He’ll have to do a separate post about each individual rat. Then every time one moves, ****s, scratches, sleeps etc. Should be good for a few hundred at least!

Cheers
Mel

D’oh! Didn’t check that one!

Takes profit back to $3263.

Cash on Cash Return = 3263/40000 = 8.2%.

As Terry says, doesn’t take Cap Gain in.

Cheers
Mel

OK guys, I know it’s been said before, I just read all the posts.

I read through as much of John T Reed’s article as I could – I skimmed through it and read bits as I went – it was soooo long.

My two cents worth

Rich Dad is a combination of 7 different people – outlined in the third edition of the (Australian) Wealth Creator magazine – can’t remember which month.

Looking through the rest of Reed’s website, he bags Dolf De Roos because of his assocation with Kiyosaki, John Burley (same reason, although I don’t believe there is any association at all now). He bags Robert Allen quite substantially. In fact, I didn’t see too many that this guy did ‘recommend’, but there were many references to his books. One title How to Buy Real Estate with Little or No Money Down. This sounds very very similar to a Robert Allen book.

In the posts and on the website it is mentioned that Kiyosaki owns nothing. Well, I can understand that. Kiyosaki teaches a lot about a thing called a Nevada corporation. NO ONE knows who the shareholders are!!! This is where he owns his property and other ‘stuff’. Of course you won’t be able to see anything he owns.

Rich Dad Poor Dad was actually written as a brochure to sell Cashflow 101. He developed the board game and his book while he was taking his year off on the ranch he bought in Wyatt Earp’s battleground. In one of the books he talks about wanting 20 acres or so. He bought 100 (guessing the number, can’t remember offhand), and sold off 80, getting more for this than his purchase price, and effectively getting his acreage for free. He sold the smaller parcel for so much more because the cottage/shack on the land was once stayed in by Wyatt Earp and his boys/men, and he advertised it as such. This is the same shack/cottage he developed the book and board game. There was enough in the ‘brochure’ to become a book, and so that’s what they did, and it became the flagship of the company rather than the boardgame.

One final point on all the military stuff. I worked in Navy Officers Records for 4 years. During the vietnam war time, the records were being converted from handwritten cards to computer (very ooooold computer) records. Even with our much smaller numbers fighing, I would defy anyone to find the same sort of info that this guy is searching for. Especially for those who did not stay in the military post war.

OK, I’m done now.[:X]

Cheers
Mel

Hi wannabe

Just ‘play’ with the figuers that pinit put in for your deposit amount.

Cost of property = 165,000
Stamp duty = 4,500
Legal fees = 1,000
Mortgage SD + fees = 1,000
Misc = 500

So your total purchase cost is = 172,000

Assuming an 80% borrow on PP, and that you are covering other costs out of pocket…

Borrow 80% of 165,000 at 6.8% (Interest Only) = $132,000 so your annual interest repayments will be:

132000 x 6.8 / 100 = 8,976 p.a

Your rent per annum will be 355 x 52 = 18,460 p.a.

Management fees at 7.7%: 18,460 x 7.7% = 650

Insurance = 300
Rates = 3,500
Misc = 1,000

TOTAL COST PER YEAR = 8,976 + 650 + 300 + 3,500 + 1,000 = 14,426

TOYAL RENT PER YEAR = 18,460

TOTAL PROFIT = $4,034 p.a.

Your cash on cash return

You put in 20% ($33,000) + costs ($7,000) = $40,000

Your return = money rec’d/money in
= 4034/40000 = 10.085% return.

As you can see from this return compared to infinity, the more cash you have to put in the less return you will make. However, you are making money, and with 4 units, there are multiple ways of increasing rent, or providing other services that can increase the overall return.

If I stuffed the numbers anybody, please correct me.

Cheers
Mel

Every contract I have signed with a PM lately includes a half weeks rent as the ‘re-letting’ fee. ie when the tenant signs another lease.

Is it me, or is it just in Canberra that this appears to be the norm now?

Cheers
Mel

Jeff

I would recommend John Burley’s Money Secrets of the Rich. He outlines a way to pay off all debt that I have found quite useful, and it does not involve consolidating.

Cheers
Mel

Not an accountant, but luckyone’s broker is wrong, wrong, wrong.

The PPOR in this instance is being used as security for the loan. In no way has it changed the purpose for which the home is used. It is how the home is used that determines CGT liability, not if there is borrowing against it used for investment or otherwise.

Cheers
Mel

We used credit card to purchase our Deposit Bonds early last year. I think that’s the easiest. If you have a card now, with good payment history etc., ask your bank to raise the limit. Then start to pay it back as soon as you can.

Cheers
Mel

Nope. Easy to learn the idea and how to move etc., bit harder to learn the best strategy – but you only learn that by playing anyway.

There’s some fairly good online tutorials in the game, but I didn’t use them cos I had played the boardgame and knew how it all worked.

Cheers
Mel

From what I have heard the Fed Govt (the ones who made the FHOG law) have no intention of changing the qualifying, or anything else. In regards to the kids that have been paid the grant, that is a State by State thing, and based on the legal age to buy a house. I thought it was 18, but obviously not. NSW is apparently now raising the level to 16, and one other state (can’t remember) already has it at 18.

Cheers
Mel