Hi again,

In the beginning, I’d spend a couple of hundred dollars buying books. Try to read widely to gain an a perspective of what has worked for others.

Authors that I would recommend are:

Kiyosaki (especially early books)
Allen (anything)
Classon (Richest Man in Babylon)
Burley
Somers
Lomas
de Roos
Spann

If there is any spare change then…[Read more]

Jenny,

Is it really you??? What a pleasant surprise!

Welcome to the forum and thanks for your contribution.

Cheers,

– Steve

Hi,

There have been some excellent tips posted, but I have to say that if you can’t find any good properties on the net then look for other ways to find deals.

Really, there is no substitute for getting in the car and going for a drive as my experience is that not all deals actually make it onto the net and it’s amazing what agent’s will show…[Read more]

Hi,

I agree with Pete R!

I think people regularly mix up passive income with buying an investment that pays, and that has no problems nor requires much management.

In my mind the idea of passive income is anything that is not active income, and the key trait of active income is that it is earned as a specific swap for time and had no ongoing…[Read more]

Hi Maria0911,

When it comes to property consultants you generally have two choices:

1. A buyer’s advocate: These guys work on your behalf to find and then negotiate a deal on a property. The ones that I have seen are generally to do with the home rather than investment market, however over the years I have seen some investor-specific schemes…[Read more]

Hi Stephan,

Read through the past few newsletters I have written (www.propertyinvestng.com/backissues) as I have recently written extensively about nothing down deals over two issues (Dec 04 and Jan 05).

Regards,

Steve McKnight

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

Hi Daryl,

Do you have a specific need for someone local?

When it comes to tax and accounting, the laws are such that you should be able to use a quality adviser from your non-home town and still get a very good outcome.

I’d encourage you to have a look through the Tax and Accounting forum, which is where I have moved this post.

Good…[Read more]

Hi Gav77,

I think the problem you are encountering is a universal problem around Australia at the moment given the recent boom in prices.

Try as you might, Governments are taxing property as if an unrealised gain (i.e. increase in paper value) translates to a real increase in wealth.

The reality is that this is not the case. For example, while…[Read more]

Hello Techhowse,

Hmmmm – I see your dilemma.

As a parent, you don’t want to see your child make a mistake and as such generally advise the ‘safer’ road.

Having said that, this is your decision since you are an adult and are now more than old enough to understand the responsibility associated with making independent decisions.

My recommendation…[Read more]

Hi,

I say:

“Hi, I know this sounds strange, but I’m interested in buying real estate that other people shy away from. As such, can you tell me about the problems you are having trouble selling at the moment?”

Using this approach helps me to avoid the properties that are solutions more so than problems, and ensures I don’t waste anyone’s…[Read more]

Hi,

It’s important to understand the difference between an investing and a lifestyle decision.

Unfortunately, it’s not a clinical or easy decision when it comes to choosing whether or not to buy a home.

Having said that, I would encourage you to treat the thought process of buying a home and buying an investment property as two separate…[Read more]

Hi Veronica,

Thanks for your post and welcome to the forum!

I’m delighted that you have enjoyed my first book and hope that you find the second book as interesting a read!

Have an outstanding day and please, post any questions you have on the appropriate forum.

Regards,

Steve McKnight

**********
Remember that success comes from doing things…[Read more]

Hi again Mandy,

To answer your questions:

Funding Growth

The three ways to fund growth are through (1) Savings, (2) Debt and (2) Realised Gains.

If you use debt then you may find that you reach a glass ceiling. Dave and I saw this limitation from the start, so we used savings (surplus of income over expenses) and realised gains…[Read more]

Hi,

The critical issue of turning your PPOR into an IP is that you may lose your CGT exemption.

It may be possible for you in the short term (up to six years – see this link) to move into your partner’s property as the PPOR, then at a later date sell that and move back into your home as the PPOR, thereby gaining a CGT exemption for both.

If you…[Read more]

You got in John… that way you’re not second guessing the market.

Cheers,

Steve McKnight

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

Hey Mandy,

Welcome to the forum and thanks for your post.

Before answering – what is your investing purpose/goal for this property?

Depending on how you have leveraged, it is unlikly to be +ve cashflow (even with the attractive rent… unless you do things with depreciation).

In that case it will be a matter of capital gains – yes? if so, how…[Read more]

Hey,

The fatal flaw in your theory is that these are all things that you think might increase then rent.

Personally, I do it differently… before letting the property interview the prospects and offer them:

1. A base rent ($160 per week)
2. A list of improvements and the additional weekly rental cost.

For example:

Weekly Rent (not…[Read more]

Hi,

As I wrote in my first book, I would be ultra-careful buying in rural areas. It is very important to remember that demand drives prices, so it is wise to evaluate demand stimulants in the area where you are investing as well as the normal due diligence issues (i.e. numbers, property, people).

More lately, I have been making (rather than…[Read more]

Hi,

This is quite a complex inquiry, so I will try to break it down into components. This is just my opinion – you would be well advised to seek proper legal and accounting help for this one!!!

Right then:

There is a house that would suit our needs as a PPR and as an IP due to the two self contained units attached.

Okay – first point… be…[Read more]

Hi,

BuyerBeware will help you with analysing the deal, however it won’t be able to make the investing decision for you.

A good place to start is trying to work out what you want from your investment property from both a cap gains and cashflow perspective.

I recommend that you identify what % returns you desire, as doing this will help you to…[Read more]