[quasimodoMember@quasimodoJoin Date: 2002Post Count: 100]

August 19, 2003 - 4:05 am

We would LOVE to meet up! We just finished the book, and would love to talk about it. We also have regular Cashflow games at our place, and are always looking for new players (20 minutes south of Brisbane).

Regards,
Sheryl & Piers (aka quasimodo)
[email protected]

[quasimodoMember@quasimodoJoin Date: 2002Post Count: 100]

July 7, 2003 - 12:11 pm

I’m inclined to agree,

You’re not going to earn their respect by rushing in and buying any old piece of property that they put in front of you. You’ll earn their respect by asking the relevant questions, not pretending that you know more than you do and being prepared to act *when* they give you a deal that (reasonably) fits the criteria you’ve given them.

Good luck!

Quasimodo

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It seems to me that action has a most magic way of answering all the questions our fearful mind tries to throw before us…
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[quasimodoMember@quasimodoJoin Date: 2002Post Count: 100]

June 2, 2003 - 1:18 pm

Sounds like you’re discussing what Dolf DeRoos calls a “Heads of Agreement”. Dolf used this to get a tennant for a commercial property (a funeral parlour!) signed up before the property was purchased. He then took the (low) asking price for the (vacant) property and the contract showing that the income secured will massively raise the value of the property. Based on that he was able to negotiate to get the property valued on the higher amount making it CF+

Quasimodo [^]

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It seems to me that action has a most magic way of answering all the questions our fearful mind tries to throw before us…
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[quasimodoMember@quasimodoJoin Date: 2002Post Count: 100]

May 9, 2003 - 4:24 am

Check around on this answer but my understanding is that you’ll need to inform the bank of the change if you want to keep it legitimate as they have different policies for owner occupied Vs investment properties (for example the percentage of the house price they will lend – the LVR – is often significantly more for owner occupied). Failing to notify them may give them the right to “call the loan”, which means to give you an extremely short period of time (say 30 days) to pay off/refinance the loan. As I said before though, check this for yourself (say with a your bank/mortgage broker/solicitor)

Quasimodo [^]

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It seems to me that action has a most magic way of answering all the questions our fearful mind tries to throw before us…
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[quasimodoMember@quasimodoJoin Date: 2002Post Count: 100]

May 9, 2003 - 4:18 am

Never wear dirty underwear more than twice in a row… []

Seriously though, a more specific question would most likely get a better response. What do you want tips on exactly? Sourcing properties? Financing? Structuring? Negotiation?

Quasimodo [^]

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It seems to me that action has a most magic way of answering all the questions our fearful mind tries to throw before us…
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[quasimodoMember@quasimodoJoin Date: 2002Post Count: 100]

April 30, 2003 - 1:21 am

Hey FW!

We must be neighbors! Apparently we live in Fairyland, too! I personally have been critisized for “seeming to believe that somehow everything will work out for the best” lol! Not that I’m complaining! So far with a bit a work… it has!

The weathers great and life here is good in Fairyland! Now all we need to do is convince a few more to move up here with us! []

Quasimodo [^]

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It seems to me that action has a most magic way of answering all the questions our fearful mind tries to throw before us…
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[quasimodoMember@quasimodoJoin Date: 2002Post Count: 100]

April 30, 2003 - 1:12 am

What’s the LVR (how much you owe versus how much you own) on your IP? If you’ve paid off quite a bit, you may be able to refinance your IP to the banks maximum allowable LVR and use that (tax free) money to pay off part of your home loan mortgage. Just make sure you check out the fees to do this (ie refinancing fees, early repayments) as the banks make just as much from these as they do from interest!

Just out of interest why do you want to pay down your house first (where interest payments aren’t tax deductible) instead of your IP (where they are)?

Quasimodo [^]

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It seems to me that action has a most magic way of answering all the questions our fearful mind tries to throw before us…
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[quasimodoMember@quasimodoJoin Date: 2002Post Count: 100]

April 30, 2003 - 1:07 am

I would suggest making a deal with an experienced wrapper in Tassie to wrap the property for you, and have you take over the role as money partner. Thisway, you get part of the cashflow for providing the house, and they get part for setting up the deal and maintenance. Try searching this web forum (as well as John Burley’s and financewraps if you have access) for Tasmania and contact a couple of wrappers to see if they’re interested in making a deal.

