Trying

What you have written looks confusing.

If you have a $500,000 LOC and use $250,000 for a cashbond and another $250,000 (=$50,000 x 5) for deposits, then you should have none left over. So I don’t understand this:

“…to pay i/o loc say 6% =30kpa
20k left to help service loan ,after rents…”

I think the % on cashbonds is around 4% pa…[Read more]

Trying

You could use a cashbond to help you service the loan, but this is just like borrowing to pay the interest repayments. It is not nessecarily a bad idea, as long as your property is growing faster than you are using the equity.

Really there is only one way to service your loan, and that is to earn more income. This can come from a wage or…[Read more]

Yes it is probably a “Professional Package” that they are referring to. Some have no application fees, but a professional package fee instead (eg Commonwealth’s Mortgage Advantage $300 pa fee, and you get up to 0.7% off SVR).

Most major banks have these packages now. But watch out as some of the small banks/lender’s no frills products are still…[Read more]

Yes I think this is a very good strategy. It is far better to withdraw some equity to live on then to sell a property. Once you have sold the property it can’t grow any more (for you anyway).

If you have $1,000,000 worth of property grwoing at 5% per year = $50,000 pa growth. If you just take, say, 80% of this growth and leave a buffer, you…[Read more]

Stuart

I think you had better set the record straight on this ‘unlimited finance’ structure that Steve is promoting. A lot of people seem to be confused!

Terryw
terryw@froggy.com.au

Skyeboy

You will lose any further capital growth by selling an option on your house or buy wrapping it.

You could make some money by doing Mezzanine finance. Maybe a better option is to use the equity to buy another property which you could wrap?

Terryw
terryw@froggy.com.au

Without using the equity to buy more income producing property (or shares/business etc?) it is not possible to ‘make’ the property cashflow positive. Buying +ve cashflow property could offset the negative though.

Terryw
terryw@froggy.com.au

That is what I do. I have an agent in Vic that sources property for me. He doesn’t have a web address tho. I better not give out his phone numbers on this forum without his permission. you can email me if you like and I will pass your details on.

Terryw
terryw@froggy.com.au

hi Ishita

I also work at North Sydney, maybe we could have lunch together one day. I like to participate in other meeting too.

BTW, why are you putting ** in your email address? Is it to stop spammers getting your address?

Terryw
terryw@froggy.com.au

Jay Cee

What about borrowing the deposits you need from family/friends and offering them a good interest rate (15%?). You should still be able to make a good profit.

Terryw
terryw@froggy.com.au

Jay Cee

He sees capital growth as the main way to wealth. And with wraps we are giving that growth away.

Terryw
terryw@froggy.com.au

I’ve been to the NAVRA course (late 2001). the course is basically half shares and half property.

His property approach is very different to most people on this forum. He is very in favour of high growth property and advises people to go for the more expensive properties that will have higher growth rates. He offers a free ‘financial…[Read more]

$10 a week is not much to be paying. Just think about what would happen if that single mother stopped or got behind in her rent payments. Could you handle having to ring her up asking her why and being given some sob story? I’d probably give in and say ok next week would do.

Sometimes it is best to put some distance between you and the…[Read more]

Yep. It appears that every time you guarrantee a loan the bank will do a CRAA check – hence an enqiury will be listed.

Terryw
terryw@froggy.com.au

What state are you in?

You can usually get this information from the land titles office for about $5 over the internet.

Terryw
terryw@froggy.com.au

Here is a link to the story on Today Tonight
http://www.todaytonight.com.au/stories/592932.html

Terryw
terryw@froggy.com.au

Grace

If the property has risen in value, you can apply for a release of security. This would remove any cross collateralisation and should only cost about $300 or so plus the cost of a valuation.

Terryw
terryw@froggy.com.au

David

My company (the one I work for that is) also has this product, the 100% lend.

There are other conditions on this loan as well:
• Must be their only property
• Must be less than $300,000 for Sydney property, $250,000 in Melb $200,000 elsewhere
• Must have 3% savings (genuine savings over 6 months)
• LMI is 2.6% of purchase price!…[Read more]

It does happen.

I currently have a client who has gone unconditional on a $915,000 purchase. AND he wants a low doc!

Terryw
terryw@froggy.com.au

I have heard the same. Banks must be seen as getting at least market value for the properties they foreclose on.

But you could still buy properties from people that are about to be foreclosen upon. You just have to find them

Terryw
terryw@froggy.com.au