Hi Zacman,

Speak with the Mortgage lenders, Melbear has brought to your attention, though i very much doubt you will be able to get finance at 80% LVR for a commercial property.

If you do, please let us know, good luck to you.

cheers,
s.i.s

“People 4 get that by saving just $3 aday & investing it sensibly over a working life, you’ll end up wit around $1 million.”

Hey Mel,

It gets crazy there some nights, serious, there are weeks, were the police are at the foot of the building patrolling or running around the neighbourhood and out side the building at work, with sniffer dogs.

Though, my job is really stressful, at times it has been, we had one night, not long ago a break in, actually 3 in the last year. But in the last one, the security guard had to pull out his gun and chase some hooligans outside the building…

The job, seriously has given me more unwanted stress, due to the events at work, but hopefully this year brings some more positive outcomes.

cheers,
s.i.s

“People 4 get that by saving just $3 aday & investing it sensibly over a working life, you’ll end up wit around $1 million.”

Hi KazontheBeach,

Sorry, to miss your earlier post, will respond to that one very soon. First to answer your questions.

How DID you secure finance in the early stages?

I had access to large amounts of capital behind me, i cant really say how much, as i had investments and regular earnings being invested regularly every so week, had been working and investing earnings from an early early age (age 13). The other thing too, not all the money could be touched in one hit, as some had to wait for maturity or the right time to sell, to gain some more profit and capital and in right timing of lodging tax returns.

Though, i did get some help in guarantoring in the begining, in the thought that i wouldnt get approval on so many loans, because of outside factors of being so young, using other investments as cash deposits, and still being in school.

Mainly i think its more important, that you spread your eggs.

e.g. If all you have is +ve cash flow properties with little capital gain, but only small cashflow of $25 – $100 a week, dont expect to be able to buy lots of properties very quick.

By Spreading your eggs, i found… if im not booming in property, im booming in some otehr investment vehicle. In property the best way i think in spreading your eggs, is using “Offset Gearing” As it targets all areas and is so diversified.

e.g.

1 asset maybe going backwards
1 asset is breaking even
1 asset is steadily rising
and 1 other asset is sky rocketing.

This Creates diversity, but also the fact that if i do lose in an investment, im not worried or really care much, ill pick up and count my losses and move on, but in the mean time that cost will be offsetted by another skyrocketing investment or carried over into the next financial year.

Thanks for your question Karen.

Goodluck to you and thanks for sharing your story, i do hope you well, as a single parent mother and that, you further benefit and gain greater success… Your success and people like you…. Is what further inspires me and helps me push forward.

thanks heaps,
s.i.s

“People 4 get that by saving just $3 aday & investing it sensibly over a working life, you’ll end up wit around $1 million.”

Alrightie, very brief and lightly im going to touch this subject….

maybe a good time to be buying shares in the health care system, reason being is that election time is coming soon and with so many baby boomers and the definitive off many more older australians getting sick and dying each year, shows that there will be an increase in and governmetn subsidy of the Health Care System.

The Aussie Dollar looking Much Stronger… Looks definite to rise further more and stay strong. Surprising to see Gold go up and over $400 and that Oil Prices will drop, in effect ensuring that petrol prices will drop… due to the fact Saddam Hussen Capture and Iraqs petrol shipping will be controlled and regulated… thus meaning cheaper petrol.

Another 35 days to hear the results from the RBA, of interest rate rise, in no doubt i see it rising another .25% causing housing affordability to rise and further knock out first home buyers again.

And for the property sector…. definitly and much increasing chance from now and before school staring, for many inner city units and apartments to drop in rental and compete for what demands the rental market will bring. Maybe a better time to be investing in -ve geared properties, just before the market picks up again…..cant say when and not sure when.

Looks for this Summer Very Hot

cheers,
s.i.s

“People 4 get that by saving just $3 aday & investing it sensibly over a working life, you’ll end up wit around $1 million.”

Hi HappyBandit

So I wonder how Steve was able to obtain 130 properties in such a short time?

Read the book, its in there…

If I didn’t use the WRAP technique is it still possible to accumulate this many houses in such a short period of time simply by using the equity from each investment house?