All the best!

Quasimodo [^]

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It seems to me that action has a most magic way of answering all the questions our fearful mind tries to throw before us…
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[quasimodoMember@quasimodoJoin Date: 2002Post Count: 100]

April 29, 2003 - 9:39 am

OK… a couple of things here…

Firstly where renting a property out, the only protection a landlord has is that there’s usually a bond equivalent to around 4 weeks for if the tennant breaks lease. In the majority of cases this has to be paid back in full. It’s a common misconception that mortgage insurance will make your payments if you have no tennant and don’t pay. While its true that it will make the mortgage payments to the *bank*, *you* are still liable to make the payments, only now its to pay back the insurance company. Landlords insurance on the other hand only covers things like fire, theft, malicious damage (on rentals) and not vacancy.

Now to the good news! With wraps, when a tennant moves in, you typically get a deposit of a few thousand dollars… TO KEEP. This is NON-REFUNDABLE, meaning that once they move in it’s yours. If they leave it’s still yours, and… even better… the payment from the *next* tennant is still yours, too – which helps to cover any vacancy period.

Hope this helps!

Quasimodo [^]

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It seems to me that action has a most magic way of answering all the questions our fearful mind tries to throw before us…
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[quasimodoMember@quasimodoJoin Date: 2002Post Count: 100]

April 29, 2003 - 9:24 am

What’s your niche Fullout? Buy & hold? Wraps?

Quasimodo [^]

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It seems to me that action has a most magic way of answering all the questions our fearful mind tries to throw before us…
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[quasimodoMember@quasimodoJoin Date: 2002Post Count: 100]

April 29, 2003 - 9:18 am

Depends on what “services” you’re referring to and where you are…

If you want to cover yourself legally, you’ll need a solicitor experienced in wraps in your state.

If you have a house and want to get someone else to wrap it for you when we’ll need some details about the property to decide if it’s worth a closer look (once again, where is it, what sort of place is it, what kind of loan does it have in place etc)

To my knowledge there’s no specific company set up to help people wrap their own houses, though for a share of the cashflow I’m sure there are a number of wrappers who would be happy to help, depending on your location.

So… in short for us to help well need to know what “services” exactly do you want… and where are you?

Quasimodo [^]

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It seems to me that action has a most magic way of answering all the questions our fearful mind tries to throw before us…
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[quasimodoMember@quasimodoJoin Date: 2002Post Count: 100]

April 28, 2003 - 5:19 am

Luuuurvley! Thanks all!

Keep on rockin’ the real estate world!

Quasimodo [^]

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It seems to me that action has a most magic way of answering all the questions our fearful mind tries to throw before us…
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[quasimodoMember@quasimodoJoin Date: 2002Post Count: 100]

April 27, 2003 - 2:15 pm

quote:

---

My letter is off to my local member.

Cheers

Sooshie []

---

Yes, I was suitably outraged until I realised I’ve never lived in Melbourne… still, NT seems to have it pretty bad, too! I say we start our own party and storm the halls of parliament together, righting wrongs, and making the world a nicer, more humane and investor friendly kind of place!

Who’s with me?! [}]

Quasimodo [^]

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It seems to me that action has a most magic way of answering all the questions our fearful mind tries to throw before us…
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[quasimodoMember@quasimodoJoin Date: 2002Post Count: 100]

April 27, 2003 - 2:09 pm

Oops! The missing part of that equation is that obviously you’d still only get the cap. gains if the tennant moved on and you then had the chance to resell…

All shall be duly “accountanted”! Thax Saskatoon!

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It seems to me that action has a most magic way of answering all the questions our fearful mind tries to throw before us…
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[quasimodoMember@quasimodoJoin Date: 2002Post Count: 100]

April 27, 2003 - 1:53 pm

We may be interested Tony.

We’ll be coming back to Brisbane from the 6’th of May, so drop me an email at [email protected] and we can arrange to get together shortly after.

Quasimodo [^]
(aka Piers)

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It seems to me that action has a most magic way of answering all the questions our fearful mind tries to throw before us…
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[quasimodoMember@quasimodoJoin Date: 2002Post Count: 100]

April 27, 2003 - 4:08 am

OK… it’s not the easiest to read format, but these are the scales (from http://www.stampoutstampduty.com.au) and the concessions. Not sure about deductability.

