Hi,

It’s a time value of money calculation whereby at the end of 25 years of principal and interest repayments, the amount of the loan outstanding is $0.

Use these variables in the Excel PMT function and you should come to an answer of $62.82

N= 1300 (25 years * 52 repayments per aunnum)
PV= 35,200
R/i = 0.15481% (8.05% / 52)
First payment at…[Read more]

…cough, splutter, curse as Steve spills his cocktail all over the pool sunlounge.

Shhhh… people think I actually own property. Nah, that’s just a sidetrack… the smart money is in bluegums [] and those scratchy lotto things.

[]

Steve McKnight

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Remember that success comes from doing things differently.
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Hey Richmond!!!

Congrats mate. I didn’t know you were getting married… welcome to the club.

No – I’m not melbear – just me.

As for 10 year loans… it’s not that hard to find out, you just need to dig further than the surface.

The infochoice website has it nicely packaged for you – just call the people who offer 5 year fixed terms to see if…[Read more]

Hi,

(I’ve moved your post to its proper spot.)

Not can you or can’t you, but how can you?

Your problem won’t be buying property, but rather securing finance. No bank I know will lend to a minor.

So, some ideas…

1. Buy on a long settlement so that you tie up a deal today (subject to it meeting your requirements), but it does not settle…[Read more]

Hi Mel,

That’s why Dave and I continued with the accounting business and set up other businesses too.

Banks don’t want low-risk, they want no-risk. Strange isn’t it that they had crazy lending practices in the high rise market, yet didn’t budge much with traditional investing.

If worst comes to worse, do low-doc loans where they just ask for…[Read more]

Festive Greetings,

Mel is right about foreclosures. Unless you get to the vendor before the foreclosure, banks are:

1. Unable to release private details due to privacy laws; and
2. Must take the property to auction so that there is no implied funny business.

It is the same in NZ, however it is possible to broker a mass buy-out privately and do…[Read more]

Festive Greetings,

Mel is right about foreclosures. Unless you get to the vendor before the foreclosure, banks are:

1. Unable to release private details due to privacy laws; and
2. Must take the property to auction so that there is no implied funny business.

It is the same in NZ, however it is possible to broker a mass buy-out privately and do…[Read more]

Hi,

There is no magic formula really…

1. We worked as accountants to save up the capital to start investing.

2. Since we borrowed 80%, we needed to find 20% deposits.

3. We began with B&H, but soon realised that it would eat a lot of our capital, so we switched to the wrap strategy where we only needed bewteen $5k and $10k.

4. We sold some…[Read more]

Hi,

I’ve just changed the topic and moved this to a spot where more people may read it.

Bye,

Steve McKnight

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

Hi,

Well… that’s one way to look at it.

Yet I asked Brian, Andrew and Bruce to contribute as I thought it was necessary to show that my results were not isolated and that others were also achieving good success.

If you read their words they actually contain a lot of information about the struggles they grappled with, which while different,…[Read more]

Hi,

I’m all for blocks of units as it’s great to be in control of the body corporate. Surely the same logic applies that if it makes sense to own one – it makes sense to own the whole block.

There are problems too though… finance is a big one. Most lenders will tell you it’s a commercial deal and will proceed to either say ‘no’ or maybe…[Read more]

[]

A private plot to take over the world

<<sinister laugh>>

[:0)]

Nearly bed time for this fella…

Hey, nice sentiment with the saving idea (another post somewhere), but just watch out for the impact of inflation.

Steve McKnight

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

Hi,

Thanks for your post and welcome to the community!

Glad you liked the book []

One possible suggestion is to call several accountants in your area. The old-fashioned types still have a bookkeeping service (of varying sorts and ability) that you might find helpful.

Good luck and certainly make a post if you find someone of good…[Read more]

Hi,

Hmmmm… intersting, yet slightly strange post.

I agree that buying a -vely geared property would be a mistake to you as you wouldn’t be able to offset the tax loss against other substantial income, so unless you could (1) afford the loss and (2) buy in a time of considerable capital gains – then I think you’d find it a struggle.

My advice,…[Read more]

Hi,

Let’s allow this post to find its place in the archives. No more replies please.

Cheers,

Steve McKnight

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

Hi kylesbm,

Great post and advice!

Thanks for lending your opinion and welcome to the posting community. Hope to read more from you in the future.

Warm regards,

Steve McKnight

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

Hi,

Call me old-fashioned, but this is a question you’d want to have answered before you bought, right?

What if you can’t develop and instead you’re left with the property and it’s -ve cashflow?

My advice:

1. Go to the council asap and work out what’s possible.

2. Compare that with what’s financially feasible.

3. Understand that professional…[Read more]

Hi,

Failing a post of help here, I suggest you contact WA property investment groups and ask who they use.

One thing to remember is that trust law is 90% impacted by federal rather than state based laws since the biggest issue is usually pertaining to tax law much more than State based legislation.

Still, it’s goo to get some local advice -…[Read more]

Hi,

The key is to find reasons why/how it will rather than be resolved that it won’t.

The idea is that, provided (1) you had access to unlimited finance, (2) you could meet the cost of additional borrowing from profits, and (3) the properties were +ve cashflow, you could continue to buy because you’d always be making profits.

The problem is…[Read more]

Hi,

Seek professional advice at tax time, but I’d be confident you could mount a reasonable argument saying that the costs were incurred in obtaining assessable income, especially since you have gone on to buy elsewhere.

Cheers,

Steve McKnight

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