Forum Replies Created
Hi,
I find it funny that people who jump to Dale’s defense here openly defame me on another forum site. Good old tall poppy syndrome.
Anyway, without any agenda, I have met, heard and chatted with Dale on several occasions. While I would regard some of his tax claims for personal expenses aggressive, he creates a reasonably arguable position. Ultimately, such claims are made under the Australian self-assessment tax system and so they will be honoured, until such time as they are tested (which may be never), in which case it is up to the lawyers to fight it out.
Like most advice (my own included) it’s up to you to take it or leave it.
Now, as for Dale as a person – never, not once, has his integrity been called into question with my dealings with him. This is a rare situation in the world of wealth creation, and speaks volumes for his professionalism and approach.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Wow,
That’s amazing! A mini-me and I didn’t even know it.
I can assure you that I wrote the piece, and it was done on the flight from Bne to Mel!… it’s even on my laptop!
I’ll make some phone calls tomorrow and see what the deal is with lifting my content.
I did write some material that was being syndicated as part of a mortgage franchise… I thought it had come to an end though.
They should have at least recognised the source though.
Thanks for the heads up.
Finally, in resepct to the 0.025% vs. .25%… perhaps you are correct. The point to note is that the increase was a quarter of one percent, or 25 basis points.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hello,
We’re tyring hard – very hard – to deliver everything that was promised in the program, and more.
There have been frustrations and disappointments, and the program is not perfect, nor is it the right opportunity for everyone.
I accept full responsibilty for the things that have not gone to plan, and that have gone down right wrong. For instance, I’m going to scream if one more CD or DVD is stuffed up in the duplication process!
I’m far (far!) from perfect, but that is not going to stop me having a go. I’m learning and refining as I go.
Geoff, I will be contacting you on Monday to talk about a successful resolution to your ongoing concerns.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Here is an email that I received from Mark. I have his permission to post it here.
Bye
– Steve McKnight
Hello Steve,
Whilst I realise that the email below is a group email I thought I’d drop you a quick line.
I am a serving Officer and have personal experience with the Defence Housing Authority (DHA). My wife and I have owned several investment properties and have often looked at the DHA properties for investment. For various reasons we have not invested with DHA, though we both still consider the DHA to be a very sound scheme.
We currently live in a DHA property, though this is the first time in over 20 years of service.
The entire reason of DHAs existance is to provide quality housing for members of the ADF. There are several standards of housing that DHA provides, determined mainly by rank and family composition. As you stated a lot of military personnel do not own the home that they live in due to the transient nature of service withe ADF. Personnel can expect to relocate every two years or so.
You mentioned that there are pluses and minuses for having the Commonwealth as a tenant. The headaches of vacancy and rent collection are removed but more importantly the Commonwealth assumes the role of the leasing agent.
Condition reports are very detailed and on departing the property a very thorough inspection is conducted. The property is returned to its original condition with allowances for fair wear and tear. Stories of ruthless departure inspections are common within Defence.
From my personal experience I have been informed that if I put a picture hanging nail into a wall I will have to repaint the entire wall on my departure. Another example is if I put a vegie patch in the back garden I shall have to re-turf it.
DHA enforces the regular inspections and will also act very quickly to rectify any fault with the property.
The management fees are in the higher band but unlike some real estate agents that charge but do not enforce the land lords rights or
expectations, DHA does.I have found that DHA generally sells their properties at the higher end of the market value, but of course that is all part of the negotiation.
If any one is interested in a DHA property they should contact the nearest DHA office. They will provide a comprehensive pack detailing all the aspects of the sale and leaseback programme. They will also provide an Australia wide list of properties for sale. The DHA web site is http://www.dha.gov.au
Yours faithfully,
Mark
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Here is an email that I received from Mark. I have his permission to post it here.
Bye
– Steve McKnight
Hello Steve,
Whilst I realise that the email below is a group email I thought I’d drop you a quick line.
I am a serving Officer and have personal experience with the Defence Housing Authority (DHA). My wife and I have owned several investment properties and have often looked at the DHA properties for investment. For various reasons we have not invested with DHA, though we both still consider the DHA to be a very sound scheme.
We currently live in a DHA property, though this is the first time in over 20 years of service.
The entire reason of DHAs existance is to provide quality housing for members of the ADF. There are several standards of housing that DHA provides, determined mainly by rank and family composition. As you stated a lot of military personnel do not own the home that they live in due to the transient nature of service withe ADF. Personnel can expect to relocate every two years or so.
You mentioned that there are pluses and minuses for having the Commonwealth as a tenant. The headaches of vacancy and rent collection are removed but more importantly the Commonwealth assumes the role of the leasing agent.
Condition reports are very detailed and on departing the property a very thorough inspection is conducted. The property is returned to its original condition with allowances for fair wear and tear. Stories of ruthless departure inspections are common within Defence.
From my personal experience I have been informed that if I put a picture hanging nail into a wall I will have to repaint the entire wall on my departure. Another example is if I put a vegie patch in the back garden I shall have to re-turf it.
DHA enforces the regular inspections and will also act very quickly to rectify any fault with the property.
