I know someone that did the course. $15K personal loan. 2years later still has the loan which makes it hard to qualifiy for a housing loan!!!

Nathan

Some more thoughts with lease options:
1) it is also easier to withdraw any increase in equity.
2) There may be a greater chance for the tenants to just walk away from the deal because they don’t ‘own’ the property.
3) There may be a greater chance of the tenants cashing you out if they can get the FHOG down the track.

Terry

Here is another wrap lender!
I am a mortgage broker in Sydney and did some training with ING last week. The trainer stated that they are willing to lend for wraps. However I have heard from other banks that it is the Lenders Mortgage Insurance companies that are the problems in that they won’t approve loans for wraps.

I think it is much easier if…[Read more]

Jarrod

You need to get your solicitor to draw up an option contract. Just adding and/or nominee won’t do becuase you will be required to settle on the property if you do not find someone. WIth an option agreement you have the right but not the obligation to purchase the property.

Also with an and/or nominee clause you cannot nominate someone…[Read more]

Jarrod

An option sounds good. I don’t think you will have any licencing problems with an option because if an option is purchased you will have an equitible interest in the property. It is like selling your own property.

Terry

Bruce

I’ve done the course and Felicity’s explanation seems to be correct.

You basically buy an annuity and the money recieved back (both the principle and interest component) is classed as income with some banks.

With Felicity’s example, the $20,000 plus interest per year (say approx $21,000 per year) is simply added to your income for…[Read more]

Sooshie

You could write the bank a letter asking for the ‘payout figure’ as you are changing banks.

These days most banks have a retention unit, which handles people wanting to get out. They will be in contact with you as soon as they get the letter, and will do everything possible to keep you with the bank. You can negotiate interest rates, and…[Read more]

Michael

If you want to transfer after you have already settled, then it will be just like selling the property from yourself to your company. So you will have to pay stamp duty and possibly capital gains tax!

Maybe you could do your first one in your name, see how it goes, and if you decide to continue, then set up your company for your 2nd+…[Read more]

It could be Liberty Finance! They ahve indicated to me that they will do wraps on their normal rates (which are usually higher than standard rates by 1 or 2 %)

Terry

Here are some more:

Freestylers
http://bne003w.server-web.com/~wb190

Jan Somers Forum:
http://bne003w.server-web.com/~wb013

John Burley Forum
http://www.mastermindforum.com/
(what ever you do, don’t mention Steve’s name here )

3E Revolution
http://www.3erevolution.com/cgi-bin/ikonboard/ikonboard.cgi

All are Aussie sites except the Burley…[Read more]

Bris

I believe you can do this by using and/or nominee (in some states at least). But you have to have an agreement in place with the person you are going to nominate beofre you sign the contract-otherwise stamp duty. This way you don’t actually ever have to own the house.

Another way to do it is acquiring an option to purchase, and then selling…[Read more]

Gav

You could find out who the bank has on their panel and get it done yourself, but there is a danger that the bank will reject it. It works with some banks though. Also when you do get your loan application in, you should have the bank get the valuer to ring you to arrange access. That way you can meet them onsite and show them any comparable…[Read more]

Imron

Ni hao!

I too have a great love of language learning and was planning to go to Beijing this year to improve my Mandarin. I’m just trying to improve my cashflow a bit before hand. (pls email me off line at terryw@froggy.com.au so we can talk more about China).

Have you thought about being an investor? There are people/companies that wrap…[Read more]

Jenny

You figs look about right. it is pretty good isn’t it. Imagine if you have a few of these and they start cashing you out at 1 per year. that’s an extra $18K per year-based on your figures, plus all of that cash flow in the meantime.

Terry

Wei

If you concentrate on the cheaper properties and get the FHOG from the buyers, then it wouldn’t require much money out of your pocket at all. You could probably get a few of these loans at a high LVR before you hit serviceablity problems, by that time you will have all that cashflow comming in which will help you save up the deposits for the…[Read more]

Good post Fergus

Hi Matt

Here are some quick thoughts. What about doing some type of rejuvenation to your house. something that will increase the value without costing much. Paiting, gardening, carport etc.

Also when you go to apply for your line of credit or next loan put down your house as being worth a lot more than you think. I know someone that thought his…[Read more]

I have some wrapped properties and used ANZ thru a broker. I disclosed to the broker, I don’t know if she told ANZ!

Terry

Hi

I can’t see why you couldn’t wrap at the high end of the market. There would be people who could afford the high rent, but couldn’t afford to borrow to buy such a property. For various reasons they don’t want to live in cheaper houses which they could afford.

The highest valued property that I know of being wrapped is about $300,000 with a…[Read more]