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There are various ways to deal with defaults, not all involving courts. You could just let them out of the contract, if no equity, or you could chase them for the rest. If there is equity, then they could sell, renegotiate the loan term, or you could offer them cash settlement etc.
If they want to sell, that is ok. They just organsie a simultaneous settlement, settling with you and then immediately with the new purchaser. This happened to one of mine, and they made more money than I did.
There is another recent post here about a dfaulting wrapper. I think it the the ‘SMH article on wrapper’ post.
Terryw
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Just copy the formate of a table from one of the banks. If you email me I can send you an excel calculator which will work out the comparison rate for you.
Terryw
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Must be a statement as there was no ‘?’ !
Terryw
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Just ask here, what state are you in?
Terryw
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Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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I think the major stumbling block would be the fee charged by the credit card company (2-3%), if the agency is prepared to wear this then it wouln’t be a probably – as long as they had the facility.
Terryw
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Does anyone know who the current president is?
Terryw
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Why do you want to get rid of this? Sounds like you won’t be making hardly any money on the wrap. maybe better to just sell?
Terryw
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I was at the recent course in Sydney, and I think he said about 1/3 of his ‘dwellings’ were wrapped.
Terryw
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A friend recently had a place demolished in Sydney. He paid $10,000 cash.
Terryw
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You can purchase a booklet on the legal aspects at http://www.lawcentral.com.au
And have a look at some of Brad Sugars’ books such as ‘Billionaire in training’.
Terryw
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I beleive lenders could pull the loan. ie give you x days to repay the loan. This happend recently to a big ‘wrapper’ (allegedly for other reasons than non disclosure). Dig out some of those old mortgage agreements that you have and read through it.
I have an old one here, from a bank i won’t name (start swith an A and ends in a Z – with a N in there somewhere).
it states:
I will not do ….. grant any rights of any kind over the property.
And then, states the borrower will be in default if any of the provisions are breached. The bank can then do anything deemed necessary, including taking possession.
Terryw
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If your studying to be a RE agent, then you might as well become a valuer too. I think it merely depends on the subjects studies, not being any longer. You can then work as both or either, it may come in handy down the track.
Terryw
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It would probably be best to keep paying as much as your can off your loan (as it is not deductible), and then build up a bit more equity. Hold on to your excitement, your nearly into your second one.
Terryw
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It is possible to wrap where the repayments would be much higher than the rent, but it is just a little harder finding people willing to pay that.
I beleive you are still eligible for the FHOG if you have not purchased a home to live in before. check this with the OSR in your state.
If your unit values as you say, then you should be able to get 100% finance pretty easy as long as you can service etc.
Terryw
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From my experience, country areas are generally not good places to invest in, unless it is at the start of a boom, and/or they are near large regional areas.
Terryw
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Hi Wendy
a) If you were doing things between strangers, the ‘normal’ deposit for lease options is around 2% of the value of the property.
b) Depends on how much money she can spare. Even if it is non deductible, it may still be better paying IO and putting all extra money into a 100% offset account.
If she is going to lease option a proeprty to your, she would probably be making money, ie it would be positively geared under standard lease options. This would mean she would be required to pay extra tax. Having a trust may help a lot with reducing this.
Infact, you may be able to structure this purchase using a trust, where she could resign a trustee and you take over in a few years when you are ready. This may be possible without causing CGT and stamp duty to be triggered. I suggest you get a good lawyer, and get him/her to talk to Brett Davies lawyers in WA.
check out http://www.taxlawyer.com.au/Terryw
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Hi Michael
The CG is just added to your other income for the year, so the rate will be higher if your income is higher. bringing expenses forward will help reduce your income, so this will reduce the rate you pay on your CG. If you had $500,000 worth of IP loans, eg, you would pay about $30,000 per year in interest. So if your income was $30,000 and you prepaid the interest for next year, your taxable income would drop to nil. so any CG would be added to $0, and you would save tax. of course, it would be hard to prepay such a large amount, but if you had a large gain you may have some cash lying udner the bed. or you could even borrow to pay the prepaid interest. of course, you have to be careful, as next year you would have few expenses, so your property may make a huge gain, and you will have to pay more tax.
Terryw
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Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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No need to buy any kits or packs. just do it! Talk to a solicitor and save some money.
one cheap Aussie book that I bought years ago was the Lease Option Handbook, for about $80. http://www.creativerealestateinvesting.com.au
Terryw
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Rob, you must be talking form the LO purchasers point of view?? If you are selling lease options, you will still be buying properties, so they will still get their commisison.
If you are buying lease options (ie you would be the tenant in a LO arrangement) then they would have no point in ringing you, just like they would have no point in ringing tenants.
If you are just talking plain options, then the agents would not be so keen on assisting you in buying an option, unless they are getting a commisison.
Terryw
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Good point Brenda.
I remember selling one and fogetting to do this for 6 months-until I got the notice of renewal. The insurer kindly back dated by refund on proof of the sale and I got about $200 that I wasn’t expecting.
Terryw
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Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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