Hello all,
I am new to here having just read Steve's excellent books (again I must admit!). I guess you could say I have a burning desire to get stuck into the principles he outlines and I want to develop a solid and strong positive cash flow from property in the next 2-5 years.
As with most people who join here initially, I imagine, I am like a babe in the woods, not really knowing which way to turn or where to begin. So I am very hopeful that I will be able to glean alot of useful information from people here and in advance i say a massive THANK-YOU!!!
My first issue is that I am self employed in sales and whilst my income is above average, getting finance obviously has it's hurdles. I currently rent in Annerley, Brisbane for $425/week but was wondering whether getting vendor finance to purchase my own residence may be an option. I would be looking for a 3 bedroom 2 bathroom home with the opportunity for capital growth and as a way of creating equity. Is this a good way to start; whilst the home would need to be something I would want to live in, is it at least good to create some equity and leverage off that into other properties. For instance the first home owners grant still exists I believe so I assume I could use this towards the deposit.
I am getting married late this year to someone from Colombia; I was also wondering whether buying property overseas would be a good idea, especially in terms of being able to claim tax dedcutions for travel?
However I guess what I am really looking for is a mentor or group who I could meet with regularly and help me on this journey. I am very teachable and if there is a clear goal I will be very focused on the process of achieving that goal. Any help would be immensely appreciated.
I look forward to learning and sharing my journey to growth!
Kind regards
Mark
Ha Mark,
If you're interested in vendor finance or want to get started on vendor finance and talk to a mate of mine Paul Dobson as he is very very knowledgeable on the subject and is just a down to earth nice guy who would be willing to help out or answer any questions you might have.
Jump over to creative Forum on this website and check out the posts that he has done or better still just give them a call. I have given you his contact details below:
Paul Dobson – Vendor Financier – http://www.negative2positive.com.au | Ph: 0447 973 235 | http://www.jvpropertypartners.com.au | http://www.vendorfinanceinstitute.com.au
all the best in the property adventures.
Deal Maker | Great Property Deals
http://www.greatpropertydeals.com.au
Email Me | Phone MeYour Private Off Market Property Acquisition Specialist - Forget Buying Through Real Estate Agents
Mark Nolan wrote:…I have a burning desire to get stuck into the principles he outlines and I want to develop a solid and strong positive cash flow from property in the next 2-5 years…I currently rent in Annerley, Brisbane for $425/week but was wondering whether getting vendor finance to purchase my own residence may be an option. I would be looking for a 3 bedroom 2 bathroom home with the opportunity for capital growth and as a way of creating equity. Is this a good way to start; whilst the home would need to be something I would want to live in, is it at least good to create some equity and leverage off that into other properties. For instance the first home owners grant still exists I believe so I assume I could use this towards the deposit.Hi Mark,
I wonder if looking into vendor finance for yourself is really the best way to go, given your short term goals. If you have not owned any property to live in before, then yes you would be eligible for FHOG. What some people don’t realise is that if you purchase an IP, don’t claim FHOG, and later buy a PPOR you can claim the FHOG at that time (providing IP purchased after Jan 2000) – http://www.osr.qld.gov.au/first-home-owner-grant/eligibility-fhog/index.shtml
To buy using vendor finance does mean you are paying a premium rate, and if this is PPOR then not one cent is tax deductible. Given the property market at the moment, you may be waiting some time to built enough equity in this home to be able to use it to start investing, unless you actively add value through renovations. An alternative option may be to continue renting and purchase an IP, therefore all interest is tax deductible.
