Hi div43,

Try bookstores… or your local accountant.

Bye,

Steve McKnight

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

Hi,

Just arrived back from Sydney after the radio interviews with ABC and 2GB. It was certainly a very big experience which I really enjoyed.

You should have seen the phone lines light up last night… amazing. When I left at 11pm there was still a full board!!!

Anyway, to answer the sceptic(s)…

It’s a fact that in the last two months Dave and I have acquired around 60 more dwellings, all positive cashflow. The way we have financied these is we have sold some of our blocks of units for a good profit and then reinvested the proceeds buying cheaper houses on higher yields.

I think that the example I gave on radio this afternoon best sums it up…

If you bought a $30,000 car and then a year later someone came and offered you $60,000… would you take it?

Yes – especially if you could go back and buy another $30,000 car!

Well, that’s what has happened with our property too. For us and our goal, now is a good time to sell the higher priced stuff and redirect efforts back to the grass roots housing.

As for the area… I have now made it a policy not to discuss where I own property as I can influence the market. But I will say this… what difference does it make whether the property is in Vietnam or Vermont?

What’s needed is to turn your investing into a system and then the location isn’t as important as the person.

As to why other people can’t find the deals… I can’t explain why. They’re out there…

Happy hunting,

Steve McKnight

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

Hi,

OK – time to go out on the skinny branches!

George was working at Break Free Events when I did some seminars with them last year. He has since left to start up his own company.

He has purchased my Wrap Library and as I understand it has gone on to do approx 10 wraps – mainly in Tasmania.

The issue I have with George is that he has blatantly breached my copyright (read ripped off my info) on his website. When approached by me he did take it down, but I’m still waiting for an apology or explaination of how it came to be that he was passing off info that I had written as his own.

Nevertheless, despite all this, I quite like George and know that he is a person that has a clear focus. As for him being:

quote:

---

…considered as Australia’s Number 1 Outstanding Success, Peak Performance and Wealth Coach

---

…sounds like he might have been a little liberal with the sales copy. He’s someone out there trying to make a go of things, but I’d like to see his investing results, as opposed to marketing hype, speak about whether or not he is someone who has a worthwile message.

George – if you’re out there… please feel free to respond.

Cheers,

Steve McKnight

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

Hi,

Privacy is becoming more and more of an issue thesedays, so my preference would be to show only the State where people are posting from.

This will be done shortly after the new forum goes live.

Cheers,

Steve McKnight

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

Hi Sasha,

Thanks for your comment and welcome to the forum.

For further discussion of this topic please refer to other recent threads about NII.

Cheers,

Steve McKnight

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

Hi,

Just leaving so I need to be quick…

Generally speaking, if you replace one item with another of comparable quality then it is OK to say it is a repair (100% deduction).

But… if you make an upgrade then it is a replacement (depreciate where possible).

My first glance thoughts on:

1. Replacing a wall… structural, not deductible – add to the cost base of the house.

2. Repairing a wall (replatering, painting with same kind of paint, recarpeting with same type and quality of floor fixture)… repair, deductible.

3. Re: replacing walls with sliding doors – as you are not replacing walls with walls of a similar kind… structural as per 1 above.

It doesn’t matter whether the change adds to or decreases from the possible sales price. They are independent events compared with deductibility.

4. Study to bedroom… change again, so unless you just replaced what you took out with the same kind of material, then sorry, no deduction.

Inputs, outputs, more rent, less rent… it all doesn’t really matter. The basis is whether or not it is a repair (deductible) or a replacement with an improvement (possibly depreciable, if not, add to the cost of your property).

Of course, matters such as this should be discussed with your accountant… and it would be wise to follow Stu’s advice re: chasing up the ATO position.

Bye,

Steve McKnight

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

Hi David,

And your point is…

Do you think that people are blindly investing to real estate with little forethought?

Yes – I generally agree, but this is no different to the way that a lot of people have invested (in property, shares etc.) for a long time.

The issue about investing in regional areas seems to have been overplayed in my opinion.

While I totally agree that people buying off the ‘net without so much of a minute of research set themselves up for financial probelms, investing under a sensible and proven system means that you don’t have to physically inspect every property you buy.

The Lemming story was interesting (who were the Lemmings?), a phrase that is more commonly used is: “a fool and his/her money are soon parted.”

For people interested, Proverbs 10 onwards in the Bible (the wisdom of Solomon) contains a lot of good passages to consider. Here are three to get you going:

quote:

---

Pro 10:4 “The one who is lazy becomes poor,
but the one who works diligently becomes wealthy”

---

(this next one is for those doing wraps in an unethical manner)

quote:

---

Pro 10:9 “The one who conducts himself in integrity will live securely, but the one who behaves perversely will be found out.”

---

(and lastly, one for all to live by:)

quote:

---

Pro 10:7 “The memory of the righteous is a blessing, but the reputation of the wicked will rot.”

---

Cheers,

Steve McKnight

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

Soosh,

Perhaps this is a worrying trend? The herd mentality as mentioned in another post?

I fear that when the property bubble bursts it will end in tears for many investors.

Time will tell..

Bye,

Steve McKnight

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

Hi,

Thanks for having the courage to make your posts and I agree with wilandel… welcome!

I agree that there is a lot of good information here, from quite a diverse perspective.

Rememebr though, there is plenty of opinions (my own included) and you need to distinguish these from facts.

Still, as far as a good resource, it’s hard to go past this forum for A Grade help.

Cheers,

Steve McKnight

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