Hi Mini,

Thanks for editing your post. I wasn’t going to reply, because I didn’t want to start a bickering. (Quite frankly there is enough of that on the forum as it is). However you make a valid point and I want to aplogise to anyone that was “annoyed” by my post.

It really wasn’t meant that way, let me explain …

When I first read DinoWeb’s post I wanted to answer him directly and say: “Ask you questions I will try and answer them.”

Basically I JUST wanted to answer him, without getting involved with all the other discussions that were going on, that is why I said:

quote:

---

I started reading this thread … Some posts were way too long … I skipped others etc…

However I think I got the general feel for things.

---

But you are right. I should read everything before posting! Or otherwise clearly state who I was addressing.

I will be starting a new thread in “General Investing” called “People and information” and would love for you all to contribute.

Cheers,

Pin

Hi,

Here are some MUST read sites: (In no particular order)
http://www.strategicwealthmanagement.com.au

http://www.chrisbatten.com.au (IE only)

http://www.macquariegs.com.au

http://www.gatherumgoss.com

They contain HEAP of the BEST info concerning trusts. (as well as other things.) But the best trusts aren’t cheap (about $1000).

If you have any other questions just post back.

Cheers,

Pin

Hi Bill,

This thread was hilarious! Thanks for the laugh.

On a more serious note I have asked Steve if he could set up a forum topic called “Valuable info for newbies”, which would be packed with great info, and avoid people asking the same questions over ad over again. I think one of the first threads will be on “due diligence” … []

Cheers,

Pin

Thanks gus for the tips,

I would still like to hear from Bill, as he is the authority with BSS.

If the same property rules apply, this deal will be even sweeter. I will send over a valuer mate of mine and he will put a “good” value on it. []

Cheers,

Pin

Again I would check the premiums if I were you.

Pin

P.S: Use the search button. This was discussed about a month ago!!!!

Castle Dreamer,

I think you want to check out the Bus Stop Shelters (BSS) that Bill has for sale. It is a much better deal!

When investing in car park spaces, make sure they are sheltered. (open air ones are not as good and if it hails and the cars get damages you could be sued! and even if it is sheletered you have to pay HUGE insurance premiums because people will come at you if something happens to their car. Quite honestly I think this is a bigger problem than the medical indemnity insurance crisis. Note my words there won’t be many carpark available soon because the premiums will be too high… or you will have to pay through the nose to park your car there. More and more people will start using public transport because it will cost them too much to park their car in the city.)

Also the “degreasing” charges are quite expensive. You will also have to pay for new lines every 2 or 3 years. (depends on the car park “covenant”)

As always avoid *rural* car parks because they are more risky.

Again, do your due diligence, but if I were you I would look into these BSS that Bill is advertising since more and more people will be using public transport (i.e Buses) soon. Carparks will be a thing of the past…

Cheers,

Pin

Bill! You are THE MAN!

I have been looking so hard for positive geared properties … I spent hours on the net … This is IDEAL.

You know how I warn people about going into *rural* towns and to only buy unless they are ABSOLUTELY sure they know what they are doing. Well this is the answer to their problems… But they better be quick because I want to buy 10,000 of them in all capital cities. Yep, that’s right…

I did the maths (you know I like maths don’t you?) and this one is a no brainer. $700 p.a for each BSS that means I will pocket 7,000,000.00 (7 MILLION!!!!!)

Now I want to buy a few off theplan as well. (Hehe, I love delayed settlements…). How about an option on a few others… Please Bill …

I just knew you were the type of person to dig out these deals …

Also I really want to hear about the “Bus stop” signs. Think about it. Low maintenance, guaranteed income etc…

I heard rumours that a few thousand public toilets would be available to savvy investors soon too (check out http://www.toiletsRus.com.au).

You remember I made a post a week back about being imaginative. Well all you newbies this is it! Think outside the square! and the posibilities are endless…

Bill, you can use me on your testimonial…

Yours sincerely, A trully satisfied customer (7 MILLION LOL [])

Pin

I started reading this thread … Some posts were way too long … I skipped others etc…

However I think I got the general feel for things.

One thing that people don’t realise is that if you want to be a “Steve” you will have to do the things he does and that means giving up your full time job and doing property investing FULL time.

For people who still haven’t clicked, let me repeat, investing in positive cashflow properties IS A FULL TIME JOB! (That is if you want to get rich quick.)

