[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

July 17, 2003 - 7:16 am

Hi,

I thought I would help you out by moving your post into this area [] I agree that it can be very confusing, so as a quick summary here’s what I would do:

1. Work out why you want to invest in property… what’s the higher purpose?

2. Depending on your answer to 1, the next choice is to decide about what sort of property profit you want to attract. Your choices are cap. gains or +ve cashflow. Properties that promise both are very rare.

3. If yuo want cap. gains, look for properties that are in limited supply, since demand for those will generally be higher and will thus drive prices up. If you want +ve c’flow then look for yield – either commercial or most likely regional residential dwellings.

4. It doesn’t matter if you have low or no money. There is always the possibility to make a profit if you can get creative enough. You make the rules of your offer, so you are only limited by your imagination.

5. If you believe you can do it, you probably can! As such, spend a little while setting out a plan for how many properties you want to own and then work backwards while you consider your individual actions plans.

Have a great day and thanks for your post.

Bye,

Steve McKnight

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Remember that success comes from doing things differently.
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Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

July 15, 2003 - 10:29 pm

Ok…

Enough of the sensational name calling generalisations (from all parties).

At one point it was interesting to see where this thread was going to go… but now we are not adding to the education of others, just point scoring.

Please only reply to this thread if you have constructive and meaningful contributions. Some of the points made here are insulting, so please be respectful of others.

Bye,

Steve McKnight
~Wearing his moderator hat~

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Remember that success comes from doing things differently.
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Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
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Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

July 14, 2003 - 12:09 am

Here here!

I think that Mini Mogul rocks – and even better, I remember the day when the ‘lights went on’!

…and David, even though I don’t personally agree with some of the things you say (not that that has to matter for much []), I greatly value your input into this forum and your honest opinion.

Any community woth being a part of needs different people with different opinions!

Bye,

Steve McKnight

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

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

July 11, 2003 - 7:15 am

Hi Leigh,

Why not buy the property subject to “the completion of a Section 32 to the purchaser’s satisfaction.”?

On another matter… do I need to contact you about anything? I have so many e-mails at present I’m a little lost. If you’re waiting on me for anything please send again.

Warm regards,

Steve McKnight

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

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

July 11, 2003 - 7:11 am

Hi Bron,

Thanks for your post.

quote:

---

My concern is how the bank/lending authority will react to the lack of income during this time, how would you suggest we approach this and would it be best if one of us gets a job.

---

The way forward might be to look for a low-docs loan where your lack of income won’t necessarily be an issue. In return you will have to leave more of a deposit though, but given your situation that shouldn’t be a problem.

quote:

---

Also the money earnt from the sale of our businesses, how can we minimise the tax?

---

There may be some CGT roll over relief available, but the best person to explain that would be your accountant.

quote:

---

Do we sent up a new company under our trust purely for the rentals and reno’s?

---

This statement seems to indicate a lack of understanding of how structuring works. The real issue is will you need to set up a new structure for your renos.

Well – what I would probably try to do (to minimise tax if possible) is to live in the property while you renovate it. That way (unless you are in the business of renovating) the gain will be tax free.

Talk about this strategy with you accountant.

Have a wonderful day.

Bye,

Steve McKnight

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

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

July 11, 2003 - 7:06 am

Rachelle,

How did your game go… what were your observations?

Bye,

Steve McKnight

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Remember that success comes from doing things differently.
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Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

July 11, 2003 - 7:03 am

Hi,

I’d imagine that it would be some kind of arrangement where the tenant pays a higher rent, but in return also gains an agreed percentage of any capital gains.

This might then be an incentive to add value to the property that will increase enjoyment for the tenant and also capital value.

I’ve not come across an example of this in real life… yet.

Bye,

Steve McKnight

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

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

July 6, 2003 - 10:15 am

Hi,

Please see other recent posts on this matter as it has been discussed in a lot of detail.

For starters see:

https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=1910

Regards,

Steve McKnight

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

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

July 6, 2003 - 9:58 am

Hi,

I agree that the volume of traffic is picking up which is making the need to be more specific with our topics more urgent.

I’ll look at this when the forums are re-released later this month.

Thanks for your feedback.

Bye,

Steve McKnight

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

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

July 4, 2003 - 11:32 am

Hi,

Plug away…

Bye,

Steve McKnight

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

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

July 4, 2003 - 9:20 am

Hi,

Stu is correct in that, under Australian tax law, any undistributed (ie. retained) income in a trust structure is taxed at the highest marginal income rate (currently 47% + 1.5% Medicare Levy). In this case the tax is paid by the Trustee out of trust funds.

