We will be moving to Port Lincoln in late Jan. At first we will be living cheaply with my mum whilst we look for a place to rent. At present we have $80,000 in equity in our home which we’ll be renting out (rent will cover repayments and expences). In Lincoln we’re pretty sure my husband will get work as a tradey and his income should cover rent/bills/food. We have two young boys (4,1) and so far I’ve been doing child care at home which has allowed us to live comfortably but frankly have had enough of kids and would like more time to bop around with real estate agents checking out properties (and time to go to the gym!). So what I’m asking is can I hold of working in hope that I’ll come across a property deal that’ll generate a years income (approx $25,000)? I like the idea of buying a property on a long settlement with early entry doing renovations and re-selling at a higher price before settlement. We will be attending Steve’s seminar in March so that should help us decide what PI path we’ll go down. What do you reckon, can I send the hubby to work whilst I find the deals or am I dreaming? I have no qualifications as I was pregnant at 15 and a school drop out, I am happy being at home with my boys. Appreciate your feedback!
Working will help you get finance and to save for more deposits. You can’t expect to retire in a year or so, but if could be possible within a few years. Then you could ease off the job and spend your time finding properties.
Terryw
Discover Home Loans
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so far I have 2 self-employment tax returns both with a taxable income of $15,000 as I make about $10,000 in claims as it is a home based business (childcare). If say I finish working in January when we move and make money on PI in the first 6 months, that income would then be added onto my 2004-2005 tax return. Would the finacer wait 2 years of tax returns from the one occupation or will they see PI as another occupation and want 2 years of PI tax reurns before they finance me? would a lo-doc help our situation? the other issue is my husband who has worked in the same job here for allmost 7yrs will be starting fresh at a new job, will he need employment with the new company for a period of time before they finance us or will they look athis track record?
Female, school is not the only education a person needs. You can fully educate yourself now about your chosen area – in this case, PROPERTY INVESTING. As everyone always says, keep reading and reading and reading. Before you know it, you will have the knowledge and will be looking for the experience.
Low Doc does not need tax returns. They just need to see an ABN for 2 years in many cases or one day in others. Some will even to PAYE (employed) Low Doc. A broker can go through all this with you.
Rental income is always counted in loan applications as it improves your serviceability. Again, the broker will discuss this all with you.
Regarding Full Doc and being employed, they really only need to see that the applicant is not in a probation period before approving the loan on their current income. This is usually a period of three months. If you borrow more than 80%, things get a little more difficult as the Mortgage Insurers rear their ugly heads and take control.
Make a couple of appointments with different mortgage advisers / brokers. You will see their different styles and the way they advise you differently. You will learn a lot about what you can and cannot do and how to achieve the things you want to achieve. Maybe even speak with a financial planner or two to learn even more.
Remember, there is no obligation if you meet with these people and it should cost you NOTHING unless you proceed with a financial planner or never in the case of a mortgage broker.
Don’t forget, READ – READ – READ
….and TALK!
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
I do read, read, read and LOVE every word of it! Would like to start to act, act, act!
What I’m really wondering is “is it realistic for me to expect that if I put all my time and energy into looking for real estate deals that I find one that’ll pay a years equivalent wage ($25,000) within 6 months??? I’m hoping to achieve this firstly by a quick reno and sell deal. This then would allow us to live comfortably whilst I dedicate my time to PI. Would love to here from someone who’s thrown in there job and stepped out of there comfort zone, did it work out for you? Like I said before my husbands wage would cover the rent/bills/food but that would be about it so am I risking putting us in debt if I don’t find the deal I’m after? What would Steve suggest I do??????Female,
If your husband’s wage is going to pay for the bills/rent/food, where do you propose getting the money to do the reno, not to mention buying the property in the first place???
There are lots of people who go out on a limb, some succeed, but many get burnt (badly).
I suggest you take MA’s advice and seek proper financial guidance, and do some serious research before you make ANY firm decisions which may affect you or your family.
Just because you want to act, doesn’t necessarily mean that it is the right thing (or time) to do so. All I’m saying is, please be careful.
Cheers,
Jo
Do have access to a realible money partner who would fund the right deal to create a win-win outcome! Also I think with a bit of effort wewouldn’t have to much trouble getting a loan as mentioned before we have $80,000 in unrealised gains although would have a hard time serviceing loan unless we were able to create a postative cashflow property. In Steve’s 2nd book Rachell Starr (23) made $250,000 on her first deal, unit reno if I remember correctly. Also have around $15,000 in savings which could be used for deposit. How long does it take to make some $$ when you buckle down into PI?
Hi Femaleage 20
Good advice Jo, we have remained working, as it is easier to get finance if you have a strong financial backing.
HOWEVER, I would strongly suggest that you get your hands on Steve McKnight’s “Tales from the Trenches” which is a set of 4 recorded tape interviews with some of Steve’s investor friends. I’m not sure if it is still for sale though these days.
In particular you should have a listen to the tape from “THE WIFE” Nivia Prior. She quit school very early, left home and did it all on her own. These days she has a HUGE portfolio. She is so inspiring. I take my hat off to her. I’m sure you will enjoy it…
Regards,
Del
Is it possable to get transcript of interview?
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