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 of our B&H property that had appreciated to access profits to buy more wraps. Later our wraps cashed us out and we used the profits to buy back into to B&H property.

5. All the while Dave worked as an accountant. I ‘sold’ information (forst) at wealthtipsonline and here at propertyinvesting.com. All the money we made went to buying property.

6. In the meantime I lived off $400 a month my wife gave me from her salary and Dave did likewise.

…oh, plus we both won lotto… []

Have a great day,

Steve McKnight

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Remember that success comes from doing things differently.
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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, are still common themed.

Ideally, and without any disrespect, what I wanted to leave the reader felling was… if Steve and these other guys (from a broad background) can do it, surely I can too.

Sorry if this spoiled the read for you, but have another read and see if you can’t glean any insights.

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
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[]

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

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Remember that success comes from doing things differently.
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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, if you are solid in your commitment to begin investing is to consider finding a way to buy the property you are currently in from the government. I understand they offer good deals to tenants who buy them out – so that may be your point of best advantge.

Then, if you can make some money on that deal, you could use your profits to pay the rent elsewhere while you also bought a second investment property.

It’s a medium-to-long shot, but perhaps it’s got legs?!?

Regards,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi kylesbm,

Great post and advice!

Thanks for lending your opinion and welcome to the posting community. Hope to read more from you in the future.

Warm regards,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

Failing a post of help here, I suggest you contact WA property investment groups and ask who they use.

One thing to remember is that trust law is 90% impacted by federal rather than state based laws since the biggest issue is usually pertaining to tax law much more than State based legislation.

Still, it’s goo to get some local advice – from a solicitor or an accountant.

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

Seek professional advice at tax time, but I’d be confident you could mount a reasonable argument saying that the costs were incurred in obtaining assessable income, especially since you have gone on to buy elsewhere.

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

Tony’s formula works for him, Terry’s formula works for him, my formula works for me.

The question is… what’s your formula and how will it work for you?

As I understand it, Tony made his up from scratch… you can too.

Great to seek some advice though and thanks to Terry for providing guidance.

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

quote:

---

but sorry to be the party pooper. The 11 second solution was only good when interest rates were at 5%. Now that they arent and if you are using interest rates of 7% you need to find a property with a gross yield of 14% to be positive cash flow.

---

Bollocks. Actually, the 11 Second Solution was created when interest rates where higher than their current levels. The problem thesedays comes about through higher property values and finding deals rather than high interest rates.

The 11 Sec solution is a filtering tool for you to gauge a quick evaluation as to likely positive cashflow return.

CoCR is really the defining financial ratio I use to ensure I obtain an adequate return relative to the risk involved.

Finally…

quote:

---

People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.

---

Yeah… I believed that once too. For example, if I saved $1 per day and earned an after-tax return of 10% per annum, then according to the calculator I’d be a millionaire on Feb 14 2060. That’s still 56 years away. Now, assuming an average inflation figure of 3% over that 56 years, in today’s dollars that be equivalent to $191,000.

Steady savings is needed as a discipline more than a wealth building vehicle.

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

*sigh*

When you know what to look for deals are everywhere. Sadly, though, people don’t know what they don’t know.

These words often fall on deaf ears, but… opportunities are everywhere. The key is to (1) find a region you want to invest in; and then (2) look for problems.

Good luck.

Steve McKnight

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Remember that success comes from doing things differently.
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