I heard of one case where prices had rsien substantially since contrustion began, so the company deliberately slowed down things so that they went over the sunset clause, enabling them to cancel the original contracts and resell the properties at a much higher price.

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

Steven

That http://www.sjq.com.au/sjq/site.cfm is a good site. thanks.

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

Many accountants have little knowledge of trusts and do not recommend them. Then again, many people have good intentions of buying many properties, but end up only getting one and then move onto something different. So I think your accountant may be suggesting you buy one or two and see how you go, if you still think you will buy more, then set up a trust at that stage for future properties.

Trusts can be cheap to run, and setup, so you might as well get it right from the beginning. Setup a trust, get a LOC on your PPOR, draw up a loan agreement and lend money to your trust which will then use this as deposits and borrow the rest.

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

My guess is by offering a high strike price. If a place is worth $600,000 as is, and you have the foresight to see it could be worth $1mil if you do x do it, then by offerinng $800,000 you are offering to pay more than market value you can probably get a cheaper option fee, and still go and make a huge profit.

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

I too would be wary of entering into a partnership. Do it on your own if you can.

You should probably plan your strategy for a while before you sstart. maybe start somewhere near home. buy a house, live in it, get the FHOG, and then move out. If you live in it first, ylu can still claim it as your main residence and it will be CGT exempt for up to 6 years after moving out – it you ever sell.

I personally would not buy anything outback, in small towns, unless there was strong prospects of capital growth. $10-$20 pw is nothing if there is not growth.

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

Try McDonald & Associates in Melbourne.

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

Do not sign anything without first talking to a solicitor!

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

none! Well almost anyway, there are a few small non bank lenders willing to do it. Also some local bank managers of major banks will allow wrap loans (possibly against their own bank’s polices).

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

Hi Rossolot

I haven’t heard of these before, could you please give us a quick run down??

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

As a guide, these non conforming lenders have a credit matrix whereby they rate the applicant in terms of risk. Each lender is different, but most have about 5 ratings. Each rating has a different interest rate to reflect the risk. Low Docs are also a bit higher in interest rates, and rates also rise as you go higher with the LVR. If someone is a recent bankrupt of less than one one year, they may save about 0.60% if they waited until after 12 months.

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