Hi,
My current situation is this.
I have two loans of 200,000k to use. I have been paying $50 per week to hold on to one in a term deposit over the last six months the other is comming from a property ive sold which settles in a few weeks.It may sound bizzare to most people that I had to pay to hold on to a loan but for me this was vital as I cannot qualify for any new loans. Im self employed and put in very low tax returns. Lo doc lending does not exist anymore.
Its doubtfull I will ever work again in a situation where I will be getting pay slips or putting in large tax returns so I have to use the two loans I have to the maximum possible advantage.
The loans are security subsitutions and I must put in 20% deposit. So the ideal price for a property based on this is $250,000. If its less then I have to put in 20% and pay down some of the loan. If its more then I have to put in more cash out of my own pocket.
Im trying to think of the best possible way to use the loans. I cant build as there has to be an existing property to secure the loan against. I live in Queensland but im willing to travel to and invest anywhere in the country.
Buying and renovating to resell is an option (I have lots of reno expreience).
Buying a high positive cash flow property is also an option.
Buying land and subdividing could be an option as long as the extra costs involved with subdivision are not too high.The gold and sunshine coasts in QLD are both in terminal meltdown with new bargins being listed everyday. The problem here is that there are a lot of vacant properties so it might be hard to get a tennant. And renovating and reselling would be a waste of time.
There are a lot of booming mining towns around the place cashflow returns are great but the mining companies all want new dewelings and they are all priced at over $250k. I could buy a crappy old unit and reno it but im not sure id get the outcome I want.
The capital city markets all look pretty unexciting. No capital growth potential, negitive cash flow and not many bargins to be had.
So your ideas and input are welcome…
Hi mark
Just to correct your post Lodoc lending is still very much alive and well post NCPP.
If it is done properly there is no real difference now to the position prior to Jan 1 2011.
As i am away on holiday in the UK i will let others throw a few comments aroound in regards to the best place to invest.
Certainly from a personal perspective i am looking forward to getting back to Brissie and increasing our IP portfolio.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Ive been down this road road before. When I say I cant borrow I really mean it.
I have no Bas no statements no accountants letter. Its just me trading on the internet under my own name.There is no physical stock and no record of what im doing. The ATO just has to take my word for it.Old style low doc loans were just a signed declaration. No BAS, No Accountants letter no GST statements and no tax returns.
As far as im aware those products are long gone.Ive had other mortgage brokers look into this for me and come back and say they cant do anything.
Personally I hate the whole stupid fiat money system. The bank invents money out of thin air at a ratio of 10-1 against its deposits and then lends it to people based on the fact that they can barley repay the interest payment based on their supposedly secure job.
I wish the government would grant me a licence to create money out of thin air on a computer and then lend it out to other people at high interest. Just for being the record keeper of a big fat IOU between two people id get to levy a 7% fee called interest on the borrower the overheads of running my business would be <1% and the rest would just be profit.
If I got tired of that I could borrow somebody else’s falsely created fiat money on the international money markets and then re-loan it out to some poor hard working Aussie at a big markup and no risk to myself.But I cant change the system.
I have two loans and I have to use them as wisely as possible.
Theres no point in saving when the money supply is being expanded by millions every day it makes a mockery of the idea of hard work and saving. The only real point of saving is to get a deposit for a loan and play the borrow and speculate game with everybody else.
Why not get another job???
I have a bussiness know after 1 year i get some one else to run it and i work some where else get a pay slip so if i ever need a loan i will have my job + any cash flow from my shop?
Cheers
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Hi JPcashflow,
Got to love the "cashflow" – I like your strategy, sounds like a winner to me – good luck.
Hi Mark
Sorry i think you are talking to the wrong brokers.
There are still products out there which allow for an 80% lodoc lvr without the need for BAS / Accountants Letter / Bank Statements.
Still credit scored and you would need to provide evidence of your deposit.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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