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Will You Add? - Free Property Investing - 7 Ways To Buy Property In Australia With No (or Very Little) Money Down
These days there is a case to be made for building link popularity as being the most important website optimization factor, even above keyword density and other on-page factors. Did you know that there are little-known but excellent methods to greatly increase your link popularity...Three or four years ago the most important factors in determining where your website appeared in the search engine results pages had not to do with building link popularity but lay in on page factors. In other words it was the wording and positioning of the wording on your page which was the all-important factor. Your link popularity score was just another factor, and in those days it had much less importance than it does today.Your title tag was especially important (and to some extent it is still is), closely followed by the keyword density of your page text. If you wanted to rank well for a particular keyword phrase then you had to increase that phrase and variations of it in your text until they reached a percentage rate of roughly between 1% and 6%, this varying with choice of keyword phrase, search engine, etc. These days such factors still matter, especially for pages that target keyword phrases for which there is not a large amount of competition, though effective keyword density rates seem to have come down well below 6%.Increasing Link popularity as the possibly most impo
To make it work best, remember that it has to be a good deal for the vendor too. They have to have a good reason to go for the deal. So, maybe you will choose to offer them slightly more than its current value or maybe you will pay them a higher than normal interest rate on the amount you still owe them, and you will offer them the security of a second mortgage, won’t you? etc.
Also, it is a very good idea to put your offer in on the basis of two options. Such as: “I’ll buy the house in the normal way for $180,000 or on vendor finance terms for $200,000”. This clearly demonstrates the extra that you are offering for the vendor finance terms.
Approach 5 – Off The Plan
Here’s another good one. If you agree to buy a property off the plan, you will normally have some time before it is finished and, if the property market is rising, it may have risen enough to get a normal mortgage that covers 100% of the purchase price.
Let’s take an example. Say the property price is $200,000 again and let’s say that building is expected to complete and the property will
In our work with growing businesses we see a recurring theme when it is time for one of the founding members to hand over the reigns of sales and/or marketing to an employee. They say to us, “This new person just isn’t getting the job done like I did. Well, I guess it’s because they don’t know the product like I do.” While it is true that the new person probably doesn’t know the product as well as one of the founders, that’s not the problem. The problem is passion!When you talk to a small business owner you can see, hear, feel, smell and taste their passion for their product. In many cases we could almost say they are inseparable from each other. When the new person arrives we make the transition from a person for whom this product or service is a life’s passion, to someone who is doing something because it is their job. Knowledge of a product’s features and benefits can be taught, but passion needs to be imbued into the fabric of the organization as it grows.To do this, two things need to occur. First, the sales and marketing employees need to have a stake in what’s going on, and have an inbred tendency toward passion. All good salespeople have this passion. Typically, the passion is viewed, by the customer, to be a passion for the product or service that the seller is peddling. In reality, the passion stems from the monetary and intrinsic compensation that the
So, let’s get on with it!
Approach 1 – Use Existing Equity In Your Home
If you own your own home (with or without a mortgage), you may have equity in your home that you can use.
So, let’s say that your home is worth $400,000 and that you have a mortgage on it of $250,000. You therefore have $150,000 of equity in your home ($400,000 less $250,000 = $150,000). Let’s also assume that you have found a great investment property that you now want to buy for $200,000. If you go along to a lender and offer both properties as security, it is likely that they will lend you 80% (or maybe more) of the value of both properties. So, the combined value of the two properties is $600,000. If they were to lend you 80%, that would be $480,000. Of this, $250,000 would cover your existing home loan leaving up to $230,000 for the purchase of your new investment property. This would not only pay the cost of the property but would also leave an extra $30,000 for costs (legal fees, stamp duty, etc.).
Approach 2 – Buy At A Discount
If you have found an investment property that is worth $200,000 and you can negotiate a purchase price of, say, $160,000 then you may be able to get the lender to lend you, say, 80% of the value instead of 80% of the purchase price. This would cover the whole purchase price and just leave you to pay for the costs.
While this sounds great in theory, most lenders these days take the approach of only lending based upon whichever is lower, the value or the purchase price. You will usually have to have a very good relationship with the lender for them to lend based upon a higher value.
If you are unable to convince any lenders to lend based upon valuation, then an alternative approach is to initially borrow based upon the purchase price and then re-finance as quickly as you can with another lender. The new lender will use a valuation to determine how much they will lend. Obviously, the disadvantage of this is that you will need to find additional funds for a short period of time until you re-finance. However, can you borrow these funds for a short while from family, or friends, or credit cards, or personal loans, or … ?
