Forum Replies Created
Hi,
A few comments.
First, this is a very interesting article, however it remains one man’s opinion. I’m sure the RBA would have a different view on some of the topics raised.
Second, if you have a long-term settlement then it would be wise to compare that with your position of the market going forward. For example, if you thought prices would drop, why would you hold the investment?
Finally, if you could settle early top secure finance you’d have to weigh up the cost:benefit of this and whether you have the available funds to settle now.
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
Tip:
Positive cashflow deals are made rather than bought.
Tip:
The more removed you are from the problem the longer it will take to profit.
Tip:
Cash is more valuable when it is in short supply. Remember this when negotiating.
Tip:
God invented paint to fix up brown houses, which always seem to sell for less.
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,
I’m inclined to agree with Rob. I can certainly remember the dark days of loan-calls from the early 1990’s.
However, recently looking through some of my loan agreements on investment property (for the book) I can’t see any clause that allows the bank to recall a loan that is not in default.
Having said that, the LA does give the lender the pwer to look through the property and has to approve tenants etc. Practically this never happens, but I guees it could be a clause relied upon to suggest a default situation.
Still, Bill’s warning (although a little like Chicken Little) does hold merit. I too am worried that investors are rushing to NZ like the gold prospectors of yesteryear.
Rob’s comments about due diligence are very well made. I add that offshore investing is always more risky as control is more remote. There are plenty of opportunities, but never allow greed to override commonsense.
Nice to hear from you again Bill.
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,
This post was moved here because it is an opinion and this is the appropriate place for it!
Trust me, I tried with other mortgage brokers but had no joy. Once again, Leonie spotted and capitalised on an opportunity that was available (at that time) to any mortgage broker.
I’m sorry if other people feel offended. That was not my intention.
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,
visit http://www.propertyinvesting.com/11secondsolution
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,
The difference is probably members who have selected not to have their identity known when they log in.
You can see the people online in the Active Members area (under Members option in left hand menu that appears after signing in).
Still, I’ll follow it up.
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
Congrats Monopoly,
I think it’s important to remember that forum moderators certainly don’t have an easy job.
They are subject to criticism for simply trying to retain order. I’m very appreciative of all the hard work moderators put in.
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 Lambsie,
The boat, so to speak, is the opportunity to make changes to tax structures prior to the end of the financial year.
Specifically, if you decided to set up a trust, it needs to be created prior to 30 June in order to receive 2003/2004 tax year distributions.
Accountants may only make use of a strutucre if it is in place prior to 30 June, and indeed tax planning is best done prior to the end of the tax year.
Family’s doing great… thanks for asking!
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,
My knowledge of tax is that deciding to realise a few properties would not make you a trader.
The issue of being a trader or not comes down to a question of your intent at the time of buying. Sure, if you’d only owned the property for a few months (or you decided to flip) then yes, then 100% of the gain may be classed as taxable income.
However, choosing to sell a property now in line with a documented investment plan is simply the realisation of an asset on favourable terms.
Still, it’s a valid point and something that should be discussed with your accountant.
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 clarifying…
It’s appropriate for people to advertise in a signature at the bottom of posts. That way people can get in touch as needs be.
It is inappropriate to ‘hawk’ services via explicit posts or through personal messages.
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
New Zealand?
Don’t buy property there mate… the houses are held up by piles!!!
Seriously, my advice for people interested in investing in the land of the long white cloud is to get on a plane and see for themselves.
Yes, there are some good deals there, but there are still plenty of opportunities here too.
BTW, there will be a new product released in the next few weeks outlining more about NZ investing. It’s an interview I did with Kiwi property investor and legal expert Mike Ward. It will be at the cheaper end of the spectrum… less than $30.
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,
Interesting post.
Personally, I would have thought that a house bordering a park would have been an attraction, provided it was a small kiddies play area rather than a teenage hang-out.
Does the property have a large yard? If so then perhaps being near the park is no real benefit. If not then proximity to some open space would probably be a plus.
Perhaps a call to an insurance broker (or the local police station) would help you determine whether or not such properties were more likely to be robbed.
Privacy is a major concern, so be sure that you can’t see into the living areas from the park or else plant some trees / shrubs.
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,
I found this on a US website:
Asbestos roofs are not an environmental hazard unless they are broken or crumbled and the dust inhaled. that is why, *when removed*, they fall under the hazardous materials regulations. if left in place, they make a good roof.This is my understanding too, although, to be honest, I wouldn’t want my kids playing anywhere near it.
So… the general consensus from my research seems to be that so long as the asbestos has not been damaged (illustrated by it flaking or wearing away) then it should be OK.
Just don’t go anywhere near it with a power tool!
BTW, be on the lookout for asbestos fences in the area. If they used it in roofs then they may also have used it when building fences too, especially in lower socio-economic areas.
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 Darren,
How’s things?
As for considering selling… I think the question you have to ask yourself is: “Is this property performing as I expected?”
The financing question is incidential to the bigger issue of deciding whether to keep or sell.
Personally, I wouldn’t be as worried about the issue of population so long as I had strategies that covered the possibility of vacancies turning +ve cashflow into -ve cashflow.
So… to answer your question, my idea of mould is something that you know is underperforming but you hang onto it in the hope things will turn around.
What does your gut tell you on this deal?
Best wishes,
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 MarkyMark & Ron,
There wasn’t a whole lot of science why we went with 80%… it was just a standard amount that banks were comfortable lending.
You are right to say that 70% is less geared than 80%, but the again 80% less less than 90%. I think it comes down to what you are comfortable borrowing.
To further the discussion… since that time capital appreciation has further reduced our LVR (based on current value) + we nearly always do P&I repayments to bring our debt exposure down further.
But the biggest one for me is, why sell an asset that has performed and served you well and will remain cash flow positive?Fair point provided your asset continues to perform strongly. My point in the newsletter was to consider selling assets that are underperforming. You’d be crazy to sell the gold and keep the mould.
Ron, don’t worry too much about hindsight. If values had of fallen then you’d be patting yourself on the back.
Sorry to hear about your experience with the unit. Good to see you kept your shirt on in the long run and that you have the positive outlook to see the learning experience rather than being bitter.
It looks like your investing system is working well… just avoid becoming overladen with debt until you receive a clear direction from the market.
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 Ben,
Happy to have helped [biggrin].
Working out the right time to sell is always a hard thing to do as there is the risk that you’ll leave profits on the table.
It’s handly to remember that no one went broke taking a profit and that greed can cloud judgement.
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,
Interesting discussion.
My thoughts are that it’s ok to be sceptical, but don’t let it cause you to miss out on a learning opportunity.
I’ve heard Robert Allen speak on several occasions now. His marketing may be suspect by Australian standards, but his information in respect to wealth creation is fantastic.
I have certainly learned a lot about profitable real estate investing from Robert Allen.
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
Hmmm interesting…
I think that people get to a point where they lose interest and move on to other things. A handful of people remain who form the fabric of the site.
In terms of the market… those with skill will rise to the top whereas the speculators will find the going very tough.
This forum may or may not become quiet… but it will stay here for the seasoned investors who are interested in sticking with property because they know that opportunity exists in every market.
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,
When inviting someone to become a moderator I look for someone who has demonstrated a track record for trying to assist forum members, either by answering questions or by adding to the fabric of the site.
The moderators have a difficult job, and while they are not immune from making a mistake or two, but they are of good character and intent.
Being a moderator is not by nvitation-only, you can nominate someone (or yourself) if you’d like to participate… simply send an email to admin @ propertyinvesting.com
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,
Please see: https://www.propertyinvesting.com/depreciation.html
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
