Hi,

I think that your decision will become clearer once you have set a minimum required return on invesment.

Note, I haven’t used CoCR because, in your case, the return would be negative.

What I’m saying is work out how much capital growth you demand, and while it achieves this the great, but when it doesn’t it might be your trigger to…[Read more]

Hi,

I’ll have a stab at some of the answers although I recommend seeing an appropriately qualified and experienced professional re: tax matters.

Finance

I’ve looked into this and most major Australian lenders will lend on OS property, but they want Australian property as security.

This makes it tricky, so to get around this I have just jumped…[Read more]

Hi,

I understand your problem and have been there myself (except the 3 kids part).

The way I do it is a mixture of:

1. Me looking, but more lately…
2. Paying a network of people (financiers, agents, bird dogs etc.) to find deals for me.

I find the wider a spread the good news (ie. profits in the deal), the more deals I find.

Cheers,

Steve…[Read more]

*sigh*

Post moved as requested, and locked as discussion seems to have moved on. Let’s relegate this to the archives.

I see the point being made, but agree that a private e-mail would have been the appropriate first point of contact.

Cheers,

Steve McKnight

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

Yes SIS,

The money is made, not in finding the problem, but in crafting the win-win solution.

Most astute pick up.

Bye,

Steve McKnight

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

Hi,

It’s a time value of money calculation whereby at the end of 25 years of principal and interest repayments, the amount of the loan outstanding is $0.

Use these variables in the Excel PMT function and you should come to an answer of $62.82

N= 1300 (25 years * 52 repayments per aunnum)
PV= 35,200
R/i = 0.15481% (8.05% / 52)
First payment at…[Read more]

…cough, splutter, curse as Steve spills his cocktail all over the pool sunlounge.

Shhhh… people think I actually own property. Nah, that’s just a sidetrack… the smart money is in bluegums [] and those scratchy lotto things.

[]

Steve McKnight

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

Hey Richmond!!!

Congrats mate. I didn’t know you were getting married… welcome to the club.

No – I’m not melbear – just me.

As for 10 year loans… it’s not that hard to find out, you just need to dig further than the surface.

The infochoice website has it nicely packaged for you – just call the people who offer 5 year fixed terms to see if…[Read more]

Hi,

(I’ve moved your post to its proper spot.)

Not can you or can’t you, but how can you?

Your problem won’t be buying property, but rather securing finance. No bank I know will lend to a minor.

So, some ideas…

1. Buy on a long settlement so that you tie up a deal today (subject to it meeting your requirements), but it does not settle…[Read more]

Hi Mel,

That’s why Dave and I continued with the accounting business and set up other businesses too.

Banks don’t want low-risk, they want no-risk. Strange isn’t it that they had crazy lending practices in the high rise market, yet didn’t budge much with traditional investing.

If worst comes to worse, do low-doc loans where they just ask for…[Read more]

Festive Greetings,

Mel is right about foreclosures. Unless you get to the vendor before the foreclosure, banks are:

1. Unable to release private details due to privacy laws; and
2. Must take the property to auction so that there is no implied funny business.

It is the same in NZ, however it is possible to broker a mass buy-out privately and do…[Read more]

Festive Greetings,

Mel is right about foreclosures. Unless you get to the vendor before the foreclosure, banks are:

1. Unable to release private details due to privacy laws; and
2. Must take the property to auction so that there is no implied funny business.

It is the same in NZ, however it is possible to broker a mass buy-out privately and do…[Read more]

Hi,

There is no magic formula really…

1. We worked as accountants to save up the capital to start investing.

2. Since we borrowed 80%, we needed to find 20% deposits.

3. We began with B&H, but soon realised that it would eat a lot of our capital, so we switched to the wrap strategy where we only needed bewteen $5k and $10k.

4. We sold some…[Read more]

Hi,

I’ve just changed the topic and moved this to a spot where more people may read it.

Bye,

Steve McKnight

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

Hi,

Well… that’s one way to look at it.

Yet I asked Brian, Andrew and Bruce to contribute as I thought it was necessary to show that my results were not isolated and that others were also achieving good success.

If you read their words they actually contain a lot of information about the struggles they grappled with, which while different,…[Read more]

Hi,

I’m all for blocks of units as it’s great to be in control of the body corporate. Surely the same logic applies that if it makes sense to own one – it makes sense to own the whole block.

There are problems too though… finance is a big one. Most lenders will tell you it’s a commercial deal and will proceed to either say ‘no’ or maybe…[Read more]

[]

A private plot to take over the world

<<sinister laugh>>

[:0)]

Nearly bed time for this fella…

Hey, nice sentiment with the saving idea (another post somewhere), but just watch out for the impact of inflation.

Steve McKnight

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

Hi,

Thanks for your post and welcome to the community!

Glad you liked the book []

One possible suggestion is to call several accountants in your area. The old-fashioned types still have a bookkeeping service (of varying sorts and ability) that you might find helpful.

Good luck and certainly make a post if you find someone of good…[Read more]

Hi,

Hmmmm… intersting, yet slightly strange post.

I agree that buying a -vely geared property would be a mistake to you as you wouldn’t be able to offset the tax loss against other substantial income, so unless you could (1) afford the loss and (2) buy in a time of considerable capital gains – then I think you’d find it a struggle.

My advice,…[Read more]

Hi,

Let’s allow this post to find its place in the archives. No more replies please.

Cheers,

Steve McKnight

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