital growth, especially Yuppie areas of Elwood, Pahran etc. Buy and Hold seems to be the popular choice for these areas, since the renters in the area tend to be of higher quality, families with often both parents/adults employed. I know of a developer who does projects in these areas and he’s making a killing.Let me know if you want more info… I guess it depends on what your after. Hampton East is still resonably priced aswell as bayside Moorabbin.
Cheers
Sooshie [
]There are no problems, only solutions!
Soosh is speechless (for once!) [
]There are no problems, only solutions!
Thank you Christine,
That’s really very sweet [
] I’m a bit shy now! [] I guess I decided when I was a newbie to this site, that I got confused when I had to go back into every single posting to find the elusive link I was looking for and I thought that whilst I was doing that I could cut and paste the link into one centralised posting for everyone to clearly access. I guess by the number of hits, it has been popular. I keep adding to it when I find something new or relevant to property investing, even if it is something like improvements to existing property. It pleases me that you have found it usefull []My son has just done a Houdini out the back door, got to run
Cheers
Sooshie
There are no problems, only solutions!
Hi all,
I know it’s been a while [
] but here’s another link which deals with a variety of different realty options.http://www.propertylook.com.au
Cheers
Sooshie [
]There are no problems, only solutions!
Thanks Felicity [
]I didn’t think you were waffling but I did think you have some good points.
I think the area it’s in is going slow at the moment. I’m just not sure whether to spend about 5k doing it up as a reno and then trying to wrap or just biding time until a fishy comes along and takes the bait.Cheers
Soosh [
]There are no problems, only solutions
Hi Angie,
If you can avoid mortage insurance and can afford 80% LVR, with left over money to do more with, do so. It will lower repayments and in hard times make it easier for you to sleep at night.
Cheers
Sooshie [
]It’s all our imperfections that make us perfect!
Hi all,
I recently asked a very similar question but before I posted it my puter fell off the tree. So I’d be interested in understanding a little more on deposit bonds. What do you use for securtiy if you can’t even raise the deposit and are searching for the funds, but you are desperate to purchase something to keep your business expanding, but your current workplace you do not own? This is a dilemma a friend is going through and as such had to turn down prime real estate that was hard to find because he couldn’t come up with a deposit.
Please explain if a deposit bond could help him?
Thanks
Sooshie [
]It’s all our imperfections that make us perfect!
]
!]
] He might reply and put me out of my misery… Just kidding! [:0)]
]
] but here’s another link which deals with a variety of different realty options.
