Im on $140k gross – but this is BEFORE expenses…after expense it’s more like 30k net passive – and this took a good 7 years to build up + no-development (yet) just rental but all in safe residential property ( all within Sydney metro – all within 1-25 km of CBD) – But my strategy is not rental yield; it’s more capital growth hence the location and high expense.

Can 200k passive be achieved- absolutely! i have plenty of clients who are well above this 200k mark. It depends on your strategy and where our comfort level lies…

Since your in WA, if your willing to take the risk you could achieve a must higher figure sooner; it just depends on your risk tolerant…and do note you have a large family + solo income – so some sort of life,income insurance and protection is highly advised!

P.s i think Richard (qld007) who post regularly on this forum has a very high passive income on his IP.

Regards
Michael

As a investor myself, if you waiting to buy something under the market you have to do it the old fashion way.

1. Write down all the prices on the current market + right down the size + the specs of the place + street
then from this figure you can work out what the average are for each street based on size and specs – yes it’s gonna take some time…

from a investors point of view I use property software for 4 main reasons:

1. To find last sale date
2. Sale history and rent history
3. Prices average /valuation from 1 year ago till current
4. Graph of medium capital growth in the last 1,3,5,7 and 10 years.

Regards
Michael

It varies….if it’s in a area with lots of sales then it’s only 5-10% off- as the program has more data to play with.
However if it’s in an area with average or low sales volume then the value can be off by 10%-20%

Also when you say accurate, you saying accurate for the Bank’s valuation price? or the market ie selling price? – very different ….

Lastly the price is based on the average in the last 3- 6 month for simliar size and type; it does not take in consideration;

1. Material – Brick etc..
2. Configuration
3. Original condition or renovated
4. Looks
5. Design
6. Extensions
7. Pool etc…
8. Street – main road?

And each factor will have a effect on the price as well.

it’s still a useful and neat program to use, but you just need to take in consideration some of the above points.

Regards
Michael

New housing has been declining for years…nothing new

Thats why we have the 10k QLD boost + soon to be released NSW New home concession.

Regards
Michael

There are better means to finance and structure this to offer you a bit more flexibility + a safety buffer …but I wont say it’s silly, since it’s your PPOR + rural + no intention to build.

Paying cash or finance makes no real difference in the way a land settles/exchanges contract; the only diff is you can exchange faster if you want since you dont need to wait for the bank + this means you might have greater bargaining power to lower the price ( quick settlement)

But all in all, it’s the same process and settlement period is up to you and vendor to decide but the standard is 45 days ( depending on the state).

Regards
Michael

Hard to say without knowing the location….
It all comes down to the location.

+ your calculation didnt include any stamp duty + another soft cost which would eat up ~ $20k of your deposit

Regards
Michael

Looks like you need to find your self an “A team”- accountants, financial planner etc…As each one will help with your inquiry from asset protection to overall financial cost.

Regarding helping you find a CF+ property ( seems like what your looking for) , i wouldn’t go past Nathan Birch ( Sydney).

Regards
Michael

What sort of financial advice are you after?

Financial planning?
Property investing? ie BA
Mortgage?
Super?
Insurance and risk management?
Accountant?
Debt management?

Regards
Michael

Hahah Jack, i doubt they would accept any of the above offer- especially if they have another offer on board..and 180 days is 0.o bloody long time – but i like your thinking LOL ” forget that they can reject them both…..which offer is better for them that they will indeed accept one ” LOL!!!

Might use that trick

Regards
Michael

Well since we dont know how about where, what the property is, how mnay views, how long ad etc- as each of these factors can play in how you negotiate ( ie different location have different tricks).

But a few clauses which may get you over the line is:
1. No cooling period
2. <6 weeks settlement
3. Once 10% given no conditions ( simliar to number 1)

Normally you may need a combination of diff tactics + one of the clauses to get you over…as clauses only may not be enough.

Regards
Michael