Yes, you can do it, but its gonna be very hard now as, interest rates are rising and as most regional and country town properties have gone through a boom, (well are actually the fastest capital gaining properties at the moment, but due to their actual worth value)

The question again of course is what if the property does not appreciate enough to produce this equity or you can’t pay the debt off soon enough?

Sorry dont quite understand you, do you mean, if i want to purchase more properties that your equity has to increase, but at the same time, be able to keep up with repayments, due to accessing and redrawing this equity…. it depends what you set or adivse your loan repayment period to be. If it is fixed, then you can not pay it down until it the fixed period has matured or simply pay the penalty for paying more in a fixed period.

HappyBandit, i think you should read the book again, seems like you have either skimmed through it, or just accidently come across this website.

Cheers and welcome to the forum,
s.i.s

“People 4 get that by saving just $3 aday & investing it sensibly over a working life, you’ll end up wit around $1 million.”

The extra tax advantages are

Though this will depends on the current tax laws(these laws are forever changing), that a hybrid trust allows for loss of income and income streaming.

There is much more limited liablilty as it is easier to control and mitigate.

Hybrid Trust has the power of retention and flexibility inherent of discretionary trusts(family trust), as well as satisfying the less stringent tests inrelation to non-discretionary trusts (eg trust lossmeasures).

Hybrid Trust also has the ability to combine fixed interests with discretionary interests.

The other reason is that hybrid trust are popular because, the fixed interest on the income and on the capital of the hybrid trust will provide the unit holder(who is hte beneficiary) with a beneficial interest in the assets that sit in the trust.

ok… Steve

this has really hurt my head, but in simple words, this is more benefit to people who also have -ve geared properties that are running at a cost and that the hybrid trust will offer more Asset Protection than the family discretionary trust as it is much more flexible.

Other note to point out, if the hybrid trust owns the family home. Many people want their family home to be the best home, and usually a nice home. Even if this means runing the home in which you live in, which is owned by your Hybrid trust at a lost.

cheers and thanks…… ouch my head,
s.i.s

“People 4 get that by saving just $3 aday & investing it sensibly over a working life, you’ll end up wit around $1 million.”

Hi Hissho & Steve,

Though also what HK did was, offered 5 years guaranteed rent. Because the property was X amount over valued. The rent over 5 years was built into the New Selling Price, in actual fact, he was just paying you back the X amount of rent that was pre caculated on top of the selling price.

Also if you were the buyer, and HK offered you guaranteed rent for 5 years…. would you be fooled to take that offer….. Many people did…

cheers,
s.i.s

“People 4 get that by saving just $3 aday & investing it sensibly over a working life, you’ll end up wit around $1 million.”

Hi Guys,

What ive learnt and seen is, that for your PPOR, IMHO, you are better to have a I/O loan, and pay your debt down as much as your possilbly allowed too by the bank. (Most banks only allow you to pay an extra $10k a year on top of your I/O, anymore and be penalised)

Though if you are just using a buy and hold stratgy and waiting for the right time to sell, then it would be more advisable to use a I/O loan…. But why sell?

For me personally i prefer P/I loans, the reason being is, you can service your equity to purchase more properties, than rather sell. (While at the same time, pay your loan down, but also have access to more funds).

Really Structure your loans to what type of investment stratgy you are planing to use… and stick to that plan.

But there are also some other packages that are more benfitable by reducing your loans a futher .25% and more, to give you more access to cash, funds and movement of cashflow.

cheers,
s.i.s

“People 4 get that by saving just $3 aday & investing it sensibly over a working life, you’ll end up wit around $1 million.”

Hey Matt,

Happy New Year to You and to All!

cheers,
s.i.s

“People 4 get that by saving just $3 aday & investing it sensibly over a working life, you’ll end up wit around $1 million.”

Hi Steve,

thanks again, the idea of the trader, seems to hold some good ground, and the benefit of using it as your sole way of making income, does come with its benefits and downside, though just claiming the 50% CGT discount, still gives you the ability to, still pick up work,

if in a needed case, if you cannot liquidate a property during a specific period, in time of needed cashflow.

this is a hard choice to make, but does have a very good achievable turn arount point.

thanks again,
s.i.s

“People 4 get that by saving just $3 aday & investing it sensibly over a working life, you’ll end up wit around $1 million.”