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Hello Everyone!shane mickey jay [3 Posts]  Hi, Thought seeing as i stalk you all from the shadows reading over most posts on the forums i'd make myself known and say a friendly hello. look forward to speaking with most of you at some stage. Take care. Kind regards Shane L.A Aussie [1462 Posts]  Hi Shane, Cheers, "we get sent lemons; it's up to us to make lemonade"   shane mickey jay [3 Posts] Thanks for the welcome Marc. :) At the moment i'm just under half way through the book. Chapter 11 "The positive Cashflow Model For Property Success" (I'm excited to read this part, hence why i left it for when i'm fresh and can suck in all the information from this chapter.) So far i have been very impressed with all that i have read. It's given me an insight on alot of things that i had no clue of before reading. To be honest, when i got the book, i thought "hmm maybe i wont undretstand anything i'm reading" after all, i have no exp or any knowledge of anything in the industry. However, i thought to myself that i had to start somewhere if it was something i was passionate about and really keen on learning. The book right off the bat put me at ease and as steve explained that you didn't need to know the ins and outs of porperty inverstment and taxation. I love the detail of the book, the easy to ready style Steve writes in relating it all to Steves Exp really helps me to understand what's going on and where he's coming from. The blunt truths, the humble beginings and the statistics are all really useful. So all in all at the half way mark i'm very pleased. I feel that after reading some areas my brain was stretched and i don't fully understand ALL concepts but i guess that's only natural and i will pick that up the more i read and the more i get to know the industry a little better. Keen to put Steves words into action in the next 6 - 8 months. (hopefully sooner) You read the book Marc? What did you think of it? Also i'm yet to read the 1,000,000 in Popertry in On Year. brookelea [53 Posts]  hi smj, am interested in reading the book but feel that it might just confuse me and really cement my relative poverty..does the book have any advice on purchasing property when you have debts?? shane mickey jay [3 Posts] Hey Brookelea! At the moment I'm under half way through the book. My suggestion is that from learning and reading this book you have nothing to lose. There is a section in the first part of the book where Steve has a friend who is in alot of debt due to a very expensive lifestyle. It's not as layed out and direct on reducing debt as for your circumstances, but i'm sure there is somoehing for you take home and apply to your needs. He touches on alot off money tips, the W.E.A..L.T.H Acronym ( i'll let you read about), which will help you get a very good mindset needed for sucess. So, have a read, what do you have to lose? Any more help on the book feel free to ask, i'm not all the way finished but i like to repeat things i read, it helps me remember and understand. L.A Aussie [1462 Posts] shane mickey jay wrote:
Thanks for the welcome Marc. :) At the moment i'm just under half way through the book. Chapter 11 "The positive Cashflow Model For Property Success" (I'm excited to read this part, hence why i left it for when i'm fresh and can suck in all the information from this chapter.) So far i have been very impressed with all that i have read. It's given me an insight on alot of things that i had no clue of before reading. To be honest, when i got the book, i thought "hmm maybe i wont undretstand anything i'm reading" after all, i have no exp or any knowledge of anything in the industry. However, i thought to myself that i had to start somewhere if it was something i was passionate about and really keen on learning. The book right off the bat put me at ease and as steve explained that you didn't need to know the ins and outs of porperty inverstment and taxation. I love the detail of the book, the easy to ready style Steve writes in relating it all to Steves Exp really helps me to understand what's going on and where he's coming from. The blunt truths, the humble beginings and the statistics are all really useful. So all in all at the half way mark i'm very pleased. I feel that after reading some areas my brain was stretched and i don't fully understand ALL concepts but i guess that's only natural and i will pick that up the more i read and the more i get to know the industry a little better. Keen to put Steves words into action in the next 6 - 8 months. (hopefully sooner) You read the book Marc? What did you think of it? Also i'm yet to read the 1,000,000 in Popertry in On Year. I read the book several years ago and loved it. Still have it stored away back in Aus. Keep reading it, and read as many others you can find and get a good well rounded knowledge of what's involved. Look at these authors as well for property stuff; Noel Whittaker, Also, read these for mindset and general investor thinking; Robert Kiyosaki (he has about 5-6 books) Cheers, "we get sent lemons; it's up to us to make lemonade" L.A Aussie [1462 Posts] brookelea wrote:
