The 11 second rule was meant to apply to property and even then not on its own, but in consideration of a range of pertaining factors. So far as caravans are concerned, unless you know all the legals, I wouldn’t touch it with a barge poll.

What about tax and depreciation ? What about the fact that you don’t own the plot but you are leasing it, thus no capital growth, in fact the leasing will more likely go up in price over the years. In 5 years time no fool will want to live in a run down old caravan. They don’t have the shelf life of a house. Your asset will be worth scrap value in 5 years, with no land to appreciate, just a higher lease to pay for the caravan plot.

I would stay right away from that. In any event, I would be suspicious about the $170 a week for a caravan. You can rent a single bedroom unit for that in the outer suburbs. It just don’t add up.

And re;

” This vendor is highly motivated and creative – is happy to use them as a deposit on a purchase of another property. “

Clearly this vendor is creative enough to try to convince other suckers to buy into his dead end investment, but clearly smart enough to know that property is where its all at, hence his explanation and desire to sell.

Sounds very suspicious to me. I mean you must be kidding ! right ? [?]

There are no problems, only solutions and the solution is stay right away from this my friends.

$240K for 30 min drive from CBD, I wouldn’t touch it. but then my criteria may likely differ to yours. so good luck. Also tax wise an old house would concern me at $240K half hour from the city. I expect you going for the land?

Yea i walked out of the PMG meeting cause I refused to sign their non disclose agrement. As if it’s rocket science! ABC Four Corners, was not too complemenrary about them either.

How can this be right when interest is calculated daily ?

I thought you had to take 6% or .06 then divide by 365 to get the daily rate result, add 1 to that, then multiply $100K by the result 31 times compounding each result, to get the monthly interest.

Bearing in mind that 4 months only have 30 days, so you may need to deduct 4 days interest from that if you worked on a years interest then divided by 12 to get the mean average monthly interest.

With the 31 day per month approach only, I get $510.84c per month in interest or $127.71 per week.

With the 30 day months, I get $494.32 interest per month or $123.58 per week.

Mean monthly interest = ( 510.84*8 ) 8 months interest + ( 494.32 * 4) for 4 months interest
= $6064 in yearly interest.

Thus mean monthly interest = $6064 / 12 = $505.33
Thus mean weekly interest = $126.33

Or are you saying that the banks just use the simple caculation when computing interest for a fixed interest only loan ? I’m not sure on that.

[]

Spend 300K on 2 or 3 bed house and rent it out for $310 per week. Negative gear it and rent somewhere else yourself cheaper than the rent for the house, say $220 per week. If you can get the numbers right depending on your combined salaries and using the higher salary as a tax base, you may even go positive cashflow within 12 months. Who knows ! whatever you do when you find something serious, get an independant professional property valuation. But dont forget the phase brand new ofer the best tax benefits. So perhaps look for a brand new unit or villa or townhouse etc

Is what that rich woman doing legal ?

is it income or shared rent ? actually it must be income as it would constitute boarding. Thus any income from it would have to be declared surely.

yea but at $50K surely ur gonna have maintenance headaches ? You will probably end up spending another $30K just to get a tenant in the door. Are we talking a single bedder here ?

well if a cash cow set up a super futures lending fund perhaps they could do it that way. i.e. they lend you money based on your super fund value at a given interest rate probably higher than normal. The higher rate would cover the risk and inflationary aspects, say 10% Your capital growth could still exceed that diference in interest from the standard borrowing rates and you would get a bigger tax deduction anyway.

Someone should set it up. just an idea.

yeah you got away cheap buddy. just my searches cost $600 and the solicitors conveyancing service another $595

Lindy-d, David here from Melbourne. I suggest you make your first property investment and build equity in that and rent yourself to live in. You will get there faster that way.

cheers. [8D]