"The $200,000 Question"

W

WebBoard

Guest
From: Anonymous


The question is: What would guys do if you had $200,000 in equity and you wanted to re-invest it in property so you could start living off the income it produces in a short period of time.

How would you do it?

What strategies would you use?

Dream Believer.
 
Last edited by a moderator:

Sim

Administrator
Reply: 1
From: Sim' Hampel


You could start by selling off all your non income producing assets (cars, furniture etc) and move into a caravan, which would minimise your expenses, which makes it easier for your passive income to be enough to live on... but I'm sure that's not what you intended ;-)

sim.gif
 
Last edited:
Reply: 2
From: Rolf Latham


Hi DB

Depending on your financial state Id be looking to maximise the amount of real estate I control with that 200 k. This means using Lenders Mortgage Insurance and using lenders that will also allow me to borrow the Lenders Mortgage Insurance on top of the normal loan.

Ta

Rolf
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 2.1
From: Dirk Diggler


If you want to reinvest the 200k to get cashflow to live on in the shortest period of time, wraps are the go. This is my opinion only, others were differ.
Now 200k, will buy you alot of straight rentals, but will you get not much cashflow if you buy in the cities. Well not enough cashflow to live of.
If I had 200k worth of equity in cash, to use for wraps and assuming I could qualify for the loans etc etc, I would turn that 200k into an income stream of 125-150k passive per annum in my market. (being conservative, probably could do 200k passive if I wanted to).
Anyway, it worked for me. Others will have different opinions, but you did ask in the shortest period of time. I personally made this descision myself. To ditch my neg geared portfolio and buy cashflow only, with no landlording hassles.
To give you an idea, I've done 65k passive in 18 months, but I didnt have 200k!
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 2.1.1
From: Simon St John


Dirk

Would you care to share some background and numbers on how you got to the $65K mark in 18 months?

- How did you get started (learn how to do wraps)

- who helped with preparing contracts etc.

- other info such as figures that you might want to provide?

Just be great to hear some facts from someone whose been successful at it.

Many thanks!

Simon
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 2.1.1.1
From: Anonymous


Thankyou everyone for your feedback, I feel very privelagedto be on this site with so many helpful people.

Thank you

Dream Believer.
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 2.1.1.1.1
From: Dirk Diggler


Fair go Simon. Do you want me to bore everyone with the longest post in history?
I'll be writing for ages!
 
Last edited by a moderator:
Reply: 2.1.1.1.1.1
From: .watto .


Maybe pick 2 or 3 reasonably current deals and post them.

I'd be interested in finding out more on your technique/style to see if it would suit me.

Cheers
Watto
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 2.1.1.1.1.1.1
From: Tibor Berenyi


Dirk,

You certainly would not bore me. I would love to hear any info you cared to offer - long or short as I am seriously considering wrapping myself. Given I don't have a heap of equity or a large income, negatively geared / high capital gain would not be the best strategy for me at the moment. Ta.
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 2.1.1.1.1.1.1.1
From: Dirk Diggler


Ok guys, a couple of examples.
1)Bought a house 15% undermarket for $65,000 and my wrappee actually found it. A divorce situation, motivated seller. Financed it at 80%, loan $52,000 or $379 per month
Resold for $88,900 less a 7k First home buyers grant and 5k bank cheque. Wrappees payment are $689 per month.
The had been renting for 12 years and saw no way out.
2)A house that a lady wanted to buy and was actually renting it, but couldnt quiet get finance because the mortgage insurer was causing problems. (the husbands total income went down $1,000 in one year!)Bought it for 47k at 80% finance. loan $290 per month.
Resold for 63 k less 7k grant and 2k bank cheque. Repayments $535.00 per month.
Both houses left me 4k out of pocket, which i get back anyway in 9 months.
Hope this is ok information for you guys.
And if they cash me out, 42,000 profit!
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 2.1.1.1.1.1.1.1.1
From: Sharon Luttrell


Dirk

Just wondering what city or part of Australia these were?

Sharon
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 2.1.1.1.1.1.1.1.1.1
From: Dirk Diggler


Regional Victoria
 
Last edited by a moderator:
Reply: 2.1.1.1.1.1.1.1.1.1.1
From: Jeremy Laws


I suggest not wrapping! _IF_ you do, buy 2-3 then 2-3 owned properties. Make sure there are +ive cashflow properties that don't rely on wrapping - you will be way better off! Don't sell the farm unless you have to. Wrapping has its own little dramas. I wrap, am wrapped and own. Owning is better........It (wrapping) is a short term gain. Even if the $50k cheque last week was nice:)
 
Last edited by a moderator:
Top