hi smj, am interested in reading the book but feel that it might just confuse me and really cement my relative poverty..does the book have any advice on purchasing property when you have debts?? The best book I have ever seen for general money management skills and practices is: "Money Secrets of the Rich" by John Burley. Also look at all the Noel Whitaker books, they are excellent. To be honest, if you are heavily in (consumer) debt, and are struggling to get out of it, then you need to totally change your mindset about finances before investing in property. Property Investing is a business, and should be treated as such. Bad money habits and property investing is a recipe for disaster. The reality is that the best run businesses have excellent finance practices. The word finance is daunting for most people, but it is not that hard; most of it is changing you consumer habits and thinking like an investor. For example; bottled water. Most people fork out for a $2.00 bottle with a brand name on it. It's just bloody water. Go to the supermarket and refill your own bottles with the stuff from the big vending machines at a fraction of the price. If you can't do that; drink tap water - even cheaper, and you'll get used to the taste. More money saved for investing. Another one: cars. A brand new car loses 20% value as soon as it drives off the yard. Never buy brand new. Buy at least 1 year old versions. You'll save thousands more for investing. My best friend buys a new car every 3 years. He's a total consumer. Usually around $50k . My investor mind says: "that's an IP deposit sitting there in the driveway". Credit Cards; only ever have ONE, and pay off the entire balance every month. If you can't do that, cut it up. And so on. Cheers, "we get sent lemons; it's up to us to make lemonade" trakka [253 Posts]  I'd also suggest signing up for as many free property investing newsletters as you can - yes, they contain marketing material, but they also do contain useful information, or even if they contain information you disagree with, it forces you to clarify your reasoning for your opinions. I like the ones by Residex, Metropole, Investors Direct, realestate.com.au... and I've probably forgotten some! Oh yes, and www.dymphnaboholt.com Warmest regards, Tracey brookelea [53 Posts] thanks everyone for the responses..i'm a shocking consumer.. hell even my sister in law just bought her 3rd property and i make almost three times what she makes and have pretty much nothing to show for it.. the more i read the posts here, the more i realise that it's not about the income but about financial awareness and astuteness..i will sign up for those newsletters, read some of those books and come back with a myriad of questions for you all SteveMcKnight [1560 Posts]  Hey team, Thanks for the comments about the book. There's no doubt that property prices have moved higher since the 0 to 130 was released. I accept that some will view it as outdated, however I continue to use the same theories to make good profits today. It is fair to say that residential +ve cashflow properties are now very hard to find. I recommend people interested in this approach look to commercial property where tenants generally pay outgoings, and as such, the cashflow outcome is better than residential (where the landlord pays outgoings). I hope to write a free report soon titled 'Where Have All The Positive Cashflow Properties Gone?'. Keep an eye out for it as it will be available in the months ahead. Enjoy the rest of the book. It is wise to read widely, but your plan of attack will need to be made based on which approach will get you to your goals the fastest and with the least risk. Cheers, Steve McKnight P.S. To see a FREE short video on my views on the latest property market, visit: hleung [103 Posts] SteveMcKnight wrote:
Hey team, Thanks for the comments about the book. There's no doubt that property prices have moved higher since the 0 to 130 was released. I accept that some will view it as outdated, however I continue to use the same theories to make good profits today. It is fair to say that residential +ve cashflow properties are now very hard to find. I recommend people interested in this approach look to commercial property where tenants generally pay outgoings, and as such, the cashflow outcome is better than residential (where the landlord pays outgoings). Residential property is hard enough to master. Commercial property is an entirely different area where the risks can be so much greater. I'm not willing to go down that track yet. L.A Aussie [1462 Posts] brookelea wrote:
thanks everyone for the responses..i'm a shocking consumer.. hell even my sister in law just bought her 3rd property and i make almost three times what she makes and have pretty much nothing to show for it.. the more i read the posts here, the more i realise that it's not about the income but about financial awareness and astuteness..i will sign up for those newsletters, read some of those books and come back with a myriad of questions for you all Here's another thing to get you thinking: http://www.finishrich.com/free_resources/fr_lattefactor.php Cheers, "we get sent lemons; it's up to us to make lemonade" trakka [253 Posts] I don't think it's fair to say that commercial property is inherently riskier; it's all a matter of what you're comfortable with. Education and preparation can ameliorate risk! If you have commercial property with a long-term lease in place, I'd argue it's a less risky investment than residential, and more straightforward. It's much more "set and forget" than residential, because leases are usually written such that the commercial tenant does all maintenance and pays all outgoings - it's really quite simple. The main potential pitfall of commercial property is that if it becomes vacant, there's a possibility that it will remain vacant for quite some time, as commercial properties and commercial tenants are much more varied than with residential, so you have to find a tenant who's exactly the right fit for your property. The risk of vacancy can be mitigated somewhat by doing your research about the supply and demand in the area, future developments, checking out the lease, keeping tenants happy, etc. So if you absolutely need every rental payment coming in to save yourself, then perhaps a commercial property that's vacant or on a month-to-month lease isn't for you. But commercial property can be a valuable addition to a diverse portfolio, where the risk can be spread between a number of properties. The other big issue with commercial property, for me (who likes to be aggressive and have maximum exposure), is that LVRs aren't as high, so I can't spread my equity as thinly as I'd like. Sometimes you can "pull a trick" like I did recently where I borrowed on a residential basis on max LVR and converted the property to a commercial usage, and then refinanced on a commercial basis. Even though my LVR wasn't as high on a commercial basis, because the yield was so huge relative to the residential purchase price (ie over 20%), I was still able to access more equity at 85% of commercial value than at 100% of residential value. Best wishes, Tracey brookelea [53 Posts] thanks la aussie.. i drink at least 4-5 lattes a day.. could be greatly beneficial in both cost and health :) millions [386 Posts]  trakka wrote:
