Forum Replies Created
Hi Anubis
If the stuff from this seminar was all just too simplified, perhaps you would care to share with us the complicated way in which you have made your millions?
Many thanks
UnicornHi Dunnyboy
Good luck and success to you and your Dad! Steve McKnight runs Property Masterclasses at various venues throughout the year. I have just been to one. We have a small number of property investments, but this class has changed my thinking completely and given me more focus. There’s no hype or pressure to purchase products or properties and they are great value for money. Try to get to one if you can.Hi anubis
Thanks for your reply. Do you find that all properties in the market that you are currently investing in have identical yield? They certainly don’t where we are! Sometimes someone may need to sell really quickly so they drop their price (immediate increase in yield), or else the “problem” with the property is offputting to most people (so the vendor has to reduce price) but you can see a quick and innovative solution to it. Also, you may be looking at a 2br cottage which rents for $120/wk, and with small alteration be able to turn a living space into another bedroom and then rent for $160/wk and then onsell. etc etc etcHi loungeact
Great advice from everyone re attending seminars & reading books etc. While you can figure it out yourself, it doesn’t hurt to shortcut mistakes by learning from other people’s!
Wondering why you would bother managing properties yourself? I think an agent is money well spent, and leaves your time free to go track down the next deal? If you DIY you may have to change your name to “onthephonetomytenantallthetimeact”!!
Good luck!Thanks for your reply.
I am having a bit of trouble answering it because I am still in the process of getting my head around all the info! but I think the point is that the market isn’t quite that logical, or the yield would be identical on all properties in an area, which isn’t the case. A problem with a property would not necessarily give it a high yield, you are just looking for one that does. e.g. last year we bought a house on a 7% yield when the area average was about 5.5%. The only reason that we can figure for this was that it was very badly promoted. Anyway, with minor cosmetic work we would expect to turn a profit of about $40000 if we resold back into the market @ 5.5%. (This is the theory anyway).
All holding costs and costs of reno should be factored into your calculation of likely profit. You shouldn’t do the deal if there isn’t enough profit in it, and you don’t hold on to the property, you sell it, because this was your plan in the first place. (ie buy a problem and sell it when you’ve turned it into a solution). This means you can derive positive cash flow in any market regardless of whether the average yield is 10% or 3%.
I hope this makes sense.Hi Terrabyte
I’m new too and was lucky enough to attend steve’s masterclass in Sydney on Sunday. He’s running another in October, and at other venues during the year. It was really good value, try to get to one if you can.
Good luck!Thanks for your reply. Its my understanding that the Uncles cousin with the baby would then have the right to that money, even if the distribution was done in the books rather than as cash ie the trust would be showing $6000 liability “Loan to Uncle’s cousin”. This could be a problem dont you think?
The idea of a coy as beneficiary is great, (other than its getting complicated), but worth it if you’re on the top marginal rate.
MarianneThe class was great, wasn’t it. This is my first post to a forum, hope I get it right! Page 66 of notes covered this question. Also, if you have purchased a problem and turned it into a solution then that would be a good time to sell. We bought a problem about 10 years ago and turned into into a solution. However, we hung on to it, and now it is a problem again! Time to turn it into a solution and offload.