Really then, there seems to be no benefit in holding funds back, except perhaps with any superannuation surcharge issues if individual beneficiaries are close to that particular threshold (see an accountant for more on this matter).

While you need to be very careful with anti-avoidance issues, provided there is a valid reason for establishing a company you can have that as a ‘corporate beneficiary’ and then limit the maximum amount of tax you pay to 30% (the company rate).

As always, it is critical that you seek tailored financial advice for your specific circumstance.

What I would strongly recommend is that people who want to know more about structuring seriously think about buying the WealthGuardian product that was recently released. To find out more visit: https://www.propertyinvesting.com/resources/11

Bye,

Steve McKnight

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

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

July 1, 2003 - 6:39 am

Del…

Read the latest newsletter!!!

Bye,

Steve McKnight

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

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

July 1, 2003 - 5:47 am

Hi,

Thanks for your post and welcome to the forum.

There’s a few things to say…

1. Will you be owing the property as an investment and having your mother as a tenant? If so, I imagine that you aren’t too worried about the cashflow loss and will be hoping to make it up in terms of capital appreciation as values rise. To this extent my advice is to clarify your investing strategy so you isolate what investment performace criteria you are looking for.

2. An interest free loan? Hey – tell me where they are and I’ll be there in line with you!!! Do you mean interest-only? If so my advice would be to try and pay down the loan to reduce the risk should interest rates rise. It might be a little extra, but it will also eventually bring down your interest payments. Check the affordability of the repayments, and, if you can, go with P&I terms.

The last question you riasei s one about structuring. Perhaps the biggest benefit/issue to be considered here is the principal place of residence exemption. If you buy it in your name then it will be an investment property (unless you live in it) so you’ll have to pay CGT.

If it’s in your Mum’s name and she lives in it the it will be CGT free. Perhaps you could get some kind of undertaking that you mum leaves the property to you in her will in return for you helping now.

Hmmm – just remember though, if this turn sour it’s the sort of thing that A Current Affair will love to run a story on

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.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

June 29, 2003 - 11:23 pm

Hi,

Many of the US seminars have low entry costs because they backend product.

Such seminars are just really sales pitches.

I’ve had first hand experience with a few of these…

Cheers,

Steve McKnight

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

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

June 25, 2003 - 6:52 am

Hi,

Hmmm – seems like a bad story []

It might be worthwhile reporting this agent to the applicable State branch of the Real Estate Institute.

May not count for much, but you can at least voice your frustration.

Also, it would be wise to cc the licensed agent who owns the agency, and attach a quote for new lights asking them to make good the problem.

You never know…???…

Steve McKnight

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

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

June 25, 2003 - 12:40 am

Hi,

Thanks for your feedback – it’s much appreciated.

quote:

---

1. The general discussion forum gets too many new posts and often a messages merely a day or two old are pushed to page 2 or 3, making it hard to find. A way to solve this problem is to display the first page list with more post items (say, 60)? Maybe the format can be trimmed down to reduce desktop space.

---

We will be going to a new forum soon in the new financial year. Hopefully this will help improve readibility.

quote:

---

2. How about calender for posting events?

---

Good idea. I’ll add this feature to the wish list of upgrades and hope to have something up by the end of September.

Bye,

Steve McKnight

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

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

June 22, 2003 - 2:08 am

Hi,

Why not test out the theory for yourself? Go to:

http://www.mycreditfile.com.au/personal_information/free_credit_services.asp?CountryID=1&UserTypeID=11

It’s free, although it takes 10 wprking days.

Bye,

Steve McKnight

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

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

June 20, 2003 - 7:26 am

Hi,

Just surfin the net on Brampton for a few minutes…

In my experience all the loans which I have gone guarantor for have not shown up on my CRAA.

My loan applications are though. Perhaqps this is where your banker is confused?

Bobbie – perhaps I am a special case, but I don’t think so.

Bye

Steve McKnight

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

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

June 15, 2003 - 11:37 am

Hi,

Interesting spin… I would want to appoint a manager though as from what I know, owners of B&Bs work pretty hard and have trouble taking an extended holdiay.

Another option is buying m/h-otels and converting them into blocks of units.

Good luck… be sure to due your due diligence.

Bye,

Steve McKnight

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

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

June 15, 2003 - 11:35 am

Hey Soosh,

Don’t go spearing anything you shouldn’t be… and is Michael’s hair safe to (ah em) go swimming? [] (that one’s for the ‘saurus!)

Seriously, don’t go causing any coups!

Bye,

Steve McKnight

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

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently