Hi pwarde

If you have sold the properties via installment contracts, then you cannot increase the loans to access the equity – the equity is not yours.

If LOs, then it may be possible, but you have to be careful you don’t borrow more than the tenant will be buying the property for.

If you have run out of capital, then you will have to save more, start working or just wait for someone to cash you out – but by then you will have noticed prices have increased, and you will need even more deposit for the next one.

Getting 8 properties in 6 months is a very good start. I think Steve was only able to do so many because him and Dave were still working in their accountancy practice in the early days.

Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

I would say there is not just one market, but many markets in Australia. Look at Perth and Sydney for example. And even within cities, there are different suburbs at different stages of the cycle. So it may be a bit hard to generalise too much.

Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

All you need is 20% deposit to get started using a No Doc loan. Maybe you could talk to your parents about lending you this money – if you feel comfortable.

ps. Did Peter Spann really give you $10mil in 10 years?

Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

You have to be very careful with FPs, they can hinder your wealth creation.

Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

Not sure really. Stamp duty may depend on which state you are in. Probably it is best to check with the office of state revenue in your state.

I doubt you would be able avoid CGT if it is an investment property.

Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

I am not sure Steve suggested selling. I know from various seminars etc, then he has suggested paying down loans, even on investment properties, so as to reduce risk.

Some of my clients have made spectacular gains in WA, with a few selling and paying the proceeds off their home loans. The market over there may keep rising for a while. Afterall, many in other states are now thinking WA is the place to go as it is the only place rising.

Just becareful as prices can drop if the boom suddenly stops.

Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

On the other hand, I may have to disagree with myself.

First you would have to determine if the real estate agent owes a duty of care to you the tenant. Is this established in law? If it is not established then there is no duty of care.

It is like someone saying it is safe to cross the road, you cross and get hit by a bus. You cannot sue them as there is no established duty of care between the average person on the street and yourself.

I don’t know the case law in this area, but you would suspect an agent is a professional, that is what you pay them for, so they have a duty, but this may not necessarily be so.

Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

Roodog has pointed out you would not be paying stamp duty twice, just once on your share in the begining and again on the remainder when buying them out.

How have you owned the property? Trust or company? if so there may be ways around it.

Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

The cashflow people tend to dislike negative gearing as they say you are making a loss in the hope of making a capital gain later. There is no guarrantee the gain will come (just as there is no guarrantee the sun will come up tomorrow morning )

Ideally it would be great to have positive gearing and high growth, but unfortunately it doesn’t always happen like that. So high growth property is usually negative geared.

Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.

I just claim against self education – think that is the correct section.

Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe” in subject line.