Forum Replies Created
Hi,
When Dave and I went over for the first time we stayed just under a week.
We hired a car and drove a long, long way. Just on that, travel times in NZ are a lot longer than in Aus for two reasons:
1. Generally, the roads are not as good or well maintained; and
2. There are far more hills and corners which cuts down your top speed.
Really though, your length of time on the ground will depend on what you want to achieve. I would definitely have a plan (however sketchy) and try to do some research on the Internet about various towns and areas before going over.
Remember that regional NZ is not as populated as here, and that there are many smaller communities (7,000 to 13,000) with further satellite and feeder towns.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
I could write an answer several pages long. Now that there is a dedicated forum, I suggest you post more specific questions that can receive a more accurate and detailed answer.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
It is not illegal, but from discussions I have had with NZ solicitors it is viewed very dispassionately, even more so than in Australia.
It sounds like there have been all sorts of unusual terms included in contracts that limit a purchaser’s equity and waters down their rights to next to nothing.
Despite what the scaremongers might have you believe, vendor finance in Australia is well regulated within the confines of the UCCC and stated based Fair Trading Laws (as well as State based property law too).
I’m not sure the same level of protection is available across the Tasman.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
I think it is a political decision more than anything else. As I understand it the left has been talking about introducing it for some years now but as yet it has come to nothing.
What do you think would happen if it was to introduce CGT though?
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
In terms of legitimate charities, a good friend of mine works in the aid industry and made me aware of the following link:
http://www.acfid.asn.au/campaigns/asiaearthquake.htm#appeals
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
I have removed the ability to post images (the
tag) as a result of some questionable applications of the feature.
The tag still works for linking etc.
I may re-open the images once the forum policy has been updated.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Personally, I’ll be supporting Unicef and their endeavour to help those children disadvantaged by this terrible disaster.
There are many worthy causes, hwoever, Unicef only take 7% of the donation for admin. This is a more than reasonable amount.
Not wanting to sound heartless, but I’m a little cautious of the Australian Red Cross after the Bali problem with funds going, well, astray from the intended donantion purpose. Hopefully they have learned.
On a different note – it’s good to be an Australian when you see the effort contributed to help a mate.
Also, welcome back Richmond… hope you had a peaceful time away.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
I had lunch today with some people who have been to a one or two of my seminars now and who I have said would informally mentor them (they’ve demonstrated their commitment…).
As lunch finished I said to them that I would hold them accountable to what they said they wanted to achieve.
I suggest that meeting up with other like-minded people is a good way to:
1. Announce your goals
2. Be held accountable to them
3. Be supported during the tough timesAs for frequency of meetings etc. – I’d say whatever was needed to get the result you desire.
As for a format – at the beginning of each MAP the Mappers had to announce to the group:
*This is what I have done…
*This is what I am doing…
*This is what I will do…Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
I’m sure there are a lot of ideas, but, at the risk of being a nay-sayer, who’s going to fund the $100,000+ needed to set up and staff this enterprise?
Sadly, problems will persist because it will be the minority (as it is now) who, not being interested in membership, would continue to give the industry a bad name with some questionable investing.
There is a solution out there… somewhere… perhaps the government could pass a law that requires people who do more than XX vendor finance deals per annum to be members, and to be a member you must adhere to the code of conduct etc.
Having said that… the UCCC exists to protect the rights of the borrower, so VF deals that comply are already perhaps appropriately regulated.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Michael may be many things to many people, but from my experience he is as far away from the evil face of wrapping as was the article in the SMH was accurate.
As for the VFA, in its current form it does seem to have run its course. I have remained at a distance, indeed passed over the presidency, due to a possible perceived lack of independence given that I sell a wrap product.
I did not have a lot to do with Michael in his time as president, but, based on previous encounters over the past five years, I suspect he discharged his obligations with distinction.
From where I stand, the slander on his name, given it was based on falsehoods, was most improper. Nothing short of a public apology is deserved, however, suspecting who is behind these dubious dealings, I won’t be holding my breath.
I live in hope that the unrighteous will, at the appointed time, be properly judged.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Julia,
The words are based on a template, and as such, should you feel so strongly as to want to remove them for fear of then being incorrectly perceived as an endorsement, then that would be the best course of action.
I will also make it a point in the near furture to change the terms and conditions of the site to indicate that the ‘green dashed underlining’ of words is not an endorsement but merely a form of indirect advertising. I will also add the word ‘advertisment’ to the top line of mouse over box so there is no misunderstanding.
I hope this is satisfactory.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Point taken… the idea is to balance advertising to recoup the cost of running the site with a non-invasive way of linking to products.
I’ll play around with the options in the new year and see if I can strike a more happy medium.
As for being unethical… the posts are not being edited, just certain words highlighted.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Judanne,
The newsletter talks about no and low down deals.
