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Thanks guys for that. I have to admit that I wasn’t really expecting that type of responce. I was sure it would be negative. I’m surprised and happy. I guess I’ll have to enquire about the next deal that comes across my e-mail.
Thank you, good luck.Thank you all for that. I think I’m going to look into the idea of getting around capital gains in NZ, which unfortuently means boring tax sights no doubt. I’m sure there will be a way. If any one has any other ideas, please let me know. Otherwise I’ll be living in a half finsihed house in frosty New Zealand soem time soon.
Wild.Hey all,
Thanks for all the advice and imput. I like the 25% idea, and the idea put forward about buying near cash flow positive properties, and then reno for yeilds. I think it’s right that you don’t need to stick to one stratergy, or follow any one stratergy exactly. It’s good just to have a place to get questions answered here.Robert Kiyosaki says something like mistakes are only mistakes if we don’t take soemthing away from them. We have to make mistakes, and they proberly will cost us cash, but if we get the lesson out of it, then it can save/make us much more cash in the future. I think it was Robert Kiyosaki, or Jesus. Either way I think it makes sense.
Wild Nothing.
Harry,
I’m fairly new at this too, so I’ll give you the little advice that I have and some super investor will come along and set you straight.
First, yes it is confusing in this forum and with all investments at the start. Property investing seems to be the flavour of the month, which means more info and more chances, both to make money and to be gain expensive lessons.
With your financial situation and buyign an IP, you can still get your 7K first home loan right? Although this is to be used for your place of residence, I don’t think there is any set time period for how long you have to live in the property, before you can turn it into an IP. 12K in the bank is good too. And now you have a job at least you know how much you will earn. I’d suggest going to a mortgage broker and asking them advice. You also have to decide why you want to invest, or more to the point, how you want to make your money, ie, capital growth on the increase in property or having a cash flow positive property ie the rent you receive covers more then your rental repayments. You don’t have to stick to the same idea for every property, but a goal for your first property is a start. I have found recently that although the property I bought a year ago has gone up in value 25%, my rent plus job income isn’t enough to buy what I wanted, so now i’m looking for a place with high rental yeilds to increase my earnings.
Like everything new it is confusing, and i’m still confused, but also like most things, investing is something you can learn. There are thousands of books and stuff on the net. Keep reading what people say in here, and asking questions and you’re ahead of most of the pack who just buy a place because it’s a nice area or what not.
Also, unless your questions are specifically wrap related, asking questions in the ‘General’ forum page will proberly get more of a response.
Good Luck.
Wild.Youngie,
Just to let you know I am very much in the same position as you. 22, confused about which stratergy/s to go for and how to implement them. I was also looking to borrow $250k and have been told I am resticted to $190. I have one property under my belt, nothing brilliant.
I feel reading this forum is a great place to ask for and find advice, but I fall victim of information overload most of the time. Which is much better then not getting any responce.
I’m going to sit down soon and decide what I want to acheive in the next couple of years, and try to go from there. Even though I seem to figure out some new plan or aspiration every day.
We have time, and as confucing as it is, i’m sure we’ll figure this investing thing out. I’ve learn to drive, and shave without cutting myself, so I’m sure I can learn what I have to.
Good luck.
Sorry this post didn’t give any ‘buy here’ type info.
WildFor those of you who said that I should widen my search, you are right. I am now starting to look around the net at different towns, most that I haven’t heard of, but I realise that 190k is still enough to do soemthing with. I was just cut that I couldn’t borrow what I wanted. Anyway, I have stopped sticking out my bottom lip,
woken up to myself and am looking at other options. My goal somehow changed from making my now negativly geared loan a positivly geard one, to borrowing $250k. Thanks all for the advice.And of course I wouldn’t expect tiffany purvis-white to tell me where they bought +ve geared property. Would be nice though[
]How do I prove to a bank or lender that my rental yeild on a wrap will be higher then my loan repayments? Are banks receptive to wraps?
Funny that this should be the first topic I came across this morning.
I just got a call from my mortgage broker, who is a mate of mine, who told me that my borrowing capacity on my next property would be max $190k. I have no credit cards, 8,000 in the bank, a loan of 170,000 on a unit now worth 225,000. I earnt 42,000 last finacial year with modest pay rises to come in september and 4% next january. I have no other debts.
I wanted to buy a house for less then 250,000 and wrap it so that the rent from my first unit and the spread on the new property cover my loans and I ould travel for a year.
The only thing the banks seem to care about is that I earn 42,000 a year and have a 170,000 loan. Max borrowing 190,000 for next property. Don’t argue. What does anyone suggest I do about this?! I am just baout to cancell the inspections I had lined up for today due to the shit house news I got this morning.
Wild Nothing.Yeah, thaks for that everyone. I guess what I’m trying to get at is it common for people to make offers subject to finance or are most people cashed up? I don’t want to make an offer that the vendor/agent would accept, only to turn around and say, “Sorry can;t afford that much”, or worse, miss out on an oppurtunity that I could have afforded, because I didn’t have the bank telling me I could.
On thursday I’m going to look at at least one property which sounds good, has been on the market for 5-6 weeks and hasn’t had offers made on it. It sounds like it might be what I’m looking for for a wrap. Might make an offer, ‘subject to finance’.
Wild Nothing.Terryw. Thanks for that. It’s only been about a week since I’ve started to refinance. I’m getting a pre-approval done at the same time. How do you think you can give yourself a rough idea of your borrowing capability? Or how does that real estate agent calculate your likelyhood of geting the loan? How much water does an offer subject to finance carry? Anyone?
Wild Nothing.Well done. I hope it all works out well. I hope you learn heaps from it and of course I hope that it’s putting cash in your pocket and/or the property value goes through the roof. Keep the updates coming. It is so motivating to see people investing, especially in their first deal. You are doing more then most of the population.
Hope you get it.
Wild nothingI know it has been months since you posted this but I searched by the word wollongong and saw this message. Yeah I’m from shellharbour originally and have moved to sutherlnad. I’m looking to do wrapping back home though. my e-mail is [email protected] if you see this and are still looking at doing something around wollongong. I’m new as though, don’t know where you are at.
Blue Pig.
woken up to myself and am looking at other options. My goal somehow changed from making my now negativly geared loan a positivly geard one, to borrowing $250k. Thanks all for the advice.
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