Forum Replies Created
Hi number 8,
I think there are a lot of first time investors (including me) that would find that three hours of your time very valuable in terms of the knowledge they would gain from it. Maybe you could set up a get together where a few people could email you to let you know who is coming and then we could all meet and bounce ideas off each other?
Lisa
Sounds like you have added a good amount of value to your property by doing those renovations. Don't forget when it comes time to buy that investment property it might be a good idea to refinance your loan (once you are clear of the fixed rate in 12mths time) so that the property can be revalued at the higher amount, this way you will have more equity and you will be able to borrow this equity for your investment property deposit. This means you wont need a deposit and you can start to build your property portfolio.
I recommend reading the May issue of Australian Property Investor magazine as there are a couple of articles about people who have done this successfully and it shows a breakdown on the figures and how they did this. If nothing else it will provide you with some inspiration. If they can do it anyone can!
I have just started reading API a few months ago and I think it's great for someone new to the property investing game.
Lisa
I think it is important to note that this formula is only meant to be a rough guide and will only determine the approximate likelihood of a property being positively geared, NOT whether it will be a positive cashflow property. This formula is just a guide as to which properties warrant further investigation. I used that formula recently on a property and it passed the 1% test, however upon further number crunching, (ie: adding up the expenses such as council rates, land lord & building insurance, management fees, loan repayments, etc…) found it just scraped in as a neutral cashflow property, probably even slightly negative as I did not even allow a budget for repairs/ maint.
Lisa
Hi,
Just wondering if anyone can help me. I am new to this site and cant figure out how to post a new topic. I can only comment on other peoples topic…
Its probably staring me right in the face somewhere on this site but I just cant see it. Can you help me?
Lisa
