Greetings all
I am in the situation where im finding properties that could be positive cash flow if only I had cash deposit. As it is I have to borrow the full amount (deposit in equity of the family home) that is limiting me somewhat from a +ve in South Australia. Can find some +ve interstate but considering im just starting and would be my 1st IP I would prefer it to be nearby.
I am open to any suggestions to over come this hurdle.
Regards Bear
Hi Bear,
We are in the smae position. As we are using our equity in the family home to finance the 20% deposit, anything close to +ve becomes -ve.
We are considering trying a wrap deal to start with as you don’t have any ongoing costs such as rates, insurance etc, and the profits will be saved for a deposit on a rental. This is what we are thinking anyway.
Does anyone else have any suggestions for people like us who are using equity and trying to get +ve cashflow?Cheers.
Hi My65roses
Thank you for your input.
I have considered this option however wrapping is illegal in South Australia at this point of time.
Regards
Bear
Hi my65roses
We are considering the same thing – wraps that is, to start off with. You make a good point with being able to divorce yourself from all the ongoings assoicated with a rental.
Have you found anybody to get you started in that area? Also where are you from?
Cheers
Steve
Hi Bear,We are in the smae position. As we are using our equity in the family home to finance the 20% deposit, anything close to +ve becomes -ve.
We are considering trying a wrap deal to start with as you don’t have any ongoing costs such as rates, insurance etc, and the profits will be saved for a deposit on a rental. This is what we are thinking anyway.
Does anyone else have any suggestions for people like us who are using equity and trying to get +ve cashflow?Cheers.
Hi Bear,
We come to this conclusion ourselves, a month or two ago, and so made the bold decision to put our home on the market, and get rid of our LOC.
There was a great post on the forum a couple of weeks ago, called “Sell, Rent and invest. (or something like that),
Use the search function, and have a read. It is interesting!!
Regards,
Del
Thanks for the tip Wilandel
[
]Regards Bear
Hi Wilendal
I am having trouble finding the thread on the search could u possibly be more specific of the name or the person that started it?
If not thats ok, I’ll just keep looking even if i have to search each page individually.LOL
Regards Bear
Thanks Wilandel
It was great reading, I have saved it to be read as an affirmation!
Regards Bear
Hey Bear1964!
Wrapping is not illegal in SA. ISC have a limitation of allowing only 3 installments I think, which makes them unusable for wraps, however lease options are perfectly legal and used to do wraps in SA.
I know there are some vocal critics of wraps in SA politics, however the sweeping opinions expressed on this so called ‘illegal property move’ have not been accurate. There will always be opponents (like Jenman), however if you approach wraps openly and ethically you will be doing good. If this is a way you could get started don’t discount it too quickly – also you could look interstate.
Cheers!
SherylBear1964 could you please explain to me why using the equity in your own home as a deposit would have an affect on the investment properties
Cashflow
How does a cash deposit help over an equity deposit?Sorry if that’s a dumb Question
but ide like to know how this affects a potential investment properties cash flow returnThanks Heaps
NM, if you use an equity L/C for your deposit & expenses as opposed to using your cash, you still have a minimum monthly payment on your equity L/C as well which relates to the property. We have bought properties this way too. Depends on the circumstances and your plan.
AnnaHi HQ
Thanks for your reply.
Yeah I am aware of the rent to buy and lease options and have been to Rick Ottens Seminar on the subject and yes I am still investigating it further.
Thanks HQ
Regards Bear
Hi NM
If you borrow the full amount then you have larger repayments hence the need to charge higher rent for it to be positive cash flow. One could price themselves out of the rental market.
I hope this helps.
Regards Bear
I know having CF pos property is a good thing to look for but is it the only priority ? Are you taking Depreciation and other Tax benefits into account in arriving at your cash flow position ? The more I read in these forums about 30 or more properties bought in 1 year and wrapping[
], the more it scares me.Buy and hold ! – you may not get rich quickly but it will happen.
“Success comes from having the proper aim as well as the right ammunition”
Hi Steve,
Sorry I haven’t got back to you as I have not been on the forums for a few days.
I am in SE Qld, and I have found someone who helps people do wraps. Here is an email addy if you want to contact them. [email protected]
Their office is in Brisbane but they deal with properties all over QLD.Hope this helps [
]Quote:Hi my65rosesWe are considering the same thing – wraps that is, to start off with. You make a good point with being able to divorce yourself from all the ongoings assoicated with a rental.
Have you found anybody to get you started in that area? Also where are you from?
Cheers
Steve
]
], the more it scares me.You must be logged in to reply to this topic. If you don't have an account, you can register here.
