Sooshie,

I’m sure I speak for everyone here in wishing you a speedy recovery.

See you in hospital with a few more Chapters to keep you entertained []

Warm regards,

Steve McKnight

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quote:

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Hi,

It’s an issue of time and resources.

In front of the Wrap Library redevelopment at the moment is the book and an update to the Masters seminar notes.

We had planned to have the product ready for release by the end of March, but it’s now looking like end of July.

It would be easy just to rehash what I’d done in the first release of the product, but there is a lot to both rewrite and write for the first time to cover the admin of wraps, together with various other issues.

Hopefully when you see the finished product you’ll agree that the wait was worth it.

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
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Steve McKnight

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

quote:

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I am receiving conflicting advice. Can anyone confirm if ownership takes place from the signing of the contract and all conditions being met or settlement???

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Ownership takes place when title is transferred into your name.

Until then you only have an equitable interest.

Now… since I’m in a good mood and it’s Friday I’ll go a little further.

In Vic., the vendor is thought to have an obligation to keep the property insured until settlement occurs, HOWEVER…

If the property was to be partially destroyed without insurance then the purchaser might still have to settle. That’s why it’s wise to insure the property from the date of the contract rather than the date of settlement.

If the property was totally destroyed then the contract would probably be voidable.

Has this helped?

Bye,

Steve McKnight

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Hi Terry,

I’d recommend doing an Internet search on debt collectors and seeing what comes up.

If it’s not going to cost you anything then I’d allocate at least a few hours, however, there is merit to what Darren has said to just move on and spend your time looking forward, not back.

Still… if you have a tribunal order…

Thanks for contributing the story.

Interesting that the tenant would just abandon the property rather than cash in the equity. We have had a few wrap deals go the same way.

Bye,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

Sooshie has good advice here (she’s not just an excellent cook!).

My input is:

1. If $1,800 was your limit then get out of the deal now because sooner or later interest rates will go up and if you’re forced to sell then you’ll probably lose money. The only saving factor here might be if you are looking to lock in for 5 years at a fixed rate of interest and plan to have more cash at that time to pay any extra interest.

2. Your ‘subject to finance’ clause usually stays open until you advise the agent (not necessarily in writing) that you have finance. Sometimes the wording says “finance by XYZ institution with ABC days.” Pull out the contract and read it over.

3. Any money ($300 application fee?) you paid to the boffin should be refunded to you given the service you received plus your other out of pocket expenses. Argue about this and go higher up the chain. If needs be threaten to go to the media, the ACC, Fair Trade etc. The negative publicity won’t be worth just handing back your money.

4. Hassle the fool who referred you to this guy to begin with. Go to his boss.

5. Is this property to live in or for an investment. If it’s an investment then please let me know what’s your strategy. I sense you are on dangerous investing ground.

Hope this helps.

Bye,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

A couple of observations…

1. A buyer’s (or a seller’s) market won’t last forever.

2. Your situattion might be helped by including a 24 hour ‘sunset’ clause in our offer… in that the offer lapses if not put infront of the vendor.

3. Point out that you are looking at multiple properties and the vendor that replies first will be assured a sale. That is, create some urgency for the agent to get the offer in.

4. Never deal with this agent again. I have made it a rule to only deal with agents of integrity and I’d rather not buy than give some smuck a commission. Find a property that you’d like to buy and then get your agent of choice to act on YOUR behalf when dealing with the dodgy brother.

Bye,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

Everyone is different, but I try to make at least $50 per week nett passive income per property I own.

Finding buy and hold deals that generate this sort of return is getting a bit more difficult than it once was, so you’re right that sometimes creative alternatives are needed.

Again, you’re right about the millionaire status. Personally, I measure +ve cashflow and let my nett worth look after itself.

We don’t live on paper… we live in reality where cash is paid for the groceries []

Bye,

Steve McKnight

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Hi Daniel,

I’m sure that you’ll get the presenter’s permission before doing this as no doubt the notes will be subject to various copyright restrictions.

Regards,

Steve McKnight

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Hi,

This case was actually the one featured in my second (Feb 02) newsletter! To quote from myself:

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Ordinarily there is no problem having a split loan, but the facts in this case are slightly different to the normal in that the investment loan was not repaid in order to claim a higher tax deduction for compounding interest.

Furthermore, pamphlets produced by Austral outlined various tax advantages of their ‘Wealth Optimiser Loan’, including the following references: “a tax efficient loan”, “a tax reduction system which should prove popular in the 1997 financial year”, “gives dramatic tax savings as it often enables you to pay off your home loan within five years”, “increase your negative gearing benefits”, “you obtain increased deductible interest on your investment loan portion” plus specific references made to the capitalisation of interest during the period that all repayments are appropriated to the residential loan.

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And I believe probably fair enough too. It is a delicate line between taking advantage of a commercial situation and seeking to avoid paying tax.

There was no issue with the deductibility of the interest on the investment loan (since it was in essence an interest only loan) – just the compounding of the interest since there was no intention to pay it, just let it roll on until the home loan was paid off.

Indeed, there is probably no problem with a compounding I/O loan either, except where a scheme that is advertised as, well, tax effective is involved as well as a private home.

Irrespective of what happens next, the lesson is to be very careful when it comes to entering into a scheme where the dominant purpose seems to be a tax benefit.

Regards,

Steve McKnight

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