Forum Replies Created
Hi Everyone,
I’ve been receiving a lot of e-mails recently from people who are looking for a good accountant, and want to find Steve McKnight’s free report entitled “Finding a Great Accountant”.
This is available from http://www.wealthtipsonline.com.au
Just go to http://www.wealthtipsonline.com.au and click the “Free Report” button. Follow the prompts and it will be automatically e-mailed out to you.
Warm Regards
Brent Hodgson
PropertyInvesting.com AdminHi Andrew,
You might find you get more replies if you post your question in the General Discussion forum, rather than Forum Fun.
Warm Regards
Brent Hodgson
PropertyInvesting.com AdminYou might need to try some creative strategies to achieve positive cashflow in this circumstance.
We’ve got some pretty detailed information on creative positive cashflow strategies at https://www.propertyinvesting.com/strategies. The best part is, all the information here is free free free [8D]
I hope it helps.
Warm Regards
Brent Hodgson
PropertyInvesting.com AdminHey Nick,
Good questions re: the seminar. I actually hadn’t even thought about them before, but since you asked…
quote:
..the venue was stated to be Albert by the Lake … Is there a specific meeting room..?We’ll be in their main conference room. We’re their only conference that weekend, so you shouldn’t have any trouble finding us.
quote:
What about parking ?The venue ajoins Bob Jane Stadium, and is across the road from the Melbourne Sports and Aquatic Centre. There’s a huge carpark right out the front, so even if you’re driving to the seminar in a Nullabor Road Train, I have no doubt you’ll find a spot.
I hope this helps. If you have any more questions, send me an e-mail to [email protected]
Warm Regards
Brent Hodgson
PropertyInvesting.com AdminWho says they have to refinance the full amount?
Why not let them take on bank finance for as much as they can, and you wrap them a second mortgage for the remainder?
Hey Kirby,
I had to laugh when I saw the ‘bump’ post. So you don’t like staying at the bottom of the forum, ‘eh? [
]Benjamin Partners do our rental management in Ballarat. Their number is (03) 5331 1500. Bev is probably the best person to speak to.
I hope this helps you out.Brent Hodgson [8D]
PropertyInvesting.comHi Guys,
There’s some information on low/no cash down deals on the PropertyInvesting.com web-site. You can find this information at https://www.propertyinvesting.com/strategies/creativefinancing
Perhaps they used some of these creative strategies….[?]
Regards
Brent Hodgson
PropertyInvesting.com
Admin Dude [8D]Hi Leigh,
You’re not talking about the fish and chip DVD, are you?
Deposit bonds are very popular these days for people wanting to get 100% finance on off-the-plan properties.
Usually they cost about 1% of the purchase price, and are like insurance which you put up to say “Yes, I will be able to afford the deposit when the time comes”.
If you want to read more about deposit bonds, SMH wrote something about it around christmas last year – http://www.smh.com.au/articles/2002/12/28/1040511217516.html
And this is what ANZ says about them.
http://www.anz.com/australia/insurance/deposit/faqs.aspTwo very different perspectives.
btw – I love your forum alias!
“…Enjo Enjo Enjo, a cleaning we will go…”Brent
Hi Jay Cee!
The Australian Masters of Property Investing seminar in 2003 will be held on May 31st and June 1st.
Just like in 2002, it will be held at Albert By The Lake, right on Albert Park Lake and the Grand Prix circuit in Albert Park.
If you haven’t been to Melbourne before, Albert Park is just south of the Melbourne CBD.
We’ll be e-mailing out some more information in a few weeks time, including some suggestions for accomodation for those of you who are making the trip from interstate, South East Asia and New Zealand – just to be a part of the action.
To anyone else thinking about coming along to the Australian Masters of Property Investing seminar, I recommend you book before the end of February when the early bird discounts start flying north for the winter.
To find out more, visit https://www.propertyinvesting.com/resources/9
Happy Investing
Brent Hodgson
[email protected]Hi Kirby,
Mike Robinson made a post about his success a little while ago. You can find it at https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=604
Warm Regards
Brent
quote:
I can see where Tails is coming from and I admit to being sceptical too.
What bothers me about “cash positive” property is that it is so reliant on being tenanted. I mean, if the economy goes bad and you struggle to get tenants you are “knackered”, you have no capital growth to fall back on.
Please tell me if I am wrong.I disagree – IMHO, I think the first thing to go when the economy goes bad is capital gains. People start selling their homes and investments in desperation and lower property values. Many then become tenants.
As for what happens to rental prices – many of the positive cashflow rentals I’ve seen have been lower cost rentals. When the economy goes bust, the first place fat is trimmed is on the upper end of the scale, so most positive cashflow properties are fairly safe. But in a big crash, few properties are unaffected.
But that’s just my 2c
Brent
quote:
I know I’m ignorant but who would pay $190 rent on a $85,000 property?
Likewise, this 11 second rule would translate into a $175,000 property attracting $350 rent per week. Does this actually happen?Hi Kirby,
In a word, Yes – it does happen.
A while ago, I was a ‘disbeliever’ too. It didn’t matter how hard I searched the local papers, I couldn’t find a single property which stacked up to the Eleven Second Solution.
I spent hours at it too, and I can’t tell you how frustrated I got.
A few weeks later, I took advantage of an opportunity to be at Steve McKnight’s first seminar, and it really opened my eyes.
My problem was that my scope wasn’t broad enough. I was looking next door for the positive cashflow deal of a lifetime, and it just doesn’t happen often in suburban Melbourne.
Well, I started looking in other places, and sure enough – positive cashflow properties did exist!
