Okay, I understand the caveat part, but am unsure as to the difference between a promissory note and a second mortgage.

I would assume a couple of things. Firstly, in this current market, we cant just take an option and get some cap gain.

Secondly, we need to get something approved by council in a relatively short period of time.

Would I be right in assuming that the best would be an amalgamation of land for unit developments in medium density res development,…[Read more]

OOps, almost forgot to ask.

If I buy a house for say 1M, and the vendor will lend me 100k, would he get a 2nd mortgage/caveat/joint venture/etc?

Many thanks for your replies Michael and devgar.

By the way , what is a caveat? I was under the impression (?mistakenly) that a caveat meant that you had a financial interest in the prop, and it is very difficult to sell without the caveat removed. What is the difference between a caveat and a 2nd or third mortgage?

Kabung, congrats on your departure from the dole que!.

You mention that it was your first successful deal. Did you have a few options expire, or go sour through council?

I just secured options on them with exercise prices that are less than both the median and average prices in the postcode. The land can be developed into between 20-24 units. If…[Read more]

Many thanks for your replies. Am especially interested in the boilerplate option agreement. I tried googling and whitepaging the resource centre in Phillips street, but was unable to find anything. Kabung, you wouldnt happen to have their phone no?

I havent done any, but if you are even thinking about it, you must jump on the net and buy “the australian lease option handbook”- a dirt cheap ebook. It talks about doing exactly that, it calls them sandwhich deals. ie you lease for 200pw, can buy for 300k, lease for 250pw, can buy for 340k. If you can line it up, cash flow of 50 per week, and…[Read more]

Michael,

I checked out the web sites that you suggested, both look good.

Are they aussie, or, if not, how much of their resource is less than beneficial?

wrappack

Can someone please fill me in on the following hypothetical situation.

Lets say I lend someone 200k on a 1M prop, and are given a second mortgage on it. I would also assume I would have a caveat taken out over the property?

Lets say the developer goes belly up and the banks want to sell. My understanding (which may be entirely wrong, so feel…[Read more]

Kabung, many thanks for your comment re options and Henry Roth.

I am also interested in options, then either selling them, or using the new equity to possibly develop myself.
What was the option that you took, and what was involved? (ie I assume that you had to do survey, then go to council with plans for either a subdivision or units/etc)

What is a rent role?

.002c worth

i) Drinking 10 glasses of h2o a day, and spend half the day on the dunny.

ii) Scary thought number one- Ph of coke is well below three (ie acidic) it is that way so that more sugar dissolves in it, so it is sweeter. BTW Warren buffet (who owns a shitload of coke) says that most people prefer the taste of pepsi, cause it is about 4%…[Read more]

Read books by Alexander Elder- the set of come into my trading room, and his earlier ones.

Then reread and reread them.

Couple of comments. Forget currencies they are a 24 hour job around the world. Forget options, elder says that futures are actually a lot safer (and he backs it up, just pick the right market!)

Best thing about elder is his…[Read more]

Or, for that matter, when your friendly real estate agent tells you that the market is recovering.

“friendly real estate agent”- surely an oxymoron.

According to every real estate agent who has ever walked the face of the earth in every bull, bear and sideways market, NOW has always been the perfect time to list with them, sell with them, and…[Read more]

Even after June 1st, if I only buy and then flip for 11 – 11.99% more then what I paid for the property, then I dont have the tax to pay and still make a nice little profit each time.

Mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm.

So, if you mark up a property at say, 11.5%, how much of this net ‘profit’ would be eaten up…[Read more]

Mmmmm. 700k at say 8.5% pa. Interest would be $59500 per year. Allowing 40% of income going towards house costs, income required to service=$148750. So how many people earn (legally) about 150k?

The hotmail account was something I set up to thwart the spammers. Have been with optus for a couple of years, and only recently started receiving offers of new jobs, generic viagra and enlargements for my hideously small penis (judging by the number of emails). Havent checked the hotmail one for a while, so I assume it must die after not being…[Read more]

I sympathise with your predicament, but I feel it is going to be very difficult/impossible to afford to upsize, as opposed to downside.

Is it possible to slightly change the layout of your house to suit you both. ie the house I lived in previously was 4bed, 2 bath, 2 story, dual entry. By blocking the stairs off, upstairs would be 3 bed,1bath,…[Read more]

Ill go in to bat for fat Tony on a couple of points. (Sorry bout the long reply)

Firstly, everyone is entitled to express their opinion (even Bec), regardless of how many or few postings one has done, or how experienced or new one is to investing.

Catchy title- Good idea, if you have a dud title, it often sinks down deep, but if you spice it up,…[Read more]

You write on the sign “Want to sell a dead person’s house real cheap? I want to buy from YOU!” and walk around cemetaries looking for funeral parties.

PS: Funnily enough I’ve found that it’s the live vendors who are more prepared to negotiate a good price than the dead ones.

The previous comments are uninformed drivel, rude, derogatory, arcane,…[Read more]