I don't think it's fair to say that commercial property is inherently riskier; it's all a matter of what you're comfortable with. Education and preparation can ameliorate risk! If you have commercial property with a long-term lease in place, I'd argue it's a less risky investment than residential, and more straightforward. It's much more "set and forget" than residential, because leases are usually written such that the commercial tenant does all maintenance and pays all outgoings - it's really quite simple. The main potential pitfall of commercial property is that if it becomes vacant, there's a possibility that it will remain vacant for quite some time, as commercial properties and commercial tenants are much more varied than with residential, so you have to find a tenant who's exactly the right fit for your property. The risk of vacancy can be mitigated somewhat by doing your research about the supply and demand in the area, future developments, checking out the lease, keeping tenants happy, etc. So if you absolutely need every rental payment coming in to save yourself, then perhaps a commercial property that's vacant or on a month-to-month lease isn't for you. But commercial property can be a valuable addition to a diverse portfolio, where the risk can be spread between a number of properties. You've made some good points about commercial property, Thanks Tracey L.A Aussie [1462 Posts] brookelea wrote:
thanks la aussie.. i drink at least 4-5 lattes a day.. could be greatly beneficial in both cost and health :) Oh, my god! Assuming the lattes are the same as Starbucks over here; $3.75 each (there are more expensive ones), and you have 4 of them, that's $14.80 per day, $5,402 per year, $108,040 over 20 years! And that's just one item. What else do you do; how's the cakes and bottled water?? Cheers, "we get sent lemons; it's up to us to make lemonade" OzTraveller [1 Posts]  Hi to everyone also. My Christmas present to myself this year was both the 0 to 130 properties book as well as an investment property. I managed to do both. I like some of the other people here, have only read half the book. So far it is all written in such a way that I say to myself, "why didn't I realise all this?", however I also do agree with people who mentioned that the positive cashflow properties are hard to find. While looking for my property, I realised that I either get a real dive or I focus on something that I can negative gear. So I went for the negative gear. Now that I have read a lot from Steve McKnight, I realise that I may not be able to build a large empire of property with this system. As per his suggestion in this forum, I will begin looking for commercial property. I would love to hear from anyone who has been looking for positive cashflow property recently and how successful they have been. Cheers Mark brookelea [53 Posts] And that's just one item. What else do you do; how's the cakes and bottled water?? ok, you asked: croissant with ham and cheese - breakfast ritual and two lattes lunch - depends on the mood but typically either yum cha or japanese, sometimes a parma and chips dinner - i typically cook - but have a fettish for expensive meat, organic chicken and love seafood lunch and dinner - always wineprobably go out twice a week for dinner with hubby and children..breakfast costs $7-10 per day (5 days a week) on saturday we have a big family breakfast at our amazing local bakerylunch $10-25 per day, depending on the eventdinner - i don't work that out!add the lattes at $4 x 5 and walla, i'm broke..the wine, i forgot to add that, and all the donuts, cakes and those yummy fruit flans i have for afternoon snack..after jotting all this down, it scared me..any wonder why i never have money..now all i need to do is buy a cool pack, one of those lunch boxes and try to get organised..my spending is based more on my poor organisation that an insatiable need to spend $$$i need help!! hleung [103 Posts] To add to the books to read, I'd recommend "How to achieve Wealth for Life through Property Investing" by Melvin and Chan. I was given it as a Christmas present. It's a cracker of a book, easy to read and fairly cheap I was told. bkhoo77 [1 Posts] Yeah, I have read that book also. Their ideas makes sense but at the end of the day, you still have be careful. Commonsense has to rule. I read many other books of course, Steve McKnights' thought may be different from what Melvin and Chan wrote though. I guess we just have to be have a balanced thought. I'm also at the moment, toying with the idea of mixing property investing with some shares investing. Anyway, reading Steve's books got me started in properties here in Melbourne. 3 properties in 3 years. I started out with only $18000 income (scholarship money) in 2005. |
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In The NewsBuilding Approvals Fall "With population growing at the fastest rate in 18 years, we should be building more homes, not less," St George Rates Up St George Bank has announced it will increase its home loan rate by 20 basis points to 9.67% ANZ Predicts House Boom ANZ predicts sharp price increases on the back of a severe housing shortage. Today's TipThe more you do of what you've done, the more you'll get of what you've got <more> Active forum topicsInvesting what it tax can i claim Author: Katies007 Bowen Basin QLD Mining Towns - Opinion on offer Author: Daedalus Who's OnlineTake The Test
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