Forum Replies Created
Hey sooshie,
Melbourne will be a great chance to catch up. Looking forward to it immensely.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey DK,
To the best of my non-accountant knowledge….If funds are withdrawn from a refinance and not used for investment purposesd then they are not deductible.I was in a similar situation recently where one of my houses is up for rental renewal and it needs a minor reno. I would not get much more rent after the reno but I wuold get a great Capital Gain. I paid $64500 for it a year ago and the resale would sell around $110-120000 (after reno). To me I think that this property would grow no more than $5-10K this year and I know that I could make at least 20% in another deal this year so for me I will sell and take the opportunity to invest elsewhere.
Do what your gut tells you to do. Look at your goals again and do what takes you closer. Sometimes one step back leads to two (or more) steps forward.
Hope this helps.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinIt’s nice to know I have neighbours in Fairy land. I myself am regularly told by my clan that I live in Pixieland (which is just down the road from fairyland). It is interesting though now 1 year down the track with some successes under the belt how interested people can be. I try and buy books and share my books with my family but they more often than not reada little and find it too hard to shift their paradigm. What a shame. So many people with such potential out there who under use that potential. If only we all realised what we are capable of.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinSome also get a valuation to ensure they are not paying too much.
Also a thought is a drainage/plumbing inspection.
Hope this helpsEnjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey DK,
I was having a read of your post and what struck me was that you seem to have a plan. One thing I personally have learnt over the last year is to form your own plan and go for it. Another point to consider is that selling now may attract CGT but then you can realise the gain and put $xx thousand dollars in your bank you did not have yesterday.
I personally use renovating to continue to reduce my debt of my own house and my IP’s. I believe if you go down the path of renovating there will be properties that you just have to hang onto for various reasons. This will allow you to build a good portfolio of properties that are paid for by your renos.
A question for you. Where do you think we are on the investment cycle with property prices ? Obviously this makes a huge difference as to the best time to sell. IF property is near the peak then the holding costs or opportunity cost of not selling may be a good reason to sell.
I have decided to look at all my properties every year and if they do not seem to have 15-20% growth over the next year then I will consider selling. Obviously this is just one benchmark I will use but it is a start. I will keep most but those that have been under achieving may very well be on the chopping block.
I am a bit ruthless with my property as I consider them all trading stock. If they do not meet expectation then they are gone. I also actively buy property to renovate and resell to giver the business a great cashflow that can be used in the future to borrow more money.In conclusion DK, follow your heart. I started off believing that the only way to go was wrap. Then buy and hold wouldn’t be bad either. Then renovaing is another fun way to do things….. Before I knew it I had a few great options
to work in property. The more options you have the more able you are to make a go of this property thing.Probably the biggest thing I have learnt over the last 3 months is opportunity cost. If trading stock suits your approach then go for it.
Treat your property like a business. When in business you do what makes you money. You do not want to buy yourself a job though you still need to have assets that give you passive income for the future. Striking the right balance is up to you.
As I first said though follow your heart and do what you love as that will reward you the most (financially and emotionally). Do what brings you the closest to achieving your goals…..ONLY what brings you closer.
Just some meandering thoughts……
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Viral,
The two places to go would be http://www.johnburley.com and go to the forum link.
Also to http://www.financewraps.asn.au and post on the notice board or forum..
John Burley is recognised as one of the big boys in the US for wrapping.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Fullout,
The simple rule for me is you should insure what you are worried about.
For property insurance then I will insure for replacement cost and site clearance costs to enable the replacemnt.
In the case of Landlords insurance many people choose to take this because it protects their property from a malicious tenant. The trick with Landlords is to know just what the policy covers. There seems to be a wide variance in what is covered and varying prices to boot.
On the flip side if you as the owner are involved with the tenant screening process there may be strong grounds to not bother with Landlords. It really is a personal choice.The big thing though is to remember to never have a property uninsured. That is a very dangerous thing if something goes wrong. Also consider how much public liability is included in the policy as we live in a sad time where people sue before saying hello.
hope this helps.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey chandara,
Would I be right in guessing that the properties you bought are units ?
That certainly makes a difference in the cashflow.
