Hi,

A free seminar can be an excellent way to start your property investing as the information is usually okay but it’s the bending of the facts to suit a sales purpose that is questionable.

You can protect yourself against this by identifying the key assumption(s) in the financial model presented and then asking yourself how likely is it that…[Read more]

Hi,

The REIA has data for sale that may meet your needs.

See: http://www.reia.com.au (I think it is in the publications area)

Cheers,

Steve McKnight

**********
Remember that success comes from doing things differently.
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Hi Dale,

Thanks for your contribution, and to others too for sharing their ideas.

The purpose of my newsletter was not saying ‘don’t do it’, but rather, if you do then you need to know the nature of the investment and specifically, the dangers that aren’t always properly explained.

Thanks for your input too Rob. I’m sorry you wouldn’t rate it…[Read more]

Sure,

I use Mark Unwin. You can get his details from http://www.wp.com.au

Regards,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Hi Stargazer,

Thanks for your post. I have quickly run your details into Investment Detective on the following basis:

Purchase Price: $200k
Closing Costs: $10k
Loan: $21k @ 7% P&I over 30 years
Rent: $290 p/week (no vacancy)
Rental management: 8%
Rates: $1k
Insurance: $300
Repairs: $500

On these assumptions, the software has come back with:

>…[Read more]

Hi,

Thanks to everyone who has contributed ideas thus far.

You know, I have had something of a revelation about my newsletters in the last week. It seems I have gradually become more focussed on the theory and have sacrificed the practical stories that used to be such a feature.

So, one change that you’ll see is a return to some practical tips…[Read more]

Hi,

That’s a lot of !!!!!… you must need some serious help [biggrin]

The decision to keep vs. sell is always hard, but here are some issues to think through.

1. Personal vs. Investment?

How emotionally attached to your Ballarat apartment are you? That is, do you plan to move back there on day, or, at the other extreme, is it only about what…[Read more]

Hi there Cabo Wabo,

Welcome to the forum and thanks for your post!

What you’ve outlined is commonly known as buying wholesale, that is, (usually) before an agent is engaged and a commission payable. The reverse side of things, where the vendor sells privately, is called ‘For Sale By Owner’ (FSBO).

I have tried this in the past to mixed…[Read more]

Hi Ron,

Sorry – today has been a busy one for me.

When evaluating the numbers I work through four questions:

1. How much down
2. How much back
3. How much risk
4. For how long

As many people know, I am not so much a capital gains investor as I am a cashflow investor. Nevertheless, by working through these numbers you can work out how much you…[Read more]

Hi,

Perhaps if you could provide some sketchy numbers I could help you with the analysis. Things such as purchase price, likely rent, likely costs etc. The more you can give me the less I have to assume and the more accurate your answer will be.

Cheers,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Hi,

Even with some softening of the property market, it is still very hard to buy positive cashflow residential property in a major regional or metro area of Australia.

Therefore, the name of the game is to think value-add. For example, buying a property, sub-dividing the back and then selling it and using the profits to pay down the front…[Read more]

Hi,

I think the best research is done on the ground rather than on the internet.

By that I mean that it can be useful to look at postcode profiles to gain a basic understanding of an area, but beyond this the best research is done in person on the ground.

For example, recently Dave and I have begun investing in the US (little cheap houses that…[Read more]

Hi,

A $2 company is one with little capital (i.e. $2). It is done this way so that there is very few assets to sue for in the event of legal action.

That’s why trustee companies are usually asset-bare, as accountants use this ploy to maximise asset protection.

Dave, you may like to look at a video I recorded yesterday which gives some more…[Read more]

Hi Luke,

Thanks for your post. I am regularly asked to what extent I use research services, so I’m sure your question is a common one.

Personally, I think that research can be beneficial to gain a context for an area. In particular, to gain a snapshot of the demographics and to then compare it to recent trends.

For example, factors I do pay…[Read more]

Hi Michael,

Your point is well made in that there are advantages and disadvantages of using equity.

My experience is that the advantages are often given without a full explaination of the risks, hence the newsletter. Also discussed is the deductibility of interest payments in general.

Maximus, how much money is needed for retirement is a…[Read more]

Hi JaJa,

I’m not sure if your were at yesterday’s seminar or not…

In any event, I’ve ready through approx a third of the feedback forms and there were a few comments where people mentioned that the content was straightforward.

On the other hand though, others mentioned that the ‘nuts and bolts’ detail that was presented about the system Dave…[Read more]

Hi,

I believe this link will help you with transport:

http://www.avalonairport.com.au/pdf/Sunbus_Fact_Sheet.pdf

Cheers,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Readers of my earlier columns will recall me saying that all investors should add 2% to their current interest payments and deduct 10% off their rents — and get out of the market of the numbers don’t stack up.

Sounds like wise words to me, if only to complete the exercise as a worst-case scenario.

Regards,

Steve McKnight

**********
Remember…[Read more]

Hi,

What I find interesting is that the masses didn’t see the stockmarket of 1929 unfolding until after it happened. Why? Greed.

Nat R’s point about more sophisticated markets is well made, but at a grass roots level, people remain greedy which is why the boom and bust cycle will occur.

For example, where was the sense in the tech stock rise…[Read more]

Hi Tom1000000,

Actually, I feel that I have built enough wealth and certainly don’t want to hoard it.

My main goal in investing now is to continue to raise money to contribute into philanthropic activities which we have begun.

This all started when my books sold well, and now has become quite a focus.

Also, there is a certain amount of…[Read more]