Take your certificate with you.

I believe that one day when looking at the all ords for the last 30 years or so I noticed that the losses of 87 were restored in the next 12-18 months. i.e. if people didn’t panic or over-commit themselves all they had to do was wait a while and lose nothing.

Also, I think you will find a drop from $250,000 to $110,000 is very rare in real…[Read more]

Hey Steve, do you read these???

I want to know how many properties Steve has now, since he wrote the book. I think he said 160 at one time on TV. I had an idea he was nearing 200, but may be wrong. Is he still able to continue as before?? The proof of the pudding etc etc.

Isn’t it kind of pointless to throw up all the negatives such as “you’ll never get finance” when we know people who have dozens or even hundreds of proerties with no problem??

With -ve properties, you pour in money until you can afford no more (unually 2-3). Then you have to SELL them to get your money back. So you have a profit (maybe) but no…[Read more]

Re: cracks in slabs

We have a large factory in Perth, with lots of cardboard boxes for packing. That’s the termite equivalent of “next maccas 3km”. After frequent incursions, we had to have the whole slab drilled and injected. When we raised the boxes off the floor they ate the kitchen instead.

BTW, if you have a shed, veranda, factory or…[Read more]

Were it not for the craziness in real estate, the government would like interest rates to go DOWN, to assist with other economic figures. However, I think treasury only gets one seat on the RBA committee. I also read that current rates are not that low, it’s just that inflation is, if you look at the historical margin between interest rates and…[Read more]

This is very interesting… I assume that most people on the forum are fans of, or at least interested in, Steve McKnight. Doesn’t this “did OK in the last 3 years but what about later” comment apply precisely to him and his ideas??? Personally, I worry about what will happen when interest rates rise and many of those properties go -ve.

Brad…[Read more]

I have been to 2 ($45) seminars, bought “real money real estate” and had an Action International business coach for a business in big trouble. We left it too late for the coach, but he did help us turn it around so that we could sell it.

You will find much of Brad’s stuff is similar to Steve’s. He is very much into no (or little) money down deals…[Read more]

There’s a new set of books out this year, with lots of examples. Should be online. You work out the capital gain and apportion it for the days it was/was not your residence. The “was” part is exempt. Then there’s the 6 month rule for changing residences.

I think it’s a good idea to read the books before you talk to an advisor. Not only do you…[Read more]

I believe that in order to qualify for 15-year exemption or the active asset test you must first pass the basic conditions for the small business concessions, which specifically disallow “assets whose main use is to derive rent” This would count out most of the people likely to be reading the forum. Check the business section on the ato site, if…[Read more]

Hmmm… I think you need to get the front house valued. You have established the value of the back by selling it. You can then take (value of the back) divided by (total value) to get the proportion attributable to the back. Take this proportion of the original purchase price to get the cost base of the back land. The increase in value of the…[Read more]

I have heard that 50% of houses sold in Europe are private sales. Some cities have a high proportion of auctions. It’s a mentality thing.

I have done a few developments and the reason I decided to stick with an agent (even had my own signs made etc) was that the previous year only 36% of his sales came from ads. The rest were from people looking…[Read more]

It comes down to whether you want to be pretty sure of being rich or slightly less sure of being VERY rich. If you use the excess cash after paying interest & costs to reduce the capital, you save about 6% interest on that amount the first year, 12% next year etc.

If you instead use the money as a deposit to buy another property you are expanding…[Read more]

No-one’s mentioned Brad Sugars’ “Real Money, Real Estate” as far as I can see. Brad’s stuff is very hands on, and he has sooo many ideas in every area of business. His Property Wealth Wheel is an interesting idea. He talks a lot about businesses in his seminars, but mostly as a way to obtain money for real estate.

An idea:

By the time you have 130 properties, the average rent will probably be about $200 pw. The estate agent takes 10% to manage it, or $20 pw each. That’s $2600 pw. So you sack all the agents, and get your own PM to do what they do, PLUS pay the rates, call the repairman etc etc. Since you are going to get good tenants and be very nice to…[Read more]

Hi Paulette, I’m Michael from Perth
Consumer Affairs in most states are looking very closely at wraps. There is also a move to put property and property advice under the same stringent rules as finance and financial advice.
They are concerned that wrappers aren’t finance companies, and that purchasers don’t have consumer protection – if you…[Read more]