You can change the numbers so that there is no deposit needed if that is what is negotiated with the vendor.
Having said that, Part Two (next month) outlines more about using external (ex-deal) OPM to bridge the gap.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
As promised, here is how the wrap figures are ‘crunched’:
Based on:
Purchase Price: $100,000
Deposit: $10,000
Vendor Finance: $90,000
Interest Rate: 9% per annum, or 0.001730769 per week
Term: 1300 weeks (25 years)
Payment at end of period
(solve for) PMT = $193.51Loan Schedule:
These numbers are from a simple spreadsheet that solves for PMT (finance function) and then plugs that figure back into a loan amortisation schedule.
#, Payment, Principal, Interest, Balance
0 0 0 0 $90,000.00
1 -$193.51 $155.77 -$37.74 $89,962.26
2 -$193.51 $155.70 -$37.81 $89,924.45
3 -$193.51 $155.64 -$37.87 $89,886.57
4 -$193.51 $155.57 -$37.94 $89,848.63
5 -$193.51 $155.51 -$38.01 $89,810.63
6 -$193.51 $155.44 -$38.07 $89,772.56
7 -$193.51 $155.38 -$38.14 $89,734.42
8 -$193.51 $155.31 -$38.20 $89,696.22
9 -$193.51 $155.24 -$38.27 $89,657.95
10 -$193.51 $155.18 -$38.34 $89,619.61
11 -$193.51 $155.11 -$38.40 $89,581.21
12 -$193.51 $155.04 -$38.47 $89,542.74
13 -$193.51 $154.98 -$38.53 $89,504.21
14 -$193.51 $154.91 -$38.60 $89,465.61
15 -$193.51 $154.84 -$38.67 $89,426.94
16 -$193.51 $154.78 -$38.74 $89,388.20
17 -$193.51 $154.71 -$38.80 $89,349.40
18 -$193.51 $154.64 -$38.87 $89,310.53
19 -$193.51 $154.58 -$38.94 $89,271.59
20 -$193.51 $154.51 -$39.00 $89,232.59
21 -$193.51 $154.44 -$39.07 $89,193.52
22 -$193.51 $154.37 -$39.14 $89,154.38
23 -$193.51 $154.31 -$39.21 $89,115.17
24 -$193.51 $154.24 -$39.27 $89,075.90
25 -$193.51 $154.17 -$39.34 $89,036.55
26 -$193.51 $154.10 -$39.41 $88,997.14
27 -$193.51 $154.03 -$39.48 $88,957.66
28 -$193.51 $153.97 -$39.55 $88,918.11
29 -$193.51 $153.90 -$39.62 $88,878.50
30 -$193.51 $153.83 -$39.68 $88,838.81
31 -$193.51 $153.76 -$39.75 $88,799.06
32 -$193.51 $153.69 -$39.82 $88,759.24
33 -$193.51 $153.62 -$39.89 $88,719.35
34 -$193.51 $153.55 -$39.96 $88,679.39
35 -$193.51 $153.48 -$40.03 $88,639.36
36 -$193.51 $153.41 -$40.10 $88,599.26
37 -$193.51 $153.34 -$40.17 $88,559.09
38 -$193.51 $153.28 -$40.24 $88,518.86
39 -$193.51 $153.21 -$40.31 $88,478.55
40 -$193.51 $153.14 -$40.38 $88,438.17
41 -$193.51 $153.07 -$40.45 $88,397.72
42 -$193.51 $153.00 -$40.52 $88,357.21
43 -$193.51 $152.93 -$40.59 $88,316.62
44 -$193.51 $152.86 -$40.66 $88,275.96
45 -$193.51 $152.79 -$40.73 $88,235.24
46 -$193.51 $152.71 -$40.80 $88,194.44
47 -$193.51 $152.64 -$40.87 $88,153.57
48 -$193.51 $152.57 -$40.94 $88,112.63
49 -$193.51 $152.50 -$41.01 $88,071.62
50 -$193.51 $152.43 -$41.08 $88,030.54
51 -$193.51 $152.36 -$41.15 $87,989.39
52 -$193.51 $152.29 -$41.22 $87,948.16
53 -$193.51 $152.22 -$41.29 $87,906.87
54 -$193.51 $152.15 -$41.37 $87,865.50
55 -$193.51 $152.07 -$41.44 $87,824.07
56 -$193.51 $152.00 -$41.51 $87,782.56
57 -$193.51 $151.93 -$41.58 $87,740.98
58 -$193.51 $151.86 -$41.65 $87,699.32
59 -$193.51 $151.79 -$41.73 $87,657.60
60 -$193.51 $151.72 -$41.80 $87,615.80
61 -$193.51 $151.64 -$41.87 $87,573.93
62 -$193.51 $151.57 -$41.94 $87,531.99
63 -$193.51 $151.50 -$42.02 $87,489.97
64 -$193.51 $151.42 -$42.09 $87,447.88
65 -$193.51 $151.35 -$42.16 $87,405.72
66 -$193.51 $151.28 -$42.23 $87,363.49
67 -$193.51 $151.21 -$42.31 $87,321.18
68 -$193.51 $151.13 -$42.38 $87,278.80
69 -$193.51 $151.06 -$42.45 $87,236.35
70 -$193.51 $150.99 -$42.53 $87,193.82
71 -$193.51 $150.91 -$42.60 $87,151.22
72 -$193.51 $150.84 -$42.67 $87,108.55
73 -$193.51 $150.76 -$42.75 $87,065.80
74 -$193.51 $150.69 -$42.82 $87,022.98
75 -$193.51 $150.62 -$42.90 $86,980.08
76 -$193.51 $150.54 -$42.97 $86,937.11
