I agree, I think you're operating on a whole other level to the plebs here, don't waste your time any more, you won't learn much more than you already have.
Regards.
Hi! I'm new here, my situation
- Thread starter investor2009
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I agree, I think you're operating on a whole other level to the plebs here, don't waste your time any more, you won't learn much more than you already have.
Regards.
If it's finance secured by a mortgage, the bank already knows.
If you are increasing a mortgage for more funds, the bank doesn't care what you spend it on, the're only interested in being able to recoup the funds they have provided, if it goes belly up.
If it's finance secured by a mortgage, the bank already knows.
If you are increasing a mortgage for more funds, the bank doesn't care what you spend it on, the're only interested in being able to recoup the funds they have provided, if it goes belly up.
and they will ask how your going to pay for it! Hence he will need to provide proof of income, and if it exceeds, I think it is 40% of his wage, then declined will be the order!
and rent is only counted 75%..
so if he thinks he wont be working, and the banks will just extend credit on the promis that house prices go up, then I think he will find his first challange.. unless he goes low or no doc and lies on the application. but he will pay 12% interest on those loans!
this just shows me you dont have a clue in the lending process.. the bank doesn't care what you spend the $$$ on.. they care about your ability to service the loan.. and since you have retired, and have no job income, then they will say you cant afford it.. they certainly wont approve further lending without having stable job or income coming in..
as I said.. good luck..
What would you do, sell up?...
I recommend the book
'wealth for life' its a good read.
Also, if you look at many investment gurus, many will state that equity is the key to wealth.
I agree. Why invest if you're not going to use the money?
yes it is the key to wealth, your right here, but you cant keep on borrowing, until you have income to service the debt.. I'm sure you already know banks only count 75% of rental income.. which is a great help when your capatilizing interest!
I'm leaving now, just thought there may be some interesting things I could learn here but I'm sure I'm way ahead of most here.
ciao. And happy investing, I wish you all the best
I'm sure you are.. had you actually posted your stratergy, like the likes of Keith etc, then we could see what you have done, and learn from you.. but your comments indicate that your story is prehaps less than factual.. since most people here have experiance in buying houses, we know what works and what doesnt..
Next your going to say 'read a book called 1 to 300 properties in 3 years' and tell us your an expert... its nice to read those 'stories' then think your Invincible, but I'm sure the market will teach you lessions which you need to learn..
good luck in your investing, its great your travelling down this path.. but you need to take a chill pill, and prehaps learn from others here who are more experianced than you..
Regardless of whether this was a genuine poster or not, it was well worth the read.
Even low doc require more info. these days. Having said that, if they approve your low doc loan, I think you're exaggerating a bit with 12% rates, unless you're referring to smaller lenders who don't really want the business?!
the point I'm making is he can't just increase his loans and expect to capatalize interest interest.. sure this sounds nice in theory, but in reality he will need to show the banks income to support the loan..
and on top the OP is saying how he will continue to buy up all these IP's quickly..
its just not going to work so quickly.. sure in time once rents raise, or his income raises he can extend credit, and then he can buy more IP's and/or capitalize interest
and on top the OP is saying how he will continue to buy up all these IP's quickly..
its just not going to work so quickly.. sure in time once rents raise, or his income raises he can extend credit, and then he can buy more IP's and/or capitalize interest
So, he/she tells lies.
I'm shocked!
Not necessarily to do with lying TF. I've never formally told a bank what the purpose of a loan is. They just want to know your income and what security their getting, although sometimes it's pretty obvious what the purpose is!
Sometimes they ask verbally, in which case "it's for buying shares" can be a good answer...
LMAO
Are you kidding?
I'm ready to borrow more, and the Banks are willing to lend.
Being from Tassie I suspect you're accustomed to low level thinking, in terms of $$$'s, because everything is cheap down your way.
My advice. You may need to think a little bigger if you ever aim to get anything out of this game. But its your life, you do what you will
So it seems there are a few sceptics on the whole equity redraw thing, and I see where they're coming from.
This has had me thinking to. I have come to realise that in a worst case scenario I could simply sell a dwelling, buy another one, and live on that for a few years, repeat.
Or, put my money into higher yielding property/ies.
Or, commercial deals?
There are many things to consider, and I love that thought.
I could utilise a mix of strategies.
Things do change over the long term and I'll keep looking at the bigger picture along the way.
My aim is to be living the life I want within 3 years though. And I will achieve that. I don't want to be the old guy who hoards his riches. Life is for living, and I've worked too hard, for too many years to stray from this path. It's my hobby.
I enjoy investing, and I'm prepared to do it tough for a little while longer if it means shaving decades off my working life.
I'm the sort who prefers to accumulate sooner rather than later, because I get to reap the growth from doing so.
But what if rates rise? Ohh boo hoo, capitalise interest.
And to the dude who doesn't believe my growth figures.
I don't know where you've been investing but it might pay to take a look at what you're buying.
Adios.
Funny how it didn't take long for you to be found out by the real property investors did it. I've been in the game a bit longer than you grasshopper so do your research a little more carefully next time before we start telling porkies.
But yes it was fun to read your story and in 3 years time you will achieve what has taken others 10-15 yrs..
