del – youre always 1 minute b4 me – maybe thats why yr in the money and im not – lol[]

cheers

good question

im pretty sure alarm bells would start ringing.

if the deductions are legit though – who cares?

sounds like you dont want an audit??

g’day westan

great story – like reading your posts

a few questions

– what happened in 1997 that gave you the courage to buy 10 properties?? was it a sign from above?lol

you were b4 steve who started in 1999 i think?? who was your mentor and what was aim cashflow of cg ?

another qstn wch you dont have to answer

your net worth is 600k brilliant – what is your debt?

cheers

i have noticed most of the success stories relate to amazing capital gains, and stories pertaining to renovations etc etc. and not superior cashflow.

even on the country properties where people started out thinking cashflow they have been pleasantly surprised by the capital appreciation.

in a way thats why i think steves strategy is difficult to evaluate because in the last 5 years we have seen incredible capital growth so it difficult times (ie vancancies etc) one can sell and make a tidy profit – no harm done.

the test will be does the strategy work when the market is flat. i think at the moment the ‘ideal’ of cashflow is a great hedge against where the real money is. ie capital gains!!

im just brainstorming. is this a fair comment???

spanner

ppor – promary place of residence ie your home!

you can post yr email and ill email you back

cheers

g’day spanner. it depends on your goals.

remember if you take advantage of the first home ows grant you will have a nice house and all the great things that come with that. completely valid!

the downsize is that it will limit your potential to invest in the future because it will tye up or reduce your ability to fund other investments. ie
you will more than likely have a large mortgage and all your funds will go to servicing that.

if you were to buy an investment property and forgo the fhog, it is feasable using steves method and other +ve cashflow vehicles, that you could keep investing to build a large portfolio.

things to think about
– most people want a place to call there own – if this is you then buy a house to live in.

– if you want to maximise wealth all the investment books ive read recently suggest
a) yr home is a liablilty
b) only buy assets that generate income
c) cash flow is king

for your guide i believe steve still rents eventhough he owns 130 preoperties.

at the moment i rent and have decided to invest.
this is tough because i have a baby on the way and the pressure from yr peers/family etc to buy a ppor is immence. im lucky my wife is 100 pct supportive (i encourage her to read the books and take the journey aswell)

either way is valid but be prepared investing takes you out of your comfort zone

cheers

in steves defence im sure he is far to shrewed to let this happen. over the prceeding months the tone of his messages have changed and he has advocated exit strategies including selling, reducing debt, restruction loans etc etc.

not to mention all the other money he has coming in from products from this website, seminars and now the book.

the problem i have is that when steve started writing this book the strategy made a lot of sense and in a way it can be argued that it still does its just a little harder. what has never been said though is that maybe the goalposts have changed. believe me, the most switched on +ve geared property investors on this forum have drastically cut down their purchasing, are probably selling and know that steves appearnce on today tonight will have another affect on the market.

there was a post last month wch mentioned that everytime there was a property seminar then prices in regional cities went up. although no one has said it – i fear that since last week the same thing has happened and all you newbies will over the next few weeks kindly push up the property prices for those 2 years ahead of you.

i reckon a few on the forum will be selling in the next few weeks (profit taking)

rgds

captain my captain

the prurpose of buying an is mnot necessarily to achieve capital growth over the long term. it may be to generate cashflow. sometimes they are mutually exclusive. the trick os to find properties that do both. if you had bought a 20 year old 50k property in rural australia over the last 3 years this would have been achieved. it is harder now.

cheers

i mean they are great

i think we are seeing an incredibly unique situtaion where the australian property market has boomed for many reasons. the fact that these reason have occurred at the same time is unprecedented

– record low interest rates
– weak stockmarket
– baby boomers with excess cash
– lifestyle changes
– strong world property market
– lifestyle media programs
– diy fads (bunnings warehouses)
– get rich property seminars/gurus (hundreds of them)
– more knowledge ie savvy investors
– legislation (fhog, negative gearing)
– awakening out of the ‘job for life’ years.
– lack of job security leads to thinking of other ways to make a buck.
– the internet (information easily available)
– Harry Kaye
– Eddy Maguire

ok – the last one was a long shot

if investors are pushing up the market, then its because of all the above reasons that investpors have chosen to do so. all are legitimate, its just that its getting a little out of control.

cheers