Hi team,
Im thinking about spending 1 year fully applying steve mc knights principles (and others) and working towards building/financial freedom etc. By this I mean not renewing my work contract next year and throwing myself into the pursuit of cashflow positive IP’s instead (and other deals too).
I have no ties right now. Single, no dependants, healthy, 28yo, im paying off my ppor, have 4k equity etc. etc. Im tired of working in the rat race. I’d rather be broke and happier trying to achieve my wealth goals instead.
Im sure I could make money some other way (deals etc..Can you achieve some sort of passive income or capital gains in 1 year?..what do you think?…
Personally, I think it would be a big risk to throw in your job!
Can’t you start investing while keeping your job as well?Even Steve still had to have the support of the income of his wife’s job to get started.
AND that was at a time when it was a bit easier to find CF+ properties than it is at this stage.There probably will be a problem getting lenders to approve your loans if there’s no income from your job AND you’re still paying off your PPOR?
Others with more experience will probably give you more advice on the matter than I can, just my two cents worth!
Good luck though on your way to becoming a Property investor!
I thinking giving up the job will be a backward step.
Will be very hard to get your loans without a job!
All the best,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Tycoon,
I have resigned from my stable job in Adelaide to move to the warmer climate of Cairns and have been thinking along the same lines as you. I saw an accountant about buying property with no job initially, and was told that the banks are happy to lend you money on what is called a low document loan. This accountant said that my husband and myself could get up to investment loans this way. Does anyone know if this is correct?
[blink]Originally posted by GOLDIE:Hi Tycoon,
I have resigned from my stable job in Adelaide to move to the warmer climate of Cairns and have been thinking along the same lines as you. I saw an accountant about buying property with no job initially, and was told that the banks are happy to lend you money on what is called a low document loan. This accountant said that my husband and myself could get up to investment loans this way. Does anyone know if this is correct?
[blink]Goldie,
Low Document Loans are generally loans that are lending institutes offer investors but at a higher rate. I believe (and if anyone out there knows differently, please feel free to correct me) they are normally available to investors who have a long term history of investing. (????)
Jo
Along the same lines, there are also No Document Loans available.
Jo
A low doc loan means low documentation.They charge a higher rate of interest because the risk of giving you a loan without knowing your income is a lot higher.It has nothing to do with being an investor or investment type loan.
One would be foolish getting a loan without knowing if they have the ability to service it in the worse case scenario.Originally posted by RussH:A low doc loan means low documentation.They charge a higher rate of interest because the risk of giving you a loan without knowing your income is a lot higher.It has nothing to do with being an investor or investment type loan.
One would be foolish getting a loan without knowing if they have the ability to service it in the worse case scenario.RussH,
Where exactly did I say they were “investment loans”????? I said, they are available to investors, however it is not “exclusively” for investors alone….anyone can access these loans. As for the history bit…a friend of mine, State Manager for a large bank here, said that banks like to see that the person(s) they are giving the loan to has some kind of history (investing …. not just in property, but saving their money).
Before you get your jockstrap in a twist RE-READ MY POST and try to interpret the comment as it is intended, or if it is not comprehensible to you and you have doubts….ASK ME !!!!!Jo
Please no personal attack in the post. Everyone here to learn and share knowledges and at the same time have fun. If you feel unhappy about the post please PM each other to clarify things.
Moderator? help?…LoL
I Hope you guys/gals understand.
Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]ChanS,
I agree that would be the best thing, however I have on several occasions approached RussH through PM and he has chosen to ignore me. Either because he feels intimidated or because he is just plain rude; either way, the choice is his.
I am happy to be polite, and do not make it my mission to attack anyone, but on this occasion, RussH chose to be the “smart-guy” and take my words literally without questioning their meaning. Very mature…
Jo
Goldie perhaps it all depends on your deposit. It will have to be over 20% at least (so around 25%). A mortgage broker will tell you.
tycoon, I hope you ment $40K equity, otherwse forget it without a source of income. It is so much easier ith the banks if you have a job.
“they are normally available to investors who have a long term history of investing”
They were actually created for self employed people who had cash earnings, or played around with their tax, to the point where they showed no income on their tax return , when the banks asked for their finacials (i.e. tax returns) they wouldn’t lend to these people because of zero income. If you can get a 20% deposit (and show a savings history, over 2/3 months), banks will take more at what you say at face value (I earn X, but my tax return shows Y), and usually they will throw money at you.Rgds.
