Forum Replies Created
G’day Jason,
Have you considered the option of vendor finance for the $$$ you are short. Sometimes this is the only option for some sellers to achieve a sale at the price they are asking.
Vendor finance is when the seller agrees to leave some money in the deal, usually at a higher interest rate, for an agreed period.
There are lots of issuses to consider and you should seek the opinion of your trusted financial advisors……
Good luck and make sure you go in with your eyes wide open, don’t be dazzled by the dollars…..
Cheers
wattoHi Guys.
Just a little info to add to the FHOG conversation might help some…
Copied from http://bne003w.server-web.com/~wb013
All accolades to original posters below….
“Topic: FHOG Clarification (1 of 2), Read 62 times
Conf: Property Investor Forum
From: Robert Forward [email protected]
Date: Thursday, May 30, 2002 05:16 PMHi everyone
We had a bit of a discussion earlier today in the chat forum about the FHOG and if people who have purchased IP’s but never bought a PPOR are eligible.
I rung the FHOG office in NSW who stated the following, if you have never owned nor contracted a property that you weren’t going to use as a PPOR then you are eligible. Basically I asked the question “I own investment properties but have not contracted/purchased any of them before 1st July 2002, and have never purchased my own PPOR am I eligible for the FHOG?
The reply was YES.
However, if you actually contracted or purchased any style of property, this also includes investment properties, before the 1st of July 2000 then you were not eligible for the grant.
Please note that this was directly from their call centre, but still further clarification would be needed I think. But worth a look at for those that have never had a PPOR but have IPs.
Cheers,
RobertGet your Property Inspection Reports @
http://www.CreativeFinance.com.auTopic: FHOG Clarification (2 of 2), Read 63 times
Conf: Property Investor Forum
From: Russell Chellew [email protected]
Date: Thursday, May 30, 2002 06:03 PMYou are Spot on Robert,
I received the same response when I contacted The State Revenue office in VIC a couple of months ago.
regards
Russell
Hope someone will benefit from the above….
Cheers
watto
Melb FreestylerGday Darren,
Do you fully disclose to GE the purpose of the funds. Specifically that you are wrapping the security.
Cheers
watto
Melb FreestylerGday David,
If you’re paying 7.25%, how do wrappees feel paying 9.25% minimum.
When bank rates are as low as 4.99% for honeymoon rates????Cheers
watto
Melb FreestylerGday Dianne,
You said:
“Ad:
Display home in sought after area of melbourne. Offering guaranteed 2 yrs lease back at 8% with option of 3rd year. Price: $365K.Sums:
1. If we take an interest only mortgage of 90% fixed for 2 years($328,500.00). Repayments are $1546.00pm. based on 5.65%. Rental is $2433.00pm, leaving a positive cash flow of $887.00pm or $10644.00pa.
After 2 years, we sell the property and hopefully obtain the capital gain to invest into another property,(to avoid paying capital gains tax)which based on growth of area is a good chance.”What about the other 10% ($36500.00) plus the other costs you will have to pay on the purchase, i.e stamp duty, legals, etc. etc.
These will turn what appears to a positive IP into a typical Negative geared IP….
You will almost certainly find that the builder has also built into the price the rental guaruntee, so the purchase price maybe inflated.
Also consider the wear and tear on the property of thousands of people wandering through every weekend for the next 2-3 years.
Others may wish to add other pitfalls of this type of investment.
Cheers
watto
Melb FreestylerGday Steve,
There really needs to be a way to mark posts as read. I’m finding that im reading over old posts to get to the new ones. This is not time efficient and very frustrating.
The forum needs to be as user friendly as possible or people will stop logging in…..and this will make a lonely forum…
Cheers
watto
Melb FreestylerGday Steve,
The new forum looks good….but….
its a bit hard to read and quickly see what are new posts and what is old…..
time is limited for me and i need a more efficient way of reading new posts….
Cheers
watto
Melb FreestylerHi Mike,
The term cashed out refers to the point in time when the wrappee is either able to refinance with a normal lender or pays the final payment in 25 years…
Ususally a wrappee would cash out after maybe 1 – 2 years of regular payments as they then have a credit histroy which they can show to lenders….
Hope that answers your question…
Cheers
watto
Melb FreestylerGday Steve,
Site looks good, it’s getting tuff
to keep up with all these new forums…Hopefully lots of good wrap info to come…
Is the property for a wrap or buy and hold?
Cheers
watto
Melb Freestyler
