[Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024]

October 10, 2003 - 2:52 am

Hi Waulok

Firstly welcome to the forum. Feel free to ask as many questions as you like that’s we are here for.

Secondly congratulations on seeing the light and moving upto the Sunshine State. We are a Brisbane Company specialising in finance and orgainising wraps for investors. If you need a hand with finance for the new house or want to discuss wraps at a later stage feel free to contact us.

In the meantime enjoy the chat and banter that goes on.

Cheers Richard
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http://www.fhog.com.au

There is no such thing as a problem.
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Richard Taylor | Australia's leading private lender

[Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024]

October 10, 2003 - 12:27 am

Guieseppe

Using a professional package with a discount off the Standard VR the payment would come down to approximately $185/ week.

Whilst you stil have to cover the other costs if the property is in a good area and easily rented why not consider using the equity and purchasing a positive cash flow property. A bit of balance and diversification never did anyone any harm.

Cheers Richard
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http://www.fhog.com.au

There is no such thing as a problem.
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Richard Taylor | Australia's leading private lender

[Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024]

October 10, 2003 - 12:03 am

Suzanna

Like picja happy to offer you some help.

We have wraped over 120 properties ourselves and same again on behalf of investors so think we now what we are talking about when it comes to +cash flow.

Cheers Richard
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http://www.fhog.com.au

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Richard Taylor | Australia's leading private lender

[Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024]

October 9, 2003 - 11:44 pm

Skater

Devine have arrangements with both St George Bank (used to be Beneficial Bank until SGB took them over) and a the old Ipswich & West Moreton B/Soc whereby the lender would advance the full 100% of the P/P plus stamp duty etc.

DH in turns provides the Bank with a Bank Guarantee (You will note this if you have a look at their most recent P & L A/c as they are a listed IPO) to cover the difference between 100% and 90%. There is no LMI.

The scheme is available to any large developer and we looked at offering to our clients but as Picja mentioned why when you can obtain a product from St George or Pepper direct.

The other thing you have to bear in mind is the quality of work that Devine produce. David Davine lives in Laurel Ave, Chelmer (on the Brisbane River) and i don’t think he lives in a Devine Home.

Cheers Richard
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Richard Taylor | Australia's leading private lender

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October 8, 2003 - 5:31 am

Judith

I now we are a long way away but email is a wonderful tool.

I am a mortgage broker as well as a Director of the largest wrap organisation in Qld. Happy to help if you need someone.

Cheers Richard
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October 8, 2003 - 12:47 am

Chris

Either myself, Terry or any of the other brokers on the forum are always happy to crunch some figures for you

Cheers Richard
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Richard Taylor | Australia's leading private lender

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October 7, 2003 - 1:20 am

Celivia

Kym is right about sub-divisions being more complicated than most investors appreciate.

Once option subject to you minimum boundary clearances is to re-align the boundary on your neighbours side incorpating the strip of land under your title.

You will probably have to purchase the property first to be able to do this or your neighbour may have CGT issues if he merely sells you a strip of land.

We have done this alot with many blocks in and around Brisbane but as always check the local Town Plan as to what you can and can’t do.

Cheers Richard
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October 7, 2003 - 12:35 am

Gavin

Not sure how you work out your rate of return but you are right you need the full amount of money in your super fund to cover the purchase price of the property and acquisition costs.

Cheers Richard
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October 7, 2003 - 12:17 am

Hi Caribbean

Wish i could say “Welcome to sunny Qld” today but alas not.

We have our offices in Milton and feel that the Brisbane market is certainly starting to ease.

Auction clearance rates over the last 4 weeks have fallen and whilst certainly in some suburbs the activity is still frantic in others there is a definate softening.

With regards to Ipswich it is our pinion that you may have missed the market.

Most of our clients are buying in Regional Qld where prices are still affordable and in fact only recently have started to see price appreciation.

A recent client purchased a property through us on a buy / lease and hold strategy with a 60 settlement. The property was revalued by his Bank on settlement and had risen by nearly 10% more than covering his acquisition costs

Cheers Richard
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October 6, 2003 - 11:50 pm

Hi Marvin

We are based in Brisbane so if you need a local contact to bounce ideas off or just need information please feel to email me.

