Hello All,
I have just finished reading Steve’s book and am ready to embark on Property Investing.
However, I need some suggestions, ideas, help to get started. I have just recently returned to working on contract in the IT industry after a few months break since returning to AUS from NZ.
My wife is in a position of being able to return to work but she doesn’t really need to based on the money I’m earning and what we get from Centrelink for our 4 kids – That of course is going to change when the investments start which of course would be a natural repleacmentoffset.
So I’d like to leverage her time in sourcing property. The other side of things is that I’ve only just been working fulltime for just over a month and have managed to save a good amount of cash which I hope will continue so we can at least get started.
Here’s the CRUNCH!!, We have some debt in NZ that we need to clear soon, they’re threatening baycorp etc., of course they can’t touch us here in AUS, BUT I don’t want it to go that far, I’ve always paid my debt’s and maintained responsibility for them.
My sister has over 15 years in banking and she has advised that we may have trouble getting money here from the banks if they find out we owe money in NZ, of course I don’t want them too!!.
The NZ debts are only small (under $20K), currently consist of three separate amounts at the same bank and they won’t consolidate!!.
I have the fundamentals of getting this Positive cash flow thing going and once started wouldn’t take long to clear this small debt.
Can anyone here help with any suggestions on what would be the best and least resistive path please.
Thank you.
Sparkie.
Debts are Debts. Your sister is right. If the bank do a Credit check on you – and they most likely will, it will be very difficult to borrow money even after you have cleared the debts. They will say, “You had debts before, you could have it again if we were to give you the loan.”
Your wife’s time is precious – if she is free all day every day, then get her not only to call agents and look on the NET and through papers, but get her to also go out and drive around ispecting properties – but ultimately, I would clear the debts first.
I would suggest working out how much you’re willing to spend and see how much how the bank will loan you with and without the current debts. Then look at specific areas.
Kind Regards,
George“If You never never ask, you’ll never never know”
“It is no good entering a race with a leaky boat”
Clear up the bad debts first.Would suggest sending the wife to work solely to get rid of this debt.You cant move ahead in life when you are carrying to much load.If debt collectors are after you, I’m not sure why you’re confused. It’s obvious you need to pay off the debts (possible the creditors need the money???) Then you can start thinking of your own financial future.
kay henry
Hi Sparkie,
If you have debts to that extent you should endeavour to pay them. If you can’t manage the past debts how can anyone expect you to be able to manage future debt.Best solution is to make an arrangement with your creditors to pay off your debts over a period of time. And if you make an agreement, stick to it.
Regards
JeffAgree there with Mortgage Advisor – just clear your debts first, then worry about everything else later on.
Pretty obvious to me
Cheers
“Looking forward to the day when I can tell the boss where to go”
Hi Sparkie,
Try not to let the banks put a smear on your credit report that takes 5 years to clear… until then you’ll pay out your nose with a higher interest rate.
You can obtain a copy of your credit report by calling Baycorp Advantage on 9464 6000, its free if your happy to wait 2 weeks, or for a small fee have it within 24 hours. This will tell you if you’ve got anything to worry about YET. Having limited experience in intercontinental credit ratings perhaps you should ask them yourself whether bad debts in NZ affect your credit rating here? Can anybody enlighten us?
It sounds like you might be of the self-employed variety? This may cause difficulties in obtaining finance if you have only been back in oz for a small while, were you here before NZ? Your income stream may be lumpy if you are a contractor, you will need some guidance as to which bank will consider your income.
Perhaps you also need to be honest with yourself (financially speaking) as to why you are not happy to pay off your debts in NZ before getting yourself into debt here?
However do the research, find out whether your debts there will affect you here by talking to Baycorp…
Any ideas Rob?
Liz Wilson
Mortgage Lender
Thanks Rob,
Wasn’t sure as I did have one particular NZ client who told me of something AFTER settlement, that the banks should have really picked up on.
Strange that it slipped through the cracks don’t you think?[hmm]
Liz Wilson
Mortgage Lender
Sparkie,
Read more books!
Jan Somers (for property) & Robert Kiyosaki (for how you think about money) are good ideas.
Going out and investing based on what you read in Steve’s book doesn’t give you a full toolkit of strategies.
Cheers,
Aceyducey
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