I know a lot of people wrapping in Sydney. You don’t have to wrap cheaper properties, you can get bigger returns and less work by doing some big ones.

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

Shaun

I don’t understand what you mean by having to pay mortgage insurance for 2 years. I think you have mixed something up, mortgage insurance is only a one off fee upfront. Maybe you are on a low doc loan that reduces after 2 years (of repaying on time)?

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

Guieseppe

It depends how risk adverse you are. Some people like to buy as many properties as quick as they can. If you changed the repayments to IO it would be about $144 per week. This would free up some money for the next one. In my opinion it won’t matter too much if it is positive by $10 per week or negative by $10 per week, as long as it is…[Read more]

Forward

Not is Australia!

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

Jars

If anything did happen and you lost your job, you could always sell one of your properties and pay down some debt with the money you release.

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

Yeah. I wouldn’t sell-I actually did that and regret it now.

Just keep on using the equity. Approach your exisiting lender first and ask for an increase and use that money as a deposit for the next. If they don’t come to the party, refinance.

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

Jars

Sounds like you are doing alright and the properties sound great. Rents will rise over time and you will have good growth. So before too long they will be cashflow positive without the tax offsets. Just keep buying more of the same.

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

Without much deposit it would be hard for you (I mean Fred) to buy one. Fred would have to use a 95% loan, so would need 5% deposit and 5% for costs – about $9000 on a $90,000 property.

It could help greatly if Fred was good at buying under market value and the values were growing rapidly.

Maybe Fred could also
-borrow the deposits,
-get the…[Read more]

Crashy

May I ask what this sort of advert cost you?

You will probably get more leads thru the week. I lot of people cut these adds out and enquire later on.

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

Guys, they were good stories. thanks for that.

I have only had one problem which seems minro now, tenant stopped paying rent and I went soft and let them, they then skipped out owing about $1800 in back rent. Nothing major as the capital growth going going mad at teh time.

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

I have a different view.

I have purchased 8 properties sight unseen. I wouldn’t just be buying properties off the net though. If you have a buyers agent or real estate agent you can trust (like I have) then why not. You can order various building checks etc. If you look at teh property, what can you see anyway. i suppose the main thing is…[Read more]

Wraps are often better deals for the wrappee than they could get with a bank. Think of a credit impaired person with only a low deposit. They are not going to get finance from a bank or a financier. If they had at least 10% deposit plus costs, they could get a loan with one of the non conforming lenders and pay interest rates of around 10.56%.…[Read more]

don’t forget you can claim depreciation allowance on renovations.

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

It is always a good time to buy when you think about the long term. Imagine if you purchased at the peak of the last boom (when was it, 1990?). Waht would the property be worth now?

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

Dags, no lender will lend more than the property is worth. In fact most will only lend 80% of what it is worth, or more-up to 95% in certain locations-if you pay lenders mortgage insurance (LMI – this covers the lender if you go bad).

With low docs, you will generally only get 80% LVR or less.

Terryw
Discover Home Loans
North…[Read more]

Jason

I like MH’s idea.

There is no way for them to simply increase their loan on their current property and for it to be taxable. If they simply get a loan on their new property they will be paying the mortgage with after tax dollars, not dedcutions. But they will be paying even more tax as their old property will be making a nice profit.

If…[Read more]

Gavin

I agree with MH. This type of financing is tough. It is not normal commercial and there are only a few financiers willing to lend for petrol station. The LVRs may be around 60%. And they are worried about site contamination etc. valuations (and legals etc) are expensive, like $2000+ and have to be paid upfront and can vary a lot because of…[Read more]

I don’t know if you can set up a property trust like that without getting ASIC approval and a prospectus. Maybe you should check with ASIC just in case. This is like raising money from the public.

If you just want to set up a trust with friends etc then it should be ok, and a good accountant will be able to help you with structure. It sounds like…[Read more]

I htink you can only claim in proportion to your share of ownership. But you may be able to set up a partnership and claim differently further information can be found in the ATO rental properties booklet, which you can get as a PDF file on http://www.ato.gov.au somewhere.

Have you considered using a discretionary trust or a hybrid unit trust for this?…[Read more]

Hi there Bill and Jim. I forgot the most important part, the interest rate will be 3.99% on the owner occ interest only (LOC) 30 years and then you can have a Term Loan on an investment property also 30 years interest only at a rate of 7.74%

I think that high court appeal by the ATO is set down for Nov 7.

Terryw
Discover Home Loans
North…[Read more]