Hi Stephen,

Great talking to you before…

In Victoria, because there is a sale contract there is no tenant-landlord issue. I include wording that spells this out in the contract just in case there is any doubt.

Also see my comments about insurance – author FW.

Bye

Steve McKnight

Hi Mark,

On my deals I do 80% LVR.

I could go higher but I find my long-term access to funds drops off as lenders feel I am too highly geared.

At the seminar there will be a lender who I understand can do 90%+ LVR on wraps for certain clients.

Be there or miss out!

Bye

Steve McKnight

Great advice Terry!

Thanks for your post…

Matt, my only advice would be to be very careful with over capitalising on renovations etc. Sometimes the only sure way is the passage of time because valuers take an average on all properties in your area with coming up with a figure.

It may pay to call one to discuss this – or maybe even a real…[Read more]

Hi Felicity,

Congrats! You have managed to completely confuse me with your post []

As far as insurance goes, here are my thoughts:

1. You should insure the property for land and building insurance the second you sign the purchase contract. It’s a bit like getting car insurance before driving out of the car yard.

2. In a wrap you have two…[Read more]

Hi,

Time for a bit of Friday night posting!

You ask:

quote:
I know there are 2 approaches to wrapping:

1. Find the buyers, and get them to look for the property they want to buy & then you wrap it to them. Problem is you can’t buy below market, and they’d know how much you paid. Lower potential profit.

2. Find the house, and then the buyers.…

[Read more]

Hi Gavin,

The item you refer to is the Property Secrets Revealed folder that I created for the Break Free Events presentation.

The offer was $495 for the folder and as part of the package you received a $600 discount off the upcoming Australian Masters of Property Investing event. As you can tell, for someone lucky enough to secure a seat, this…[Read more]

Hi,

quote:
1. For a long term (more than 10 years) wrap, do you use variable or fixed rate interest with your lender. What happen when the interest rate changes or the 5 year fixed term completes, do you change the rate with the wrap buyer as well? Will it make the repayment amount really messy to calculate?

I leave this up to the client I wrap…[Read more]

Hi Alf,

Something that you wrote caught my eye and I thought it owuld be wise to flesh it out for all community members…

quote:
I bought a torrens title townhouse in cbd adelaide about 2years ago off the plan. I furnished it so it was utilised as a service apartment this gave me building depreciation of 4% and not 2.5%…

Having researched…[Read more]

Hi!

Interesting deal… I think you are right to consider your likely success being linked to the seller’s motivation.

You know what I’d do..?..

In this case I wouldn’t worry about doing the legwork yourself – I’d approach an agent in the area and express your interest in buying the property and get hi/her to do the legwork to approach them…[Read more]

Hi Josh,

Thanks for your post [] and congrats on your potential purchase.

Re: your question about the FHOG. I have cut and paste the following text from the State Revenue Office web site…

quote:

ARE YOU ELIGIBLE?

To be eligible to receive the grant, an applicant and the applicant’s partner must meet certain eligibility criteria.

An…

[Read more]

Hi CY,

Let’s have a go at answering some of your questions…

quote:

1. What is commonly agreed between you & investor ? Is it 50-50 split, or do you just ‘promise’ him say 14% return?

I don’t think there is an absolute standard as to what to expect, but in my opinion I think 50:50 is the default. I think it’s more about find out what the…[Read more]

Hi,

I did some surfing and found the following information that seems to be relevant about title insurance…

Source: http://www.oldrepnatl.com/

quote:

What is Title Insurance?

Title insurance is an exclusively American invention. Its purpose was well stated in the first advertisement for title insurance back in the late 1800s:

“This…

[Read more]

Hi,

I thought that it would be appropriate to point out that correct structuring will be a feature topic at the upcoming seminar.

Chartered Accountant and tax expert Paul Harper will show you exactly how to set up a multiple entity structure that is both tax efficient and also appropriate to protect your assets.

Paul will show you the correct…[Read more]

Hi Mel,

All the details you require are now available online at:

https://www.propertyinvesting.com/files/content.asp?cid=mpi

I must warn you though that seats are filling quickly, so be sure to follow up quickly.

Regards,

Steve McKnight

Rob,

I strongly recommend you do the numbers on this deal mate…

As an investment, it has the smell of strong negative gearing about it, which may be OK depending on your strategy (save tax vs. make money).

I’d also point out that the apartment complexes down here are underperforming from what I hear and read and advise caution.

Remember to…[Read more]

Hi CY,

Thanks for making your first post and I invite you to keep posting in the future too.

I’ll try to answer some of your questions…

quote:
1. Do I have to tell my bank If I ‘m going to wrap the property? If yes, is it BEFORE or AFTER settlement ? What is the penalty (if any) if I didn’t tell?

I would encourage you to adopt a policy of…[Read more]

Andrew,

Structuring is a difficult topic to discuss and almost impossible to address over the Internet. This is why I have included it as a topic in the upcoming seminar.

However, as a good outline, I draw your attention to the ‘Taxing Times’ article that you can access as someone who’s purchased my Wrap Library.

You’ll find it under the ‘Wrap…[Read more]

Andrew,

The business that we use to establish entities for our accounting clients, together with an outline of their pricing, is http://www.shelcom.com.au/services.htm

You might also expect to pay about $400 (2 hours) of time for your accountant / lawyer to fill in the necessary paperwork and ensure that the documents you receive are…[Read more]

Andrew,

In your circumstance outlined here, my opinion is that when you are cashed out in three years time you would need to pay the balance of the CGT… probably on a gain of about $19,000.

Now, the actual amount of tax that you pay would depend on the entity you have purchased the property in and your own personal ‘structure’.

If you…[Read more]

Shaan,

I would imagine that it is illegal unless you have consent.

But, I can’t see how someone having requested their own credit report and having it sent to you could be construed as breaking the law… but I am not legal expert here.

What purpose is the law designed to achieve? It is to stop someone getting unauthorised access to private…[Read more]