Regardless of the amount of talk on how long the boom will go for, buyers can only buy what…[Read more]

If it were me and I had the cash or equity available, I would choose a commercial property. In your example you are netting $12,000 PA from the commercial property. If you were to spend hours looking on the net and talking to agents in regional centres trying to find 10% yielding residential properties, you would need to find multiple…[Read more]

After reading this thread with interest I decided it was time to give my point of view. After Youngie posted his information and asked for some advice, I was very surprised at the amoumt of people that immediately said “NO, don’t do it….buy something positive cashflow”.

People simply put a negative spin on it without knowing all the…[Read more]

I looked at the links you provided however they had no information about the current topic. Are we talking about adding a new room or some other major works, or a simple kitchen renovation as being classed OB and requiring insurance?

I have been involved in a few deals where simple works were done before the property was resold and…[Read more]

I seem to recall a website where you can apply for them or simply get some info. I believe the site was http://www.depositpower.com.au but I could be mistaken.

Cheers,

Mathew.

How does anyone know that the boom will continue? All you can do is look at the current economic climate, which is still looking very positive, look at the growth trend in the area and take each deal on its own merits.

My personal strategy is based on buying smart and reselling for a profit. That could mean buying on a long settlement, doing…[Read more]

Thanks for clearing that up, you had me worried for a minute there []

Cheers,

Mathew

quote:
In NSW you can not use “and/or nominee”, so the name you put on the Contract for Sale can not be changed.

So if you purchase the IP in the companies name you can not add the words “as trustee for …..” after the company, it cannot be owned within the trust structure.

Hi Whj,

If you can’t buy a property “abc company as trustee for xyz…[Read more]

Cheers,

Mathew.

Cheers,

Mathew.

1. Refinance to 90% of valuation figure of $405k.
2. Create a separate interest only loan for the amount of $67.5k which is the equity I will have access to.
3. Fully draw the new loan as an investment loan and…[Read more]

quote:
Basically, if you can prove that you are in the business of trading properties and class the properties as ‘trading stock’ then yes no CGT would be payable as the houses would be classed similar to any item such as a toothbrush at a supermarket.

Unfortunately, it ain’t that simple because you must pay GST on the properties, get taxed on…

[Read more]

Fair comment, I was having a bad day when I made that post so I appologise if it was a little sarcastic.

I was referring to the instalment contract and not the L/O as I personally don’t think of them both as wraps. To me a wrap is a property that is sold wheras a L/O is simply rented with the option to buy.

I have been told by…[Read more]

quote:
Hi Mathew,

I am trying to understand why someone would hand over control of their property to me as part of my sandwich trade given they will only receive maybe 1K straight up from me as my option premium and not receive any benefit from the property for a couple of years until the trade is exercised. [xx(]

No offence Polaris, but did…[Read more]

Mathew.

Cheers,

Mathew.

I personally wouldn’t do a lease/option for 5 years. I would do it for 2 years with say 3 option renewals giving a total of 6 years, but the price and rent is changed with each renewal and a new fee is paid. This way I would guarantee myself of good returns.

When you say “make no cashflow out of the property other than my premium”, I…[Read more]

When it comes to valuers, it is up to YOU to sell the property to them by using any information you can. This may be in the form of comparible sales, historical growth, anything happening in the area that would increase growth and even in the form of current land prices and building costs.

I recently had my western sydney property revalued…[Read more]

It is illegal to do a wrap on an I/O loan so that will have to be changed to P&I unless you buy the IP without telling the bank what you plan to do.

However this can come back to bit you on the butt and most people recommend full disclosure to the banks about your intentions.

Cheers,

Mathew.

I do agree that $50,000 would be better put to use in your own property as you will get a better return if you do the right research and buy wisely. If you don’t have the knowledge to purchase wisely and create a good deal, you may be better investing in a fund with a 12% return as is will be better than losing 20% per year because of…[Read more]

Since we are just starting out, we are taking things slow in order to build up to a full…[Read more]

I think you misunderstood my post.

Let me clarify things by saying that I work very closely with 5 or 6 agents in the areas that I currently invest. I get excellent feedback from them on vendors situations and we work together to put good offers on properties that they feel have the greater chance of being accepted.

If they know a…[Read more]

That does sound like an interesting game, i might see if I can find it somewhere.

Mathew.

I have played cashflow 101 a few times and liked it but thats about it. Sooshie what is the game pay day that you mentioned? How does it work and is it good to…[Read more]

If the property is around that price or under, then to me a low ball offer is not warranted especially if it is under. I would be…[Read more]

Have you tried to refinance your home or have you tried to get a new loan using your home as equity?

An option for you might be to refinance your home and use the money to become a money partner for an investor.

There would be lots of investors out there (like me) who would be happy to pay you interest on your money or share profits…[Read more]

What type of offers are you making and what is your expectancy rate of them being accepted?

Cheers,

Mathew.

Your post is slightly limited in information to help you with your costings and profits.

Do you actually own the land or is it mortgaged? If it is mortgaged you will need to take into account the amount owing on the property in your calculations.

You don’t say much in regards to your other costs such as D/A, architect, legals or…[Read more]

Your last post helps me to see your point of view, and I appologise if it came across that I was attacking you…..I wasn’t.

I too agree with Steve’s idea of helping people, and part of my income goes to charity to do just that.

When investing in property buy wraps, L/O or buy/hold I know I am helping people to either buy their own home…[Read more]

If I can just dissect this post for a moment, I will address a couple of issues that stand out to me.

quote:

1) I could never agree with such practices, and feel no sorrow for the workers. They stay on the job because of drugs and fear. They COULD find a better job if they really wanted to. Most of the time they are exploited and treated…

[Read more]

At least in a brothel things like disease can be kept in check and violence to prostitutes is non existent. On the street however it is a…[Read more]

Cheers,

Matt.

Matt.

quote:

I think private treaty sales are sales that are not listed with an agent ie FSBOs (For Sale By Owner) or individual to trust/company.

A private treaty sale is simply the form of sale where offers made on a property are not public knowledge like they are at auction. Basically any property that is not put to auction is a private treaty…[Read more]

In that situation only the assets of the trust could be liable. It might be worth taking some time to read the document as it is very helpful.

Cheers,

Matt.

Maybe I am mistaken but it might be worth looking into.

Cheers,

Mathew.

I was just doing some calculations based on your numbers and wanted to share my figures with you.

Based on that and the purchase figures you mentioned, my calculations are as follows:

Property – $83,000
Deposit – $8,300
Loan – $74,700
I/O rate – 6.11%
Payment – $380/month
P&I rate – 6%
Payment – $447/month
Upfront Costs -…[Read more]

quote:

Finally, don’t eat too much chocolate []

Thanks for the well wishes Steve, I wish the same to yourself and everyone else on the forum.

But c’mon, not to eat too much chocolate…..ain’t gonna happen []

Cheers.

Matt.

I have just started on my investing future and reading your post about what you have achieved has inspired me in a very positive way.

You mentioned being in Sydney and if it is at all possible I would really appreciate an opportunity to meet with you sometime to hear more about your experiences and learn from someone with your…[Read more]

Cheers,

Mathew.

1. “Planning for success” or “A plan for success”
2. “The building of an empire”
3. “Reflecting on a dream”
4. “From zero to hero”

I have deliberately not used the words property or positive or cashflow or anything similar as the sub heading…[Read more]