Forums / Property Investing / Help Needed! / New to Investing

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  • Profile photo of Flynn1Flynn1
    Participant
    @flynn1
    Join Date: 2019
    Post Count: 1

    Hi all, i have just read Steve’s book 130 properties in 3.5 years and i am interested in getting into property investing and i have a few questions that i would really appreciate a professionals advice on. firstly.. the all important question, is it a good time?? I have done the calculations on alot of properties using Steve’s 1% rule and they past the test but i also had some follow up questions.

    *After finding property that pass the 1% rule what do i do next? the book doesn’t explain how to follow up on potential investments.

    * In the northern territory the property owner has to pay for water and sewage, is this the case in all states around Australia and if not does anyone know how to calculate Cash flow to factor this in?

    *Does the 1% rule factor in rates, water/sewage, insurance & management fees?

    *Is there still a law that i can defer my capital gains tax if i invest into another property?

    And finally how do i know what price to offer? is there a general rule of thumb on how to negotiate a deal or does this change from case to case?

    Once again i know very little about investing but my plan is to learn, escape the rat race and continue to learn. i know it is a lot of questions but i would appreciate it greatly if someone could help or even point me to a book that will help me answer these questions.

    also, if there is anybody in Darwin that i could potentially connect with to learn from i would be very grateful.

    Thank you very much!

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    *Is there still a law that i can defer my capital gains tax if i invest into another property?

    Hi Flynn

    I am a tax lawyer and as far as I know there has never been such a law.
    It may be possible for certain small businesses to defer capital gains on the sale of a business but not for property investors.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,749

    Hi Flynn,

    In the US there is what is called a 1031 like kind exchange, where you can roll a property’s realised gain in to another purchase. Australia does not have such laws, although there is capital gains tax rollover relief if you sell a business (in some circumstances).

    To answer your other questions…

    Is now a good time?

    Well, it depends on your approach, in addition to your level of skill and experience. Now is a poor time if you are speculating and low on skill, but if you are educated and experienced, then there are always opportunities to make money.

    1% rule

    Once you find a property that meets the 1% rule then you need to do further due diligence on the property to make sure the information you’ve been given, and you discover, supports the purchase. I have a resource called STEPS that walks you though the 12 STEPS process for how I recommend you complete due diligence on a property acquisition.

    Utilities

    Different jurisdictions have different rules. Make sure you know what the rules are in your investing area.

    Offer Price

    You should offer a price that is commensurate with the risk, and allows you to make your required return.

    Bye,

    – Steve

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

    Success comes from doing things differently

    Profile photo of Flynn1Flynn1
    Participant
    @flynn1
    Join Date: 2019
    Post Count: 1

    Hi Steve, thankyou for getting back to me!

    i cant seem to find your STEPS program. is it a course that i can purchase or is it just a forum? if you could please send me the link that would be great!

    cheers.

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,366

    Hi Flynn,

    i cant seem to find your STEPS program. is it a course that i can purchase or is it just a forum? if you could please send me the link that would be great!

    I am hoping this might help:-

    https://www.propertyinvesting.com/topic/5055124-investment-detective-replacement-software/#post-5055133

    Benny

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