Forum Replies Created
To all concerned about changes in economic factors impacting on the residential property market, fear not.
We’ll all know when the property markets in trouble by the following TV shows being cancelled.
1. Burke’s Backyard – been around a long time.
2. DIY Rescue – like a new job, 1st in – 1st out.
3. Auction Squad – learning the value of over-capitalising.
4. The Block – no one will care if Ken & Barbie are beaten by ‘the boys’ (read: homophobia).
5. Backyard Blitz – Jamie gets his old “Manpower” buddies to help out in their dance clothes.
6. Ground Force – Graham & the gang try to match the ‘Blitz’, but due to a limited budget, have to do the strip themselves (D’Oh!)
7. Hot Property – will become an oxymoron
8. Room for Improvement – start to use 3 ply or cheaper MDF (if that’s possible) for their construction workAnd finally….
“Money” returns to our screens from the abyss ’cause someone mentioned that property wasn’t popular anymore.
Michael[
]Jumbo & Ziz,
Appreciate you both letting replying.
Michael [
]Thanks Savanna.
The joys of a mental block.
Michael [
]Harryson,
Anythings possible. It’s just a case of finding the right situation.
This is an alternate strategy that opens doors for all. It allows the people to stay in ‘their’ own home, mitigating relocation costs & provides a win win outcome.
There’s also an opportunity to pick up the remainder of their mortgage (can’t immediately recall what this called but you basically maintain payments on their behalf).
Just remember that the numbers have to work & its a realistic / viable solution.
Michael [
]Thanks Lance,
Clearly with such an aggressive business plan it was a viable propostion.
Good to see that someone had the desire to ask.
Michael [
]Hillary,
Good option. I missed two days & had over 3 pages of threads to go read. Now I have to allocate time each day to read this.
Congratulations to Steve, et.al. on the success of the site.
Michael [
]Shaun,
I curious to know the big question – WHY?
1) Why do you want to get involved in wraps?
2) If it’s just a vehicle for making money, are wraps the most viable mechanism for doing this?
3) What other options have you considered?
3) Do you have a plan?
5) Do you have a strategy?Most of the educational material is not cheap & you need to have evaluated the WHY first.
Alternatively, start with Steve’s “Fast track”. It has a good entry price point. Why there’s a lot of good information out there that you can pay $000’s for, consider the options first.
Michael [
]Insider & Steve,
Interesting that you mentioned the Kiyosaki & DeRoos websites re money partners. They’re also e-mailing the information, baiting prospective investors, then linking them to their website for further info.
Ulimately, these may be good deals, but difficult to research (ie, international companies & property) & do the normal due diligence. They’re internal company structures, business location might make things difficult to chase down if things go wrong. Due diligence is not only about property & tenents, but also companies.
Michael [
]Tails,
Your uncle was well ahead of his time. In most families of that era (mine included), money was not openly discussed. Good for him & I trust that you’ve learned his lesson well…
Good to hear also of a quick reality check: I took your uncle 28 years to build his portfolio to where it is today & enable him to retire. There was nothing glamourous about it, just time & discapline.
Michael [
]Elvis,
No problemo. Haven’t faced this scenario, so can’t speak from experience. Sure someone else can pick it up from here.
Michael [
]Susiemac,
In the Dec/Jan edition of Property Investment mag, there was an interview with the a group called the “Renovation Kings” (also a ACA). One of the examples (& I assume that it’s also one of their specialities) was to subdivide a property. Interestingly, in their experience, when a property is subdivided, rarely does the value of the original property decrease.
Given that in many country towns there are properties with the potential of subdividing, & Hilary’s suggestion of a relocating a home, I would futher suggest that when evaluating a potential positively geared IP, that you also consider whether you can drop a 1 or 2 bedder on the back for little cost.
Food for thought & adding a new dimension.
Michael [
]Semesteve,
I’ve wanted to do the same thing for quite some time. However, I understand the lender’s perspective (well illustrated by Elvis above) & know that this is just not viable at the moment.
