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olorinsledge
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@olorinsledge
Join Date: 2003
Post Count: 50
August 12, 2003 - 12:19 am
Just to answer aussierogue – I found two +ve properities yesterday (from initial glance). I’m not sure if they are +ve after insurance/rates/mgt fees etc cause I haven’t investigated them further…
olorinsledge
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@olorinsledge
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August 11, 2003 - 5:29 am
Yeh, the 11 second rule is just a guideline as already stated by others.
My brother found a property last week that passed on initial checks, but after rates/insurance/mgt fees etc it appears -ve…
olorinsledge
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@olorinsledge
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August 11, 2003 - 3:51 am
The 11 second rule is:
(Rent/2)*1000
So in your case:
(253/2)*1000 = 126,500. So according to the 11 second rule, this is not a +ve property.
To get +ve properities, you need to look outer suburbs in major cities (but even that is rare) or regional areas.
olorinsledge
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@olorinsledge
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August 11, 2003 - 3:14 am
1 PPOR, 1 -ve IP
Looking to get another +ve IP before the end of the year.
olorinsledge
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@olorinsledge
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August 7, 2003 - 5:45 am
You have redeemed yourself crashy… haha.
olorinsledge
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@olorinsledge
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August 7, 2003 - 12:44 am
I’d say another problem is finding people that want to be wrapped no?
Thats been my view on wrapping. Like how easy is it to find someone that will agree to pay +20% market value, and +2% interest?
olorinsledge
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@olorinsledge
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August 6, 2003 - 1:36 am
quote:
OlorinSledge:thanks for your reply, i’m not much into wraps, sounds harder than what we’re trying to work out now, selling may be the option, do you buy under or around &100,000 so investment is positive?ours was closer to &200,000, we only have 10yrs to get these IPS, as we have been told to old after that, can only take our loans for that time frame.
Wannabe: I’ll be honest mate, I only have 1 IP myself and its negative cashflow atm as well. So I’m pretty much in the same boat as you except I can cover it pretty easily. I’ve started looking for another property, with the view for positive cash flow – however its pretty hard. I think in your situation, you’d be looking under 100k (me too).
However, ask some of the other people in this forum who have more experience then me – from what I’ve read so far, these is a huge wealth of information here.
olorinsledge
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@olorinsledge
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Post Count: 50
August 5, 2003 - 6:42 am
Wannabe: So atm you are running a $40 loss per week on the 1st IP? I guess if you are having difficulties financing this, then you might consider selling or wrapping your 1st IP. Both will involve CGT so its up to you which one you prefer.
If you can wrap it, make sure it covers the $40 per week (and preferably more). However, I’m new to wraps myself… so you better ask others regarding that.
PS. As neologism said – I’d be very weary of getting a 2nd IP to try to cover your 1st IP.
olorinsledge
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@olorinsledge
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Post Count: 50
August 5, 2003 - 4:59 am
wannabe: No offense mate, but your logic seems abit flawed. Firstly, your 2nd IP would have to cover its OWN costs first. Secondly, you are then hoping that the positive cash flow from the 2nd IP will cover the costs of your 1st IP?
Mind sharing the negative cash flow (per week or month) on the 1st IP? That way we can get a figure on the kind of positive cash flow you need to make on your 2nd IP.
Cheers.