We certainly don’t scrimp and save for property. We both have jobs with pretty good incomes so we can invest and have fun with travel, buying luxuries or cars etc.

I can enjoy it much more now than when I’m 80

Pub’s don’t seem to go down in value very often. If you can pull 20k a year out of it on top of other income/investments you’re laughing.

Selling to buy 8 props puts you in the same situation financially if you ask me, but you probably lose your 20k surplus. Use the equity to buy elsewhere – but why kill the goose that is laying your golden egg?

Another option is to use the 20k to pay down some debt on the pub.

Sounds like a good deal on the face of it. Don’t get sucked into having to get 10% or more return straight up, look to the future too.

Why would you take an IO loan when you could probably cover P&I for a few dollars more? I have never understood this “strategy”.

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Which town is it in Depreciator. Am originally from Nthn Tas and should be able to give an indication.

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Geo,

Used to be Polar Bear but someone joined and used the same name in a different case. Chose Anubis as he is the egyptian god of the underworld.

Acey – can you narrow down the industry or sector? From my experience they operate in many different ways.

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Define “cheap” and “expensive” Russ – it’s all relative.

If your cheap property is $50k you have 100x$50k – $5mill of property, so your expensive props must be $1 mill a piece. How many $1mill props return as little as 200p/w?

What is your gearing level? Is it cash in hand or rent on prop?

You need to make realistic comparisons if you want to give someone advice on planning their future. It is nice you have set your goals on 100 cheapies but it doesn’t work or add up for me, and I suspect, many others.

Not sure about this – you may be able to get median rents from ABS or some of the property info companies that advertise on realestate.com. Which part of tas are you investing in?

Hi Jo,

I agree with you about CF+. There is not much out there that I would consider quality or a great long term buy. I don’t respond to many of the posts personally as the same question is asked every 3 or 4 days.

Let me state this loud and clear – if people are scouring the country for quality CF+ they have missed the boat for instant riches or cash flow.

Now is not the time IMO to get leveraged to the eyeballs for a multitude of props in 1 horse towns returning a profit of $10 a week.

If you want to buy a quality property, in a quality location with good prospects for the future, based on sound investment principles (forget the 11 sec rule it is NOT an investment principle) then do it.

My opinions, which many will de-cry no doubt.

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Acey – While I couldn’t give a tinkers cuss about stars etc I fail to see the difference between the stars this forum uses and Somersoft’s preference for Top 5,10,50 etc. They also imply experience or knowledge that is not always appropriate.