Hi guys, were quite new at this and still trying to educate ourselves on the basics, we are in Tassie and while Steve says to go to a regional area some would say that the whole of Tassie is one big regional area.
While this may be true our question is, as its obvious that its challenging to find properties that fit the 11 second rule for rentals, should the same rule apply while looking for properties to wrap, or is there a little more le way in the figures?[?]
Lizzy1
My advice would be to apply the same performance criteria of a 10.4% return. The clients your looking at for the wrap would be similar to the tenants you would be considering in a buy/hold strategy. Therefore you want to make sure that the wrap clients can afford the mortgage/wrap payments.
You can effectively wrap any property but you need to consider you reason for doing it. Usually if you have higher valued properties the clients who could afford to buy can obtain standard finance from one of the banks.
I know a lot of people wrapping in Sydney. You don’t have to wrap cheaper properties, you can get bigger returns and less work by doing some big ones.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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