However, it’s good to have goals. My aim is to be in a cashflow +ve position THEN do buy / reno / sell’s.
By my calculation, I can do this – without lenders – after the third property. Gotta love that.
Don’t sack the boss just yet, but put a realistic & viable plan together, including all the financials & evaluate the risks.
Michael [
]Adofunk,
Enquire with the lender if they will reduce the application fees if you have already had the property independently valued.
That way you get the entire report, all the information & no hassles (+ it’s deductable) even if you don’t go ahead with the investment.
Michael [
]Elvis,
Someone will correct me on this I’m sure, but are you referring to the ‘gift’ part as a way of offsetting capital gains?
Otherwise, its pretty simple. You own the property until the last payment is made. Given that when wrap commenced, there was an agreed sale price all that needs to be done is to deduct any principle made by the purchaser from the total & this will give you the settlement amount – ie, the amount that you will sell the property for.
Michael [
]Hi Keith,
Just thought to relate an interesting scenario to this – especially regarding rental return. Not sure where you’re located, but I’ll use Melbourne as a good example of what guaranteed rentals means.
Early one evening take a drive past the recently completed app’t developments on the Yarra / Docklands district. Remembering that most constructions will not commence unless there’s 60% sold off the plan, take a look at the number of units with lights on to guage the occupancy rate.
Many of these developments were marketed with the same ‘guarantee’. At the end of the day, you’re financing your own rental for the first few years & if the app’t does get rented, it’s a bonus for the developer, not the investor….
Michael [
]Dianne,
I purchased a copy from a company online in Melbourne.
Check out: http://www.uniwin.com.au/products/hlaDeluxe/
The program’s $49.95 & shipping was around the $12 mark. Arrived within 2 days (& I don’t work for them, just found there service to be good & priced well)[
].Regards,
Michael [
]Steve,
Having read thru this & most of the forum related info, I’ve notice that belladonna has exposed a real hole, to which you’ve replied & that is that we need to have clearly defined goals.
In the wrap pack, you state that Dave Bradley & yourself have your goal framed on the office wall & use this as an evaluation tool (“Is doing this deal going to get me closer to my dream?”).
Can I suggest that the first place that everyone start is to set goals, then work the plan around this. How else do you know if what you’re doing’s the right thing….[?]
Start with a goal, shape the plan to suit(doesn’t have to be in too much detail), then look for deals which move you closer to the goal[
].The most important part of doing this exercise is to write down YOUR goals, post them where you have to look at them EVERYDAY and where others will see them. It’s great for motivation (ie, internal/external locus of control stuff).
Might be a good one for the masters session?
Michael[:0)]
Steve,
Any advancement on this. I personally HATE tape – so much so that I don’t have a tape recorder in my house [
]. The only way that I can listen to these is out in the shed, or as I’ve done in the past, reformat to .wav & burn back up discs.How viable is a userpays download facility (in MP3 format similar to other parts of this site)?
Michael [
]Wes,
Are there +ve’s also? You seem to be in the -ve?
It’s difficult to guage whether this a GREAT deal, or just a good deal when comparing it to other properties around the area. It’s the old adage of ‘worst house in the best street’…
While there some minor structure problems requiring a bit of work, most are fairly cosmetic – eg, removal of material from side of house. Other costs are fairly insignificant & can be done easily by “handyman”.
If you don’t want to go down this path, do some of the ‘really cheap stuff’ (fence & garden), then advertise the property “AS IS”…
Mixrex [
]This is something particular to the US only.
A 1031 Exchange is where the seller agrees roll the Capital Gains from a sold property directly into a new investment property of greater value.
This defers having to pay tax on the Gain, means that the invester has greater leverage & can watch investments compound very rapidly.
This is just one advantage of US tax laws that we don’t have in Aust.
mixrex [
]
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]. The only way that I can listen to these is out in the shed, or as I’ve done in the past, reformat to .wav & burn back up discs.
