Hi soleil. No advice, just a quick comment as my background is similar to your partner..

I negative gear direct shares, but I use my property assets as equity via a line of credit and avoid margin calls. For negative gearing, shares are easy to get into and get out of and don’t take as much money as property. Thanks to the ATO’s Income Tax Variation form your cashflow can be minimally impacted..

But..

If you have no experience in the stock market then in the current environment its like playing lotto. You need to find an ‘edge’ (just like Steve has with his positive cashflow wrap based techniques) in property.

I don’t think that many of the managed funds out there give you much of an edge either I think that this document spells it out nicely..

http://www.travismorien.com/investment.ppt

One other comment. Do the math with a financial planner. At a certain point it makes sense to go fee for service and pay per hour rather than commission based kickbacks.

cheers

[email protected]

EZ-Rent. The free tax and cashflow simulator for Australian property investors.
http://www.ez-rent.com

This is a great post. This is a fundamental technique in the valuation of stocks as well (except you should increase your discount rate to account for risk). I think that would make a nifty little app for someone to use that lets you compare loan savings of the discounted vs non discounted amounts..

The only thing is (and I haven’t followed previous threads and thus may be a dumb question), what does the POW formula do?

ie POW((1+r),n)

EZ-Rent. The free tax and cashflow simulator for Australian property investors.
http://www.ez-rent.com

I lifed this from a google search..

THE Investors Club, a lucrative business run by a Gold Coast real estate mogul who travels Australia signing up Mum and Dad investors for multiple properties, is under “intensive investigation” by both ASIC and the Office of Fair Trading.

Investigations across the country have so far revealed that the business may be in breach of several laws including the Crimes Act, but founder Kevin Young has insisted there had been no wrongdoing.

At wealth-creation seminars Mr Young and branch members urge thousands of Australians a year to “buy as many properties as quickly as you can, using interest-only loans”.

“You don’t need any cash if you have enough equity in your home or perhaps you can share the purchase with relatives or friends who have other assets as collateral,” he tells budding investors.

More than 3000 people have bought units and townhouses through the club in Brisbane, Melbourne, Perth, Sydney and the Gold Coast in the past few years, providing massive returns for Mr Young and his wife, Kathy.

The Brisbane-based club is in reality a highly profitable nationally syndicated business with an average of about $11,000 on each property purchase going to Lisson Pty Ltd, a company controlled by Kevin and Kathy Young.

Mr Young, who is expanding into New Zealand, claims that members make savings because the “club” drives down the profit margins of developers and also performs extensive research to identify the best locations and tenants.

The Australian Securities and Investments Commission and the Queensland Office of Fair Trading have been separately investigating alleged
unconscionable conduct, selling at grossly inflated prices and unlicensed trading.

An ASIC spokesman said: “We are aware of the issues involved and we are making inquiries.”

Fair Trading Minister Merri Rose said yesterday: “ASIC has been working closely with the Office of Fair Trading on all facets of the club’s operations”.

She said there had so far been 15 formal complaints from members of the public, former employees and real estate agents as well as an increased number of inquiries from people who have previously bought through the club.

“Further investigations into the current activities of the Investors Club have revealed that the club may be in breach of the Corporations Act and possibly the Crimes Act and Criminal Code,” she said.

Ms Rose warned consumers to be wary and to seek independent legal and financial advice before committing to any property purchases.

In February The Courier-Mail reported on a number of disturbing features related to the club and its founder, whose bankruptcy was extended to five
years in 1989 because the official trustee despaired at Mr Young’s deceptive, unco-operative and argumentative conduct.

Mr Young said he believed the ongoing ASIC inquiry was “low priority” and had been started because jealous business rivals were spreading lies about him.

“I would love to speed things up because this cloud is hanging over me,” he said. “I didn’t start the club to make money.”

In a telephone interview Mr Young said the investigation began because business rivals were jealous of his success, but in a statement hours later he said he asked for the investigation “to offset the damage done to the club’s business caused by your article about the club earlier this year”.

“Laws are made to protect the consumer, which is what I do. ASIC requested certain information which we provided.”

EZ-Rent. The free tax and cashflow simulator for Australian property investors.
http://www.ez-rent.com

Thanks all for the kind feedback

[email protected]

EZ-Rent. The free tax and cashflow simulator for Australian property investors.
http://www.ez-rent.com

Try these two specific articles on Travis Morien’s excellent FAQ site.. http://www.travismorien.com/FAQ

http://www.travismorien.com/FAQ/realestate/paulpropertytips.htm
http://www.travismorien.com/FAQ/realestate/paulpropertyrant2.htm

regards

[email protected]
EZ-Rent, the *free* IP tax and cashflow simulator. – http://www.ez-rent.com

ksheather,

I wrote EZ-Rent and I also have another application in development to do with shares.

>I am currently thinking about moving into
>the wider applications software market,
>possibly developing investment & analysis
>software.

email me at [email protected] if you want to talk more about this.. This new app of ours has a lot of potential..

[email protected]

If you want to go to one of his courses, I think it is worthwhile to look at this page.

http://www.johntreed.com/Kiyosaki.html

This page is not a reflection of my own opinion, but I think that before you part with $7000 it is worth spending the time to check it out..

funny you should mention that as I just posted a message for my freebie app for this purpose..

http://www.ez-rent.com