Cheers!

Quasimodo [^]

Value of Property Rate
<$12K
$1.00 for every $100 or part of $100
$12K < $30K
$120 plus $2.00 for every $100 or part of $100 over $12K
$30K< $50K
$480 plus $3.00 for every $100 or part of $100 over $30K
$50K < $100K
$1,080 plus $3.50 for every $100 or part of $100 over $50K
$100K <$200K
$2,830 plus $4.00 for every $100 or part of $100 over $100K
$200K <$250K
$6,830 plus $4.25 for every $100 or part of $100 over $200K
$250K <$300K
$8,955 plus $4.75 for every $100 or part of $100 over $250K
$300K <$500K
$11,330 plus $5.00 for every $100 or part of $100 over $300K
>$500K
$21,330 plus $5.50 for every $100 or part of $100 over $500K

Concessions
As a First Home Buyer, you may also be entitled to the Stamp Duty First Home Concession.
Properties with a purchase price or value of $80,000 or less will receive a full concession of Stamp Duty.
The amount of the concession is reduced when the value of the property exceeds $80,000.
No concession is available on properties with a purchase price or value in excess of $130,000.

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It seems to me that action has a most magic way of answering all the questions our fearful mind tries to throw before us…
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[quasimodoMember@quasimodoJoin Date: 2002Post Count: 100]

April 27, 2003 - 4:02 am

Seems to me that the choice between IO and P&I all depends on if you’re after cashflow (where IO would reduce payments, boosting returns) or equity (which will be boosted by having payments reduce your LVR). The real question may be whether cashflow or equity suit your strategy better…

Quasimodo [^]

PS IO being illegal does sound *very* odd… let’s hear where that little birdy heard it from…
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It seems to me that action has a most magic way of answering all the questions our fearful mind tries to throw before us…
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[quasimodoMember@quasimodoJoin Date: 2002Post Count: 100]

April 27, 2003 - 3:57 am

There’s a good article in the current API (Australian Property Investor) magazine about this. In short, yes, there are people using buyers agents successfully to buy site unseen, just be careful to have a buyers agent who can be trusted and isn’t just a front for a selling agent. They also recommended finding an agent who has received certified training as a buyers agent although they stated that some buyers agents didn’t have this.

Happy Investing!

Quasimodo [^]

PS You may also want to think about going money partner with someone who can, go and look at the properties for you, too.
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It seems to me that action has a most magic way of answering all the questions our fearful mind tries to throw before us…
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[quasimodoMember@quasimodoJoin Date: 2002Post Count: 100]

April 27, 2003 - 3:52 am

I’ve been along to their meetings and still seem to get their newletters.

The one question that I asked that they seemed to dance around and be particularly evasive in answering was “How can I be sure of the independance of the properties that you reccomend I buy?” as well as (on a similar line) “Are you prepared to guarantee that Investors club will not accept any outside financial incentives (ie kickbacks) beyond those discussed in our agreement?”

Whilst not a guarantee of something wrong, I am particularly wary of anyone trying to sell me new, off the plan property based on their research and not mine. There’s a lot of money for developers who can guarantee sales, and in my experience this is a hydra that has a history of having many heads so to speak from (well known) unscrupulous seminar promoters pushing students to buy off the plan in suburbs they “just happen” to be developing in – to more direct two tier marketing where developers directly bring in uneducated investors, give them “questionable” inflated prices and hard sell them to buy on the spot.

I don’t know if they are doing anything questionable at all, however it definately felt that they had something they were selling hard, were targeting inexperienced investors and were asking you to buy based almost exclusively on their information….

Oh, and I second what AD said about ASIC and reccomend *always* checking for complaints.

All the best

Quasimodo [^]

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It seems to me that action has a most magic way of answering all the questions our fearful mind tries to throw before us…
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[quasimodoMember@quasimodoJoin Date: 2002Post Count: 100]

April 26, 2003 - 4:33 am

Hmmmm… so based on that…

Could you buy a place, move in for X months, move out into a rental, wrap the first place and gain any capital appreciation of it for the first 6 years CGT tax free? (assuming you didn’t nominate another place as your PPOR as you were renting?)

Interesting! Very interesting!

Quasimodo [^]

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It seems to me that action has a most magic way of answering all the questions our fearful mind tries to throw before us…
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