Hey Brunowa,

Your basic methodology seems OK. It should give you a reasonable result.

Good luck!
Den

Hey Christine,

I totally agree with Jamie and Illuminati – get yourself educated as much as possible. Those books Jamie suggested to read are all worth getting your hands on. You can also find quite a few good (and free) podcasts in iTunes, so take a look there (especially if you have to drive to work and can listen to them in the car).

Also…[Read more]

G’day Brunowa,

I had a quick look at your figures and have the following feedback for you:

* You’ve calculated your rent per annum at $480 per week for only 46 weeks of the year (your annual rent is stated as $22,080 which is 46 x $480). Is this reasonable? What are the vacancy rates like in the area?

* You’ve used an interest rate of 7.5% on…[Read more]

Hey D,

As far as I’m concerned, there are really only two reasons why it’s been on the market for so long;
1. You’d like more rent than the market is prepared to pay, or
2. The property manager isn’t doing a great job getting tenants.

It’s just not worth having your property empty for long periods of time. Consider that two month’s vacancy means…[Read more]

I totally agree that finding positively geared (or at least positive cash-flow) properties can be done.
My concern with the property Johnny1974 mentions is that it’s clearly not new and that it might pose some problems. You’d definitely want to get it checked out by an architect and be prepared to let go of the thought of buying this one if the…[Read more]

Looking at the cycles I reckon it's worth looking at either Adelaide or Brisbane. Brisbane is, in my opinion, the most undervalued city in the country… Just a thought…

Hey hey hey!!! Let's hold our horses and get back to the original topic here!!!Is there worse to come or are things looking bright? What are the fundamentals here??Let's think about this;1. The market has definitely softened, and interest rates look like they are on the up…2. There is still a lot of uncertainty…So what's different from the…[Read more]

Hey Gronk007,Great comments!I have employed all of these techniques, as well as deliberately "pooring" myself by putting money in a term deposit that I just can't touch, and then working out how I was going to get by. I did it as an exercise but once I found out that I could survive on far less than I ever thought possible, my dream of a…[Read more]