77 -$193.51 $150.47 -$43.04 $86,894.07
78 -$193.51 $150.39 -$43.12 $86,850.95
79 -$193.51 $150.32 -$43.19 $86,807.75
80 -$193.51 $150.24 -$43.27 $86,764.49
81 -$193.51 $150.17 -$43.34 $86,721.14
82 -$193.51 $150.09 -$43.42 $86,677.72
83 -$193.51 $150.02 -$43.49 $86,634.23
84 -$193.51 $149.94 -$43.57 $86,590.66
85 -$193.51 $149.87 -$43.64 $86,547.02
86 -$193.51 $149.79 -$43.72 $86,503.30
87 -$193.51 $149.72 -$43.80 $86,459.50
88 -$193.51 $149.64 -$43.87 $86,415.63
89 -$193.51 $149.57 -$43.95 $86,371.68
90 -$193.51 $149.49 -$44.02 $86,327.66
91 -$193.51 $149.41 -$44.10 $86,283.56
92 -$193.51 $149.34 -$44.18 $86,239.39
93 -$193.51 $149.26 -$44.25 $86,195.13
94 -$193.51 $149.18 -$44.33 $86,150.80
95 -$193.51 $149.11 -$44.41 $86,106.40
96 -$193.51 $149.03 -$44.48 $86,061.92
97 -$193.51 $148.95 -$44.56 $86,017.36
98 -$193.51 $148.88 -$44.64 $85,972.72
99 -$193.51 $148.80 -$44.71 $85,928.01
100 -$193.51 $148.72 -$44.79 $85,883.22
101 -$193.51 $148.64 -$44.87 $85,838.35
102 -$193.51 $148.57 -$44.95 $85,793.40
103 -$193.51 $148.49 -$45.02 $85,748.38
104 -$193.51 $148.41 -$45.10 $85,703.27
105 -$193.51 $148.33 -$45.18 $85,658.09
106 -$193.51 $148.25 -$45.26 $85,612.84
107 -$193.51 $148.18 -$45.34 $85,567.50
108 -$193.51 $148.10 -$45.42 $85,522.08
109 -$193.51 $148.02 -$45.49 $85,476.59
110 -$193.51 $147.94 -$45.57 $85,431.02
111 -$193.51 $147.86 -$45.65 $85,385.37
112 -$193.51 $147.78 -$45.73 $85,339.64
113 -$193.51 $147.70 -$45.81 $85,293.83
114 -$193.51 $147.62 -$45.89 $85,247.94
115 -$193.51 $147.54 -$45.97 $85,201.97
116 -$193.51 $147.46 -$46.05 $85,155.92
117 -$193.51 $147.39 -$46.13 $85,109.79
118 -$193.51 $147.31 -$46.21 $85,063.59
119 -$193.51 $147.23 -$46.29 $85,017.30
120 -$193.51 $147.15 -$46.37 $84,970.93
121 -$193.51 $147.07 -$46.45 $84,924.48
122 -$193.51 $146.98 -$46.53 $84,877.96
123 -$193.51 $146.90 -$46.61 $84,831.35
124 -$193.51 $146.82 -$46.69 $84,784.66
125 -$193.51 $146.74 -$46.77 $84,737.89
126 -$193.51 $146.66 -$46.85 $84,691.04
127 -$193.51 $146.58 -$46.93 $84,644.11
128 -$193.51 $146.50 -$47.01 $84,597.09
129 -$193.51 $146.42 -$47.09 $84,550.00
130 -$193.51 $146.34 -$47.18 $84,502.82
131 -$193.51 $146.25 -$47.26 $84,455.56
132 -$193.51 $146.17 -$47.34 $84,408.22
133 -$193.51 $146.09 -$47.42 $84,360.80
134 -$193.51 $146.01 -$47.50 $84,313.30
135 -$193.51 $145.93 -$47.59 $84,265.71
136 -$193.51 $145.84 -$47.67 $84,218.04
137 -$193.51 $145.76 -$47.75 $84,170.29
138 -$193.51 $145.68 -$47.83 $84,122.46
139 -$193.51 $145.60 -$47.92 $84,074.54
140 -$193.51 $145.51 -$48.00 $84,026.55
141 -$193.51 $145.43 -$48.08 $83,978.46
142 -$193.51 $145.35 -$48.17 $83,930.30
143 -$193.51 $145.26 -$48.25 $83,882.05
144 -$193.51 $145.18 -$48.33 $83,833.72
145 -$193.51 $145.10 -$48.42 $83,785.30
146 -$193.51 $145.01 -$48.50 $83,736.80
147 -$193.51 $144.93 -$48.58 $83,688.22
148 -$193.51 $144.84 -$48.67 $83,639.55
149 -$193.51 $144.76 -$48.75 $83,590.80
150 -$193.51 $144.68 -$48.84 $83,541.96
151 -$193.51 $144.59 -$48.92 $83,493.04
152 -$193.51 $144.51 -$49.01 $83,444.03
153 -$193.51 $144.42 -$49.09 $83,394.94
154 -$193.51 $144.34 -$49.18 $83,345.77
155 -$193.51 $144.25 -$49.26 $83,296.51
156 -$193.51 $144.17 -$49.35 $83,247.16Payout at the end of year three = $83,247.16
The Lease-Option figure is calculated from a third-party spreadsheet, I am not sure how the figures are calculated.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Thanks for your replies.
I agree that a chat room would be a good addition, and is certainly on the cards.
Also on the drawing board is a new design for the site, including additional content and other resources.
Of course, this will take some time – perhaps a few months – but be patient as it will happen.