Lucifer_auMy company just got a low doc loan – on my financials, and they did not care one iota about my ‘savings history’. I had to ‘declare’ my income, and show them my assets and rental etc. and that was it!
Savings would have killed me because there is none as it all goes towards bills and more properties….
Cheers
MelIs it me Monopoly, or you really seem to enjoy neat picking on words and picking fights?
It certainly makes for more colourful posts and longer threads, yet still… I see no reason for picking on good old Russ or all the others you pick on Jo Victoria. … was wondering if you would get that many responses with a less revealing avatar? [cigar]
May God prosper you always.[biggrin]
MarcMonopoly, I cannot get a full appreciation of who you really are, except to say that perhaps you need HRT. You seem to very easily bite people who to all outward appearances on the thread, have not drawn claws against you. Replies such as yours are detracting from the thread main content, which in this case was Tycoon asking about whether we all thought it was possible for him to achieve his dream. I am not that interested in you thinking that RussH has his jockstrap in a twist. Take a breath honey.
Tycoon, I agree with some of the other posts here. It is good to have the security of the job, and I have chosen that path for the next two years. HOWEVER, none of us can chose for you, all we can do is tell you a little about what we have done, and you have to decide yourself.
I know of three other people who have given away the full time jobs to pursue property investing – and they work harder than a full time job now I might add.
Monopoly and the others are right and wrong about LOWDOC, NODOC loans. The best people to talk to about these while you are doing your homework on whether to quit would be a few brokers, not necessarily the opinionated lay people of this forum!!! (You will see that Mortgage Hunter replied in this thread, perhaps you could seek advice from him and other brokers to really ensure you have done your homework)
Regards, and all power to you with your dreams Tycoon.
Cheers
CDCastleDreamer
Originally posted by Marc1:Is it me Monopoly, or you really seem to enjoy neat picking on words and picking fights?
It certainly makes for more colourful posts and longer threads, yet still… I see no reason for picking on good old Russ or all the others you pick on Jo Victoria. … was wondering if you would get that many responses with a less revealing avatar? [cigar]
May God prosper you always.[biggrin]
MarcMarc, I don’t enjoy picking on Russ or anyone else. As a matter of fact, I sent Russ a PM since the post you obviously just read (look at the date on it) apologising for my past posts attacking him and being unkind. He accepted both my public and private apology, can you not extend me the same courteousy???
As for the word somantics, and nit-picking I am not entirely alone there now am Marc1????
My revealing avatar was chosen in fun and is by no means reflective of who I am, just as someone with Pepe Lew Pew isn’t a skunk or whatever. Surely if you want to have a go at me, which is within your rights to do so, it wold make more sense to chastise me for my “words” or “verbal abuse”, “attacking” or whatever, and not over some silly cartoon character that appealled to me at the time of joining.
Jo
Oh no, I am a mouse!!!!!
CastleDreamer
Originally posted by CastleDreamer:Monopoly, I cannot get a full appreciation of who you really are, except to say that perhaps you need HRT. You seem to very easily bite people who to all outward appearances on the thread, have not drawn claws against you. Replies such as yours are detracting from the thread main content, which in this case was Tycoon asking about whether we all thought it was possible for him to achieve his dream. I am not that interested in you thinking that RussH has his jockstrap in a twist. Take a breath honey.
CastleDreamer,
Like I said to Marc1 (see above) the post to RussH was earlier in the month………..I have since apologised to him for my totally inappropriate behaviour. Although there was no need to do so, I felt I had to explain myself to you in other posts (mainly today) which obviously you haven’t read yet.
I am not the monster you think I am, and no doubt HRT will be helpful in a few more years. But for now maybe I should keep my opinions to myself.
Thank you for your comments, and I am sorry if you have developed such a poor opinion of me.Cheers,
Jo
Don’t sweat it – which I can patently see you are probably not sweating!!!!!!!! I do however have issues with the picture of RussH with his jockstrap in a twist (grins evilly!!!)
Cheers
CDCastleDreamer
CastleDreamer,
I cannot comment on this vision, however I will make a concerted effort never to refer to it again, and risk causing cause you any further grief [worried][glum2][lmao][lmao]
Jo
Hi Tycoon
Not necessarily a bad move to give up job, a lot of successfull people have become so from being right down on money etc. SOMETIMES it helps you to focus when you are in position of having too. Depends on your fear factor.
Also if you are going to follow Steve’s pos cash flow you will need to consider issues about borrowing money, but say you planned to buy, renovate and sell you could maybe get a mortgage before leaving job – one that is transferable to any property – then you should be OK for a year.
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