Originally posted by fjficm:
What about this idea
All of you are talking about extremes of property investment – truly positive cashflow and all the problems that go with it like poor CG and tennants either crap or non-existant or negatively geared but sucks your wealth and make you work forever
I am a person who belives in balance
What about…[Read more]

Originally posted by lawrence:
I totally agree peter, I am much younger than you and have had the same sort of experience.

Are you? This was only in 1978. (But wait – that’s nearly 30 years ago, so that makes me same age as Steve!)

>Can I interpret your message as support for my theories.

Sort of but not really ; )

Afterwards we found…[Read more]

Originally posted by Celivia:
I don’t believe that tenants actually want to live in them[xx(], it must be so depressing to live in a sh#theap and maybe to have to raise kids there. I couldn’t stand by and see cute little kids having to live in bad conditions. Even a dog should have a nice kennel imho.

I lived in such a place for about 12 mths…[Read more]

Originally posted by kaloni:
I live in Malvern Vic
rents for a 3br house start at about $400 pw
and go up to $800pw !!!!!!!!!!

Just a couple of kilometres away in Carnegie 1 br flats normally start at $140pw ($7k pa approx).

Assume a single person on $30k/yr. After tax somewhere near $24k. Food is around $80pw ($4k) and bills+fares+misc around…[Read more]

My bias would be towards unfurnished, unless you were willing to be an active PM who lives near their IPs.

Furniture can make a cf- property cf+. For example, in a town I know where unfurnished units typically yield 8-10%, furnished places can fetch 10-12%.

There are also tax benefits of having heaps of depreciating furniture, but eventually it…[Read more]

Originally posted by WAF:
Does anyone have any info on Katanning, I think it has a population of around 4,000 and is located apparently with easy access to Perth, Albany, and Bunbury.

Katanning’s population has been dropping for about the last 30+ years. It’s mainly dependent on wool.

‘easy access to Perth, Albany and Bunbury’ means a pleasant…[Read more]

Originally posted by Simon2:
Is the eleven second solution the only andor best way of determining if a property will be cashflow positive?

It’s not the only way, and is really only a rough approximation. No more and no less.

Use it as a filtering tool but there is no substitute for adding up the actual figures.

Will 10.4% give you positive…[Read more]

Originally posted by yack:

2. I have considerable doubts about her strategy of targetting new homes to take advantage of the buiding allowance and depreciation benefits.

Agreed. New homes have more money in the building and less in the land, so growth prospects are less.

As Steve McKnight always says there’s a limit to the number of…[Read more]

Originally posted by Derek:
Hi Penguin,

My recommend is;

1. Learn as much as you can about investing but set yourself a timeline to do something.
2. While learning start to clarify your goals and preferred style of investing.
3. Ask lots of questions to further clarify what you want to do and how.
4. Determine borrowing potential and buying…[Read more]

‘Marketing’ is just a genteel word for people who can’t bring themselves to say that they’re involved in ‘selling’!

Tertiary educated people tend to ‘market’ while people with less formal education (who tend to call a spade a spade) just ‘sell’.

Peter

Originally posted by james:
Originally posted by daaj10242:
Yack,
Purchase price $130,000, residential,large town 30,000 i think,rent $310 per week ,or $155 each side (Duplex).
Was that in Geraldton?

That price is not out of the question for a duplex in one of Geraldton’s housing commission suburbs, though even that would be a good buy these…[Read more]

Originally posted by YoungInvestor:

If there is anyone who bought an IP before PPoR i’d love to hear suggestions of which direction I should take to get started?
Power”

Hi Steve – I’m a fan of buying IPs before PPOR.

Why not look at something as close to cf positive as possible in as big a regional centre as possible. If you set a figure of…[Read more]

According to Lomas (How to Create an income for life, p 114)
NT, WA and Qld have an offer and acceptance form. There are helpful paragraphs on purchasing properties in each state in the preceding pages of that book.

Don’t quote me on this, but I did read/hear somewhere that these forms can be obtained from newsagents, post offices or REA.

Or if…[Read more]

For #1, I would use something like the following figures:

Income:

$110pw x 48 wks = $5280pa

Expenditure:

Rates $1100 p/a
Body corp $320 p/a
add Insurance $300 p/a (contents & Landlords)
add Maint allowance $600 p/a
add Prop Mgr (10%) $550 p/a

Total Non-loan costs: $2870 p/a

OK, now to loan costs. Assuming you were buying for cashflow and…[Read more]

Originally posted by mobilemortgage:
My children like most today are educated academically but the vast majority are not educated in a financial sense, this is where we as parents can instill into our children our knowledge of wealth creation or Kiyosaki (rich dad poor dad) type of mindset, After all, most of us at one time or another have wished…[Read more]

Geraldton may have some room to move, but it will never be as expensive as Busselton, Mandurah, etc.

Rents are about the lowest in WA and average income is quite low, so yields will never be great.

I agree with Risky’s summation on the situation up there. The market is clearly moving up after being undervalued for a while.

A place I know (2br…[Read more]

Originally posted by Adofunk:

I’ll finish by stating again: There are 60k positive cash-flow properties out there, you just need to hone your skills in identifying them.

Excellent! You’ve demonstrated that those sorts of deals exist, which you can count as an achievement.

But the real skill is finding decent cashflows in towns that haven’t…[Read more]

Jan Somers has a comparison between the two approaches in her ‘More Wealth’ book.

Her overall conclusion was that both can work equally well, but one or the other method might be more appropriate for different people, different ages and different incomes.

Regards, Peter

Originally posted by MortgageHunter:

>I think you have taken an extreme view.

Maybe it is extreme, but I thought I’d give Huey a con as the answers so far were supportive.

Another con I didn’t think of before was family politics, jealousies, etc which can flare up with money. If one child gets help, shouldn’t the sibling(s) get equal…[Read more]

Originally posted by MortgageHunter:
What are the cons for helping family out? As long as they are responsible I don’t see any.

I can.

The child will never have the satisfaction of being able to say that ‘I did it all myself’.

Thus in their own mind the legitimacy of achievement will be devalued compared to if they raised all their capital…[Read more]