Forum Replies Created
Hi Russell,
Thanks for your post and welcome to the forum.
I don’t have a lot of experience with developing property as such, however I think that getting the finance green light will have a lot to do with how many pre-sales you can orgainse, or how much of your own/investor’s money you plan to put down.
Maybe give The Money Shop a go as they are advertsing that they will lend for these kinds of deals.
Finally – is $300,000 enough of a project margin? Seems a little tight to me.
Would love for yuo to contribute some more figures in your budget to the discussion in which case I might be able to help you further.
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,
There are two focuses you can have in property.
1. On the Property
This means you focus on the property, usually seeking capital gains returns. As such, position becomes very important.
Things that will increase the value are variables that add to perceived or actual value which cause demand > supply.
In the house vs. unit debate – everything being equal I’d buy a house because land appreciates while buildings depreciate.
2. On the Person
You are not so worried about the location of the property as you are the yield and the quality of your tenant or wrap/lease-option client.
It’s not just a matter of where to invest… you also need to clarify what you’re investing in too.
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 I get the time I’ll create a web page specific to the 11 Second Solution.
Quickly, it’s:
((weekly rent /2) * 1,000)
It would be wise to do a search on the topic and see what comes up as there has been a lot of discussion in the past.
Have a wonderful day,
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 experience is the same as Nicks, which is not to say it can’t be done, just that it might be difficult.
Worst case scenario is to buy, wait six months and then refinance.
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,
Whether or not it is a good deal is a matter of answering the following question:
“Will this property make a higher cashflow (cash on cash) return than leaving my money in the bank?”
If all you do is make money then you’ll have to make money.
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,
Selling it to yourself, living in it for one year and then selling it again sounds a lot like a scheme to avoid tax and you would likely fall foul of the taxmans green audit pen IF you were caught.
The way around this is to mount a reasonable argument for why you had to move into the property and then why you decided to sell after a year. If you could do this then you might get away with it.
The other option, which avoids CGT, is to just access your equity by refinancing your loan. The downside of this is that you have more debt (higher risk) and have to pay interest.
Finally, remember that there is a CGT discount of 50% provided the end taxpayer is an individual. I think that if you make money you should expect to pay tax – just so long as it is as low as possible.
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 rules about changing the trustee will be outlined in the trust deed.
I can’t see why there would be a stamp duty/CGT issue as the assets are not be disposed of.
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 EmmaB
Welcome to the forum. Thanks for your post and I wish you well with your searching.
As far as a glossary goes, try this one:
http://www.ljhooker.com.au/buy/buy_one.php?list=gloss
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,
quote:
sorry i have many questions, because i am new to property investing. SO i need you guys to give me some enlightenment.He who asks no questions gets no answers!
quote:
Ok, so i have decided to go for Interest Only loan, so do i go for Fixed Rate or Variable?What’s your intention with the property. If you see yourself selling within say 5 years then I’d stick with variable as the penalties for early payout will mean that the interest differential doesn’t matter.
Otherwise, more generally, to answer this question you need to make a call about what interest rates might do.
quote:
Q1)Which sould i go for?Work out the impact on your bottom line profit and work out whether the risk is worth the reward.
quote:
…want to buy more properties in the near future and need some equity from this current one..(?)Some fixed loans may allow you to redraw capital repayments but not access equity as this qould amount to a refinance which would mean a loan payout and hence early payment penalties.
quote:
Q2) Are there any indication that interest rates are going up within the few years soon?I think that interest rates are more likely to go up than down over the next five years, but this is my opinion. Only hindsight will prove me right or wrong.
Anyone else have an opinion on interest rates?
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
Terry –
Yes please! I’d love to know how it all works out. This is an excellent ‘case in progress’.
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 more people find out about +ve cashflow the higher prices go… watch out what happens when the book is released [
]Seriously, it’s all about supply and demand.
Now Soosh… mate… quit asking questions and whip [
] your husband into shape. Tackle the hard things first!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,
There is some pre-reading to complete which Brent should have notified you of.
If you haven’t received it then please contact him at: [email protected]
Beyond that… I think what AD has said about having an open mind is all that’s required. The notes provided are quite detailed.
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
Enough.
You’re out Paul277 – permanently.
All posts, no matter what the content, will from here on be deleted.
I’ve grown tired of your nonsense and abuse.