Good luck and enjoy
Hi Bill,
While 35% growth seems unbelievable, it is not entirely impossible. I bought an IP in Melbourne just before the mini boom in 2007. It had 35% growth during that year, and is still rising now! Therefore if Investor2009 had held these assets before 2007 and they were in Melbourne, then such growth figures are possible.
I am not sure what Investor 2009 has bought. Bill, you raise other valid points though to do with his low income etc that would make his scenario unlikely. I must admit when reading his post I didn't take into account his low income etc.
The only thing I can think of is that Investor2009 was given a property or two or three to begin with??
I have always found people on the forum to be genuine in the information they tell regarding their portfolios etc. Investor2009, can you clarify whether you are genuine? Do you have the portfolio you claimed to have when you first posted? If so, well done, and were you starting from an inheritance or the like? No problems if you were - it would just be good to clarify your situation so that we can read your future posts and know that you are credible.
Regards Jason.
Geez, we're on income higher than what he says and the bank would lend us $140k total. I wouldn't want a million in debt on a low income
Hey man!
Thanks for writing.
I've come to ask a question in the "legal issues" section and stopped by while I'm here.
In regards to your question about "was I given property or money/assets to begin with?" The answer is a big no. I did it really tough and saved my *** off for years.
And yes, not bad growth at all given most people were booing Melbourne and are only just starting to turn their opinions now (I knew the doom and gloom was ******** from day one) And I had the guts to put my money on the line. Thats the difference.
I also believe were in for much of the same within the next 5 years, and without slow growth along the way. Mark my words or just disregard them as rubbish, your call and I don't mind either way.
One major difference I see between most and me is the willingness and belief in property.
I believe in gearing.
I believe in property
And I believe in aquiring the largest assett base possible within the shortest time possible.
I also believe in capitalising interest if I absolutely need to, or if I want to. This can be a very useful tool for any investor that is serious about wealth creation but if they don't believe property will do good, theres no point in capitalising interest and therefore, barely any point investing in the first place. All depending on your goals.
And lastly. Yes, I am genuine. But its really nothing to write home about. I'm just a small fish, hope to change that within the next few years though.
See yez!
Thanks for writing.
I've come to ask a question in the "legal issues" section and stopped by while I'm here.
In regards to your question about "was I given property or money/assets to begin with?" The answer is a big no. I did it really tough and saved my *** off for years.
And yes, not bad growth at all given most people were booing Melbourne and are only just starting to turn their opinions now (I knew the doom and gloom was ******** from day one) And I had the guts to put my money on the line. Thats the difference.
I also believe were in for much of the same within the next 5 years, and without slow growth along the way. Mark my words or just disregard them as rubbish, your call and I don't mind either way.
One major difference I see between most and me is the willingness and belief in property.
I believe in gearing.
I believe in property
And I believe in aquiring the largest assett base possible within the shortest time possible.
I also believe in capitalising interest if I absolutely need to, or if I want to. This can be a very useful tool for any investor that is serious about wealth creation but if they don't believe property will do good, theres no point in capitalising interest and therefore, barely any point investing in the first place. All depending on your goals.
And lastly. Yes, I am genuine. But its really nothing to write home about. I'm just a small fish, hope to change that within the next few years though.
See yez!
But how do you *do* that?
I just found out that if someone gives me $110,000 (give or take floor coverings and landscaping) I can magically create a house that will rent for $280pw. That's 13% yeild before expenses, for $550 a month, and we are currently throwing $1000 a month into savings.
How the hell do you get a loan for that kind of deal?
I'm not sure what you're trying to say?
I just speak with my broker, $110,000 is peanuts this day in age and should be easy to borrow. Or you could pull from equity?
If the property lies within a lending postcode that is.
Yield sounds pretty high.
I just speak with my broker, $110,000 is peanuts this day in age and should be easy to borrow. Or you could pull from equity?
If the property lies within a lending postcode that is.
Yield sounds pretty high.
Low income = inability to get loans, even if they return well, as far as I know.
Yield is so high because we will own the land outright.
Yield is so high because we will own the land outright.
Hi again!
A/ most lenders are willing to lend to me atm. In particular, my first lender (first investment loan) has called me on numerous occasions in the hope that I want to borrow. (Don't know if this happens to others regularly?)
B/ I have not yet used capitalised interest. But when/if I do soon, it will be at current standard variable or fixed line of credit rates.
C/ I bought one property in the first year, and the rest this year through different lenders. I know the finance game fairly well due to good broker friends and good broking books. I try to keep up to date and one must watch and learn to utilise current economic conditions to their lending advantage. I call debt the tool needed to better ones financial position and it must be understood. if all you have is a hammer then many options will be out of reach..
Over n out.
A/ most lenders are willing to lend to me atm. In particular, my first lender (first investment loan) has called me on numerous occasions in the hope that I want to borrow. (Don't know if this happens to others regularly?)
B/ I have not yet used capitalised interest. But when/if I do soon, it will be at current standard variable or fixed line of credit rates.
C/ I bought one property in the first year, and the rest this year through different lenders. I know the finance game fairly well due to good broker friends and good broking books. I try to keep up to date and one must watch and learn to utilise current economic conditions to their lending advantage. I call debt the tool needed to better ones financial position and it must be understood. if all you have is a hammer then many options will be out of reach..
Over n out.