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Yeah I agree with you Kay. I suspect when I sit down with them one on one and tell them I’m only interested in cash flow +ve or neutral they will lose interest in me quick.
I was wondering tho’. I know I’m going to be over simplifying here and I’m not taking into to account all the factors but doesn’t the cycle go a bit like this:
1) Rent yields high and purchase prices high so few +ve cashflow properties around. Top of the sellers market like 2002/3.
2) Rent yields still high but purchase prices start to fall (interest rates rise etc) so more +ve cashflow properties. Like expected for 2004/5/6.
3) Rents start to drop too because people decide they can buy for less than renting (& other factors of course) so they start buying and vacancies go up thus rent down. Around 2006/7/8
4) Purchase prices start upwards and (lagging behind a bit) so does rent. 2008/9/10
Back to step 1 in 2010/11/12.Okay don’t jump on me for the oversimplification of a very complex system [
] But seems to me that in stage 2 and 4 you will find the most cashflow +ve properties. Which means soon they will start appearing again. When house prices drop off so do building prices which means even this company that won’t deal with anything that isn’t new will still be able to source cashflow +ve places.As for the depreciation point, when you buy something that is say 10 years old or whatever, you can only depreciate the construction costs MINUS the first 10 years worth of depreciation which is where the biggest tax deductions are. (ie the longer you depreciate the smaller the amount you can depreciate if you get what I mean).
Okay now be gentle [
] I’m new to this.Regards,
KaranOh wonderful!
I wonder what I will do with the 1 day a month I will have free after doing all that! [
]I do however sense that certain people are now going out of their way to attack others points of views…
You can say that again.
Haven’t been with the forum long, read heaps but contributed very little (can’t contribute knowledge you don’t have [
])I have been stunned at some of the things I have read here in the form of attacks often towards people who don’t agree with the more popular views. Bill is not the only one who has coped it that I have read, though some people did exceed themselves with him. It’s a shame that the attacked are leaving and not the attackers, who should be locked out.
After at first feeling wrapped (no pun intended) at finding such an informative and sharing forum I’m having my doubts now. [
]Namasté
] But seems to me that in stage 2 and 4 you will find the most cashflow +ve properties. Which means soon they will start appearing again. When house prices drop off so do building prices which means even this company that won’t deal with anything that isn’t new will still be able to source cashflow +ve places.
] I’m new to this.
])
]
