Forum Replies Created
Hi Bill,
This thread was hilarious! Thanks for the laugh.
On a more serious note I have asked Steve if he could set up a forum topic called “Valuable info for newbies”, which would be packed with great info, and avoid people asking the same questions over ad over again. I think one of the first threads will be on “due diligence” … [
]Cheers,
Pin
Thanks gus for the tips,
I would still like to hear from Bill, as he is the authority with BSS.
If the same property rules apply, this deal will be even sweeter. I will send over a valuer mate of mine and he will put a “good” value on it. [
]Cheers,
Pin
Bill! You are THE MAN!
I have been looking so hard for positive geared properties … I spent hours on the net … This is IDEAL.
You know how I warn people about going into *rural* towns and to only buy unless they are ABSOLUTELY sure they know what they are doing. Well this is the answer to their problems… But they better be quick because I want to buy 10,000 of them in all capital cities. Yep, that’s right…
I did the maths (you know I like maths don’t you?) and this one is a no brainer. $700 p.a for each BSS that means I will pocket 7,000,000.00 (7 MILLION!!!!!)
Now I want to buy a few off theplan as well. (Hehe, I love delayed settlements…). How about an option on a few others… Please Bill …
I just knew you were the type of person to dig out these deals …
Also I really want to hear about the “Bus stop” signs. Think about it. Low maintenance, guaranteed income etc…
I heard rumours that a few thousand public toilets would be available to savvy investors soon too (check out http://www.toiletsRus.com.au).
You remember I made a post a week back about being imaginative. Well all you newbies this is it! Think outside the square! and the posibilities are endless…
Bill, you can use me on your testimonial…
Yours sincerely, A trully satisfied customer (7 MILLION LOL [
])Pin
I started reading this thread … Some posts were way too long … I skipped others etc…
However I think I got the general feel for things.
One thing that people don’t realise is that if you want to be a “Steve” you will have to do the things he does and that means giving up your full time job and doing property investing FULL time.
For people who still haven’t clicked, let me repeat, investing in positive cashflow properties IS A FULL TIME JOB! (That is if you want to get rich quick.)
Sure you can buy a property here and there and take it easy over a few years…
Anyway, the most intersting thing about Steve is NOT his property investing, BUT his “business thinking”. Property is JUST a tool. It is his business mind that makes the tool so effective. You must understand this if you are going to get anywhere! It is the way you think, the way you approach things that counts.
(I am definitely NOT a “believe it will happen and it will happen” type person. Rather, make heap of mistakes and learn from them. If there is a will there is a way…. )
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NEW TOPICI would genuinly like to help people and answer ALL their questions, however I am frustrated that whenever I answer someone the post is quickly lost because of the “traffic” on this forum.
So this is what I suggest….
Steve, could you please start a new forum topic called “Valuable Info for newbies”, and make me the moderator.
What I will then do is go through all the posts and put the most valuable ones there.
Newbies ALWAYS ask the same questions … so having those questions in one spot would make it easier for them.
I will also contribute, and tell people everything I know about property investing (well… nearly everything.) Why, would I do this? because I have noticed that even when people give REALLY good info only 2% of people really take it in….
Believe me, I can tell you that there are some really good deals around Cairns, Rocky, Morayfield, (mainly major cities in Qld) etc… I can also tell you how to find +ve geared places in NOT *rural* towns (actually I already have in another post). But guess what? perhaps only 2% of people who read this will take note!!! (if that)
So my philosophy is: give the BEST info to people for free … At least for those people that really want to do something about their situation have the knowledge they need, and those that don’t have no excuse!
I will explain to people everything I know about types of loans, structures, (trusts, companies…), tax minimisation, property etc…
I have heard a few property “Gurus” say. “Well I want to charge people to come to my seminar to get rid of the “tyre kickers””. I use to think this was fair… However my thoughts have changed. I say “give the BEST info to everybody … and let people decide what they want to do with it. It is their call.”
So, how does this sound to others? Have a new topic forum for newbies? with HEAPS of great info?
Pin
P.S: Still_in_school, I think you want to double check whether you can claim your uni books as a tax deduction. Are you a professional going to uni or a “student” going to uni? (No, and a “professional student” doesn’t count [
])For a 17 year old with lots of questions … I feel obliged… (I will try and keep it simple.)
Chtulu,
Welcome to the forum.
and I have been hearing a lot of good things about Negitive gearing, and I want to learn more.Negative gearing strictly speaking is not a good idea because it costs you money. (That is why it is negative.)
When talking about “negatively geared” properties, this means that the property COSTS you money every year you keep. Practically this means that the rent you receive from the property is not enough to cover all your expenses. (i.e. loan repayments, insurance costs, maintenance etc…)
Why would people keep a property that costs them money? Well there are two reasons:
1) They can claim the loss as a tax deduction.
2) They expect the property to substancially increase in value over time, so that overall, when they sell the property, the capital gain will be greater than the sum of all their costs.
How does it work?1) Find an expensive rental property for 300K (say)
2) Get the bank to mortgage the property and lend you 80% of the price ( i.e. 80% * 300K = 240K)
3) You then have to pay interest on your loan. Because you have borrowed money for investment purposes you are allowed to claim this cost against your assesable income.. Let’s say you have to pay 20K in interest per year.
4) Rent the place out for 15K per annum.
5) You will also have other costs associated with the property (insurance, water rates, council rates…) say 4K p.a.So this property will earn 15K p.a. but cost you 24K p.a. Therefore it is negatively geared by 9K.
(These figures are a little bit “wrong”. Generally if you are going to negatively gear it will cost you between 2 – 6K a year.)It will cost you 9K to keep this property every year. (well this is not exactly true since the rent will go up over time and these calculations also depend on the type of loan you take. Why don’t you go and talk to a banker, and ask them a few questions?)
what does it involve?
It involves loosing money every year!Now I am not saying that -ve gearing is always bad. It isn’t! (for some very specific situations) But I will keep things simple for now. (spend time reading the forum. You can even do a search for my name (pinit2000) as I discuss this at length elsewhere.)
What it means is that you are happy to loose $1 to get $0.48 back from the taxman (that is if you are in the top tax bracket.) or $0.30 if you are in the 30% tax bracket.
what about tax? Is there away to minimise the amount of tax while maximising your profit?Yes plenty of ways… Do a search for
1) Depreciation (again read my other posts)
2) Non cash deductions.
3) Trusts
4) Discretionary Hybrid TrustsIt will be well worth the effort!
I have read somewhere that you can ‘cheat’ the tax system by remaining constantly in debt (or what ever) and end up paying no tax because of your debt, you don’t own anything, but you control everything. True?If you are going to learn anything, learn this … good people never ‘cheat’ the tax system. If you ‘cheat’ you will get caught. However you can legitimately “minimise” your taxable income.
you don’t own anything, but you control everythingOK, you want to learn about TRUSTS [
]
Or am I missing a lot?Yes, but you are on the right track. I hope this has helped… make sure you use the “search” function on the forum. It will take time to understand everything fully… so just take it easy and if you have more questions, just ask!
Finally. You may wonder whether there is a way of minimising your tax and having a property that doesn’t cost you anything and increase in value over time. The answer is YES! (just read my other posts.)
Pin
P.S: You better concentrate (focus) on your exams before spending too much time looking for property information. If you want you can copy this information into a word document and keep it for later.
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