If you have a small pool of funds that is just enough for you to purchase one property in this way, you might decide that you would keep re-using this pool of funds to keep buying more discounted properties, each time converting them into no money down deals as soon as possible after you own them. A large property portfolio can be built this way with only a small pool of money.
Approach 3 – Renovate and Refinance
Approach 3 is similar to approach 2. The difference is that you purchase at a fair price (not necessarily discounted) and then do a cosmetic renovation that adds substantially more value than the cost of the renovation, and then you re-finance.
So, if we again take our $200,000 investment property. Let’s say you buy it for $200,000. You then spend $5,000 doing a few cosmetic improvements (a lick of paint, tidy the yard, clean the kitchen, etc?) that brings the property up to a value of, let’s say, $250,000. If you then re-finance it at 80% of $250,000, the lender will give you $200,000. You have a short term outlay, most of which is repaid from the re-finance. The cash you eventually leave in the deal in this example is the renovation and purchase costs. Of course, if you were able to get a 90% loan, you would not need to increase the value as much as this and you would still achieve a no money down deal.
Approach 4 – Vendor Finance
I like this one! And it’s more common than you might think. Let’s take our $200,000 investment property again. You would offer to purchase the property for $200,000 but on the terms that you would pay, say, 80% now and the balance in, say, 2 years. So, the bank loan covers your initial payment and a refinance 2 years later (when prices have increased) may cover the extra you need to pay then.
This approach is more common with rural and agricultural properties but there is no reason why you should not apply it to residential property too.
To make it work best, remember that it has to be a good deal for the vendor too. They have to have a good reason to go for the deal. So, maybe you will choose to offer them slightly more than its current value or maybe you will pay them a higher than normal interest rate on the amount you still owe them, and you will offer them the security of a second mortgage, won’t you? etc.
Also, it is a very good idea to put your offer in on the basis of two options. Such as: “I’ll buy the house in the normal way for $180,000 or on vendor finance terms for $200,000”. This clearly demonstrates the extra that you are offering for the vendor finance terms.
Approach 5 – Off The Plan
Here’s another good one. If you agree to buy a property off the plan, you will normally have some time before it is finished and, if the property market is rising, it may have risen enough to get a normal mortgage that covers 100% of the purchase price.
Let’s take an example. Say the property price is $200,000 again and let’s say that building is expected to complete and the property will b
I decided to write this article to warn everyone using ebay, what can go wrong for the buyer when the goods do not turn up. Recently i won an auction on ebay, which luckily for me was at a low price and what a relief that was after what happened next. After a week had gone by and no goods turned up, i contacted the seller by email, a few days passed and no reply so i wrote another email a bit stronger this time to hopefully get an answer.Another week passed and still no answer, so i decided to file a dispute under ebay policy. Ten days had passed since i had paid which was required, i stipulated in my dispute that i had contacted the seller twice with no reply.Ebay sent me a message stating it would be another ten days until they could judge who in their opinion is liable for the dispute. They sent the seller emails asking for their response to this filed claim against them. I was able to watch the proceedings of the claim via my paypal account under the disputes section.After a further ten days, the seller had not responded to the file against them and i thought i had won, this was confirmed by paypal but then the reality hit home in their reply message to me. It stated that even though i had won the claim, they could not guarantee my money back under ebay policy.I then got a message a few days later stating they had tried to recover the money from the
Approach 2 – Buy At A Discount
If you have found an investment property that is worth $200,000 and you can negotiate a purchase price of, say, $160,000 then you may be able to get the lender to lend you, say, 80% of the value instead of 80% of the purchase price. This would cover the whole purchase price and just leave you to pay for the costs.
While this sounds great in theory, most lenders these days take the approach of only lending based upon whichever is lower, the value or the purchase price. You will usually have to have a very good relationship with the lender for them to lend based upon a higher value.
If you are unable to convince any lenders to lend based upon valuation, then an alternative approach is to initially borrow based upon the purchase price and then re-finance as quickly as you can with another lender. The new lender will use a valuation to determine how much they will lend. Obviously, the disadvantage of this is that you will need to find additional funds for a short period of time until you re-finance. However, can you borrow these funds for a short while from family, or friends, or credit cards, or personal loans, or … ?