Cheers Richard
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October 6, 2003 - 11:30 pm

Myydral

Happy to help.

Cheers Richard
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October 4, 2003 - 3:04 am

John (Taxman) is right.

The rules changed a few years ago to stop a SMSF investing in a Unit Trust and then the Trust borrowing.

I started mine around 6 years ago and feel that for most people you would need a minimum of $75,000 in super to make it viable.

A Super fund cannot borrow or trade so avoid buying in super, renovating and then selling off for a profit more than say once or twice a year.

There is however nothing to stop you wrapping in Super (I have several wrapped properties in my super fund).

Just be careful to ensure that any investment decisions are well documentated as the Trustees are responsible and the fines for mismanagement are considerable.

Cheers Richard
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October 4, 2003 - 1:32 am

Bear

As Eigentum writes higher the return higher the risk.

Whilst with a registered 2nd mortgage you do have the rights to execute your powers as mortgagee in possession in the event of default you will then have 2 choices”

1) Sell the property under your powers and repay the first mortgagee. You will get whats left.

2) Repay the first mortagee and become the prime mortgagee on the property. Whilst you might have slightly more security now this will still mean you have have arrears and will have to reschedule the loan over a longer term.

All in all is it worth the risk when you get similar returns in wrapping or adopting a buy & hold strategy.

Cheers Richard
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September 30, 2003 - 4:02 am

Hi Luckyphil

Yes you can. We have financed several over the years. Normally limited to 50% of the value of the rent roll so if you can come up with the balance in equity (Lender will normally go to 80% of your equity) you may have a deal.

Suggest someone like Anz they can then tell you who they would want to undertake the valuation.

Cheers Richard
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September 30, 2003 - 2:31 am

Hi Gambeau

Considering it takes an hour to fly to Brisbane and another to fly to some of the regional areas within the State the simple answer is Yes.

Cheers Richard
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September 30, 2003 - 1:23 am

belle

With equity you can always build cash flow.

Wrapping is an ideal way to increase your long term income and popular with many of our clients who consider capital growth in the major cities maybe a thing of the past in the next couple of years.

Happy to explore the options with you.

Cheers Richard
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Richard Taylor | Australia's leading private lender

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September 30, 2003 - 1:21 am

belle

With equity you can always build cash flow.

Wrapping is an ideal way to increase your long term income and popular with many of our clients who consider capital growth in the major cities maybe a thing of the past in the next couple of years.

Happy to explore the options with you.

Cheers Richard
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There is no such thing as a problem.
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Richard Taylor | Australia's leading private lender

[Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024]

September 30, 2003 - 1:13 am

Rodney

If you get fed up searching in Vic try Qld.

Cheers Richard
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September 26, 2003 - 11:22 pm

Hi creach

You mention that the property has doubled in value over the past few years and you are doing renovation work which I assume will again increase the valuation. Presumably you have increased your borrowing to carry out the extension work.

Wouldn’t your equity (being the difference between your borrowing and the valuation) have increased significantly with the doubling of the property value.

On the basis that your income can support further increased borrowing why don’t you arrange for your Bank to add a line of credit facility to your overall home loan taking it upto 80% of the after works valuation.

This means that when you have used all the funds up on your renovation you will still have access to further monies which you can use to increase your property portfolio. Draw 20% of the purchase price together with the acquisition costs down from your line of credit and have the 80% balance on a stand a loan debt secured against the new IP.

Keep doing this until you have either used up you LoC or you you feel that your income cannot service borrowing.

As the IP’s increase in value revalue and start again.

Cheers Richard
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Richard Taylor | Australia's leading private lender

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September 26, 2003 - 6:59 am

Judith

Daydreamer is right. Oakey is just one of many towns in Qld where bargains are available. The object of the exercise is to clear define in your own mind your investment goals. Whether it be to buy and retain or buy and wrap and after that what your fall back position is. Deals may appear in short supply but I guess like any business it is all about the contacts that you have. Keep searching your first property is only around the corner.

Cheers Richard
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There is no such thing as a problem.
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Richard Taylor | Australia's leading private lender