Okay… I’m not sure why, but there does seem to be some confusion. I thought Del answered the question okay which is why all I did was point out that the answer (i.e. property) was also in the title.

Anyway… so as we are all on the right page, and to clear up any confusion, let’s start again…

Joseph,

Thanks for your question.

The title of the new book, which includes the words ‘in property’, indicates that the value is indeed the property value at the end of the MAP, rather than the loan value, or any other value. Having said that, the ‘cost’ of each Mappers property portfolio is included in the book so readers can judge performance.

This is consistent with information in the online shop that details the book where it is written(emphasis added):

So, apologies if my first answer didn’t seem comprehensive, but I thought a it was a straightforward question and a straightforward answer.

Regards,

Steve McKnight

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The title of the book gives context…

$1,000,000
in property
in one year

Regards,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

Shucks… thanks for the praise.

Jo – the $400 p/month was only while Dave and I were accumulating capital to invest when we got started.

Now days Jules is supported from our investment income as a full-time mum. It was a case of delayed gratification.

As for book royalties – these are donated to our foundation. But I do all right these days, so thanks for your concern [happy]

Cheers,

Steve McKnight

P.S. The Mazda is unleaded [wink4]

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Hi,

Thanks for your feedback and I’m delighted you enjoyed the book.

A couple of points:

1. The cashflow figures are ‘gross’, meaning before expenses such as those you listed.

2. The cashflow is only from property remaining at the end of the MAP. Cashflow (i.e. non-cap gains) from deals bought and sold in the 12 months were excluded.

Regards,

Steve McKnight

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Hi,

I tired to go milk-free after a Tony Robbins event some years ago and found that it has a good impact on my health.

Later I did more research and was shocked at what I found. Check this out as a start: http://www.rense.com/general26/milk.htm

But… at the end of the day I thought I can always go back to drinking cows milk, so let’s see what happens if I give it a rest.

Cheers,

– Steve

Steve McKnight

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Hi Darren,

Glad you enjoyed the book [evo]

Can you pls give me a page ref re: Robbo?

Ta,

Steve McKnight

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Hi B.C.,

Thanks for your feedback and I’m delighted that you’re enjoying the book thus far [biggrin].

In respect to depreciation… I see it as a kind of (but not exactly the same as an) ‘interest free’ loan.

Put another way, it’s like gravy on top in that it’s great to have but the meat (or tofu for us vegies) and potatoes of the investment is fine without it too.

Specifically then, I crunch my numbers when doing my due diligence without relying on depreciation to ensure the property is +ve cashflow in its own right, and then later, if depreciation is claimable, I take advantage under the knowledge that it is a timing rather than permanent tax benefit.

I have heard that some people don’t claim depreciation despite being entitled to it (so they don’t have to repay it later). This seems a little silly to me as I’d rather have the dollar now to invest with, earn a return and then repay the principal later than the option of going without.

Hope this helps… pls make a post when you’ve finished the book and tell me how you think it finishes up.

Cheers,

Steve McKnight

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Hi Sonja,

What I would do is look at the people speaking and see what it was that they could offer to help you achieve your investment goals. Break up your points into short-term (0 – 6 months), medium term (1-2 years) and long-term.

Furthermore, while you may need to acess equity in the short-term, provided you take action to recoup the cost then it’s more of an investment in its own right than it is an expense.

For example, the cost is $2,198, so, assuming your existing investment yields 8%, then you would need to increase rents by just $3.38 per week to increase your equity by $2,198 (i.e. [[$3.38 * 52] / .08]).

In the end though it’s (obviously) a decision as to the cost vs. benefit for you in your circumstance.

Regards,

Steve McKnight

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Hi,

Sorry mate… not sure where you are coming from.

What I would say is that there are two reasons primary reasons to sell:

1. You think you can get better returns elsewhere; and

2. You feel the value of your property will fall and thus decide holding cash is a better option.

As such, the tax implications are incidential to the investment decision rather than the other way around. That’s not to say they should be ignored… no, no, no. They sure need to be quantified (that’s why God gave us tax accountants), but just keep everything in its proper perspective.

Cheers,

Steve McKnight

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