The management fees are in the higher band but unlike some real estate agents that charge but do not enforce the land lords rights or
expectations, DHA does.I have found that DHA generally sells their properties at the higher end of the market value, but of course that is all part of the negotiation.
If any one is interested in a DHA property they should contact the nearest DHA office. They will provide a comprehensive pack detailing all the aspects of the sale and leaseback programme. They will also provide an Australia wide list of properties for sale. The DHA web site is http://www.dha.gov.au
Yours faithfully,
Mark
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Terry – send me an email with the booklet you are missing and I will print you off a master and send it to you.
Now – some comments about wraps.
First up, the notion of doing a P&I loan repayment is an indirect necessity in Vic due to the wording of the legistlation. More so though, it is good practice as you are reducing your loan.
One of the criticisms of vendor finance is the risk that should the vendor spend the cash (and not apply it off the loan) then there is the possibility that the purchaser thinks they are paying down the loan when they are not.
On settlement, they find that the 1st mortgage remains.
Really, the difference b/w I/O and P&I is peanuts in the scheme of things, so I would always push for doing that as I regard it as best practice.
Paul is right in saying that the UCCC applies. A while ago they were going to legislate that it specifically applied to VF sales, because at the time the law stated that you needed to be in the business of VF in order for the UCCC to apply.
Therefore, make sure that you follow the requirements of the UCCC to the letter.
I have heard of investors being sued for breaches, and the penalites are significant.
Be sure to gain proper legal advice and not just rely on any product you buy (mine or anyone elses).
When it comes time to sell before the final payment (at which point title transfers to the name of the purchaser), the purchaser will be able to do this pursuant to the terms of the contract.
The contract I used outlined that we would sell the property, pay ourselves out, and distribute the net proceeds to them.
That is, they had the right to sell, but they had to do it through us (i.e. with our consent) as the title was still in our name.
It was never a problem though – they picked the agent and managed the sale, however the proceeds came to our solicitor who then divided up the settlement funds as needed.
I hope this has helped.
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi ToothKnight,
Okay – I’m confused.
Normally, in a lease-option, you have two prime parties:
> You have the investor who buys the property; and
> You have the homeowner who is leasing the property from the investor.
Now, the homeowner may be an investor, but that would be a rare situation. In most cases it is someone who likes this idea for various reasons.
Therefore, it seems to me you are looking for people to live in the property. That is, you are the investor and you are looking for homeowners – is that right?
If that is the case, I suggest that you approach real estate agents and let them know what service you offer. From time to time they come across buyers who do not qualify for finance, and they can refer them to you – for a commission of some sort or other.
Be very careful though, the key to a wrap or lease-option is in ensuring that the payments are affordable.
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Derek is right, the forum order was switched last night.
It may sometimes take a while to action, but we do listen to the feedback.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Thanks Simon.
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Terry,
I used to do a lot of HR, and prior to R/E had an interest in incentive programs and the like.
I found that while money motivates, it only does so temporarily. Issues about feeling valued, belonging, recognition, challenging work, even self-esteem were higher long-term priorities.
Naturally, the issue of pay is a major factor.
As far as an incentive scheme goes though, let’s look at Henry Kaye as an example. From what I saw, his organisation fed off commissions from people who signed on for his courses.
It seemed that he had an army of people out their bringing people through the door. They must have been enrolled in his spiel, as I have heard of lawyers and other professionals leaving jobs to earn bigger dollars.
I suspect that whatever the scheme is, for it to be effective it must be realistic, achievable, and have others benefit from it. It must also be equitable or else people will give up.
I have seen plenty of schemes come and go on the basis that the program was a good idea but did not motivate staff as it missed the mark.
I guess that overall, not everyone is motivated by money, and those that are will only stay until a better paying opportunity presents.
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hey F2S,
Thanks for your post. By definition a mania exists when crazy things are said without any realistic basis.
Manias are a normal part of the investing cycle, but they cannot be sustained.
In recent times, manias haven’t been too hard to find… the internet stock mania, the property mania, those metal scooters… etc.
In particular, I remember looking for a home to live in in 2003. The market was white hot still, and as we looked at one property in particular, the agent said something similar to you – that the land would be worth $1m in the next five years!
Well, the mania is over and the same house just sold for less than it did back in 2003.
Manias can be very profitable, provided you manage the hype with some investing commonsense. For example, don’t borrow more than you can afford to repay, and don’t punch outside your investing weight (do deals you know nothing about).
No one knows when a mania will end, but it always does – sooner or later.
In short – make hay while the sun shines, but don’t bet the lot on a risky proposition.
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi NellandTony,
Thanks for your post.
I have a couple of points to make…
1. Are you buying the house next door for an investment, or as something you may want to extend on in the future? If it is an investment, then it is a matter of return and maximising your money. If it is a lifestyle decision, then that is different and it comes down to affordability.
2. Whatever the decision, the two areas that you should check out thoroughly are:
> The physical property: What condition is it in, especially in the area where you can’t easily see (electrical, plumbing, floor, stumps, roof). I suggest you pay an inspector to do this for you.