Also, please keep the suggestions coming in.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Rob,
You raise some interesting points, some of which I had also considered… especially the part about refinancing the wrap loan.
Should the wrapper have provided those extra funds, I would suggest that they have left themselves open for abuse. However, being aware of the people behind the deal, I doubt this is the case.
The story as presented on the website is quite vague, short on facts and very opinionated. I would like to know how much of the $135k needed to refinance related to the wrap loan payout, and how much related to the other capitalised debts.
As for the author of the article (who is not sourced), I suggest that they urgently seek the help of Mr Jenman, since Mr Jenman has said that he aspires to conduct research that is thorough and accurate – scarce editorial commodities that are sadly lacking in the current offering.
Please advise if you receive a reply.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
thats means you need to keep telling them, if you cant pay you LOSE your home even if you have paid up 99% of it. do you understand?, are u sure u wanna do this?, really?, u get the pictureI reject the idea put forward that someone who has paid 99% of a contract and misses a payment walks away with nothing. It is factually incorrect. If this was the case any magistrate in the country would nullify the contract in a second as being grossly unfair.
What needs to be stressed is the financial undertaking being assumed when entering into the (any) contract. This is stressed in the pre-signing documentation that must conform to UCCC regulations.
It’s time people started to include some of the media commentators started to include some of the facts rather than the hyped in their stories.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Rob,
You don’t get around it. You have to work through the issue and disclose as needs be.
I feel there is only ambiguity in the contracts used by people who are not familar with the correct way to put a wrap deal together in a win-win way.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
The research behind this article seems second-rate at best, including:
1. The journalist did not contact me.
2. He spelt my name incorrectly.
3. John Burley is not my mentor. He quotes from a book where the current edition no longer includes that comment, in fact, that comment has not been publsihed for several years. Despite this, the comment is taken out of context.
4. The discount for the wrap kit has been available for some time now, not since Thursday as the article seems to indicate.
5. The finer details of how a wrap works, especially when someone is evicted from the property, are not fairly or accurately portrayed in the article.BTW, Rob… wraps must comply with UCCC too.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi CrownOfGold,
Thanks for your post.
There are a few holes in your figures, but for the sake of discussion I’ve used some assumptions to flesh out my answer (see below).
First, let’s look from a cashflow perspective:
Rent: $42,000
Interest: $26,000
Body Corp etc.: $8,000
Management: $2,940
Other Expenses (10% of rent): $4,200
Overall: $860That’s a good start.
From a capital gains perspective:
Bought: $172,500
Less FHOG: $14000
Net PP: $158,500
Sale Price: $203,000
Capital Gain: $44,500Overall (pre-tax):
Cashflow + Cap Gain: $45,360
Purchase Price: $158,500
% Gain: 28.6%
Over 3.5 years: 8.2% per annumWhether this is a good investment or not depends on your goal. If we adjust for inflation and then take away tax, it’s at least a good step in the right direction.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
