After we read Steve’s book we were a little confused. The way we read it is that they saved the deposit and closing costs to buy each property, which is an accomplishment in itself, then used the equity of each property to buy the nest. Did we read this right??? Then our question is, If so many properties were purchased in such a short period of time, how did each property build enough equity to borrow so much for the next property? Or, were they borrowing on, not so much what had already been paid off each property but a percentage of the marget value of that property? Confused!!!!
David and Lesleigh[
]Hi David, I think what Steve accomplished was that he purchased those propertys under market value, had them valued at proper market price and used the equity from that revaluation. I think. [:o)]
Think & Grow Rich!
Steve was buying at $40,000 a few years ago (according to the book), these properties have probably trippled in value to about $150,000 now. Phenomenal growth was occuring during this time.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Guys, my understanding of what Steve and Dave did was to buy a place for $50K, with $10K deposit, and then wrap it for say $60K, with the $7K FHOG, plus some of the purchaser’s own money, maybe $3K.
This then gave them their $10K to go and buy another house with.
Cheers
Mel
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