Hi Andrew,

Thanks for your comments about the book and welcome to the community.

Some general figures I allow for are:

5% of purchase price for closing costs
4 weeks vacancy p/annum
8% mngt fees (unless otherwise known)
3 to 4 weeks rent for maintenance

Other costs vary too much to have general guidelines. You don’t want to make your…[Read more]

Hi Jimmy,

P&I loans are calculated based on the annuity formula where PAYMENT is a variable of PRESENT VALUE (principal or loan balance), INTEREST (per compunding period) and TIME.

Excel does this with the PMT function.

Hope this helps.

Bye,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Hi Lioudmila,

Thanks for your post and I hope you are enjoying the book. Nice to know I was under an Xmas tree []

Welcome to the community and thanks for posting. I moved your post to the PropertyPlus area as that is a better spot for it.

I’ve read your situation with interest. Once I went to the bank for finance and they said that they…[Read more]

Hi SIS,

A couple of points to note (albeit perhaps at the complicated end of the discussion):

quote:See with a Family Trust, you can only have +ve cashflow assets, were as hybrid you are able to have -ve geared and +ve geared properties that run at a lost or profit.

Well, you can do the same in a family trust too. Indeed, the issue of trust…[Read more]

Hi Hissho,

Happy New Year Back…

Well, call me a cynic, but let’s say that you have a property with a maket value of $1m.

I come to you and say “Here’s what I’ll do… I’ll pay you $10 for the right to buy the property for $1.5m, open for the next six months.”

What would you probably say to a boffin wanting to pay 150% of market value? Yep -…[Read more]

Hi Piscies,

Sorry, re-reading my post it may have sounded dismissive re: deposits. Apologies.

Just working through what the issue re: small deposits to flesh out the discussion, are you suggesting:

A. The vendor carryies back a second mortgage for the deposit shortfall between sale price and what the bank finance?; or

B. The vendor offers…[Read more]

Hi again,

Back after lunch…

I’m not a big fan of hybrid trusts. The main advantage is that a hybrid allows you to have a fixed and floating entitlement, yet for most investors all that’s required is a properly set up family trust (fully floating).

In other words, a family trust allows you to share profits however you like and you can just…[Read more]

Hi Piscies,

Just watch out… a coy does not qualify for the CGT discount. It needs to flow through to an individual.

SIS has the right idea… you can have a corporate trustee for a trust and so long as the cap gain flows through to an individual the CGT discount applies.

Cheers,

Steve McKnight

**********
Remember that success comes from…[Read more]

Hi,

I’ve moved your post to this forum…

I started by reading and attending Kiyosaki events, and then read and studied more broadly.

Seminars

Travelled the world to see:

R. Kiyosaki*
J. Burley*
R. LeGrand*
D. Campbell*
R. Aaron*
D. Kennedy*
R. Allen*

Books

Read a lot (one day I’ll compile a list), but for starters:

George Clason : Richest…[Read more]

Hi,

Yeah mate… just be careful though as you’ll lose the 50% CGT discount if the income is taxed as ordinary income.

You need to weigh up the pros and cons.

See ya,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Hi Rebecca,

HK came unstuck in a big way because, after an ASIC investigation that didn’t come up with any dirt, he advertised that he was “ASIC Approved” to try and get more people to his seminar.

This, of course, was a stupid play on words and in fact was the ammunition ASIC needed to bring him unstuck. He was made to refund people who…[Read more]

Hi,

It’s not hard to ‘secure’ property.

Pay a few thousand for the option to buy it at an agreed price and, hey presto!, you’ve secured it.

I’d imagine that HK did as he proclaimed, as the ACCC must have investigated this on the basis of if it did not occur then it would be false and misleading advertising.

Cheers,

Steve…[Read more]

Hi,

lol

Thanks to all for replying; this was not meant to be a chance for me to ‘pat myself on the back’.

Hey Peter… thanks for the comments about the book and indeed your review of other books too. It’s a very helpful analysis and goes to show there’s more than one way to skin the property investing cat!

Karen… I’ll hunt out your post…[Read more]

Hi redwing,

Great post… I’ve just moved it to heads up where it would be more apprpriately placed.

Thanks for your continued and much appreciated involvement here on the forums.

Happy New Year,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Hi,

What I should also say is that most businesses fail because they have supply but no demand and need to use debt to fund losses.

What I try to do is let demand drive supply.

In your context, you need to have orders before going down the track and outlaying too much $$$.

As Richmond says, you’ll need a prototype, but sell the concept rather…[Read more]

Hi,

I’ve moved this to ‘PropertyPlus’…

Well, IMHO,

A. If it meets you’re investing criteria for required ROI = keep it.

B. If you don’t have a required ROI, set one and monitor the situation for a few months.

C. If it does not meet your required ROI, either look for ways of increasing the return or else, if all else fails or you just want…[Read more]

Hi SIS,

Happy New Year mate!

Drats… I was hoping I wouldn’t be asked that. Sadly, there is no easy or definitive answer (like buy and sell XX properties and you’re a trader).

It’s a matter that needs to be discussed with your tax adviser to determine if you are in the business of buying and selling property.

quote:

So how do We Distinguish…

[Read more]

Hmmm….

I must have missed something here… a good post turned (in the words of Tony Greig) “Nasty”.

Richmond has my unqualified support – he does an ace job in difficult circumstances.

Think happy thoughts… and be nice to the other kids in the playground [^]

6 month lease

This seems like a Vendor’s each way bet to me. If they do sell…[Read more]

Hi Ivan,

Thanks for your post… welcome to the community and I’m delighted that you are enjoying the book.

I’ve moved your post to property plus as it is more appropriate there.

Sure – I could find 1000 reasons why it won’t work… but the key for any new business is to focus on reasons why it will work.

I think you would be offering a…[Read more]

Hey Piscies133,

Can’t you answer here in general terms so that we all might learn?

I would have thought that the best person to answer this would be a mortgage broker who has access to a variety of loans.

IMHO, provided you can prove your income and reliability of your job, and provided the security of the loan stacks up, I can’t see there…[Read more]