Forum Replies Created
Ditto Boshy888
Reeco – get over it man. Pay the $$$ or stop whining.
I'm an RP2 graduate who went bankrupt (marriage breakup) during the course but I wouldn't swap the course education for a full refund of the course fee to improve my financial position. What I gained from the RP2 training makes the course fee pale into insignificance.
Thankfully the bankruptcy has been annulled (I paid out my creditors) and now I have the opportunity to use the RESULTS education over an over and over again.
Infact I learned a lot more than just property investing during the course and this knowledge has allowed me to develop a complete new business and one of the biggest influencers was Steve so it is he I have to thank for this.
Kerry
Jane, the only thing you MUST do is enrol in the PI.com RESULTS Mentoring program.
You could try Steve McKnights accountant – Mark Unwin of Unwin and Associates in Melbourne.
Unfortunately too many young couples speed more time planning the wedding than they do the marriage.
Hello Johann,
From time to time (about twice a year) Steve McKnight organises a property develoeprs workshop/seminar in Adelaide. the seminar/workshop is conducted by Martin Ayles who is a successful developer specialising in affordable housing. You could make an enquiry thru PI.com to find out when your next opportunity is to attend this.
Steve developed the 3-2-1 model so that investors would have a 'yard stick' by which to measure the reasonableness of profit being derived from a particular deal. It was first shown to members of the RESULTS Mentor Program 12 months ago and this was how Steve explained it to us.
You may not be able to find a deal (at the present time) that will give you a 'pass' on all three criteria but that doesn't mean you shouldn't do the deal. Perhaps you will be comfortable with 2 out of 3 or even 1 for that matter.
Ultimately It will be up to you to determine whether or not the deal 'worth doing' from you own perspective. Don't get too hung up on the model, it's only a tool to help refine your decision making process.
Hi Podney,
Here is a web link to my house I sold a couple of months back you may get some ideas from. I 'listed' it in Feb 07 (no agent, just me, a web site, street signage, open houses and a letter box drop) and it sold mid May 07 for $425K.
http://mckinley.premierwd.com.au/index.php
Good luck
You will find that your solicitor will do a search of the body corporate for you and provide a swag of documents as a result of that search.
They will then alert you to anything unusual e.g. disputes between the members, the committee, the body corp manager and / or the building manager, lack of fudns in the sinking fund etc.
Kerry
Hi vyaw2003
Becoming an EXCELLENT money manger is a pre-requisite to becoming an EXCELLENT property investor so you have to know your numbers inside out. Not only your property numbers but also your personal income/expense numbers.
If you have this in place you'll automatically see if you are ready to buy the next property.
As a RESULTS Program graduate I learned all these things including how to buy the next deal without money but with EXCELLENT money manger skills.
During the property investing process we learn to BUY; MANAGE then SELL but this is not always a contiguous process but overlaps from one deal to the next so that the whole process is dynamic. The real skill comes in juggling these three phases of property investing so that you don't end up in a bind.
IF you don't have one I recommend that you look for a mentor who can help you work thru these things.
Good luck,
Kerry
RL
I think the answer depends on the area you're looking at.
I'm on the Gold Coast and for SE Qld generally, particularly the coastal cities it is the holiday season that generates the most RE activity. If you don't have contracts signed by say January you'll be waiting until around Easter before things pick up again.
This means that the market moves when people have more time on their hands to go looking and this usaully ties in with school holidays.
Food for thought?
Kerry
Hello Rob
I also bought the Renovation Toolbox and can vouch for it's value.
The only additional work you will need to do is to print out the reno worksheets and where they require prices fill in the amounts in the spreadsheet and (save your temple as 'template 2') by doing a walk through at Bunnings or similar. This will speed up the process 10 fold.
After this you'll find that it'll only take you about 30 mins to come up with a fully detailed reno costing (plus the inspection time).
Kerry King
Hi Roodog
Your words “I don’t really like the idea of giving the government 50% of my profit in capital gains tax” has reminded me of Steve and Dave’s advice about being willing to ‘cash out your profit ‘ from time to time to give yourself a chance to grow your portfolio.
They acknowledge that CGT will have to be paid but don’t forget, (subject to your legal structure) you may be able to take advantage of the 50% discount on CGT which means that if you make a $100K profit only $50K goes into your tax return and if your marginal tax rate is 30% (+MCL) you will pay approx $15K in tax and pocket $85K of your profit.
If you see good buying opportunities in the east you will then have a $85K stake to pick up one or more new IP’s.
Good luck!
Hi Lisa,
Thanks for the ‘heads up’ on this property. Took a look at it with the agent late today and it is certainly is just as you describe. By my reckoning it will only provide a 2.04% return on funds invested which makes it hard to accept with a personal threshold of 8.00%.
The only other question left for me is ‘what would I do with it if I owned it’?
Can see anything in the replies on this subject so far other than negative sentiment.
It would seem to me that Westpac would have no real interest in the actual properties themselves (unlike direct investors who do) and would focus solely on lending to buy in to the REIT plus earning managment fees to bolster their shareholder returns.
I did an analysis on a single dha property only recently using the steve mcknight financial analysis template and the news was all bad for +CF investors. I then took those numbers and then ran them thru a 10 year IRR model using 2.5% annual growth in income and expense plus 7% capital growth.
This resulted in an ungeared IRR of 9.02%; before tax geared IRR of 13% and after tax geared IRR of 16% at eh end of the 10 yr investment period. However at no time throughout the 10 year investment period did the property return +CF so the IRR was based solely on the capital growth aspects of the property!
This will be one investment I wont look at any further!
