Forum Replies Created
Richard, Terry,
Thank you for your answers.
DavidNumber 8, corey and James,
Thank you for your answers, however, I was not looking for a name of a company but more for a type of service company?
By the look of it you guys suggest that I contact a Loan broker? Correct?
Thank you
DavidBen,
Thank you for this extensive and informative answer.
It is clear that, when it comes to evaluating an IP, you are using different criteria’s!
I thought I coudl get a simple answer on a quite complicated question or group of questions but it is more complex than that as you mention it:”it depends on your investment strategy”!
CheersHi Ben,
Thank you for your message and showing interrest on my post.
I was trying to blend-in with the seasonal investors posts by using acronyms…
Anyways, here are the meaning behind theses acronyms.
1) Gross Rental Return (GRR)
GRR=(Annual Rent/Purchase Price) x 1002) Return On Investment (ROI)
ROI=(Annual Profit/Purchase Price) x 1003) Cash-On-Cash Return (CoCR)
CoCR=(Cash Back/Cash Down) x 1004) Growth On Equity Return (GoER)
GoER=(Expected Annual Growth/Current Equity) x 1005) Net Profit Percentage (NPP)
NPP= [(Annual Cash Flow + Annual Expected Growth)/Cash Down] x 100So, what are the acceptable % to reach for each crieteria to be considered as good.
Thank you for yoru feedbackLooks too difficult to answer!
Thank you all for your answers.
The idea behind my question is to be able t buy another PPOR now (I believe that it’s a buyer market at the moment around PERTH) and hold for a a couple of months or year my current PPOR in order to obtain to best selling price possible and generate positive cashflow in between.
Thank you for your commentsRichard,
The idea of a VF on an monthly installments is to act nearly as a bank, Correct?
So what happen if major damages to the property occurs. Theoretically the buyer is responsible for the R&M/upkeep as well as rates, etc…
Also what happen if the "buyer" stop suddenly the payments or die before the end of the repayments terms and that the property has been somehow let down?
Thank you for sharing your knowledge on VF.
Cheers
Hi Benny,
You're correct there is always fee's when you break a fix loan which could be quite pain-full to pay and impact badly your planned CG.
Thank you for your comments.
Cheers
Hi Tony,
Thank you for comments.
We did some refurb (painting, carpet, kitchen & bathroom) when we bough to make sure we will get maximum return, but in between the GFC impacted the renting market and the supply is exceeding the demand, so we had to lower the weekly rates…
Regarding the current market condition and how we are comparing to similar products in the area, we are in the high percentile, so I doubt that doing another refurb will allow us to achieve the financial result expected.
As for the furnished option whether for student, holiday renting or services apartments, well i need to do some research to find out if applicable.
Thank you
Cheers
Hi Benny,
My understanding on VF monthly instatement repayments process is that the owner keep his loan until last payment done by the buyer.
As a result no need to break existing loan arrangements.
Am I correct?
Cheers
Hi Richard,
Thank you for your comments.
VF could indeed be an option.
Having not done any yet, I will need to dig out T&C before to plunge.
Cheers
