Forum Replies Created
Hi again,
Pyramid, in answer to your statement: ‘Interesting hypothetical. But what’s the point?’
I suppose I could say that there is a lesson to be learnt from this “bit of fun” to quote aussieinvestor, which is:
When dealing with people always remember that in any given scenario/situation their preceptions and perspective of that given scenario/situation will always differ from yours, because it is always adjudged from their own point-of-view.cheers,
Aukssie
Hi Eveyone,
I like ‘Newbeginnings’ idea of “How do you “sell” the wrap idea to a tenant?”
I have two investment properties in the ACT, both purchased from divorced couples who needed the money quickly.
My first IP, both partners moved away, but in my second IP the husband stayed on to become my tenant.
Since reading Steve’s two books I have done my own research about wrapping and am now considering proposing this idea to my divorcee tenant. Any extra help and information would always be appreciated.
Cheers,
Aukssie
Hi Everyone,
It seems my second post to this thread clarified the issue somewhat and therefore people concentrated on the question rather than tried to analyse it.
Many Thanks.
My answer would also be Yes, I would take the money.
As a parting thank you as I exited the solicitors office I would say, “Do you want to do this again sometime? I do, and preferably sooner rather than later”.Cheers,
Aukssie
Hi,
Following on from Rewing’s 2 to 1 logic, then if the house is worth $500K than you should rent it out at $1000 a week.
I have been following Steve’s 11 Second Solution and everytime I crunch the numbers the ratio 2 to 1 applies.
Now this is the stumbling block for me. Why would anyone in there right mind rent a $500K property for $1000 a week in todays market.
NO-ONE.The only you can own a $500K investment property and make it positively geared from day one is to use the 2 to 1 ratio upon yourself, not the tenant.
Example:
House Cost $500K
Equity Zero
Repayments @ 7% on $500K = $35000 per annum
Rent $500 per week * = $26000 per annum
Total = $9000 loss2 to 1 Ratio applied to yourself would look like this
House Cost $500K
Your Equity $250K
Repayments @ 7% on $250K = $ 17500 per annum
Rent $500 per week = $26000 per annum
Total = $8500 gain.* Using the method that the weekly rental price is 1000th the value of the property.
Cheers.
Hi,
Having read Dazzling’s reply, I would just like to clarify the point that the purpose of the question was only to find out whether you would take the money or not.
The amount of money on offer is insignificant. I only picked $10K
as, what I thought would be, a realistic example.So with this in mind, I will ask you again, would you take the money or not?
Cheers,
Aukssie
