[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

May 12, 2014 - 6:58 pm

We’re on the case Jamie. Will be fixed as a priority in the morning (or sooner).

– Steve

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

May 12, 2014 - 4:59 pm

Hi,

Some replies:

1. Self rating

Agreed. You should not be allowed to rate your own posts. We’ll get on that.

2. Links

Currently when posting a link the poster can nominate that the link open in a new window (or not). We are changing that to be hard-coded always open in a new window.

3. Signatures

I made a post about signatures in this same forum.

No, we are not losing signatures, but we are reformatting the way they are displayed to prevent abuse and to tidy up the way they look. You can see what I have done below under the new formats.

We dumped the old signatures from the old forum as a placeholder, but now have introduced a new system that you can set up and modify through your ‘My Profile’ area (in the blue bar that the very top of the page).

Check it out and have a play around.

– Steve

• This reply was modified 9 years, 11 months ago by  Administrator.
• This reply was modified 9 years, 11 months ago by  Steve McKnight.
• This reply was modified 9 years, 11 months ago by  Steve McKnight.

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

May 12, 2014 - 4:53 pm

I believe the laws pertaining to negative gearing are too generous.

I would like to see some or all of the loss over expenses carried forward and offset against future capital growth rather than immediately against income.

Otherwise, provide a gradual phasing in of a CGT discount per year a property is owned (up to 50%).

– Steve

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

May 12, 2014 - 10:42 am

Hey Nigel!

Yes, the Hawke / Keating government tinkered with the rules and it caused a housing price correction.

The article I linked to in my initial post discussed the impact and how the new recommendation should provide a different outcome.

– Steve

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

May 11, 2014 - 6:20 pm

Interesting post…

As all credit checks are tracked and logged, too many could raise eyebrows.

That said, so long as you have an explanation you should be okay.

Beware the new changes though, were more information is tracked and defaults treated more harshly. Read more here.

I would recommend getting a copy of your credit record annually and making sure it is accurate.

You can pay if you want it quickly, or else you can get it for free: instructions how here.

– Steve

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

May 11, 2014 - 5:48 pm

Nissan Dualis. I needed something easy to get in and out of, and it has great boot space with the fold down seats.

My wife drives a Toyota Avensis, but we are thinking about upgrading.

We drove a Mazda CX9 around in the US a few years back and loved it, but it did drink the juice like a thirsty sailor.

– Steve

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

May 11, 2014 - 5:19 pm

Number of employed persons, rather than the tables shown above, or so I was lead to believe.

Like I said, I haven’t verified it but just thought it was interesting.

It might be a misquote of this article:
http://in.reuters.com/article/2014/04/17/usa-economy-employment-idINKBN0D30JF20140417

– Steve

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

May 11, 2014 - 4:47 pm

Hi again Colin,

Thanks for the heads up on the signature. We are on that one too and will soon be implementing a new system for it.

You see, when we ported over the data from the old forum, we just did it as ‘text’. As a temporary hack, we kept the signature block as it was, and made a wish list to upgrade it.

So, within the next 14 days, you will see a new system that will provide the opportunity to list:

1. Name / Username / Business Name
2. Web address (link)
3. Email (mailto) / Phone (mouse over)
4. One line of text to describe your business / famous quote, etc.

(The signature feature will be accessed through the member’s profile section.)

This will hopefully cut down on the amount of editing moderators have to do on overzealous signatures, and at the same time allow posters to promote themselves in an appropriate way.

– Steve

• This reply was modified 9 years, 11 months ago by  Steve McKnight.

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

May 11, 2014 - 4:08 pm

I was told today that US employment is only 200k below pre-great recession levels.

Not sure if that is true, but if so, it demonstrates a labour recovery which while painful for those in it, has been quite swift really.

In the markets where I am active for the Fund I set up, Texas yields are 7% to 9% (falling slightly), Florida yields are 8 to 10% (falling quickly), and Atlanta yields are 8% to 9% (steady). These are advertised and pre-negotiation.

I have been an active investor in the US since the end of 2009 and note broadly:

1. Prices started to recover in residential by late 2010
2. New residential construction began in late 2011
3. Commercial property started to increase in mid 2013, and significantly from Dec 2013

A good example of the recovery is that industrial property in Ft Myers could be acquired at $20/psf at the bottom of the market. It has slowly been absorbed where last year it became hard to find anything of quality below $30/psf. Now it is hard to find anything of quality below $40/psf. While replacement is still $80 to $100/psf, you can see that stock is being absorbed and prices are on the rise. I am told that tenant inquiry is up sharply too, and whereas it was very difficult to lease 10,000+sf warehouses, now there is a shortage of such properties.

– Steve

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

May 11, 2014 - 3:56 pm

Hey Ollie,

Here’s the problem… back when I started investing in 1999 you could acquire positive cash flow properties with a small capital base.

For instance, buying $40k to $50k houses in Ballarat / La Trobe Valley meant that with $500k of capital and 80% financing, you could pick up 8 to 10 positive cash flow properties and pocket net cash flow of about $8k to $10k per month.

As you know though, prices have increased substantially, and in excess of rent increases.

For a while it was very hard to buy positive cash flow at all (when interest rates were >7%), but as interest rates have fallen (and with them interest costs), positive cash flow property opportunities have re-emerged, but at a higher price point.

So, unless you have significant capital (now $1m+), buying incremental positive cash flow residential property can take a long time.

