Hi Cookie,

Thanks heaps.

regards
4walls

julia b, well done.

I have 3 names of buyer’s advocates.
1. buyer’s advocate at spring hill
2. buyer’s agent at stone’s corner
3. property research at redhill

Anyone have any thing to say about these guys or recommend someone they have dealt with please.

thanks and regards

4walls

Hi Cookie,

I too would like some feedback on this topic. I remember reading that Sooshie said using a Buyer’s Agent was for the passive investor. I can vaguely remember Steve saying that this was giving up control. So, how do we keep control and be non-passive. Do the research so you will be stipulating location, type of dwelling, purchase price to the buyer’s advocate. Am I missing something. Is this classed as non-passive action? Here comes a stupid question…..at what point do you factor in buyer’s advocate costs…..purchase price or against future rental income. I guessing the first one?????

regards
4walls

Hi Tiffany, Danielle here. Honour to meet you and Brett at the seminar. Tiffany, 3 kids and 1 on the way, your a champion!!!!. I’m rooting for you on being chosen for the mentoring programme. You guys sure stand out as exceptional. Keep it up, and may your hard work pay off infinitely.

best regards
4walls

Hi Essykay,

We are currently going through the same tough decisions!

I don’t know if you have a chance to attend Steve McKnight’s seminar in Melbourne over the weekend. It was fantastic to see people from all walks of life just going for it and making it work.

I’m thinking, that the net below our trapeze can sometimes be our undoing!!!!!

Would love to know what you decided.

Please email me at
[email protected]

regards
4walls

Hi Wilandel

An interest only loan is suitable if your goal is to achieve positive cashflow on your investment. Basically, with an interest only loan you are actually making your money (that you put down as deposit) work harder for you. I see no reason to increase equity in your investment if your goal is to achieve the maximum return on equity. For example if you bought a property for say, $100,000 and you had to put down 20% deposit, so you’re borrowing $80,000. At an annual interest rate of 6% your annual cost of servicing the loan is $4,800. Say your property rents at $125 per week, or $6,500 p.a. Assuming that that is all your cost of investing in this property, your net +ve cashflow = $6500 – $4,800 = $1,700. Hence your return on equity = 8.5% ($1,700/$20,000). Now if you were to start paying “principal” toward your loan, your equity indeed rises, but your ROE drops making the return on your property less attractive.
Again, this is a simple illustration without taking into acount stamp duty, real estate fees etc but the formula is simple and applies to most investments. I agree with Felicity in that, if your goal is to accumulate rather than increase ownership in the one property, defer or avoid paying off principal. One thing to note though is to put down a deposit that you think would cover a potential “adverse” move in property prices in general. Good luck.
regards
4wall’s husband

I guess if I am an Australian living in Singapore, but attend your course I will be out of the race?

regards

4walls

Hi Dianne,

I must be confused about your post. I emailed a portion of your post to my solicitor and asked her to investigate. I thought that we maybe able to get a concession or something on land tax as we have have sold our house and are settling in March. As you know land tax is charged Dec-to-Dec. We have never lived in the property.

The solicitor came back with a reply in reference to your post,”its only applicable if the purchaser moves in before settlement”.

Just thought I would run this past you to see what you thought and if I have my wires crossed.

regards

4walls