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,
What’s the secret?
There are two reasons why I run seminars.
1. I don’t have a job as such, however I still need to generate capital to continue my investing to achieve my goals.
2. I actually enjoy sharing with others and have an interest in trying to help them on their own journey to financial independence.
I’m not a charity. What I know has cost hundreds of thousands of dollars to learn. I’ll not cast my pearls to swine (that’s a biblical reference, not a slur on any member), which is why I put a fair price on attending my seminars.
I’m all about education and completing a property due diligence before doing anything.
The bottom line is this… if you want what I know then you’re going to have to pay for it. You’ll either pay me and leverage off my mistakes and knowledge.
Or you’ll do it alone and pay for it indirectly by making your own mistakes.
The choice is yours. I offer a ‘take it or leave it’ service – there is no obligation to buy… yet I will point out that this website resource is 100% funded by the profits it generates.
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
What’s wrong here is that the average Australian is borrowing too much for their homes compared to their incomes.
This was echoed by the RBA governor in his recent speech.
It is more evidence that says when interest rates go up, people who have been fooled into buying -ve geared property will lose a lot of money.
People who overborrowed for residential property and have not been able to repay will lose their house.
The ignorant investor will be hardest hit.
However, not all investors need worry. Those that adopt prudent investing strategies and invest in things that make money should begin to plan now for what their response will be when interest rates rise.
I agree with Kiyosaki that a great opportunity will exist for the prepared investor.
A sophisticated investor CAN make money in all markets.
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
Enough!
I’ll not let one person with a chip on his shoulder cause the integrity of this forum to be questioned.
AD is right, if by my actions history deemes me a fraud then let it be so. But until then, let’s ALL focus on helping other people achieve their goals with helpful posts.
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
Paul277,
I am in no way associated with selling property as a backend to seminars or this website.
My aim is to teach people to fish, not fish for them.
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,
Apologies for not responding sooner but I am on a deadline for the book.
Paul277, to answer your post directly as requested…
The point where I get confused is where you write:
quote:
Now if i have a budget of say $200 per week that means most houses are going to be worth between 170k and 200kAt this amount the property would not be cashflow positive since rent would maybe only just cover interest. As such I would not buy the property.
The properties I focus on are generally cheaper in regional areas. When I began investing, what I found was that the property where I rented cost us $200 p/w in rent and was worth approx $270k, yet in Ballarat, I could buy a house where the market (not inflated) rent was $120 per week for just $44,000.
Because my focus was yield rather than capital gains I decided to invest in Ballarat rather than Melbourne.
quote:
now for it to be cash positive to recieve $200 rental per week you would have had to purchase the property for 100k.Yes, this is right in theory when you apply the 11 sec solution. Just be careful though… as property becomes more expensive, borrowing more money might cause the property to be -ve cashflow. It’s important to do your due diligence.
quote:
Surely a renter will be ably to see the difference between a property worth 100k and 200k.I agree with you. However, the difference is in the market where the properties are. A $100 p/w property in a market where rents are normally $200 p/w/ might mean that the dwelling is of lower quality.
On the other hand, a property rented at $200 p/w in a market where the rents are $100 p/w suggests that it would be of superior quality.
In the end, the point of the matter comes down to what market are you investing in.
The REIA has data for median rentals for houses and units in most markets.
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,
What was the source?
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
Paul277,
quote:
Free speech is not allowed in this forum…Please. I have gone to great lengths to try and outline that any post that contains:
quote:
…or transmits any unlawful, threatening, abusive, defamatory, pornographic, profane or otherwise offensive information or material of any kind, including, without limitation any information or material that might reasonably encourage conduct that would breach any civil or criminal law of Victoria or other applicable place;will be deleted or edited. Many of your posts contain defamatory and offensive information and as such need to be modified or deleted.
For example, when you say:
quote:
go do the dishesThis is sexist nonsense that has no place on the forum. If you are unaware of how your comments might be taken then seek advice before posting.
This is not a personal issue against you. It’s like saying that if you want to use the road then you have to adhere to the road rules, or, if you break them and get caught, suffer the appropriate penalty.
I’m not sure how else to say this. I was hoping that given the improvement in the quality of your posts recently you might have had a change of heart towards this facility.
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
]
] your husband into shape. Tackle the hard things first!
