Forum Replies Created
Hi Ben,
It’s not how many properties you own that matters, rather the financial consequences of owning them.
1, 2, 5, 10, 100… it’s just a number.
What’s more important, at least the way I roll, is the cash flow you derive, and therefore the freedom from work obtained, that is key.
I’m not on the same page with your thinking about the properties though. Economics works to explain that markets find an equilibrium at the price point where supply meets demand. There are enough houses for enough people who want them (can afford them?) at that price point, all the time.
Whether that price is affordable, reasonable, sustainable, etc. is another conversation.
Bye,
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
I agree with Ben in principle, but in practice I think it is a moot point.
Experience shows that different people want different things out of life, and for some, following an investment pathway similar to what I describe in my books, etc. just isn’t of interest – at that time or circumstance in life, or at all.
Let’s not forget too that there are many pathways to the wealth creation summit.
Furthermore, not everyone who invests in real estate desires the same outcome, derived the same way. Consider the divergence in belief between negative and positive gearing.
Taking up Terry’s point then, in reality the opportunity is open to those who want to pursue it on an individual basis, which offers hope to those who want to make sacrifices and work hard to achieve a level of financial empowerment open to all, but sought in earnest by few.
Regards,
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hello Ajay,
Yes, you are correct. Many State governments have introduced additional stamp duty for foreign buyers (note that there is no discrimination against Asians as such). Some State governments have also introduced an additional land tax component.
http://www.sro.vic.gov.au/foreignpurchaser
http://www.revenue.nsw.gov.au/taxes/spd
https://www.business.qld.gov.au/industries/service-industries-professionals/professional-financial-services/transfer-duty/investors/afadThe Federal government is also in on the act by phasing out access to the CGT discount while also increasing withholding on sales by foreign property owners and somehow charging foreign owners who leave their properties vacant.
http://www.budget.gov.au/2017-18/content/glossies/factsheets/html/HA_16.htm
We’ll have to wait and see how effective these new measures will be.
On one hand the additional taxes may strangle the foreign golden goose buying up (mainly) off-the-plan properties – which in turn supports construction, jobs and GDP. On the other hand, if their aim is capital preservation (as is the case for some Chinese investors who just want their money out of China), then a little extra cost is unlikely to worry them if the bulk of their capital is safe.
Keep an eye on the movement in property prices. As we come into Spring, and with a spike in off the plan properties due to hit the market soon, if the additional demand for housing does not match the increased supply then prices should fall.
All the best,
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Greg,
You’ll need to prove you have the reputation, skills and ability to pull this off. Money is attracted to good management.
I think your best option is to approach your accountant to see if s/he has any clients that are interested in coming is a JV partners. That way you are leveraging off their trust and relationships, rather than forming your own.
Regards,
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
How does that compare against what you might pay a developer under the basis you mention above?
Which State is your project located in?
Regards,
-Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hey Greg,
Couldn’t you just engage a skilled town planner to run the project for you? Why does it need to be an investor?
Regards,
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hey Greg,
Couldn’t you just engage a skilled town planner to run the project for you? Why does it need to be an investor?
Regards,
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Normally you would want to have a ‘Heads of Agreement’, or a ‘Shareholder’s Agreement’ with your brother that governs the agreed behaviour. A lawyer will be able to assist you to draft such an agreement.
I like the idea of using the rental manager. You may like them to keep a float in trust to pay expenses from, if that is a service they offer. That is, they could distribute the agreed portion over and above an agreed limit (say 2 months rent held back?).
Can I ask what structure the property is owned in?
Regards,
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Might be a good time to try out commercial property. Growth is usually lower, but income is better and aggravation is, on the whole, better too.
Well done on your success. I am proud of you, and for you.
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Dean,
My family and I came over to the USA for a one year family experience. That time is simply coming to an end. There is nothing more that ought to be read into the decision. Certainly there are no plans to prematurely wind up the Passive Income (USA Commercial Property) Fund.
Regards,
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi there and welcome to the community.
I’m a little confused by the question, but here’s a stab at an answer:
1. Buying a business
This is not a tax deduction, but instead is the acquisition of an asset. The income from the business is assessable, and the costs of running the business would be a tax deduction.
2. Buying an investment
Same as #1 above. The purchase price paid is the cost of the asset. Rent would be the income, and interest and running costs would be the tax deduction.
3. On disposal
On disposal of the asset, the surplus of sale less cost is a capital gain. If the sale proceeds are less than the cost then there is a capital loss.
4. Annual Operating
In regards to operations, if there is more income (assessable income) than expenses (allowable deductions) then you will pay income tax at your marginal tax rate. If there is a loss (expenses > income) then that loss can be carried forward. You can only get a tax refund if you have paid tax in the first place.
Regards,
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi all,
Just did a count of tickets sold and we are, unfortunately, sold out.
There are a few tickets I am releasing though that were held back under a scholarship offer. Details here:
http://www.propertyinvesting.com/conferenceBe quick!
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Just letting you know a small number of tickets have been released for Conference. Details here:
https://www.propertyinvesting.com/topic/5025119-millionaire-mega-conference-limited-tickets-left-get-yours-here/– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,What are the start and finishing times for this years conference? I need to book airline tickets
Thank you
Regards LaurieFriday 8:30am to 5:30pm
Saturday and Sunday: 9am to 5:30pm– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Steve – moving to the states? where will you based and why? All the best with the move
Moving over to the USA for 12 to 18 months for a change of scenery and life experience. Will be based in Florida. Will be interesting to see what opportunities arise. I have already been sounded out to be part of a big US property speaking tour, but that’s not of particular interest right now.
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Do we know which day the gala dinner will be on?
Saturday Night.
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi and thanks for the post.
We are just seeing how many tickets are left for Mega Conference and then will begin marketing this week.
My guess is that after the market updates we have less than 100 spots available.
FYI, Mega Conference will be in Melbourne on 20, 21 & 22nd May.
Another great line up of speakers this year, and I will be doing quite a lot of speaking as it will be my last public event before moving to the US for 12 to 18 months. I will be putting together an information page for release early next week.
If you really want a ticket and you’re reading this then email Romy (romy@propertyinvesting.com) and see what she can arrange.
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
I’m in the process of selling my private US portfolio and bringing the money home.
I’ve made excellent growth returns, but the aggravation of dealing with rental management companies and the revolving cost of turning properties when tenants leave (or are evicted), has been a constant frustration.
Finding a good rental manager in the US is even more important than finding a good deal on paper.
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Gurtofen,
I acknowledge your humility in making your latest post and greatly respect you for doing so.
Yes, there is considerable expense in getting six monthly US appraisals, but the cost is worth it for the accuracy and transparency.
We are working on getting an investor portal implemented where investors will be able to download all the appraisal reports, as well as other relevant financial information, pertaining to each property in the portfolio.
All the best with your investing,
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Steve,Once again, you know the difference between an Appraisal and a Valuation and basing FMV on each method would/could have a very different outcome. Your post below intermingles both terms once again. Anyway, if there are paid third party arms length valuations these would be easily made available if you wished to do so.
Good Golly! You’re like a dog with a bone on this. The definition I quoted, and the fact that I drew upon the varying names of the professional associations was a gentle nudge that in the real world of investing the terms can both have the same meaning, and my use of including them in the same paragraph was deliberate. It seems my attempts at being subtle have failed.
As for your account being deleted, you can unsubscribe but we don’t delete accounts.
Benny – is this an argument, or a discussion, we’re having? I’m confused!
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
