Forum Replies Created
Mine’s $1250 for our PPOR! Does that count?
Just your regular 3 x 1 in Hedland
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C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonCan’t either GR,
maybe you can go back via Heldand? Just for some perspective, hahaha!
It’d be interesting to catchup and let you peruse what I have just to get your PoV.Wish you all the best while there, hope you find what you’re looking for!
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C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonHi Roy,
not new information, but certainly succinct in its presentation.Good read! Thank you.
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C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonHi all,
I have always been fascinated by the difference in calculating the return depending on what you way you buy the IP! Whether you use equity or cash as a deposit, isn’t the return just a function of the profit (or loss) divided by by what you put in (be that cash or equity)?!For example: $20K cash deposit and you end up with $5k profit (post Tax) = 25% return; OR
$20k equity used as a deposit and you end up with $5k profit (post Tax) = 25% return!?The only difference is what your costs are, if you put in cash you have less interest to pay and less bank fees and charges. When you use equity you get the borrowing costs, but you also pay less Tax – depending on which way is the better method for you the return could be larger or smaller!
Cashflow positive for me is when the income exceeds the outgoings, no matter which way I raise the funds.
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonI agree with Smowy!
Quite interesting! I’ll need to put togwther a book soon of little snippets of ideas of what to do and what not to do! I have all these little pieces of paper in files….
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C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonHowever, because the property manager’s contract says that the management fee is calculated on “gross collections” (instead of just rent), 9.35% of what the tenant pays as re-imbursement for water consumption is taken as management fee, and the owner receives about 90% of it.Can’t honestly say I’ve come accross this before. If you are stuck for the moment with this contract, then simply don’t get the REA to collect the money. There is a service provider, I believe it is called ‘Easy pay’ that collects money on your behalf. It should be tax deductible, too, as it is a service for making money. It would be a bandaid solution right now, so you might not want to do for ever, but you can also get them to collect your rent! Wouldn’t leave much Gross Collection for the PM to get 9.35% for. 9.35% of $0 is still $0, hehehe[satan]. Not sure if it’d work, but it was fun thinking about it anyway!
Dazzling Posted – 07/12/2005 : 00:55:18
Time spent going through the “standard” contract is time well spent to avoid problems such as you describe. Whenever I hear or read the word ‘standard’, my radar is immediately on full alert…right after that word is said or written is exactly where you are getting shafted.Thanx again Dazz! I am about to embark on one of these ‘Journeys’ so I will keep an eye out for these! Just received the PM Documentation the other day. So far the REA has been very professional and I am very pleased with the whole thing! It still pays to be dilligent, though!
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas Edisonbwalkerau Posted – 06/12/2005 : 21:24:54
Does any one have any tips for a beginner. I have studied lots of material but am yet to starrt actively looking for deals. Am I best to go to one of Steve McKnights seminars before starting?Thanks
BW
Ahh….. where to start?
You need to discover where you are at (I say this because I thought I knew until I found out I had no Idea). Do you want to have your own home first or an investment first?
There are pros and cons to either. Pro to own first home: you can get the FHOG – great for starting off. Another benefit is that you pay not CGT should you sell. Cons: not tax deductible and, depending on where you buy it is unlikely that you’ll get hughe growth of equity in the current market (same for IP).
Pro for IP: Tax deductible debt, so if your working you can off-set some of your income tax NOW. Con: higher intrerest rates and no FHOG.So, to start:
1. educate yourself,WHILE;
2. saving/pursuing a deposit for the house/unit/what-ever;
3. do research on your local area or where you’d like to invest. Look for things like placement of the property (location) what the surrounding area is doing (is it rising, falling or steady, are there any factors that would influence this in the near/far future). What are the prices around that area like – how does you property compare? Any recent sales evidence, talk to REAs, etc;
4. do that for a number of properties, go to auctions and get a feel for the area – see what places are sold for; and then
5. Make an offer or two, but only on places that you are really interested in as you might just get what you want.Find out who’s services others are using and get to know them (IE: Lawyers, settlement agents, building inspectors, etc). Once it goes to the stage where you need to say yes or no, you’d want to know as much about the property as you humanly can to make the right decision. Sort out finance and sign on the dotted line.
You may have to re-order the list above to suit your situation, and there may be things you need to add or take off. Feel free to keep on asking about anything that you come up against and seek advice or do a search in the forums for your topic. We’s a friendly bunch and generally help!
Good luck
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonLooks like what I’m after!
Thanx Redwing
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C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas Edisonvexil Posted – 06/12/2005 : 16:02:07
I think what carl_vic is getting at is: Is there anyone out there that you can buy a pre-established trust from? Or more specifically, is there someone out there that will let you buy the appointorship of their unused trust that was created 12 months ago?I’d be a bit careful about this. What if the previous owner has some other “left-over” problems associated with that Trust?!
Our Family had the two Trust structure (one doing the business and the second owning all the assets). Once we finished trading and all things were settled, I thought what a beauty, I’ll grab that and then I don’t have to worry about the costs of establishing a new trust! You Ripper, what a bargain.
Then our accountant (at the time) mentioned that if there are any liabilities left over from that trusts trading days that I might cop them and then be liable for them……..and the ‘beauty factor’ tipped right out the door.I’d check that out before I’d buy some-one elses Trust! Not to mention that different Trusts are set up differently and their trust may not suit you.
