Hi Leigh is right…

Bill it is likely that you have my e-mail address stored in one of your e-mail boxes, in a contact list or something similar.

Or alternatively, someone who has your e-mail address also has my e-mail address and the virus added the two together and tried to replicate itself via e-mail that way.

We are very anal in our office about being vigilent with viruses, so rest assured, it did not come to you via an infection at our end.

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

Indeed – welcome back, although I share Del’s interest in knowing why you’ve jumped back in given the incidents of late last year.

Still, it doesn’t really matter. Let’s just get on with helping people with their investing with some useful and thought provoking discussion.

Bye,

Steve McKnight

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Hi,

The rule of thumb is higher debt, bigger risk.

Personally, with things as they are at the moment, I don’t think there’s too much risk of interest rates moving beyond 7.5% in the next few years.

I think the article assumes that investors keep gearing levels high (maybe on an I/O basis) – my advice is that if you have a plan for getting into debt, you also need a plan to get out of debt. Nearly all our loans are P&I.

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

When the new forums came online I split up the one generic Property Plus into smaller forums so people with a particular interest could post to a more relevant area.

All old posts remain in the archive area.

Cheers,

Steve McKnight

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Hi… sounds like a nasty situation.

So you keep the deposit, right? But before you go ahead and sue, make sure there is some bread in the cupboard.

Or perhaps this is a chance for you to lease-option or wrap the property and come to a win-win outcome?

Solve problems and you’ll make cashflow!

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

Fair enough. Criticism accepted.

But… Leigh, I gave you a book close to Xmas… should I give everyone a free book in the sake of fairness, or should I show my appreciation and reward you for the help that you’ve offered me?

Perhaps the people concerned don’t post as much as some, perhaps they have helped out in other ways and this is one of the ways I am able to return the favour.

As you know and others know, I’m more than generous to people who help out.

Bye,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi Leigh,

Aren’t you married [8]?

Nah, unless I felt really compelled I’d have shaken my head but not said anything.

Cheers,

Steve McKnight

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Hi,

The link to the report you’re looking for is: https://www.propertyinvesting.com/accountability.html

Don’t know David’s details… perhaps do a member search using the Members option in the LH menu (you’ll need to be signed in).

Bye,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

The discussion seems to be here that wrapping is about selling over priced houses to people who can’t afford it!

From my experience, this is rarely the case and is counter productive for both the investor (who wants cashflow… what good is a vacant house) and also the purchaser.

The key to a successful deal is to pre-qualify the applicant to ensure s/he can afford the repayments + ownership costs, both now and into the future.

Done correctly, I don’t believe that anyone is being taken for a ride as there is full disclosure of the profit and the risks.

Re price margin: The agreement often lasts for 25+ years, so a small annual capital gain will mean that the property is easily worth more than the contract price. If the gain is higher then the client cashes out early and moves on.

Re: interest margin: a +2% on my loan will still be a lot less than non conforming interest rates, which wouldn’t be available anyway unless the applicant had a 20%+ deposit.

In the end, wrapping is a private finance arrangement, where the underlying security is the property. As such, the interest charged is lower than for personal loans, but higher to reflect the risk to the investor.

No one holds a gun to anyone’s head. Instead, the way to do it (full disclosure), means the buyer goes into the deal armed with far more information than a normal sale.

*sigh* I accept some people execute the strategy poorly, but these are in the minority and I’m trying to work with authorities to tighten the rules to weed them out.

Talk of people being kicked out of homes and left on the streets is a nonsense. There are rights, and these rights are protected on the title to the property.

I advocate that there is a lot of benefit to be had when the stratey is executed properly… and have the evidence in the form of happy clients to prove it.

If you could meet the people who now have a home, and those who have the opportunity, perhaps you’d better understand how it can be used in a way where everyone benefits.

My vote is ‘good’, provided certain circumstances are met, namely affordability checks and full disclosure.

Regards,

Steve McKnight

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Hi,

Not long ago we went to realestate.com.au with an idea to have some basic financial data collected and then formated in a generic PI.com report.

It’s a work in progress but there is plenty more to do to see it come to fruition.

Personaly, I’d like to see more of the ownership costs outlined to help with the number crunching, plus also info about likely rental.

Great topic of conversation though.

Cheers,

Steve McKnight

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