Sure you can buy a property here and there and take it easy over a few years…

Anyway, the most intersting thing about Steve is NOT his property investing, BUT his “business thinking”. Property is JUST a tool. It is his business mind that makes the tool so effective. You must understand this if you are going to get anywhere! It is the way you think, the way you approach things that counts.

(I am definitely NOT a “believe it will happen and it will happen” type person. Rather, make heap of mistakes and learn from them. If there is a will there is a way…. )

********************
NEW TOPIC

I would genuinly like to help people and answer ALL their questions, however I am frustrated that whenever I answer someone the post is quickly lost because of the “traffic” on this forum.

So this is what I suggest….

Steve, could you please start a new forum topic called “Valuable Info for newbies”, and make me the moderator.

What I will then do is go through all the posts and put the most valuable ones there.

Newbies ALWAYS ask the same questions … so having those questions in one spot would make it easier for them.

I will also contribute, and tell people everything I know about property investing (well… nearly everything.) Why, would I do this? because I have noticed that even when people give REALLY good info only 2% of people really take it in….

Believe me, I can tell you that there are some really good deals around Cairns, Rocky, Morayfield, (mainly major cities in Qld) etc… I can also tell you how to find +ve geared places in NOT *rural* towns (actually I already have in another post). But guess what? perhaps only 2% of people who read this will take note!!! (if that)

So my philosophy is: give the BEST info to people for free … At least for those people that really want to do something about their situation have the knowledge they need, and those that don’t have no excuse!

I will explain to people everything I know about types of loans, structures, (trusts, companies…), tax minimisation, property etc…

I have heard a few property “Gurus” say. “Well I want to charge people to come to my seminar to get rid of the “tyre kickers””. I use to think this was fair… However my thoughts have changed. I say “give the BEST info to everybody … and let people decide what they want to do with it. It is their call.”

So, how does this sound to others? Have a new topic forum for newbies? with HEAPS of great info?

Pin

P.S: Still_in_school, I think you want to double check whether you can claim your uni books as a tax deduction. Are you a professional going to uni or a “student” going to uni? (No, and a “professional student” doesn’t count [])

quote:

---

opinion?

---

Each strategy has their pros and cons and I will try and be as balanced as possible…

-ve gearing per say is not a good strategy. HOWEVER -ve gearing with positive cashflow is good. see my other posts on this.

-ve gearing, +ve cashflow

PROs

– Good for high income earners
– Saves money AFTER tax
– Choose the right location and you will have high growth
– Always beats +ve geared properties in my analysis, not so much on ROI but on “total cash” on sale.
– Doesn’t require too much time.

CONs

– Not good for lower income earners.
– Hinders future borrowings.
– If no rent comes in, this strategy can hurt.

+ve gearing

PROs

– Good for everybody
– Nice, yet very little, cashflow every week
– Does not hinder future borrowings.
– Easiest way to get the ball rolling.

CONs

– Need a lot of time
– Administrative headache as you need about 20 to 30 properties to make it worthwhile. (Well of course you could pay someone to take care of them, but does this defeat the purpose?)
– Growth is not as good. (However during a boom everything grows.)

SUMMARY

Different strategies for different people….

THOUGHTS

– I would be very careful about what I buy at this stage (whether it be -ve or +ve), and I would not buy in *rural* towns unless I knew ABSOLUTLEY for sure what I was doing.

With all property; Location, Location and where it is, is very important, and a lot of +ve proprs simply do not fit the bill anymore!

Pin

Hi Investron,

If you want to find out if a property is positively GEARED do your sums on 100% borrowing.

If however it is a negatively geared property, you can easily calculate how much of your own money you have to put into the deal for it to become positive cashflow.

****
Example

Property costs 300K (all cost included)

If you borrow 100% at 6% then your interest repayments per annum will be 300K x 6% = 18K

Rates + management fees + insureance etc … = 3K

Rent per year is 25K (this is unrealistic but possible).

So the property is POSITIVE geared by 25 – 3 – 18 = 4K p.a

****
Let’s say the rent is 15K then this property is negatively geared by 15 – 18 – 3 = -6K p.a.

However you can make it positive CASHLFOW if instead of borrowing 100% (i.e. 300K) you only borrow say 60% since you have the other 40% in the bank in a term deposit (say).

This means that you will only pay interest on 60% of 300K which is 180K. (so you would have to put in 220K of your own money.)

180K at 6% = 10,800

So your property is positive cashflow by 15 – 3 – 10.8 = 1.2K p.a

This is just a silly example… I hopw it helps,

Pin