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Viewing 9 posts - 1 through 9 (of 9 total)
  • Profile photo of mushirkhanmushirkhan
    Participant
    @mushirkhan
    Join Date: 2011
    Post Count: 12
    March 11, 2015 - 10:06 pm
    D.T. wrote:

    Heya,
    I have a few that stack up in the way that you mention.
    A 250k purchase renting for 400/wk, a 147k purchase renting for 250/wk.
    Also a 425k development that’ll rent for 580/wk on completion.
    Several others.
    Most of these are in Adelaide.

    Comes down to what you’re aiming for and how good you are at searching :)

    Hello D.T.

    What is ongoing cost on your $400/week property and same for $250/week…. (don’t need exact figure just hypothetical)

    Thanks,

    Profile photo of mushirkhanmushirkhan
    Participant
    @mushirkhan
    Join Date: 2011
    Post Count: 12
    March 10, 2015 - 8:42 pm

    Hello Everyone,

    I have read couple of Steve’s books as well and I see those calculations he made, ofcourse those calculation are from when he made his fortune. In today’s reality we have all these cost that comes with buying IP. Can anyone provide an example of Positive Cash flow Investment they have with the Ongoing cost I have listed… How does your calculation stack?

    Thanks,

    Profile photo of mushirkhanmushirkhan
    Participant
    @mushirkhan
    Join Date: 2011
    Post Count: 12
    March 10, 2015 - 8:36 pm
    Corey Batt wrote:

    If you have any other debt which isn’t tied to an investment purpose, keep your future IP debt as interest only and instead pay the ‘extra’ amount you would otherwise be paying into that debt. This will result in the same amount of debt reduction with your total liabilities whilst ALSO providing greater tax benefits.

    Hello Corey Batt,

    That’s a good Call mate, Thanks….

    Profile photo of mushirkhanmushirkhan
    Participant
    @mushirkhan
    Join Date: 2011
    Post Count: 12
    March 10, 2015 - 8:34 pm
    superAndrew wrote:

    Lets say Property value is $180,000 and Deposit you have is $18,000… You still come up with all the savings for Establishment cost such as Stampt duty, Pest and Building Inspec, Real Estate Agent fees, Conveyancing and Borrowing cost.

    Why are you paying RE fees?

    Given the above example how can you tackle on going cost????????

    What do you mean by “tackle”?

    You need to calculate all you cash outflows and inflows like you did above. If outflows are greater then inflows then it will come out of your pocket. Not sure what you mean by tackle?

    Cheers
    Andrew

    Hello SuperAndrew,

    RE fees if I have agent who look after it…

    And “Tackle” I am just trying to figure it out that how can I buy one property I am looking for with all these Ongoing cost… Yes you are right that if Outflows are more then Inflows, its a NO GO… But then that should be with any other property people buy as IP.

    Profile photo of mushirkhanmushirkhan
    Participant
    @mushirkhan
    Join Date: 2011
    Post Count: 12
    March 10, 2015 - 11:15 am

    Hello Catalyst,

    Thanks for your reply..

    Lets say Property value is $180,000 and Deposit you have is $18,000… You still come up with all the savings for Establishment cost such as Stampt duty, Pest and Building Inspec, Real Estate Agent fees, Conveyancing and Borrowing cost.

    Weekly Rent is $300 and Repayments $240… Interest is $130

    So apart from all this you still have to worry about Rental Management (9%) $1,057.68, LMI $6,000.00 (plz check if this is right), Building Ins $_____, Council Rates & Strata fees $1,700.00, Land Tax $200.00, Body Corp fees $1,500.00…. Total comes up to $10,457 yearly ongoing cost.

    Given the above example how can you tackle on going cost????????

    Profile photo of mushirkhanmushirkhan
    Participant
    @mushirkhan
    Join Date: 2011
    Post Count: 12
    February 28, 2014 - 2:58 pm

    @munmun5 how much does it cost and how long did you took to complete it?

    Profile photo of mushirkhanmushirkhan
    Participant
    @mushirkhan
    Join Date: 2011
    Post Count: 12
    February 28, 2014 - 5:57 am

    Thanks @The Fox I just needed that second opinion……

    Profile photo of mushirkhanmushirkhan
    Participant
    @mushirkhan
    Join Date: 2011
    Post Count: 12
    May 9, 2012 - 11:18 am

    I researched some more and found that Settlor cannot be Beneficiary, now ofcourse I want to be Beneficiary which means I cannot be Settlor so I need to have some trustworthy person to be Settlor. Can I be Trustee and Beneficiary though? and another thing is can a Trustee or Beneficiary be Guarantor?

    Profile photo of mushirkhanmushirkhan
    Participant
    @mushirkhan
    Join Date: 2011
    Post Count: 12
    September 18, 2011 - 6:43 am

    Hello Guys,

    I have been following this conversation very closely and it has been very interesting. I am planning to buy property in next 6 to 8 months in Melbourne. I just wanted to share my views for Ferdinand and his offer for fixed rate.

    Ferdinand: Congrats on becoming Property owner. Looking at your determination and commitment to your property i think you should stick with it for at least for 5 years and take the full advantage of the offer that has been made to you, because you can catch up alot in this three years with the discount of 0.46% (also make extra payments if you can) on your loan. 3 years down the line if you are going to buy IP’s then it is going to give you strong base for it. And you can still sell your occupied property after 5 years for a good sum of money if you want.

    I also agree with Michael to have your goals set, or look at it as a business plan for next 3 to 5 years.

    Regards,
    Mushirkhan

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