Hi all,
I’ve been highly negatively geared for the past few years and I’m really starting to feel it. After reading Steve’s book, I’ve decided to wrap all my Sydney investment properties. As I’m new to wrapping, can some experts let me know if the below sounds alright?
Lethbridge Park, SYDNEY
3 bedroom brick home on 658m2 land. Renovated kitchen & bathroom. Close to schools and transport. Driveway large enough to fit a truck. Only $462 P/W, Owner will provide vendor finance. No credit checks, No bank qualify. Low deposit. May use $7000 FHOG! Call Joe on 02 9709 3688.
I’m asking $260,000 at 8% interest over 25 years. This is just enough to cover the bank loan. The bank valuation was $280,000 but I just want to get rid of it fast!
Any suggestions/tips on how to better wrap this property?
Thanks.What does the propery rent for? I am thinking 200-230 p.w. AT BEST!
Sale price sounds a bit over the top to me. The valuation must be old.
Why do you want to get rid of it “fast”?
Robert Bou-Hamdan
Mortgage Adviser
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Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdHi Mortgage Adviser,
The property is currently untenanted. It would rent out for 170-190 pw.
So you think that the price is too ambitious for Lethbridge Park? The bank was conservative at the time of valuation. Maybe I should lower it? How much do you think?Why do you want to get rid of it “fast”?Well I’m very negatively geared and not having a tenant in the property hurts after a few weeks.
Thanks for your advice mortgage adviser!
I just think you should sit down with someone and discuss various options before dumping an asset (or liability in this case that could be turned into an asset).
Maybe if you asked the forum about ways of making this investment a positive cashflow investmenet or very close to it.
Why is it not rented and why has it been empty for so long?
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdWhy do you want to get rid of this? Sounds like you won’t be making hardly any money on the wrap. maybe better to just sell?
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks for your thoughts guys.
I will vendor finance the property for the sole purpose of improving my cashflow. Other than selling for cash, providing vendor finance is the only way I can see to turn this alligator into something positive. What other ways are there?
I think an asking price of $245,000 at 8% interest over 25 years is very fair. I will start advertising for it today.
I heard somewhere I can advertise Real Estate in the newspapers $55 for 7 newspapers. Anyone know where this is?
Hi,
If you do need to sell, another alternative – rather that wrap the whole lot – maybe offer to vendor finance just the deposit to a FHOG qualied borrower. This would mean your mortgage would be paid out on settlement.
and the deposit could have a monthly payment with a payout in 1-5years
Just a thought
Michael GruberGreat thinking Michael!
Hey, the price has dropped from $260,000 to $245,000 in 24 hours. Can I buy it on Thursday for $215,000????
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdHi Wolverine80
We have used Cumberland press to run ads in the free local papers, you can also try the trading post. They both seem to generate good response.
Doing a little bit of home work first could save expenseive advertising dollars. I suggest you pick up the local papers from surrounding areas and look at what other properties are being VF for around your area. Compare the repayment price and condition of the property to yours. The market will soon let you know if they are willing to pay your asking price.
Good luck, regards
Hoppa
Is there something critically wrong with this particular suburb? I thought Sydney prices were supposed to be way higher than Brisbane…
Thankyou hoppa for your comments. Yes, I’ve found the local papers in the area to be quite cheap. Under $20 per paper for around 3-5 lines. Thanks again.
ian_from_brisbane: They don’t get any cheaper than this down here. There are large pockets of housing commission in this area.
Do you know why wraps should not be done using units instead of houses?
Hmmmmmmmm
JPG…. To answer this question again, if the numbers work, then you can do it.
Also, I do have two units as wraps. It works fine!
When I grow up, I want to be a storm trooper!
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