I don’t want to throw sticks and stones – I just don’t want you to get screwed over! Not a nice feeling, I can vouch for that! [buz2]
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonWoah….
Nearly missed it! Big 500!
[party] [xmas]Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonHi blogs,
the two times we bought a property, part of settlement was an inspection. Our Settlement agent made sure that we didn’t sign off on the settlement papers untill we were happy – once we did it would be too late for any recifications of problems. So, no I don’t think he can do this indefinetly.He maight have good reason not to let you on as in Hazzards that may cost him a lot in insurances, I don’t know. I’m belevieng in the good of humanity here! Keep in mind I am in WA, so your state may have other rules?!?
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonHave they made a will?
Seems like a silly question to ask, but my parents didn’t until my mother got terminally ill. Some people just don’t worry about it…..
For my details please PM me! [grin]
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C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonNB: some have tried wife 2.0 and 3.0 and report it just gets more difficult!
So I stick with wife 1.0 and have upgraded with ‘Extra Responsibility 2.7’, ‘Garden Renovations 4.1’ and auto-run ‘Massage 6000’ on a regular basis! SO I have a lot less issues with the stability of my operating system!
Hehehe gooood one!
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonHi Becca,
an increase in rent only results in an increase in property value on Commercial properties; rom what I know, as that is one of the contributing factors to its ‘Usability’ and, hance value!Residential properties are as the two gents before me have explained!
Hope that helps clear up any confusion…
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas Edisoncarl_vic Posted – 05/12/2005 : 15:25:03
Ok, here is another hypothetical one; what if a trust was created last year or whenever, and the deed was written in such a way that appointor could be changed at a later date, thus effectively transferring control of the trust to a different entity.Carl_vic, my understanding is that the appointor ios the original owner – the entity that controlls or owns the assets. As such if they change to some-one else it is like selling the asset. Like I said, this is my understanding!
redwing Posted – 05/12/2005 : 12:29:59
I’m just trying to work out if he sells one or two to himself or another Company he owns, or he keeps them in the original Company structure rather than close it down and the pro’s and con’s within that process.Redwing I’m not certain. I believe that the current ratio of development to ‘keepers’ is about one to five – you build five units and get to keep one for free.
This bloke I have just met is into large scale devlopments. Several Million Dollars +. I was glad that I have spent some time now getting into the Investing Mindframe and have been educating myself for two years now, because when we met, I was able to understand what it was he was doing. Now he didn’t put all his cards on the table, but he made a very good case. He offered me a piece of the cake, but I didn’t have the necessary loose change at hand! LOL.
Like you, I want to learn more about what other people are doing right now and how it is going because it will fasttrack my Investment path!Catch up with you soon! Got a garden to finish….
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonI’m not saying that creating your TRrust and Pty Ltd structure first is wrong, in fact it is most likely the way I will go myself!
I merely put out another way that I have just come accross that might work. I haven’t discovered all the ins-and-outs yet, or why this person chooses to go this way, it just seemed very different.TO answer your question, Redwing, yes he does creat a new Pty Ltd for every purchase! Mind you he is a developer, and it seems to suit his urpose! For every development he does he intends on keeping one or two units for himself. So perhaps that is the answer, he sells off most the assets once development is complete and then closes off the Pty Ltd?! Like I said, I haven’t got all the facts as yet. Until I do I’d suggest following Cata’s advice. I appologise if I led any-one astray!
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonDazz,
wow – what a coup. I’m sorry for your loss, but I’d have never thought up such a grand scheme. Talk about shoddy ethicks on that REA!Just goes to show how truely naiive I still am! Thank you for sharing that with us, I – we appreciate it. It is unfortunate that we are learning from your loss, buyer beware!
I guess you are doing your other IPs on your own, Dazz!?
nazzysmith0153 Posted – 01/12/2005 : 23:08:29
“ABC INVESTMENTS PTY LTD AS TRUSTEE FOR THE RICH MANS TRUST”In the example I gave earlier, the Purchaser uses the address for the name of the Pty Ltd (ie: 13 Smith Street Pty Ltd, etc) so it negates that ‘fleecing’ fear some what.
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonHi
Yes Dazz,
hellman Posted – 01/12/2005 : 18:08:33
Dazz – how???I have recently met a Developer here in sunny Port Hedland who buys exclusively with the “and/or XYZ PTY LTD” and then he puts in brackets (to be incorporated). He does tell the REA that he is going to set up the Pty Ltd once the offer is accepted – no point in spending the $1200 if the offer falls thru.
So far, he is very successful!
Does it really matter? If you sold, as long as you are happy about the end sales price, what’s it matter? You got more or less what you wanted – you can’t keep or don’t want the place! Why “Tear up the contract (or O&A in WA)”? I don’t get it! [blink]
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonSorry deejay12, couldn’t resist!
Basically, when Steve wrote the book it was in an upward market, so prices weren’t high but the rents were, comparatively. Positive cashflow IPs are still available, although you have to look a little harder now and the rule would not be as applicable now as it was then.
Now, the market is steady or in a down turn, over east, and it is certainly no longer relevant (too harsh). Don’t loose sight of the other information and training that is in that book! It will help you far more than the 11 second rule ever would have!
Welcome to the forum – I hope you stick around and learn from all of the posters here. Your journey has but begun, Grasshopper!
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonTimes change!
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas Edison
