Forums / Property Investing / Help Needed! / Looking 4 a WRAP !

Find Out All The Details Of Steve McKnight’s New 90 Day Mentoring ProgramFor A Live 90-minute Webinar
Viewing 12 posts - 1 through 12 (of 12 total)
  • Profile photo of PELZERPELZER
    Member
    @pelzer
    Join Date: 2006
    Post Count: 3

    Hi all at P/I.COM

    My wife and i are currently renting a house in the estern subs of NSW, we have been plotting our assault on the prop investment market for the last six months, the finances and strategy are in place and we are ready to take the plunge.

    Whilst we are looking for property much further a field we do not wish to move from this aea. Buying in this area is out and long term renting is a waste of money.

    After reading 0-130 props and looking into the WRAP option we feel that we and any investor willing to take a chance on us would greatly benefit.
    We both have 1 st class credit history and checkable employment, rental, income etc reffs plus depository funds incl. 1 st time H/B grant.

    I f you are an investor or know of anyone please drop us a line.

    Thanks

    Profile photo of The DIY Dog WashThe DIY Dog Wash
    Member
    @the-diy-dog-wash
    Join Date: 2003
    Post Count: 696

    If you are in such a good position, why do you need to be wrapped? The bank is the best place for you to source finance. Wraps are for people that generally have poor credit history or no/low deposit, or other reasons.

    It seems strange that you posted this request! But good luck.

    The DIY Dog Wash
    Like a laundromat for dogs, without the spin cycle!
    http://www.DIYDogWash.com.au
    TAKING PRE-REGISTRATIONS NOW!

    Profile photo of PELZERPELZER
    Member
    @pelzer
    Join Date: 2006
    Post Count: 3

    Thanks 4 taking the time to read our message. Yes, banks are best but house prices in this area start at around 750k, using traditional methods ie, banks, mortgage brokers etc we need to come up with a 20% dep+ costs….200k, which is money we would rather put into buying multiple props instead of blowing it all on 1 place.
    The average weekly rent here is 4-500, which is affordable for a mortgage, but why pay someone elses house off. We would like to get involved with a WRAP investor, pay a much smaller dep. and a higher weekly payment, say 250k over 10 years and then the balance via a traditional mortgage.
    Anyway, thanks again and all advice is greatly appreciated.

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    Hi Pelzer,

    You don’t need a 20% deposit, you can get quite good rates for a 100% loan, which would be far preferable to a wrap. If you really want to purchase through a wrap contract though give me an email address or other contact and i will pass it on to someone who can assist you.

    Regards
    Alistair Perry

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    100% loans only go to approx $500,000, however 95% LVR loans can go up to $750,000.

    Pelzer, buying a property will cost much more in weekly repayments than will renting the same property – especially the expensive low yielding properties in Sydney. Wrapping at a higher interest rate will hurt even more.

    So you may be better off considering continuing to rent and investing the money you save.

    Terryw
    Discover Home Loans
    Parramatta
    [email protected]
    Sign up to my mailing list.
    Just send me a blank email, with “subscribe” in subject line.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    Terry,

    The product specifications say they will only go to $500K, but there is always flexibility in this, particularly for a strong borrower. I do agree that a 95% would be better.

    Regards
    Alistair Perry

    Profile photo of PELZERPELZER
    Member
    @pelzer
    Join Date: 2006
    Post Count: 3

    Hi Alistair,

    Lots of feedback, all saying the same thing… steer clear of the wraps. Are they really all that bad ? Maybe some more study is needed before I dive in. I was under the impression they were all good.. own your own home, the home you want in the area you want for the same price as what you would pay if renting.

    We have shopped around and 95% mortgage on 750k comes with a nice $1000+ p/w repayment package, thats if any bank etc will give us that amount. I would speak to your contact. The bcan e-mail me direct at [email protected]

    Regards

    Pelzer.

    Profile photo of The DIY Dog WashThe DIY Dog Wash
    Member
    @the-diy-dog-wash
    Join Date: 2003
    Post Count: 696

    Pelzer

    Wraps are not bad, but as I mentioned before you are not a typical wrapee.

    Wraps are designed to suit CF+ properties where rent is higher than a typical mortgage (go figure). And generally traditional finance cannot be obtained. Even with a wrap deal in the area you are describing your repayment is still going to be that sort of figure or there abouts.

    I know they sound really good but you need to have a good understanding of their purpose and their structure before going into one.

    Cheers
    Leigh K

    The DIY Dog Wash
    Like a laundromat for dogs, without the spin cycle!
    http://www.DIYDogWash.com.au
    TAKING PRE-REGISTRATIONS NOW!

    Profile photo of ducksterduckster
    Participant
    @duckster
    Join Date: 2004
    Post Count: 1,674

    If you are going to be a wrapee be careful .
    What happens if you default in payments later on down the track?
    You might end up losing all your payments depending on the wrap contract.
    Usually a wraper sells the property above market value, so it will take a time to gain enough increase in value to cover the added profit margin in the purchase price.

    Profile photo of kdhnkdhn
    Member
    @kdhn
    Join Date: 2005
    Post Count: 68

    l would really think before that one, do the total sums and then some it will cost you a fortune . l know you have a plan but a wrap for that amount !
    Why not eccept the fact that you may have to work up to the $750,000 property and start of with something 1/2 that price first through a bank . Make some money on that and then see where things are .
    Cheers
    Mkc

    Profile photo of JarrahJarrah
    Member
    @jarrah
    Join Date: 2005
    Post Count: 99

    Mate GO HARD!

    Your asking a potential 42000 people their opinions and none of them will have the same dreams as you…

    Its about what you want at the end of the day…

    Have you spoken to the vendor and asked them?

    I picked up a $15M development property, prime realestate on Mt Dandenong on vedor finance for $415K the vendor came to me and asked me if I wanted it…He was doubling his money and i was on the top of his list…They had no kids, it was all pure math to him…(And at 1% below CBA rates on a resi loan)

    You never know if you never GIVE IT A GO!

    p.s. About to do the same on another at $2M vedor buy in offering half and the plans to bank to turn around 6-12 months for a CG of $5M-$20M depends on a few factors and how to structure the other props on the lists…Another vendor finance on 16,000 aces of prime tourist potential +CF with strong CG mate the list goes on forever work out your exit strategy and go to the vendor and then the bank with that…(All at 6%, negotiate that boys)

    “ask and you shall recieve”

    Sincerely, Jarrah

    ++CASH FLOW PROPERTY HUNTER
    (your not hunting if your not hungry)

    [email protected]
    Climbing & Consulting
    Arboricultural Services
    0431433288
    http://friendlyfarms.org.au/
    “be ye angels?”,
    “nay we are but MEN!”

    Profile photo of meadowsmeadows
    Member
    @meadows
    Join Date: 2004
    Post Count: 1

    Has anyone come to your aid re Wrap

    J Durham

Viewing 12 posts - 1 through 12 (of 12 total)

You must be logged in to reply to this topic.