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
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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 this.

On No doc loans there is not need to list an income. These are basically asset lends, where the lender is mainly concerned with the security, rather than the borrower.

We cannot predict the future, all we can do is base our assumptions on what can be done at present, and assume this will always be the case. But you are right, things can and will change. These products may not be around, but then again there may be even better products around then.

A person with a large portfoli may be getting a lot of money in rent, but they may still be paying a lot in interest and have not much left over. Plenty of people are asset rich and income poor.

What about someone on the pension with a $1mil home fully paid off. Surely drawing a small amount each year to improve lifestyle would not be such a bad thing if it is done correctly and the property is growing, on average, at a faster rate than consumption.

I, too, would love to hear from anyone actually living off equity.

Terryw
Discover Home Loans
North Sydney
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By ‘retired’ I don’t mean living on a pension.

Having a large property portfolio would mean one would be a professional investor. There are various loans that would suit an investor. Including the many No Doc loans. A person self employed for one day could also qualify.

Hopefully the overall LVR would not be that high, so getting loans should not be a problem.

Terryw
Discover Home Loans
North Sydney
[email protected]

Stu

What about if a person had a unencumbered property. He then started up a trust and got a loan secured against this property in the trust’s name. You are essentially letting the trust use your personal equity.

Terryw
Discover Home Loans
North Sydney
[email protected]

You could possibly claim the seminar (or part of it) if it was related to your current earning capacity.

see also this post:
https://www.propertyinvesting.com/forum/topic/17506.html

Terryw
Discover Home Loans
North Sydney
[email protected]

Thankas again Coastymike for your kind words.

Collie you shoulod probably get a copy of the book “Trust Magic” if you haven’t already. Heaps of good info about trusts, including a bit on Hybrid’s. and it is written in a very easy to udnerstand way.

Terryw
Discover Home Loans
North Sydney
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I agree that this is not wrapping.

It seems that the organisers were real estate agents and were inflating property prices and selling properties to unsuspecting victims. They gave misinformation to the bank and used the bank’s policies on valuations to obtain loans greater than the property value.

Terryw
Discover Home Loans
North Sydney
[email protected]

Clay

He “live in Bathurst and work in sydney”

Terryw
Discover Home Loans
North Sydney
[email protected]

It depends on which state you are in. In Victoria I beleive it is payable at settlement. In NSW it is within 3 months of signing a contract (expect maybe for land?? I purchased land off the plan and did not pay it until settlement).

If you chose not to pay it, interest will accrue at around 13%pa. So it won’t cost you too much to delay it.

Terryw
Discover Home Loans
North Sydney
[email protected]