> The numbers: You have to be aware of the financial implications of your decision. The four questions are: how much down, how much back, how much time and how much risk.
3. If you are investing, what is your plan or strategy for the property? That is, how are you going to make money?
As for buying privately, I can’t see the issue here, provided you can negotiate price and or sale terms that meet your requirements. I would say that someone who sells privately usually does so to save a few $$$$, so, you may find it difficult to negotiate on price.
Still, no harm in trying [exhappy]
Let me know how you get on.
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi ToothKnight,
First up, are you looking for money partners, or joint venture partners.
I know of some people who have tried both approaches in a LO situation, and they tell me they would never go down the JV partner road again as it was too complicated.
They felt is was better to offer a set % interest rate, and to make it an attractive one.
Finding money partners can be tricky, as, if you don’t have a reputation then it will be hard to gain the esteem / trust.
Therefore, if this is the case, you need to leverage off the reputation of someone who knows you. That is, you need to be ‘introduced’ rather than cold-calling.
Therefore, often a better reception is gained by going to accountants and lawyers and seeing if they have any clients who may be interested.
I would avoid using family and friends if at all possible. This lacks sustainability and compromises a personal relationship.
So, as a first step, approach your accountant and see if they know anyone. Alternatively, you could ask a lawyer if they offer second mortgage funding, or you could shop around with mortgage brokers.
I hope you find what you are looking for.
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Simon,
Thanks for your input. I hadn’t thought of the resale problems (i.e. you limit your market to only investors – and even on that, those investors may choose another DHA property first), so that is an excellent point.
So, would you recommend this kind of property as an investment?
Also, do you think that DHA manages the property well enough to justify their large commissions?
And finally, if you were thinking about buying such a property, what are some practical traps you have seen to avoid?
Thanks,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Cataldop,
You make some good points. I think you are able to sell the property once the lease expires, the only problem is that the lease may run for 10 years with options to renew.
Your point about limited opportunity to add value is well made.
Perhaps one of the attractive reasons for the REIT though is the potential attractiveness for Super Funds.
Super Funds are not able to borrow money, so real estate has traditionally had little appeal (as there is no leverage). Investing in a REIT can potentially overcome this as you can gain an exposure to real estate without having to buy the entire property.
For example, you could have an exposure to real estate by holding, say, 10,000 $1 units. It would be hard to find a $10,000 house.
Thanks for your post.
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
G’day GR,
Thanks for your input.
I’m not sure that Westpac would be funding it in the long-term. I would imagine they would in the short term, but once the units were purchased in the REIT, I would have thought the ‘equity’ would have been used to retire some or all of the debt.
It is more of an investing vehicle, and there are obvious cross synergies plus first mover advantages for Westpac.
You are right though, at a 6%ish gross return, the only way these things could be cashflow positive is on the basis of low or no debt. This being the case, the cash-on-cash return on the investment is unlikely to be greatly attractive.
As such, on the face of it, the value of the investment would be from growth.
Still, the prospectus of the REIT would make very interesting reading.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Andrew,
The idea behind the 11 Sec Solution is that a 10.4% gross return should be high enough so as to leave you with some net positive cashflow after property expenses have been deducted.
There is no guarantee though, particularly if there is more than 80% borrowing.
As far as the maths goes, it has been well explained in this post.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Just a quick comment about the pursuit of wealth creation… bring it back to what Jesus said, in that you can only serve one master.
If money is your master then you have the wrong focus, as it is an idol. God wants to be #1.
There is nothing wrong with seeking to acquire wealth, indeed, many of those featured in the bible were wealthy – from David right the way through those who supported the early missions (as written in the book of Acts).
Search your heart, pray for wisdom, and ask God to show you what you are doing wrong.
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Your feedback is noted, but having gone this far now, there is no turning back!
The look and feel is only a small fraction of what we have done. Many mods have happened behind the scenes, and many more continue to happen on a daily basis.
Still… no doubt it will be back to the drawing board in 12 to 18 months with a new site look and feel.
To answer specific questions:
1. RESULTS forums: These are being migrated to a new site and won’t be a pain for much longer.
2. The General Forum is now ‘Everything Else’. The idea was to get people to post the right question in the right area.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Yes, I have seen it as a friend lent it to me to watch.
For the main part it contained some very interesting ideas, and some alternative ways to view things.
Where I thought it fell over was with the woman who looked liked Zsa Zsa Gabor. In the end credits, her qualifications was that she ran her own elightenment school, or something. Oh, Please!!!
For me, I have a strong Christian faith, so I don’t subscribe to some of the scientific theories. What it does seem, is that the more we know, the more we find that there is a fabric and a structure well beyond our comprehension.
I love the thought of time travel, and often wonder about fate. To this extent, the movie was worthwhile viewing.
Remember to watch out of the persuasive use of music and visual effect to get an uncertain point across. TV, and Hollywood, are powerful mediums.
For those seeking what’s beyond the obvious, I’d recommend joining a bible study group and looking into what’s written there. That’s what I did when I realised there was more to life than money and property investing.
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
