Thanks JKM that was a very helpful post, exactly the kind of information I was looking for.

Since buying this property I have learnt a lot about structuring and would also not use a partnership structure again.

To the people who insisted on suggesting I seek legal counsel, my view is this is technically correct yet practically useless…[Read more]

Megan,
Thanks but my question was very specifically enquiring as to the legal ability of one party to force a sale. If I wanted to pay for a lawyer before asking for some general information here I wouldn’t be a very good investor!
Ben

Hi All,

My first seminar of Steve’s also. I found it very good value for money, but I would add a qualifier saying the seminar will be completely valueless if I don’t take any action from it!

The main reason I signed up is I was in the position of many people (confirmed by chatting to others at the seminar) of wondering what to do now the boom…[Read more]

Originally posted by GreatPig:
Originally posted by Terryw:
So even tho there is no CGT in NZ, they will have to pay CGT in Australia on any gain
I believe this is the case. However, I’ve had suggested to me that to avoid that you can invest in NZ through a NZ-based trust and if necessary distribute capital gain to NZ beneficiaries (perhaps a…[Read more]

Bit of a digression, but I like the characterisation of investors that Kiyosaki uses (he borrowed and adapted it from someone else originally).

Bit complicated to explain here but many of you would have read about it.

The idea is there are 7 levels starting at zero and should be at least a level 4 if you expect to do well with investing. Level 4…[Read more]

My views…

A buyer’s agent is a convenience certainly. But there are two main reasons to avoid using them if possible.

1) You don’t gain anywhere near as much experience in finding the investment. The whole process of looking is very educational especially when starting out. In the long run using a BA is a shortcut that will cost you valuable…[Read more]

Hey,
To put it even more simply the body corp insures the building structure and anything on the exterior of the buildings and your job as owner is to insure the internal parts of the property, e.g. carpets, kitchen cupboards, other fittings etc.
I personally do not bother with rental income insurance as this is quite costly and the risk should be…[Read more]

This post has me very interested… are we sure rents are going to rise? They seem to have been fairly stagnant for some time.
If this is true it could change my investment strategy. Instead of searching for the elusive +ve geared IPs it may be more worthwhile in the long run to pick properties that are close but will have more rental gains.

Ben

Some may find this a little strange, but since reading Rich Dad and not being ready to fork out for Cashflow I have started playing Monopoly again.
To my surprise I had a much deeper understanding of how to win from reading the book and in the first game was able to utterly destroy my opponents [baaa].
Seriously though, it shows how simple the…[Read more]

Thanks Winandel,
I have only recently learned just how important this part is! As kiyosaki says success in the real world is based on co-operation not doing it solo.
Thanks for the encouragement Monopoly [biggrin]
Ben

Have been working on this lately, but as someone mentioned I am still in a very steep part of the learning curve and this is subject to change.

I think goals should be specific where possible however, and should be looked at several times a week.

1) $500pw passive income in 5 years (any asset class)

2) Have a great network of…[Read more]

Originally posted by westan:
Hi Muppet

as usual you have all the info,

i suppose being a dentist or for that matter a university student doesn’t disqualify you for finding good deals.

regards westan

It’s not just the fees it’s the contract terms I am not impressed with.
If your finance falls through you are still expected to pay the…[Read more]

Looks like balanced commments to me.
There wouldn’t be much point in him trying to influence the market with those comments – if he was he’d be so slick most people would miss it
Ben

My 2c worth Lil man,

Keep you eye on the goal and prepared to be BORED.
At 13 it is boring to save and develop good spending habits. But these skills will set you WAY apart from your friends.

Try and stay motivated by reading books and using the forums like this one.

Just think of staying committed to the goal as doing your future self a…[Read more]

Thanks all,
I’ll pass on the comments.
They do require finance to build but their home is worth more than the land. I suppose it doesn’t hurt to name figures. Say about 550k for the house, 415k for the land and 250k to build.
The reason I say rare is just because it’s the last good block in this part of rapidly developing western sydney, but for…[Read more]

Hey Petersemail,

Kiyosaki defines this and the other 6 levels of investor in his book Cashflow Quadrant.

Well worth buying the book IMO. Helps if you have read rich dad poor dad first.

cheers,

Ben Carbery

If you purchase with two names on a contract, that’s automatically deemed a 50/50 partnership. I believe you can have a solicator draw up some documents to make it 70/30 or whatever you like but remember this will only split your income, NOT your liability. You are always 100% liable as a partner in a partnership (if you’re partner bails to Costa…[Read more]

Thanks All,
I will talk to my conveyancer.
It is a small block of 4 so should be able to get some action on a new BC – the agent’s in the area say this guy is notoriously bad!
cheers,
Ben

Steve,
Thank you so much.
By some strange co-incidence this month’s newsletter has helped answer the exact question I have been asking myself lately…should I sell and realise some of the capital gains I have made in the last 18 months or continue with a buy & hold (accumulate more debt) strategy.
This article really clarifies a few issues for…[Read more]

Ok, thanks Michael.

Informal partnership simply means there is no additional formal agreement, only what is provided by law, so in this case I would be dependant upon the other party willing to sell.