Hi,

I imagine that this is a question that you need to ask your lender as all we would be doing is second guessing what s/he might say.

As for what to be aware of… it’s just like anywhere else in that you need to do your due diligence over:

1. The area
2. The property (numbers)
3. The property (structure)
4. The tenant

Cheers,

Steve…[Read more]

Hi,

I’m not a big fan of these as I view it like neapolitan icecream – it has a little bit of everything but not enough of anything.

A hybrid trust incorporates a mixture between fixed entitlements (like a unit trust) and discretionary entitlements (like a family trust).

I’m yet to hear a good argument for why a hybrid trust is needed, when a…[Read more]

Hi,

Never let hype stand in the way of good sense.

And… if everyone is fishing in one market, go and find another.

And… frenzy preceeds market correction.

Well, that’s what I think anyway.

Bye,

Steve McKnight

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

Hmmm….

Good questions, but out of my specific area of expertise.

However, I seem to remember something about owner builders haveing to provide a 10-year guarantee???

My neighbour is a owner:builder, I’ll see if I can remember to ask him.

Can anyone else shed any light on the matter?

Steve McKnight

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

Hi!

I’m back in the office for a day and then off to Mackay tomorrow for some R & R.

This is a very interesting post for a few reasons.

I actually believe making offers without seeing the property is not necessarily a bad thing, provided that you know what you are doing.

That is to say that there must be some due diligence over the property,…[Read more]

Hi,

Thanks for making your post.

I want to make sure I understand… you have an existing property and you are planning to use (redraw/refinance) the equity in this to fund your land acquisition. The application of that equity will be via a LOC (line of credit).

If you do this then you will be able to pay cash for the land (if you need to…[Read more]

Greetings [8D]

Thanks for all your positive feedback.

I’m about to make a new post titled… “What the game was all about”. See: https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=1565

Hopefully this will clear up any confusion.

Cheers,

Steve McKnight

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

Hi,

You know… as I walked out of the venue last night – dog tired and almost hoarse – I didn’t think that I’d be functioning all that well today.

Yet, I was up at 7:30 and off for a morning walk, came home and I actually feel very refreshed.

And why not? I spent an amazing weekend with so many like-minded people who all shared a common…[Read more]

Hey…

I might come along too… but only if you’re nice []!

Bye,

Steve McKnight

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

Hi,

The purpose of the article was to show how inflation needs to be considered when it comes to evaluating your property returns.

It’s not so much of an issue at the moment when inflation is at historical lows, but there is an potential issue with the handling of the taxing of the capital gain.

For example, no longer can you index your cost…[Read more]

Hi Polaris (and Insider),

I had a spare half hour so I thought I’d come online and answer a few posts. [:0)]

quote:

Why would someone give me control of their property for 5 years ie. lease/option it to me. Make no cashflow out of the property other than my premium and unable to sell the property for another 5 years because of my option?

In…[Read more]

Hi,

You need to make a decision… quickly.

If your contract goes unconditional then it means that you will have to come up with finance… that is, you can’t back out.

You need to work out the cost:benefit of each loan product and go with the one that best suits your investing purpose.

$200 isn’t a big penality, but I’m cunfused with the ‘5…[Read more]

Hi,

That sounds like about $130k more than we had when Dave and I started!

Bye,

Steve McKnight

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

Hi,

The long answer is that it is outlined in my 80,000 word book that is due out in August.

The short answer is:

Stage one: Earn salary -> invest salary -> make positive cashflow profits

Stage two: Earn salary -> invest salary -> make positive cashflow profits + reinvest profits

Stage three: As your profits increase, phase out salary without…[Read more]

Ah,

Welcome to the problem of trying to organise finance. It has been a consstant source of frustration for me that financiers tell you one thing and end up doing something different at the 11th hour.

I can’t give you a recommendation as such, as I think that any lender will have trouble will stuggle inside one week (they need to get loan docs…[Read more]

Hi,

Cross-collateralising (CC) means securing one property using the title of another.

For example, if you have ten properties and all ten properties sit as collateral for any one mortgage.

Lenders do this so they have absolutely 0% risk in the loan. I fight tooth and nail to have my deals sit alone because I see CC as unnecessary.

Loans on…[Read more]

Hi,

What you wrote about your astrologer is one of the funniest things I’ve read all year [].

I am a little concerned that you are looking for a magic answer that means you can continue to live your life as you know it now and end up rich.

Let me be clear – that is about as realistic as believing the Seekers will have another #1 hit.

It’s…[Read more]

…he owns (or has owned) 230ish properties, so on this basis they all have to bring in an average nett passive income of $33.44 per week.

Bye,

Steve McKnight

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

Hmmm…

I’ve never been to his seminar but I’ve heard enough on the radio to know this guy flogs -ve geared property to the masses.

quote:He accesses your financial situation and work out a strategy for you to go into Negative Gearing properties.

…and probab;ly earns a commission for doing so off the developer, financial institution,…[Read more]

Hi,

What does this mean:

quote:and my weekly income is in no way secure

I suggest starting by researching an area that you feel comfortable with, although opportunity exists everywhere when you can find a problem and match it with a solution.

Bye,

Steve McKnight

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