What’s more, you can find them all over Australia.
Some deals are just straight and simple buy and holds. But some some require a little creative thinking and the implementation of a cunning investment strategy.
(Such as the ones found at https://www.propertyinvesting.com/strategies/)But you are right – in most cases if an $85,000 property doesn’t generally rent for $190 per week, why would anyone pay more than they have to?
Why? Because it’s a win-win deal.
Warm Regards
Brent Hodgson
PropertyInvesting.com TeamHi Matduqua,
I was meeting with some mortgage brokers recently, and they mentioned NAB too.
95% lends come out of the competitive lending market which is around right now. I guess you can only reduce your interest rate so far, so you win customers on terms.
But Oscar’s right – there are a few more hoops to jump through. After all, they have to mitigate their added risk.
Try some other (more creative) brokers. I know that 95% lends are out there, but even if you don’t qualify, 90% is still excellent leverage.
Brent Hodgson
PropertyInvesting.com Crew***********
“Wealth is the product of man’s capacity to think.”
-Ayn RandHi Trying,
The articles you’re looking for – I think you’ll be able to find them at;
https://www.propertyinvesting.com/positivecashflow
(the one on Positive Cashflow)https://www.propertyinvesting.com/strategies/negativegearing
(the one on Negative Gearing)You mention you’re having trouble understanding about companies and trusts.
Steve has been hard at work with Paul Harper (expert accountant from Jeena Partners in Melbourne) on a new information resource on structures. It goes through the intricacies of structuring, the pros and cons of each option, all related to asset protection and tax minimisation – and all in easy to understand plain english.
The resource will be called “Wealth Guardian” – keep an eye out for it in the Resources section of PropertyInvesting.com
Things like helping your daughter out through the trust – this can be done. In the mean time, while the Wealth Guardian resource is developed, it’s best to talk to your accountant about this.
Finally, you mention buying land, waiting until the equity grows, and having cash flow in the company.
Be very careful not to put equity and cash flow in the same basket. If the value of your property holdings goes up – that’s equity. If your property earns you a dollar – that’s cash flow.
You can go to the supermarket and buy groceries with the dollar you earn through cash flow, but without selling it somehow, you can’t spend a dollar of equity.
Keep the questions – it’s one of the best ways to learn.
Warm Regards
Brent
Edited by – [email protected] on 23/01/2003 09:36:16 AM
Hi Lep,
Welcome to the PropertyInvesting.com Community!
There was a post a few down on a similar topic – check it out – https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=446
To answer your question, bank foreclosures generally go to local Real Estate Agents who sell them from there.
I can remember seeing 19 of them being auctioned off on the one day by the one agent in a Melbournian sattelite city. It was a one-page ad with big letters “Foreclosure Auction”.
“Foreclosure Auction” doesn’t mean “Bargain – Fire Sale – Any Price Will Do!” Infact, sometimes a bank foreclosure is a selling point. It creates buyers who are shopping for bargains.
Infact, sometimes the demand created by the percieved “bargain” pushes prices up above what they’d normally be. But even if there’s little demand, it’s unlikely that you’re going to buy houses for $1 at an Australian foreclosure auction. In Australian foreclosure sales, there is almost always a reserve set.Infact, the only foreclosure auction I’ve ever heard of not having a reserve set was a NSW rates foreclosure auction.
If anyone wants to check out rates foreclosure auctions in NSW and do some research for us, I’m told the auctions are advertised in some NSW Government Publication – probably the Government Gazette. Although, if you have a specific area in mind, I know that you can get the information through local councils.
Having said that, only contact councils if you are serious about buying because every few months they get a rush of phone calls after someone puts a post on an internet forum about it.
Also, from what I’ve found, rates foreclosures are fairly rare – it’s only in extreme cases that councils foreclose on properties because of rates owed. You need to do something ridiculous, like not pay your rates for 5 years. Usually people who don’t pay their rates for 5 years can’t afford to maintain their house for 5 years – and it’s not always the Taj Mahal.
Lastly – remember to buy properties which fit your investing goals. You don’t buy rotten eggs because you find them in the bargain bin at the supermarket. Just like you don’t want to end up with a rotten property.
Have an end goal, and plan every step you need to take to get there. (Those of you who have listened to Fast-Track will know exactly what I’m talking about here.)Happy Investing
~Brent
Edited by – [email protected] on 05/01/2003 04:33:12 AM
quote:
I’m thinking of puchasing my first investment property by purchasing a Deposit Bond??????
Having the deposit on a new home with a long settlement, allowing me to sell the property just before settlement and hopefully earning me a profit. The property is under construction.
Where could i get more info on Deposit Bonds???
Is this a good way to make money in property InvestingEdited by – [email protected] on 03/01/2003 3:05:58 PM
Hi charalambous
You can find some information about deposit bonds at http://www.mrmortgage.com.au/depbond.htm.
As for whether this is a good way to make money in property investing – you use the words “hopefully earning me a profit”. In my mind, the best investments are the ones which;
- 1. Are least likely to lose the money you invest
- 2. Are most likely to return a profit
- 3. Give you the highest return on investment.
But in the end, you need to make up your mind on what a good investment is for you. Perhaps a good investment for you is one which saves you the most tax.
Brent
Hi Insider,
Happy New Year!
The report Steve refers to in Fast Track is the Postcode Profile report available from http://www.PropertyValue.com.au
There are more detailed reports available through the web-site, but as you correctly pointed out, they do cost a small fee.
Happy Investing
Brent
PropertyInvesting.ComEdited by – [email protected] on 01/01/2003 9:20:26 PM
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