Hi,

An application form will be handed out at the end of day one and will be expected to be completed and handed back by the end of day two to be in the running.

Bye

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

A little known fact about Steve McKnight is that after I became a chartered accountant I went back to try and get into pyhsiotherapy.

Not normally a problem except physio was one of the hardest courses to get into (all the people who missed out on medicine did physio) and also I didn’t do any maths, chemistry or physics in Year 12.

Nevertheless, I didn’t let a minor detail like not having any of the major prerequisites stop me from applying.

After much research the only place that would even entertain the idea of me applying was Sydney.

They had a mature-age program that received about 10,000 applications for 100 places.

The only way to apply was to demonstrate why they should pick you, above all the other eligible people, to get into the course.

I filled in the form to the best of my ability, trying with all my heart to come across as someone who wouldn’t let them down.

This is the sort of dedication I’ll be looking for… someone who wants this for what I perceive to be a worthy purpose and has the passion to succeed.

If this is you then you stand a good chance.

Bye

Steve McKnight

P.S. A few people have asked why it is that I will only pick from the seminar participants. The answer is that the first hurdle of knowledge will be overcome at the seminar. Also, if you can’t invest $2,000 to become a millionaire then there’s little hope you’ll be successful in the long term. I’ll get you there provided you work with me all the way.

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hi,

I’d certainly be considering this, but only provided:

1. I could get insurance (you’ll need to ring around and spell out that the property is on a flood plain)

2, I could get finance. No doubt some places will knock you back on the basis that it floods.

Again, this is a matter of phone calls to various lenders.

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

Thanks for your post… and your purchase []

quote:

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I came to a decision this morning that being proactive in terms of property aquisition is better than sitting on my rear-end thinking its all too hard.

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Excellent! I was at the same point in May 1999. The key now is to turn your resolve into momentum, which is done by continuing to take action.

quote:

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There is only one thing left that is niggling at me. Its our geographical location. We are in Singapore.

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Everyone has a reason for doing nothing… I’m pleased for you that you are working through this.

quote:

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So my question is how do we go about acquiring property without actually living in the local.

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Well… you could do it via the internet and using a system… get a builder to inspect it, qualify it using the Buyer Beware templates from OS. It’s possible…

quote:

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If I was to buy 30 properties in say 1 year, thats an awful lot of airfares.

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Indeed. If this was the option then you’d be better off paying someone to go and hunt / source / buy deals for you. Maybe someone that is time rich and money poor and you could pay them like a spotter’s fee.

quote:

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So lets say at the end of the year I leave hubby in Singapore to work and go back to OZ with the kids and start investing.

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You could do this… investing has a cost. Sometimes it’s personal, sometimes it’s monetary… sometimes it’s both.

quote:

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Will it be too late to invest with the current cycles the way they are? (yes, stupid question if I acquiring for cashflow). I will probably understand more once I read the books.

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There will be opportunities in all markets. Yep… investing for cashflow means that it doesn’t matter what happens with cap. growth, only tenant related issues.

quote:

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For all of you out there that have several or more investment properties, are they all in the same capital city and do you reside there please?

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At the beginning – yes. More recently – no. It’s all about a system.

Hope this has helped.

Have an awesome day,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

In respect to your question I would imagine that you should seek legal advice.

From my research I found:

quote:

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Further, a guarantee that contains an “all accounts” (or “all moneys”) clause cannot be enforced in respect of further credit unless certain notice and consent provisions are complied with. So too, if a guarantee is secured by an “all accounts” mortgage, that mortgage will be unenforceable with respect to further credit unless certain notice and consent provisions are met.

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See Source

Good Luck!

Steve McKnight

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

Last year Dave and I purchased a block of units for $530,000. We knew it was a great deal but didn’t have enough money to fund a 20% deposit needed as the bank would only lend 80%.

So what we did is pay $10,000 deposit (to the vendor) with the knowledge that we’d have to come up with the balance ($96,000) + closing costs within six months.

As a great stroke of good luck, the property increased in value to $800,000 during that time.

The bank was still willing to lend 80%, but because so much time had elapsed between the contract signing and our possession, they were willing to take the higher valuation figure rather than cost.

80% of $800,000 meant that this was not only a ‘nothing down deal’, which actually received cash from it!

And yes… it was +ve cashflow too!

Does this make it clearer?

Bye,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

Once again, it’s important to look at what outcome you are trying to achieve.

Leigh has rightly pointed out that if you are planning to invest then you will need capital… but if you are already on the financial red line (coping only just) then there are perhaps some personal money habits that you need to first master.

quote:

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Question how can I improve my situation?

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Not enough money is a symptom, not the problem.

Throwing more money at the problem is not the answer. What’s needed is to sit down and carefully consider what you need to do differently to attract abundance.

Sorry this is “warm and fuzzy”, but before investing it’s essential to know which money habits help and which ones hinder.

Thanks for your post and welcome to the community.

Bye,

Steve McKnight

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Hi,

It might be tricky for someone to recommend a local from Geelong.

But what I’d suggest doing is ringing successful companies in the area and ask them if they would mind telling you who their accountant, solicitor, banker etc. was.

You never know where the thread will lead you!

Please keep us informed how your investing goes.

Bye

Steve McKnight

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Hi,

Thanks for your post and welcome to the forum.

I’m not sure about the specifics of the FHOG in this area.

Only you can say whether it is a good idea or not, but be careful about mixing family and investing together.

You are making an investing decision and your son is making an lifestyle decision. I would hate some unforseen circumstance to cause a rift to occur.

Not knowing your relationship, I’d say there is more that could go wrong than right.

However, if you want to give your son a ‘leg up’ in life and this is your vehicle to do so… great! But that would be a lifestyle choice, not an investing decision.

Get all parties to sit down with an accountant or solicitor and work through contingencies and have a written memo of understanding if you want to proceed.

Eg. document:

1. What happens if you need the money but your son cannot refinance

2. How long does this arrangement last?

3. What if your son stops paying, who owns the house?

etc.

Agreements are for times when things go wrong, not for good times when everthing is fine.

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RC,

The way around the depreciation write down of the cost base is to assigned contract values for the land, buildings and chattles seperately.

As such, and getting a bit technical here, you could assign an ‘at written down value’ for the fixtures and fittings and have no problem with the chattles.

Re: the building, if you purchased it for $100,000 and then used the 2.5% writedown and sold 2 years later (value now $95,000) and then sold it for $105,000 – you would have a capital gain of $10,000.

$5,000 of this gain would be the recoupment of the writedown.

But as RC has said, the 2.5% write down would be at your marginal rate whereas the capital gain could attract a 50% discount.

Conclusion –

Depreciation is a tax deferral rather than a tax saving strategy.

Matt – once the property has been sold you are no longer on title and depreciation benefits now vest with the new owner.

Regards,

Steve McKnight

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