Hi Peterhen,

(post moved to the property forum)

You make a good and valid point. Yet, for the professional investor, if s/he had to be forced into saving then there would be little chance of long-term success.

I have met plently of people who have had major money problems… and almost all have had a spending problem rather than an earning…[Read more]

Hi,

(post moved to PropertyPlus)

Welcome to the community and thanks for posting.

Despite what many people think, I’m not against the idea of negative gearing… I just think that it’s a strategy that only works when the market is rising.

Karen, in your case the lesson to learn here is that you went into the property without your investing…[Read more]

Hi,

Moved your post to the property forum…

No it’s still called land tax. Council rates cover garbage collection, local roads, parks etc.

Bye,

Steve McKnight

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

Hi,

Moved your post to the property forum…

No it’s still called land tax. Council rates cover garbage collection, local roads, parks etc.

Bye,

Steve McKnight

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

Rebecca,

You can debate the morals, but what you don’t seem to see is that the majority of the forum here don’t agree with your take on things, and when they do try to engage you in making their point known, you start hurling abuse which needs to be moderated.

So, as I see it, you have added little to the discussion of late other than name…[Read more]

Hi,

Inventive title… but I’ve moved your post to this forum as it is better situated here.

Back to Yr 12 Legal Studies… I thought the constitution failed to grant power to make laws pertaining to property to the federal government.

<<steve does some research>>

ooooh, look what I found,…[Read more]

Hi Hissho,

quote:just a further question: wouldn’t a vendor get upset if you went back to him and said “sorry mate, i just couldn’t get the finance.”?

Nope – happens all the time.

Cheers,

Steve McKnight

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

Hi Karen,

The MAP is a private mentoring group that I’m running. It is not open to new people and I’m not replacing those that opt out. I doubt that I’ll run it again as it was a pilot program.

I’ll write more about this in the upcoming months.

Regards,

Steve McKnight

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

Hi,

quote:

My problem is that I am looking for a lender that will provide a lvr of 80% and not the usual 70% for a commercial loan.

Any ideas as to where I might locate lenders or brokers that are specialists or flexible in this area regarding an 80%LVR for a commercial loan.

Hmmm – hard, but not entirely impossible. FYI all my commercial…[Read more]

Hi,

What brand and model did you buy?

Perhaps come to terms with the PMT function on Microsoft Excel as a step to becoming familiar with the ‘time value of money’ variables.

A good site I found quickly was: http://www.rosilyn.com/page4.html

It’s bound to be tricky… but you should be able to give it a go via trial and error.

A good idea is…[Read more]

Hi mate,

Glad your enjoying the book. []

The reason why I put getting finance after signing a contract is, in my experience, the practice of almost all lenders.

They require a physical property, or more accurately a signed contract to purchase, before they can issue (final) approval for finance.

Pre-approvals are always subject to conditions,…[Read more]

Hi,

Just moved this to a more appropriate forum.

Cheers,

Steve McKnight

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

Hi Julian,

Nice to hear from you all the way from NZ!

Very perceptive insights… my relationships with Dave and Julie are cornerstones to my success. Rencently I wrote somewhere that your spouse needs to be your #1 fan, not your #1 critic.

Yeah, more business relationships fail than succeed, I believe having common goals and being accountable…[Read more]

Hi Andrew,

Thanks for your comments about the book and welcome to the community.

Some general figures I allow for are:

5% of purchase price for closing costs
4 weeks vacancy p/annum
8% mngt fees (unless otherwise known)
3 to 4 weeks rent for maintenance

Other costs vary too much to have general guidelines. You don’t want to make your…[Read more]

Hi Jimmy,

P&I loans are calculated based on the annuity formula where PAYMENT is a variable of PRESENT VALUE (principal or loan balance), INTEREST (per compunding period) and TIME.

Excel does this with the PMT function.

Hope this helps.

Bye,

Steve McKnight

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

Hi Lioudmila,

Thanks for your post and I hope you are enjoying the book. Nice to know I was under an Xmas tree []

Welcome to the community and thanks for posting. I moved your post to the PropertyPlus area as that is a better spot for it.

I’ve read your situation with interest. Once I went to the bank for finance and they said that they…[Read more]

Hi SIS,

A couple of points to note (albeit perhaps at the complicated end of the discussion):

quote:See with a Family Trust, you can only have +ve cashflow assets, were as hybrid you are able to have -ve geared and +ve geared properties that run at a lost or profit.

Well, you can do the same in a family trust too. Indeed, the issue of trust…[Read more]

Hi Hissho,

Happy New Year Back…

Well, call me a cynic, but let’s say that you have a property with a maket value of $1m.

I come to you and say “Here’s what I’ll do… I’ll pay you $10 for the right to buy the property for $1.5m, open for the next six months.”

What would you probably say to a boffin wanting to pay 150% of market value? Yep -…[Read more]

Hi Piscies,

Sorry, re-reading my post it may have sounded dismissive re: deposits. Apologies.

Just working through what the issue re: small deposits to flesh out the discussion, are you suggesting:

A. The vendor carryies back a second mortgage for the deposit shortfall between sale price and what the bank finance?; or

B. The vendor offers…[Read more]

Hi again,

Back after lunch…

I’m not a big fan of hybrid trusts. The main advantage is that a hybrid allows you to have a fixed and floating entitlement, yet for most investors all that’s required is a properly set up family trust (fully floating).

In other words, a family trust allows you to share profits however you like and you can just…[Read more]