If you have a small pool of funds that is just enough for you to purchase one property in this way, you might decide that you would keep re-using this pool of funds to keep buying more discounted properties, each time converting them into no money down deals as soon as possible after you own them. A large property portfolio can be built this way with only a small pool of money.
Approach 3 – Renovate and Refinance
Approach 3 is similar to approach 2. The difference is that you purchase at a fair price (not necessarily discounted) and then do a cosmetic renovation that adds substantially more value than the cost of the renovation, and then you re-finance.
So, if we again take our $200,000 investment property. Let’s say you buy it for $200,000. You then spend $5,000 doing a few cosmetic improvements (a lick of paint, tidy the yard, clean the kitchen, etc?) that brings the property up to a value of, let’s say, $250,000. If you then re-finance it at 80% of $250,000, the lender will give you $200,000. You have a short term outlay, most of which is repaid from the re-finance. The cash you eventually leave in the deal in this example is the renovation and purchase costs. Of course, if you were able to get a 90% loan, you would not need to increase the value as much as this and you would still achieve a no money down deal.
Approach 4 – Vendor Finance
I like this one! And it’s more common than you might think. Let’s take our $200,000 investment property again. You would offer to purchase the property for $200,000 but on the terms that you would pay, say, 80% now and the balance in, say, 2 years. So, the bank loan covers your initial payment and a refinance 2 years later (when prices have increased) may cover the extra you need to pay then.
This approach is more common with rural and agricultural properties but there is no reason why you should not apply it to residential property too.
To make it work best, remember that it has to be a good deal for the vendor too. They have to have a good reason to go for the deal. So, maybe you will choose to offer them slightly more than its current value or maybe you will pay them a higher than normal interest rate on the amount you still owe them, and you will offer them the security of a second mortgage, won’t you? etc.
Also, it is a very good idea to put your offer in on the basis of two options. Such as: “I’ll buy the house in the normal way for $180,000 or on vendor finance terms for $200,000”. This clearly demonstrates the extra that you are offering for the vendor finance terms.
Approach 5 – Off The Plan
Here’s another good one. If you agree to buy a property off the plan, you will normally have some time before it is finished and, if the property market is rising, it may have risen enough to get a normal mortgage that covers 100% of the purchase price.
Let’s take an example. Say the property price is $200,000 again and let’s say that building is expected to complete and the property will
After 5 years of serving customers in hosting, it's necessary to lay out some warning factors to beginners or even experienced webmasters when choosing their hosting account so that they can have smooth running of their sites at all times.Day by day the prices for hosting are dropping significantly. The reason behind it is competition. The main server is shared amongst many customers like you. This is normal practice. But what happens if all these accounts have heavy traffic, it will result in slowing down of opening your web page. To take precaution, you can ask the reseller the following or alike questions before purchasing your hosting account.How many accounts you have on a single server?What will happen when the traffic is heavy?Will it result in crash down of server?Ask similar questions and be satisfied with the answers before purchasing your new hosting account.The next thing is research about the reseller who is offering you the hosting.You have to go through the reseller for hosting. The reseller offers more discounts than the rates given by the original server hosting packages. This is because the reseller is paying a fixed amount for shared hosting and hosts as many sites as she wants in most of the cases. So she can offer you a good discount on original server rates.Do not get mixed with reseller with affiliates. Affi
If you have a small pool of funds that is just enough for you to purchase one property in this way, you might decide that you would keep re-using this pool of funds to keep buying more discounted properties, each time converting them into no money down deals as soon as possible after you own them. A large property portfolio can be built this way with only a small pool of money.
Approach 3 – Renovate and Refinance
Approach 3 is similar to approach 2. The difference is that you purchase at a fair price (not necessarily discounted) and then do a cosmetic renovation that adds substantially more value than the cost of the renovation, and then you re-finance.
So, if we again take our $200,000 investment property. Let’s say you buy it for $200,000. You then spend $5,000 doing a few cosmetic improvements (a lick of paint, tidy the yard, clean the kitchen, etc?) that brings the property up to a value of, let’s say, $250,000. If you then re-finance it at 80% of $250,000, the lender will give you $200,000. You have a short term outlay, most of which is repaid from the re-finance. The cash you eventually leave in the deal in this example is the renovation and purchase costs. Of course, if you were able to get a 90% loan, you would not need to increase the value as much as this and you would still achieve a no money down deal.
