Hi,

You could certainly sue a person as a result of non-performance of a contract, but the damages you seek would result on your financial loss, which is unique to every situation.

You can’t make someone pay a debt who has no money, so it doesn’t matter what the judgement in your favour, you need to really weight up the cost vs. benefit.

On…[Read more]

Hi,

I agree with the comments made by JackW.

In addition, some key issues I’d be thinking about generally fall under the rights and responsibilities of all concerned, namely:

* Contribution of time and money
* Sharing of profits / losses
* Who ‘runs’ the investment
* Ability to exit the deal
* Requirements to contribute more funds
* Tax…[Read more]

Hi DNL,

Generally, it is not a good idea to buy property in the name of a company (that is not a trustee coy) as companies do not get the 50% CGT discount.

The answer was that as we would not own the properties 100%, we could not place them in a trust or the commpany.

I don’t understand the context for this response… Yes, it is true you…[Read more]

Hi,

I strongly suggest you seek accounting advice on this matter, but to get the discussion started, and based on the info at the ATO Website

1. You can only have on PPoR at a time. As such, your PPoR for the 2 months you lived in the property would have been the unit. I expect that if you had of sold while you lived there then there would not…[Read more]

Hi,

I’m not a lawyer, but as I understand it (and be sure to verify this), technically, a trust cannot operate in its own name (as it is not a separate legal entity), and as such, it would correct to have the nominee clause as:

<name of trustee(s)> As Trustee for <name of trust>

Be careful with nominee clauses too… generally (in Australia)…[Read more]

Hi Zen,

Thanks for your post… interesting question.

I’d imagine that the less risky thing to do would be to put in an offer subject to selling your home by XX date for (at least) YY price. The problem with that is that it gives the vendor a reason for saying ‘no’.

If you choose Option 2, then I’d certainly have a Plan B worked out should you…[Read more]

Hi DNL,

Such a simple post, but you could write a book trying to answer it (and indeed there are books on the ins and outs of commercial property)!

Property (with the possible exception of vacant land) exists to be a home – either for a person (residential) or business (commercial).

Both residential and commerical property markets are…[Read more]

Hi Shackles Off,

Welcome to the forum and thanks for your post.

This forum offers a variety of opinions, which is good because it will help you consider your options from various angles.

For example, I do not share all of Jo’s general views on property. Historically, and statistically, property markets trend down and sideways for longer…[Read more]

Hi,

Just to emphasise some of the points made so far…

When it comes to including ‘subject to’ clauses the art is to use words that allow you to exit the contract (if you so decide), but at the same time do not seem so vague as to make your offer seem ridiculous.

I’d suggest purchasers be very careful with the phrases used, especially loose…[Read more]

Hi,

Just to quickly answer a couple of questions:

1. John and Rondah sourced their first lot of finance to purchase real estate through a money partner… 20% through them and 80% through mainstream lending. The money partner was, in this case, a family member.

2. In respect to gross vs. net figures, I accept the argument and potential…[Read more]

Hi,

I agree that it is difficult conceptually to understand (e.g. your comments about yield and residential property).

In the end, the rules you need to remember are:

1. Increasing annual income; and
2. Decreasing rent return %

are the drivers to increase purchase price.

The maths etc. justifies this is the case.

One last point – you need to…[Read more]

Hi Lukebe2,

Thanks for your post and welcome to the forums.

1. How is there asset protection in a trust?

It’s a little complicated to explain in one or two sentences, but such a structure allows you to control the asset (and the income from the asset) without actually having to own it in your own name.

As such, if you get sued as an…[Read more]

Rob,

So, what we have here is a product designed to be tax-effective by maximising deductible debt (IP) vs. non-deductibe debt (PPR).

It seems such a scheme that compels a finance combo-deal in the way you mentioned is considered tax evasion.

Thanks for your comments. Do you know if such products were previously common? I’d not come across…[Read more]

Hi Rob,

I sense you touch on an obscure yet important point. Can you please expand or perhaps add some links where those interested could find more info?

BTW, welcome back. I look forward to reading and learing from your posts.

Bye,

Steve McKnight

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

Hi BrownBear,

There’s not a lot more I can add that I didn’t cover at the seminar, except to reinforce some of the key points.

First, in order to profit from the property market it is essential that you understand how it works.

In the recent boom, skill wasn’t necessarily needed as all real estate investments appreciated in value on the back of…[Read more]

Hi Domo,

Here’s the link:

https://www.propertyinvesting.com/forum/topic/8788.html

Please discuss future matters on that thread.

Thanks,

Steve McKnight

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

Hi,

Thanks for the suggestion!

Maybe I could turn all the FAQs into a third book… think of the royalties [wink4]

Cheers,

Steve McKnight

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

Hi Aussie,

It’s an interesting point you make.

I notice that the last round of REIA stats had the Melbourne median house market falling by around 15%.

However, I regularly look through the local paper and see houses in Ringwood etc. sill priced at $350k+.

Sure, I think we are off the highs, and asking price is not necessarily the price you’ll…[Read more]

Hi,

Just to add, what I also said was:

Positive cashflow is (and continues to be) the meat and potatoes of the deal. Capital gains was (and is) gravy on top.

The key is to align the way you invest with your expectation of the market. That is, growth assets for growth times, and income assets for income times. Having said that, I’m not at…[Read more]

Hi Aussie,

Thanks for your feedback. I’m delighted that you enjoyed the book, but even more so that you gained a few insights about how to improve your investing.

Warm regards,

Steve McKnight

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