Unless you have a high income, you'll need to buy cashflow positive, or at least "not too negative". And yes, they are hard to find and you'll have to be creative.I think the best strategy is to find a commercial property earning at least 8%, negotiate vendor finance (eg 30% for 5 years), then the bank pays the vendor 30% at settlement, and your…[Read more]

Linar wrote:
I do think there is a difference between a small property investor and a large scale developer.  One is clearly a business dealing by an experienced person who knows the world of business and the other (elderly parents) are just people who don't have the experience that a developer would be expected to have.

That's relevant to…[Read more]

My personal favourite strategy is to have both  by manufacturing growth and increasing rental return after purchase. True, it's not easy, but if you look at enough properties and if you even find one per year, you'll be on the road to wealth. I do believe the commercial arena provides more opportunities for using this strategy, and you don't ne…[Read more]

madproperty wrote:
Thanks Terry, so those loses made after deductions etc would be then held in the trust and be offset against any capital gain in the future???

Exactly, unless you had another profit-making entity in the same trust.

madproperty wrote:
When would the purchase of a property that you wanted to live via a discretionary trust be a…[Read more]

Richard, I'll say the same thing but a little more diplomatically, perhaps Others certainly have thought of this principle and have been implementing it for many years. You can do the same thing with a line of credit from almost any lender in the country. I recommend that you go through a mortgage broker to find the particular product with c…[Read more]

For what it's worth – not much probably, economics isn't my strong point  – I think we're near the top. One or two more 0.25% increases should do the trick. We're already seeing some mortgage stress talk in the media – hopefully that will be sufficient to cool things a bit. I base this not on my own analysis – I'm not capable of that! – but on my…[Read more]

I would check what price they intended. Don't say what you thought the agreed price was, perhaps; go back and say that you thought you'd agreed on a different price and see what they come back with, just to make sure that you didn't make a mistake yourself. If they come back immediately and say "oh yes, we intended xxxx" (the figure that's $20K…[Read more]

Not sure if it's from the original settlement date or when you issue the recission notice.

I get frequent phone calls from India trying to sell me some kind of finance product, I would say I've had 10 or 15 over the last 6 months. They all want to know if I "qualify" for a meeting with their [some fancy title – finance specialist or something], which seems to involve having a mortgage, being under 50 and employed (maybe breathing,…[Read more]

I think the 14 days mentioned is pretty standard – you get your lawyer to issue the recission notice saying that if they're not ready to settle within a period (like I say, I think 14 days is usual), then the deal's off. And of course you get your deposit back.

DraconisV wrote:
What about Closing costs, I hear the average is 5% of the purchase price, so by these calculations your LVR should be 99, not 94, right???

In a sense, yes. Wasn't wanting to complicate things ; )

DraconisV wrote:
Also, if you tkae out a 100-106% loan the interest will be higher in percentage form but what happens if you pay…[Read more]

Concur with all, blogs.

i'm speaking mostly from extensive discussions on another forum, Somersoft, which I perceive has a greater proportion of advanced/established investors than this forum, and is generally much more active (ie much higher volume of posts). I've gotten to know the styles of various investors over there, and it's generally those who have limited h…[Read more]

Talk to Council, check out the websites of the main mining companies, ring the mining companies and ask about their plans, ring the local Visitors bureau (surprisingly helpful sometimes), etc.

What do you think the majority of the very successful investors are doing?(Hint: it aint selling.)

I know people who've done very well out of mining towns, and if I could go back in time and get in at 2002 prices, I'd be buying as many as I could. But my concern is that the world commodities market created a very particular set of circumstances that led to a huge boom in housing prices in those towns, and I would have thought that that has ha…[Read more]

Sorry, Trance – LVR = Loan to Valuation Ratio – the percentage of the purchase price that you borrow.OK, so given that you borrowed nearly all of it, then unless the market's moving very quickly, you're unable to get out more equity for another deposit. If you'd bought for $200K and it was already worth $220K, you could access a good portion of…[Read more]

James007 wrote:
i have informed my conveyencer to issue them with a notice of recision which gives them 14 days from friday  to settle the property or the contract becomes null and void. I find it amazing that the purchaser gets slogged daily interest for delaying but the vendors get off scott free..

Good move to issue the notice; you can…[Read more]

Yes, that's what I meant, Trance. What LVR did you borrow? If you put in 6%, that would mean you borrowed 94% to buy the first property.

It's going to cost you to live, wherever you go. Do you want to own primarily because of the financial side, eg you want the capital growth on a home, or because you want a stable home? Can you afford to pay any more than you're currently paying in rent?