Approach 4 – Vendor Finance
I like this one! And it’s more common than you might think. Let’s take our $200,000 investment property again. You would offer to purchase the property for $200,000 but on the terms that you would pay, say, 80% now and the balance in, say, 2 years. So, the bank loan covers your initial payment and a refinance 2 years later (when prices have increased) may cover the extra you need to pay then.
This approach is more common with rural and agricultural properties but there is no reason why you should not apply it to residential property too.
To make it work best, remember that it has to be a good deal for the vendor too. They have to have a good reason to go for the deal. So, maybe you will choose to offer them slightly more than its current value or maybe you will pay them a higher than normal interest rate on the amount you still owe them, and you will offer them the security of a second mortgage, won’t you? etc.
Also, it is a very good idea to put your offer in on the basis of two options. Such as: “I’ll buy the house in the normal way for $180,000 or on vendor finance terms for $200,000”. This clearly demonstrates the extra that you are offering for the vendor finance terms.
Approach 5 – Off The Plan
Here’s another good one. If you agree to buy a property off the plan, you will normally have some time before it is finished and, if the property market is rising, it may have risen enough to get a normal mortgage that covers 100% of the purchase price.
Let’s take an example. Say the property price is $200,000 again and let’s say that building is expected to complete and the property will
I do a lot of surfing on the Internet. I’m always Googling something. Sometimes I’m doing business research. Other times I might be shopping, looking for fun stuff, free stuff, product reviews, or news. The Internet is a wonderful thing when it’s done right. When websites are designed poorly, it can be very annoying.My top ten pet peeves about the design of web pages:10. Websites with nothing on the home page to identify itself.You’ve seen them. Nice graphics, artistic, elegant looking home pages with no information. It might say “ BXY Inc.”, with a link for ‘Contact’ and a list of clients. You click on every link, but you still don’t know what the company does. Hmmm - must be top secret … or they are spies … nobody knows.9. Flashy, sparkly, swirling intro pages.You click on a link, expecting to get someone’s home page with the information you’re after. What you get is a page with pretty pictures flashing or blinking or swirling around. It does this for several seconds, or longer if you’re not lucky.Website programmers enjoy playing with these fancy features (ooh, aah!). They look cool, but they waste the reader’s time. They serve no useful purpose, unless you’re selling flashy, sparkly things.Another kind of intro page that is slightly amusing … you click on the link to a website and you get another page that just says “click here to e
Approach 4 – Vendor Finance
I like this one! And it’s more common than you might think. Let’s take our $200,000 investment property again. You would offer to purchase the property for $200,000 but on the terms that you would pay, say, 80% now and the balance in, say, 2 years. So, the bank loan covers your initial payment and a refinance 2 years later (when prices have increased) may cover the extra you need to pay then.
This approach is more common with rural and agricultural properties but there is no reason why you should not apply it to residential property too.
To make it work best, remember that it has to be a good deal for the vendor too. They have to have a good reason to go for the deal. So, maybe you will choose to offer them slightly more than its current value or maybe you will pay them a higher than normal interest rate on the amount you still owe them, and you will offer them the security of a second mortgage, won’t you? etc.
Also, it is a very good idea to put your offer in on the basis of two options. Such as: “I’ll buy the house in the normal way for $180,000 or on vendor finance terms for $200,000”. This clearly demonstrates the extra that you are offering for the vendor finance terms.
Approach 5 – Off The Plan
Here’s another good one. If you agree to buy a property off the plan, you will normally have some time before it is finished and, if the property market is rising, it may have risen enough to get a normal mortgage that covers 100% of the purchase price.
Let’s take an example. Say the property price is $200,000 again and let’s say that building is expected to complete and the property will
Many workers and consumers distrust CEOs (in part due to recent scandals like at Enron) and believe that they are overpaid. Many look at it as a moral issue saying that you cannot justify paying millions to one person when so many people are working for minimum wage and in poverty.Sensational headlines add fuel to the fire. In Canada, there was a report published in most of the daily newspapers saying that by 10 am on January 2nd, the 100 top paid CEOs in Canada have already earned more than what the average Canadian makes in an entire year. A few more facts on this story: The average income of the 100 top paid CEOs in Canada is $9 million per year. The income of the average Canadian worker is $38,000 per year. Look at it this way – By the end of the fourth day of each year, these CEOs make more than twice what the average person makes in the entire year!Stories like this are sensational. Sensationalism hurts reputations. Nothing was published about whether these CEOs earn their keep or how anybody would go about measuring their worth. Sure, some of these people are probably overpaid. But some are not. Some of these CEOs, I'm sure, risked everything to start the companies that they now preside over. They risked a lot. They now enjoy the rewards that come with success. Not to mention, many of these CEOs are probably responsible for the creation of many jobs.In the
To make it work best, remember that it has to be a good deal for the vendor too. They have to have a good reason to go for the deal. So, maybe you will choose to offer them slightly more than its current value or maybe you will pay them a higher than normal interest rate on the amount you still owe them, and you will offer them the security of a second mortgage, won’t you? etc.
