Hi all

If there is sufficient interest I am happy to post the contacts that I sent to Michael

cheers

Bruce

Michael

1) Yes it is, after the purchaser has been in the property for 1 year

2) Always (x 1,000) consult with your solicitor about this sort of stuff. She/He will spell out all of the compliance issues

cheerio

Bruce

Ok Ok

I need to read the end of the posts too….

sorry Caroline (don’t know how I confused you with Gavin <grin>) though I guess that the congratulations have been earnt by you both []

Bruce

Gavin (& probably Andrew by now too)

Congratulations !!

Good on ya for having a go !!!!!!

We had a very similar experience less than 2 short years ago. Were going to do our own ad based on Steve’s Ad package, ran out of time and just put he ad in EXACTLY as he said.

Sat around Saturday morning, Denise was sick, I was scared, all fears seemed…[Read more]

Michael

I concur with Terry, with the addition of a further idea:

“The middle ground”
You could set up the ‘discressionary trust’ portion of your structure with you &/or business partner as trustees. (so no company yet)

If all goes well you later set up company and you personally retire as trustee while company becomes trustee.

As the…[Read more]

Sooshie

good on you for analysing the deal !!! Thinking about it and realising the potential is the hardest thing to do. Excellent ! [^]

I was just wondering about exit strategies such as:

How much it would cost to build two units on that land and what they would sell for ?

Build two units and how much they would rent for ?

Keep existing…[Read more]

Kevmeister !

Hey, can we call you meister for short ? <grin>

How I understand this is that the first mortgagee has first rights over the equity (property) and as such in a foreclosure situation have the first bite of the apple. The second mortgagee gets the remainder.

This is why the second mortgagee is usually the one who triggers the…[Read more]

Hi all

yes we have a bit of an interest in Tas []

Sharing experiences and shooting the breeze can be a fun thing to do no matter what ‘level’ you are at.

So, if anyone would like to set up a get together we would try and attend. We know another couple of investors who might be interested in coming along too.

cheers

Bruce & Denise

ps: anyone…[Read more]

Wei

A few of our clients are pensioners too. However, they have families who will be the beneficiaries of their estate if anything should happen, so the continuity thing is not an issue.

Of course, if your plan is to be cashed out early, then this may be an issue to you.

cheers

Bruce

Hi Matt

don’t forget to be completely clear with the major financier in the deal. Some do not like 2nd mortgage interests, some do.

One of our lenders told us that they would usually have a deed with other mortgager revealing and limiting their interest in the security.

cheerio Bruce

Thanks Wei
glad that you enjoyed it, it was fun doing the taping !

Monto
we usually wrap it all up (if you’ll pardon the pun) into the markup that we hand on to wrappee. i.e. it is just another part of our costs.

cheerio

Bruce

Wei

The following was supplied to me by our banker and is for higher security (ie borrowing in your own name) loans. The rates are a little higher for investment properties

% of finance____Insurance rate
0%__________0.00%
80%_________0.43% ignore this one as usually free at…[Read more]

Camilla

one other aspect is that the lender will base her/his LVR% on the LESSER of the purchase price or the market valuation.

The market valuation must provided by a professional valuer, whom is usually on the lender’s “panel”

cheers Bruce[]

Hi CY & AD

One way of doing this is to have BOTH a company and a trust.

You and business partner/s are directors of the company.
The company is the trustee of the trust.
The company purchases properties in its’ capacity as trustee of the family trust

advantages:
1) Asset protection: There is some minor level of protection as you can resign as…[Read more]

Fergus

We have used this technique as a tool for helping out folks who really need to have the extra dollars to pay for their rent (or purchase).

For a number of reasons we originally started out wrap deals with a one year lease with option to buy. Where we lived, at that time the FHOG was not available. Using the lease came from an idea of our…[Read more]