All Topics / The Treasure Chest / Wrapping with mortgage free property

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  • Profile photo of JonesyJonesy
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    @jonesy
    Join Date: 2003
    Post Count: 0
    September 4, 2003 - 8:34 am

    I am brand new to this process and in the starting to understand it and I was wondering if anyone can explain to me what would be the process of wrapping a property to a tenant if the property has no mortgage on it? I am in Western Australia.

    Main concerns is, interest rate.

    Thanks in advance

    Profile photo of Mortgage HunterMortgage Hunter
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    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781
    September 4, 2003 - 9:09 am

    I shouldn’t imagine there would be any difference.

    If you were planning on setting the rate at your rate + 2% then this would still be easily figured using current rates.

    You will be taxed on the full amount tho.

    Cheers,

    Simon Macks
    Mortgage Hunter
    [email protected]
    0425 228 985

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,024
    September 4, 2003 - 9:14 am

    Jonesy

    Simon is right. No problems in doing it. Its what you could call very positive cash flow.

    Cheers Richard
    [email protected]

    There is no such thing as a problem.
    Just a solution waiting to be found

    Richard Taylor | Australia's leading private lender

    Profile photo of picja1picja1
    Member
    @picja1
    Join Date: 2003
    Post Count: 144
    September 4, 2003 - 11:47 am

    Before you wrap though, why don’t you take out some of the equity to use for deposit’s on other properties. Instead of having one wrap you could have two,three, four etc… depending on how much the property is valued at?

    [email protected]
    cheapest rates

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