After reading Steve’s book I tried applying the 11 second rule for passive income returns(divide potential rent by 2,multiply by 1000 and this is the amount the property should be worth).
We live in Cairns and none of the property for sale here comes close, so we tried further and further afield but are unable to find anything near.
This maybe because prices have reached a peak and therefore overinflated, if so does this mean property investment is not a good thing right now?
Or can anyone advise on a different stratergy?Property is always a good thing if you get the right property with the right deal and the figues add up. Remember, the 11 second equation is NOT a rule – it is only a guide. You can fnd something that has a 4% return and turn it into a 14% return – be creative in your deal-making.
Regards,
George.I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how
the 11 second rule is just so you cover all costs totally with a 10% return. Ok so you live in Cairns, one of the best places due to infrastructure and developement to do investing in. So the returns of 7.5% or 1.5/1 dont interest you if you are religously following the 11 second rule. Markets change and so likewise should your thinking.
In South east qld I have some townhouses. If you get 100% loan on 95k on one which i bought in December you would laugh and run when it was only getting $95/wk rent. After a 4k reno including carpet upstairs, tiling kitchen and laundry, bathroom exhaust fan and kitchen rangehood, new toilet seat and tap heads, new shower head and painting top to bottom. It now gets $145/wk rent. This is pretty average for a small townhouse and is easy to achieve with a little homework and research. Be realistic that unless as some put it, you go to “woop woop” to get an investment or NZ the 11 second rule for this property cycle is almost dead in Oz.
Good luck.
DD
Don’t sweat the small stuff,and it’s all small stuff!!
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