You could also buy warrants, which could allow some gearing.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

I hear he has recently been promoting Lease Options and more recently Sandwich Lease options.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Robert

The No Doc loans insured by GE and PMI actually have a maximum exposure level of $500,000 each. This is not much and will be reached quickly. This can be extended with a couple by getting loans in one name only. So a couple could get up to $2mil in No Doc loans fairly easiy – if they had the equity and proper structure.

There are also…[Read more]

Robert asks if I am affiated with Steve Navra. No I am not, but I did his course about 4 years ago, and I wish I had implemented his strategies. I have not had anything to do with him or his organisation since.

I really recommend his courses though. He covers shares as well as property, and goes into detail about his various strategies. The…[Read more]

Hi

I have just come across this thread. It is great to see someone actually living off equity.

Rob, you say someone big enough for this should be able to live on their rents. But someone going for a high growth strategy will usually have low yielding properties, so they may have a lot of equity, but the rents would not necessarily be enough to…[Read more]

asdf

Are you trying to ask how could you use equity from the investments to buy a home and have the interest deductible?

If so, then you I beleive cannot unless you sell (=stamp duty, CGT etc). If owned jointly wiht a spouse, you could look at possibly buying his/her share and borrowing to do so. The money released could be used to pay for the…[Read more]

It could be possible to add value, but it would depend on local prices in general and the sort of value you could add. It seems there may be a risk of overcapitalising, ie you could spend $20,000 to find it only increases in value by $10,000.

It would be safer to find a run down one to do up.

Terryw
Discover Home Loans
North…[Read more]

I’d probably do something similar.

Have you considered just buying the girlfriend out? Save stamp duty and costs.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

I also noticed that RAMS now have an additional mortgage insurance company on their panel, ie a third one. So this may help people maxing out.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

try solicitor Tony Cordato http://www.businesslawyer.com.au

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Start your own religion! Think of the tax exemptions.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Sounds like a good plan. Paying it down as fast as possible, while adding value will give you equity quicker. You can then use this to purchase your next one and so on.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

The trouble with selling property is the costs and taxed invovled not to mention the loss of any future capital gains.

For anyone wanting to research this further, there is a licenced financial planner, Steve Navra, who could possibly help. see: http://www.navra.com.au

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Wrapping has received a lot of bad press lately, be careful.

There have been a number of people who have wrapped in Sydney and made money. I have wrapped myself, but have found that the returns are not that great for the risk involved and the opportunity cost of tying up equity and borrowing capacity.

Terryw
Discover Home Loans
North…[Read more]

That almost sounds like it was pleasant. It is a bit different what we imagine it would be like.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

I think it would be – do you have a copy?

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

Having around $1.6mil in property securing a $300,000 loan is a bit much.

I would look at borrowing against your home as a separate loan and using this as deposit for the investment property. That will give you flexibility if you wish to purchase more property in the future.

It would also be safer, as if you were to default on your investment…[Read more]

Yes talk to a solicitor. You cold put various clauses in the contract, but these may make it unattractive to the vendors.

Terryw
Discover Home Loans
North Sydney
Terry@discoverhomeloans.com.au

I am not a tax expert, but I beleive you do not necessarily have to pay tax on inherited property.

Was the property your Aunt’s PPOR? If so, I think you could sell within 2 years and pay not have to pay the CGT.

Also, even if it was an investment property, CGT may not apply if she had purchased it prior to 1985.

Since there are potential large…[Read more]

I agree that living on equity will not be for everybody and will be a dangerous strategy for some people.

Having a small portfolio of property is sometimes enough for someone to argue they are self employed – without the need for an ABN. I have personally helped a client get a few no doc loans (without lying), when they were in a situation like…[Read more]