I've heard of selling your first-born, but didn't realise you could get something for the grandparents too.
What is your NET WORTH?
- Thread starter virgo
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I've heard of selling your first-born, but didn't realise you could get something for the grandparents too.
*Mother's house
I'm guessing it would depend on the rate of depreciation over time? (Factors to consider would include smoker vs non-smoker, etc.)
Plus you have to factor in - is the grandparent worth more in their entirety or sold piece by piece? (a kidney here, a lung there...)
Wrecking: 1923 model grandma, some damage, body average for age, many usable parts, still some life in the old girl yet.
Correct.
I wouldn't like to have $40mill and only $2mill nett worth though. The SANF would be low.
But then again; I'm a bit risk averse; others might look at that equation and go; "hey! I'm worth $2mill! woohoo!"
yeah 95% (total LVR, not just one investment), unless the $ figure is pretty low, would be too uncomfortable for me. $2k / $100, I coudl probably feel ok about if i thought the investment was good, cause I know not much will go wrong even if worst came to worst.
How could you ever get to such a palce anyway ?
Wouldn't you need a huge of income coming in for anyone to consider leding you that much ?
How could you ever get to such a palce anyway ?
Wouldn't you need a huge of income coming in for anyone to consider leding you that much ?
Fear not Marc, no lending institution - bar none - is going to lend anyone 38m to buy 40m worth of assets. It is just so far removed from reality it ain't funny.
LVR's of 95% are the sole domain of people looking to buy their first home, where if it all goes belly up the Bank has their LMI @$$ covered, they've got most of their security covered via the sale of the property and they've got the worker's thumbnails screwed down.
If it all goes belly up trying to ride a 40m rocket, LMI ain't there, fire sale of assets might yield 25m and your job is nigh on useless no matter what you are paid - drop in the bucket type stuff.
The rules that normally apply on steps one and two of the wealth ladder cannot be used as you start to climb. When you get to steps eight and nine on the ladder, the rules are completely different.
Well Done Investor2009!!!
Hi Investor2009,
Very impressed by your increase in net worth! May I ask was it done mainly through property investing or a combination of property, shares, other investments?
ctcp61
Hi Investor2009,
Very impressed by your increase in net worth! May I ask was it done mainly through property investing or a combination of property, shares, other investments?
ctcp61
Why thank you! I feel humbled
There are others who have done much more than I but I've worked hard to get to where I'm at currently so it's worth telling the story.
Well first up I thought I could save my way to wealth because I didn't know any better.. Met with a few 'professional' financial people who were no help at all, turns out most of them were no better off than I was at the time.
I saved $40k or so over 3 years, bought a cheap unit. Sat on it for a year or so. Rents went up, capital gain went up by $60k or so, I pulled some equity and bought another. Waited 6 months and then repeated. Then repeated again perhaps another 6 months later. Tried to repeat again but the banks wouldn't let me so in the midst of selling one property now to free up service-ability that will allow us to purchase one of a higher value. (I say us because I now have a wife) All current assets were purchased in my name only.
Never dabbled in shares or anything else because I feel 100% comfortable with property.
My total LVR and equity will drop once this is done from $1.65M and 73%LVR with around 450k equity
TO
$1.85M assets @ 80% LVR with $330k equity but this does not bother me because in the long term it will all grow at a greater rate than now.
It will also help my wife feel more comfortable with investing and we can then branch off to purchase more in the future, doubling our buying and asset power. Exciting times!
Thanks again for asking and I hope this helps someone.
There are others who have done much more than I but I've worked hard to get to where I'm at currently so it's worth telling the story.
Well first up I thought I could save my way to wealth because I didn't know any better.. Met with a few 'professional' financial people who were no help at all, turns out most of them were no better off than I was at the time.
I saved $40k or so over 3 years, bought a cheap unit. Sat on it for a year or so. Rents went up, capital gain went up by $60k or so, I pulled some equity and bought another. Waited 6 months and then repeated. Then repeated again perhaps another 6 months later. Tried to repeat again but the banks wouldn't let me so in the midst of selling one property now to free up service-ability that will allow us to purchase one of a higher value. (I say us because I now have a wife) All current assets were purchased in my name only.
Never dabbled in shares or anything else because I feel 100% comfortable with property.
My total LVR and equity will drop once this is done from $1.65M and 73%LVR with around 450k equity
TO
$1.85M assets @ 80% LVR with $330k equity but this does not bother me because in the long term it will all grow at a greater rate than now.
It will also help my wife feel more comfortable with investing and we can then branch off to purchase more in the future, doubling our buying and asset power. Exciting times!
Thanks again for asking and I hope this helps someone.