Talk soon.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey there Buck,
To the best of my knowledge you are correct in what you say. If a trust does not distribute then it pays top matginal rate. There may be a few angles here but best to talk to an accountant.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Chan,
Out of interest what sort of prices are you paying in Logan and what rent do you expect. I only ask because i am always interested to see what southern investors consider wortwhile costings. Look forward to hear from you soon.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinWhat little I know Tony I am willing to share. Drop me a line if you want.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Fullout,
IO as requested. Using your figures.$74700 x 6.11% / 12 = $380.35 per month.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Soosh,
What do you mean that IO is illegal. I find that very hard to believe as nearly all lenders offer IO loans. IO being illegal would really shake up the market. Could you explain ??Thanks
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Godfrey,
I would do a little checking around ASIC and such as I read something in the paper not long ago that mentioned their practices being investigated.I have friends who bought a property through them and while not unhappy they sold the property on as they realised they could source better properties (price and position) for themselves with a little hard work.
I am a big proponent of DIY as you learn heaps and also feel a sense of accomplishment when it comes together. Also if you learn the tricks then you can keep on reproducing the results to suit yourself.
Hope this helps.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinDo what the market can afford and what you feel confortable doing. There are no rights and wrongs here. It is subjective.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinWhat are you buying the property for 6×1. Hold, reno, etc. That will give me a frame to answer if you would like me too.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Nicks,
The most important thing to come with is an open mind. Get plenty of sleep leading up to the event as it will fill your mind up with possibilities. Keep on researching Real estate before the event and reading what you can as that will all build your knowledge base. If you have a good framework of understanding the many facets of Real estate then The event will continue to build that structure. Often it is a chance to clear up misconceptions and open your mind to new ideas.
As to what to read I know there are a few postings in the psat a bout good books. Do a search and see what you find (look up book maybe ??) If you haven’t already get out there and start walking the streets and talking to agents. Find out more about how this works and find out more about where you want to invest. The seminar may provide you with some new angles on doing business in your chosen market.
Hope this helps.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey there Al,
Welcome to the gang.
My thoughts are very similar to David. You need to get rid of that debt and start looking for how you are going to grow that extra cash reserve you have in property. There are a thousand ways to make money from property and you need to find the one that suits you. Read, read , read. Go back through the posts here and see what you can learn. Unfortunately Steve’s seminar is sold out but maybe it’s worth putting your name on the waiting list ?? It is a great smorgasboard of opportunity. Before that though write down what you want to achieve and when. Decide on the goasl you have short, medium and long term and all the while start researching real estate.
Any questions fire away as we are starting to build a good network of experience on the site (not just monkeys like me) and people love to share with others.
Remember that if it’s going to be then it’s up to me.
Balls in your Court AL. Congrats on the first step.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinBy the way I should add that I get nothing from Steve in way of financial rewards for moderating. I will go to the next seminar because I love meeting people who are keen to learn and do things (it will be great to put some faces to names). I do the forum because it is great to learn and help others.
I just wanted to say thanks to you people out there who make this forum happen. That is not just Steve and the guys at PI.com but all you who read, post and share. May we continue this journey together and become great friends along the way challenging each other regularly on how we do real estate.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Paul,
Here is how it is different for me.I have earnt $70K through renovation this financial year. My Property nett worth has increased from $150K to $550K. I have done a wrap which was great fun and more will happen (and I made money and helped someone).
This was all due to this site and more specifically Steve McKnight. You can rave on all you want but I know that Steve has helped me achieve things I would not have done by myself or done nearly as quickly.
The seminar last year was for me a great event that clarified many things and taught me many more knew things. My friend I went with also benefitted greatly.
In summation I do not believe Steve is a crook. He has helped me and many others at least start on their journey to freedom. You were lucky that you had sage people in your family to help you but some of us didn’t and needed outside help.
It may take many more years but the path I am now on is one of freedom. The person who first lit that path for me was Steve McKnight. I appreciate what he did and I appreciate what others on this site do to encourage each other (me included) on toward freedom.
Smell the roses Paul and don’t worry. If Steve is a crook then time will prove that. I personally feel that you are a long way from the truth on that call. Let each person make their own mind up.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert Einstein
