Forum Replies Created
Hi All
you can do a lease option to a client and they can claim rent asistance for themsleves by taking their lease to the appropriate govt department.
However, this may open you (and your client) up to attack by the authorities if they make a decision that the rental assistance monies were to be only for rent and not to assist in purchase.
One argument that could be run is if your lease option is seen to be in reality a pseudo contract of sale rather than a lease. Thus, No lease = No rent assistance.
Best to consult with the solicitor on your team to canvas all of the issues relevant to the documents that you are using.
cya
the B[
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“Life is a Dance”Hi Celivia
we use excel to do all of our property analysis and day to day running (40-ish dwellings in all). We even use it to calculate P&I accounts for houses that are under Vendor Terms saoes (WRAP) contracts.
There are no real limitations to what Excel can be used for, but some of the more exotic things that you may wish to automate may require a little programming from someone with the skill.
We take data from Excel then pop it into MYOB for delivery to our accountants.
Hope that helps !
cheers
The B[
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“Life is a Dance”Hi Ish,
nice to meet you at the seminar.
If you would like to email your spreadsheet to [email protected] he can pass it on to me and I will have a look over it for you too.
cheers
the B[
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“Life is a Dance”Honky Tonk (piano?)
MI = Mortgage Insurance
a.k.a. (also known as) LMI, or Lenders Mortgage Insurance.It is the premium that you pay to insure your lender against you defaulting on the mortgage. If you default the mortage insurer pays your lender and then come after you!
Up to an LVR (loan to Value Ratio) of 80% the lenders usually self insure; above that they ask you to pay for their insurance.
Hope that helps
cheers
the B[
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“Life is a Dance”Hi Regina
could you please include a link to the self sell website, or some other contact details ?
cheerio
the B[
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ps: nice to finally meet you in person__________________
“Life is a Dance”Soosh
postcode search gives:
Postcode FINGAL BAY, NSW
2315Postcode FINGAL HEAD, NSW
2487Postcode FINGAL HEAD, QLD
2487Postcode FINGAL, TAS
7214Postcode FINGAL, VIC
3939So it may be any one of those
the B person[
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“Life is a Dance”Hi Phu
You are correct on all assumptions.
It is great to be able to get access to the spare equity in your investments as their capital value rises, but you must consider the increased loan repayments as you described.
However, if you are putting equity into another investment / deal that generates even more interest than the cost of your funds (i.e. your existing loan interest rate), or in other words using leverage on leverage, you may achieve an even better result.
caveat: do the numbers first !!!
cheers
the B [
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“Life is a Dance”Hi Alexandra
can you just clarify which state this town is in, how big it is (population), nearby industry, etc, etc ?
cheers
the B [
]Hi Everybody
Wow am I tired !…..
What an awesome weekend. It was really great to put faces to names and talk with so many of you.
It is just great that so many people have already taken action too.
I vividly remember taking our first steps and being very very frightened not that long ago. Don’t let it slow you down though, just embrace it and move forward.
BTW The crew did have fun, under the skilful direction of Alina
till next time (read this as “I gotta sleep now”)
the B[
]Peter
why not find out who the banks panel valuer is and strike a deal where you get them to value the property? If purchase goes ahead they are paid by the bank through the normal channels, if it does not then YOU pay them.
The way you control the process.
It has worked for us many times….
cheers
the B [
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“think laterally, it avoids the taffic jams from only going straight ahead”Boris
We will soon have settled 40 properties and have recently employed an admin manager who is just awesomely organised.
With her help we are now cruising pretty nicely. It was a bit of a stretch getting to the appropriate size to make it happen, but given the chance to start from fresh I guess we would have looked for someone much much sooner and been able to work ON rather that IN our business.
It is now really obvious that although we had great solicitors and accountants as part of our team, that having a professional to keep it running on the inside was just as important.
Another real plus is that it has really ‘cut the uce’ with some of our financiers who are impressed with the speed at which we can now produce reports etc etc.
The bottom line is “get your system sorted” and arrange as many additional resources as necessary to achieve your goals !
Hope that helps; good luck.
cheerio
the B [
] (who has been off line for a while juggling a few balls, but is now back !)Kirsty
“Why divide by 2?” well I didn’t make up the rule but that is certainly a very easy number to remember (and do math in your head with !), so I think that simplicity was the driving force.
This rule is so you can very very quickly filter out properties taht are unlikely to give tyou the result that you need.
cheers
the B [
]Kirsty
do a search on ‘structure’, ‘trust’, etc on the forum and read the posts.
There has been quite a discussion on the relative merits of different structuring formats over the last couple of months.
Whatever you read, AD’s advice is good. You must seek individual advice form your accountant and solicitor to determine the correct method for your own circumstances.
cheerio
the B [
]ps: Steve McK & Paul Harper have just completed a new product called Wealth Guardian that discusses the different strategies using a case study and gives you worked examples of the results. I managed a sneek preview recently and it looks really good.
Gavan
just a bit more info for you…
The rationale behind having the loan on the PPOR paid off and making the payments on the investment properties minimal (even convert loans to Interest only if feasable) is that you can not claim a tax deduction for cost of finance on your PPOR.
As this comes from the angle of a negatively geared portfolio you must run this past your accountant for clarification of your personal circumstances to see if it is effective for you.
hope that helps
cheerio
the B [
]Stampeze (Pete)
Hey mate you aren’t being a dud!
Like I said before “keep asking questions”. The really nice thing about this community is the amount of help that everyone gives each other.
You know, I learn something new from people of all experience levels practically every time I log on. So I reckon that everyone has a very valuable contribution to make.
Now (having finished my mini-rave [
] hee hee) Mr AD has fleshed out what I was describing.It all comes from a seminar that Dave Bradley was speaking at where he asked everyone: “Who would like to a million dollars in tax?”
Of course I kept both hands firmly down, only to realise that I was about the only person in a room of 80 people who didn’t have my hand in the air!
Finally Dave put me out of my misery and explained that if you had to pay a lot of tax, then surely you must be making a truckload of money……
cheerio
the B personage [
]ps: “May you pay a motherload of tax after your taxable income has been soundly beaten about the ears by your accountant and drastically minimised” – Ye Olde Investors Blessing [
]Stampeze
just remember:
If you have legally minimised all of your tax and you are still paying heaps, you must be earning an enormous amount !!
the B [
]TJ (paul)
I think that you know it is a low ball offer if for a similar house / location / tenancy in the existing market you are comparatively very low in price.
However, irrespective of how low it is; if you have researched accurately the Vendor’s requirements, then a combination of price and terms that seems ‘low’ in comparison to other properties may be the exact soloution that you need. eg they really just want ‘out’ and you are the person there to help them… er… out.
the B [
]Grizzly
do a serch for trusts in the forum and see what comes up.
There was a posting that I contributed too about a month back, but I just can’t remember excatly the book/s that we discussed…
the B [
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