Steve McKnight is a full time property investor, award-winning author and ex-Chartered Accountant who bought his first property for $44,000 in Ballarat back in 1999. Since then, Steve McKnight has founded propertyinvesting.com, a successful website and forum which has taught thousands of ordinary Australians about property investment. His book, From 0 – 130 properties in 3.5 years is Australia’s most successful real estate book ever.
One of the key tenets which Steve McKnight advocates in property investing is to do things differently, that is, to try not to follow what the general investing public is doing or adopting a “herd mentality”. Many investors think that buying real estate is about getting in at the right price, find a good tenant and wait for capital growth to propel the investment forward.
However, savvy property investments are much more than find a good property to buy. It involves a detailed understanding what drives our property markets, its players, effective tax and ownership structures, financing options, how to “manufacture” equity and getting the investment dollar to work at its optimum rate. Steve McKnight’s techniques are about risk and return, using cashflow positive properties to continually drive towards a self-sustainable portfolio, minimising negative gearing and to sell when the time is right.
Many investors are against cashflow positive investments due to its location and perceived poor capital growth rates and even more are in favour of negative gearing as a form of tax minimisation. Still, some investors hold the adage that you should always buy and never ever sell due to its transaction costs, capital gains tax and so forth. Steve McKnight’s answer is there is no one single solution for every investors because investing depends on individual needs, risk profile and desired outcomes and he has proven that by doing things differently, we open ourselves to greater opportunities, albeit sometimes at a higher but calculated risk and have a detailed plan in ensuring that contingencies and other unforeseen have been taken into account.