That’s why I recommend a new approach, which as I explained in ‘From 0 To Financial Freedom’, broadly follows this path:

1. In the first instance, concentrate on value add residential property to build your capital base
2. Supplement your income with an income accelerator
3. Once you hit your required capital base, migrate out of residential into commercial property where there are higher yields.

If you’d like to know more then pick up a copy of the book from the store. From memory it is less than $20.

– Steve

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

May 11, 2014 - 3:49 pm

We agree Colin.

We are presently configuring a plug in that will allow logged in members with various ‘view options’, including latest posts, active topics, etc.

We are also upgrading the page that comes up after members have logged in so they can have a list of new posts since they last logged in.

Expect something within the next 2 weeks.

– Steve

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

May 7, 2014 - 10:23 pm

Hi Ollie,

I think a common goal of all investors is to make money, but few ever really stop to think ‘how’, ‘when’, and ‘why’.

So let me ask some questions, with your answers then providing guidance on what direction is best for you in respect to the property and strategy to adopt:

1. What profit do you want: income or growth (pick one)?
2. How will this profit be made (market or investor driven)?
3. How active do you want to be with your investing? Specifically, how many hours a week can you allocate?
4. How would you rate your risk tolerance: low, medium or high?
5. What time frame do you expect your profit to be made in?

Have a go at answering those points and I will reply back with further thoughts, time permitting.

– Steve

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

May 7, 2014 - 10:01 pm

Granted,

In respect to your questions:

1. You should pick an area that you have an interest in, that you can afford to buy in, where there is a market for your end product, and where the planning laws are suitable for the strategy you hope to execute. Good deals exist everywhere, provided you can solve them in a cost effective manner using skill and expertise.

2. My understanding is that you need to own the property first, but that you can sell the proposed land parcel before a new title has been issued on the condition it is issued. Check with a lawyer in your area though as different jurisdictions have different requirements.

3. As for an example, grab a hold of the revised edition of From 0 To 130 (book) as I walk through a sub-division I did in it.

All the best,

– Steve

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

May 7, 2014 - 9:57 pm

Hi Richard,

Why not make the post here so we can all learn and just change the names and address details?

Sadly, posts like this that direct people to PM aren’t helpful to promote discussion.

– Steve

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

May 7, 2014 - 8:53 pm

Right… let’s take a closer look at this idea.

Equity can be defined as the difference between a property’s value and the amount of debt carried against it. Alternatively, it can be defined as the difference between current market value and carrying cost.

I think in this case you are asking how can I manufacture an increase in value by splitting one land parcel into two or more sub-parcels (literally sub-dividing). This is certainly possible and should be the goal of every investor pursuing this strategy.

The key here is that the sum of the parts needs to be greater than then whole (plus transaction costs).

Some areas are better than others for this sort of strategy. Typically those areas where smaller land sizes are not seen as a disadvantage deliver good profits, or where larger land holdings are too expensive for the average buyer but where smaller land parcels are more affordable.

Just be careful of transaction costs, time for planning permits (and interest costs while holding), GST and sub-division traps (like setbacks, easements, cross overs, access to utilities, etc).

Of course, you need to also consider what can be done with the land once sub-divided. That is, what sort of dwelling can be built on it, and whether that dwelling will be appealing for the target market you plan to sell to.

Oh, and a final tip… in most jurisdictions you don’t have to wait for the sub-division to go through before you sell. In other words, you can normally sell with a clause subject to the sub-division being granted. Be sure to check with a lawyer in your area first though.

– Steve

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

May 5, 2014 - 9:51 am

Thanks for your posts here.

We are reading your suggestions, and we are making good progress with many changes you’ve requested.

For instance, this week we will be providing the viewing options for latest posts, fixing bugs with the thumbs up / thumbs down ( bug with the plug in source code which we have fixed for them). We are also inching closer to the home page we want as opposed to what you see at the moment (which is largely placeholder text).

So…. hang in there, and keep letting us know your ideas for improvements.

– Steve

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

May 5, 2014 - 9:46 am

I won’t be bullied Freckle.

You came to this site with a false name, your mask your IP, you write abusive and disrespectful posts.

This is my site, paid for by my money, and it is a community that I have held dear from day one.

Enough is enough.

– Steve

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

April 12, 2014 - 8:11 pm

Hey there.

The problem you’re going to have is that in the current market, just about every valuer would value the property based on what you paid, as opposed to a higher value.

The exceptions are if you can find a lender to lend on an ‘as if complete’ basis – namely what the property might be worth once the renos were done.

This used to be possible pre GFC, but I don’t know anymore. Might be a struggle.

Other options could be:

1. Use a money / JV partner who can stump up the cash;
2. Get the vendor to carry back part of the loan, and use the ‘carry back’ to finance the reno;
3. Organize a lowish deposit with early access and complete the renos before you close.

Hope these suggestions help.

– Steve

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

April 12, 2014 - 8:00 pm

EngeloRumora wrote:

Where would one invest right now in Australia to get the best BANG for the BUCK?

Depends what you’re looking for. If it was generic growth I think Sydney or Brisbane is better value than Melbourne, Perth or Adelaide right now. Of course, things will change over time.

– Steve

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

April 12, 2014 - 7:13 am

I think it’s time you find another place to frequent Freckle. We clearly can’t meet your expectations.

I’ll regrettably organise my team to terminate your account to save you the inconvenience.

– Steve

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently