It was just a rule of thumb for the invester who created it – it helps to have something liek this in the start so you can narrow down your search – again probably for that time and state of the property market
I would have thought that depreciation was an ongoing thing based on the level of depreciation of the item. Maybe i’m thinking too residential – more education is probably needed on commercial property.
That is the great thing about forum you can learn that there is still so much to learn
Yes, as you think, CF+ places are harding to find but mostly they are about finding solutions to problems (as Steve says) – think about things differently and try to be creative with problems or see things as others don’t see them
i know this sound very pie in the sky but that is the way to really make in the impact that you are after
just keep going and remember the deal of the century is just around the corner but sometimes we don’t recognise it
in the current climate it is wise to look at other options – the doom and gloom sayers are hard at work in the market but some of the advise that is coming through is the same as always – spread your risk and use of vehicle will the property market steadies and then take another run at it
Is there any real reason for this? i thought they would be a good investment because of our aging population – there seem to be more and more coming on the market
There are a lot of people that i know that use a similar approach on balancing between CF+ and CF- (whether it is to the extent of SIS) but they use CF- and make sure they are in high growth areas so that they can use those proceeds to help with new properties – the main issue is finding the proeprties that will take off – using the increased rent from the CF+ to pay off the previous loan
Just to make a quick comment – i think having a strategy in place that allows you to investigate each deal will help overcome the over-inflated prices – good deals come along but unless you can check them against your own criteria then you are just listening to what everyone else is saying and seeing the same
you are probably ahead of 98% of the population instead, the best way is to use your feet and ears – walk and listen – no area explored is wasted – staying at home is the way this does not grow