Also, it is a very good idea to put your offer in on the basis of two options. Such as: “I’ll buy the house in the normal way for $180,000 or on vendor finance terms for $200,000”. This clearly demonstrates the extra that you are offering for the vendor finance terms.
Approach 5 – Off The Plan
Here’s another good one. If you agree to buy a property off the plan, you will normally have some time before it is finished and, if the property market is rising, it may have risen enough to get a normal mortgage that covers 100% of the purchase price.
Let’s take an example. Say the property price is $200,000 again and let’s say that building is expected to complete and the property will be ready for you to move into (or rent out) in 18 months time. However, by the time it is ready to be occupied, it might have increased in value. This could be simply because the market has moved up or it could be for other reasons, such as the price to buy at an early stage of the development process can be at a discount to its true value. So, let’s say that the property is worth $250,000 by the time it is ready. Getting an 80% loan on the property would give you $200,000 – just enough to buy it for no money down (excluding costs). And, if you were to get a 90% loan, you might even get money back from the deal!
There are a couple of great extra twists you can use with this approach. Normally you would need to put in a 10% deposit when you agreed to purchase the property. You would get this back at settlement from the cash from the bank loan. However, if you are interested in no money down deals then you are unlikely to want to put 10% in up front and leave it sitting there for 18 months! So, the way round this is to get a deposit bond. A deposit bond acts like a loan for the deposit. So, you do not need to pay the deposit! Instead you pay a small fee to the deposit bond provider. Your mortgage broker will be able to help you find a suitable deposit bond provider.
There’s a second great twist to this strategy. And that’s to buy in Victoria. The stamp duty rules in Victoria say that duty is payable on the value of the property at the time that contracts are exchanged. If you enter the deal at an early stage, the value at that time might be land value only. You can save a lot of money in this way.
There is one thing to watch with this approach though. Only enter into the contract to buy if you are sure you will want to purchase the property when it is finished. A few years ago people were entering into these contracts and re-selling the property before it was finished for a higher price. Some people made a lot of money from this and started entering into lots of contracts to buy off the plan with no intention of ever actually buying the properties. This was working terrifically until over-supply caught up with them. They found that they could not sell the property for a profit and they could not afford to buy all the properties they had entered into contracts for. They lost money – some of them lost lots of money. Please, only use this strategy to actually buy a property you want. Remember you are entering into a legally binding contract to purchase the property.
Of course, if circumstances change for you and you no longer want to proceed with the purchase at the time of settlement, then you can often find a buyer who will want to buy the property from you and there’s probably a good chance that you will make a profit out of it. But please do not enter into the contract with the intention of never actually buying it.
Approach 6 – 100% finance
This is probably the most obvious one. Ask the lender to lend you 100% of the purchase price. Competition amongst lenders is increasing and 100% loans are becoming more available. However, lenders tend to withdraw such products when the property market stalls and make them available again when the market is rising.
Also, they will be very particular when assessing your application. They will only offer 100% loans for what they perceive to be very low risk people and very low risk properties. And, they often charge a premium for these loans with higher fees and higher interest rates. Nevertheless, this might be the best approach for what you want to do.
Approach 7 – Service Provider
A service provider that structures itself specifically aimed at helping people to buy property with no money down can be a great way for many people. The service providers will work with you to help find the right property and the right finance structure.
Some service providers will charge you a fee for their services. However, often they will have direct arrangements with property developers and mortgage brokers that means they can package up a no money down deal for you. The property developers and mortgage brokers like the arrangement as the service provider will do much of their sales work for them – which saves them money. This can be a substantial saving and many property developers and mortgage brokers are very happy to pay a commission to the service provider as this will still save them a considerable sum. In this way, the service provider can often work for you without you having to pay them anything.
There are a growing number of these service providers and it is worth checking out a few to see the range of services they offer and what (if anything)
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