Quote:My first issue is that I am self employed in sales and whilst my income is above average, getting finance obviously has it’s hurdles.Speak to a good mortgage broker about what options you may have given your personal income situation and ability to prove income. I think a lot of it depends on how long you have been self-employed and what records you can show. Richard Taylor often pops on this forum, user Qld007, not sure if he’s Brisbane based or elsewhere in Qld, but he certainly knows his stuff! Or look for other recommendations in Brisbane from other posters. If you’re comfortable dealing over phone/email I’d be happy to recommend someone in Perth! But having a local broker makes posting of documents and meetings that little bit easier
Quote:I am getting married late this year to someone from Colombia; I was also wondering whether buying property overseas would be a good idea, especially in terms of being able to claim tax dedcutions for travel?Felicitaciones! mi esposo es latino tambien. Be aware for claiming tax deductions for travel you should prepare an itinerary which shows the trip and %investing work and %personal. Buying a house in Bogota, then booking a 3 week holiday to visit your wife’s family, during which time you spend 1-2 days at your property will not make the whole trip tax deductible. You’d also want to be looking at the stability of the government. For example in Venezuela just 4 or 5 years ago, President Chavez created a rule that any Venezuelan’s who owned property and were not residing in them or had family in them, and if they were out of the country, the government had the ability to confiscate their house. This meant a good friend of ours had to leave Australia suddenly and return to Venezuela to claim her own house and ensure the government didn’t take it. Now Colombia is fortunate not to have chavez there, but just be warned how quickly some things can change!
Quote:However I guess what I am really looking for is a mentor or group who I could meet with regularly and help me on this journey. I am very teachable and if there is a clear goal I will be very focused on the process of achieving that goal.There are many educational courses in property available, with or without a mentor. There’s the RESULTS course, popular on this site – click the link on the right hand side talking about 1-on-1 property mentoring, but get in quick as it only has an intake once a year in june, possibly stretching over til july. There’s a host of other programs out there run by other people, either 6 months, 12 months, weekenders, etc. I’m not personally familiar with what property groups regularly meet in Brisbane, but I’m sure there are some.
good luck!
chao
Emmap.s. i probably should have put a disclaimer in there that i’m no professional and not suited to giving personal advice! lol, its just my thoughts and does not take into account your current financial position. I think first things first have a chat to a good broker about your options, and see if traditional lending would be available to you, and how much $$ you might be able to borrow.
Hi Mark
Great advice from Emma and I obviously owe Jason another coffee
While you'll often pay a premium price for a property being sold with vendor finance in a standard market (what ever that is), the current market in Qld is far from standard and there are some great buys to be had. We have recently been able to negotiate the purchase of property, in Qld, on terms, i.e. we put down just a few thousand dollars and pay it off with instalments. No bank required and you can make the decision whether it becomes your home or an investment property.
I'd suggest that getting some basic vendor finance education could be well worthwhile.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Just so that I'm clear here;
1. Vendor Financing is not something that you can get unless the vendor is offering it, right? If you want VF, then at best you can ask for it, but it's the vendor's call at the end of the day whether they want to give it to you.
2. Which means VF is something that can only be used as a buyer in some (presumably small) subset of properties for sale- ie. the ones that you can agree VF with vendor.
I want to clarify this, because I seem to read more and more people talk about VF as though it's a sure alternative to a bank loan.
I would have thought it'd involve;
1. (likely) educating the vendor about what VF is.
2. asking the vendor whether VF is acceptable.
3. agreeing the terms of the VF
4. getting a lawyer to advise/shape/formalise the agreement.
5. etc, etc.…before you'd know that it was an alternative to a bank loan.
Mark Nolan wrote:Hello all,My first issue is that I am self employed in sales and whilst my income is above average, getting finance obviously has it's hurdles.
Hi Mark,
First of all- great post Emma.
Mark – how long have you been self employed? self employed is NOT the end of the world…i mean there are over 2.6M registered and active ABN in Australia; if your happy to post some of your details up we could give you a bit more info if finance is possible
1. Number of years with active ABN
2. Does your incomes influz a lot between each year? and if so…whats the difference between the last 2 financial year? ( if less then 2 years ABn…difference in the last 6 month)
3. GST registered? and how longRegards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Hi tjunction
Your summary of the flow needed to buy a property with some form of vendor finance (VF) looks pretty spot on to me. Also, yes you'd be crazy to think that you'd be able to buy any property you run across with VF.
However we have bought a lot of properties with VF and have found that, as the years have gone by and VF has become more well known, more sellers are prepared to consider the idea. Also that state of the market in the area you're looking has a large effect on VF offer acceptance, i.e. the flatter the market the greater the acceptance.
"A sure alternative", definitely not but if you don't ask, the answer is no
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
