Forum Replies Created
Thanks Michael
Thanks so much APIM – I really appreciate that
SpockyThe worst case scenario is when there are no tenants and the landlord has to go and work in the brothel to meet the loan repaymants
Thanks for that – I did actually try it last week but I had difficulties…the program updates system files and as I am at work the administrators wont allow that. I will try it at home. Does anyone else have an app in excel?
Thanks,
SpockHi Quasi,
my q relates to sourcing the property. I spent nearly a year and well over 100 inspections to find my PPOR so Im hoping not to go thru all that again to find an IP.
I guess if I could narrow it down to 2-3 suburbs I could get to know that area well but then I really want an area with positive gains as well as CG and I dont know which suburbs would be best.
Any advice would be welcome
Thanks,
EdThanks Hiliary,
does that then mean doing a renno/face-lift before renting out? That would be cash outlay in the first year of aquistion which Ive heard should be left to the second or later years?
I do take your point though if it looks a bit run down it may just need a tidy up – is that the idea?
SpockyI didnt know anyone would still want to purchase these given the high vacany rates in the CBD?
Also the developers/marketers subsidise the rent until the guarantee period ends thenit drops off
Be carefulThanks Andrew,
Well my goal is to own 3-4 properties to fund my retirement in about 15 years time. I would aim to hold 5-6 by then and sell off a couple to pay out the IO loans. However, the other difficulty I see is that of cashflow – I can set up one IP but it would be a long time before I can get a second one if they are neg geared. I have fairly high income,tax,equity but loan servicability will be the limiting factor. The concept of positive cashflow keeps cropping up in this forum but Ive not seen it in many other places – where I can I learn more? Does it mainly apply to wraps and country properties?
Thanks,
Spockyquote:
Hey Ed,
What sort of properties are you after ? What are your deisred goals from property investing ??Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinWhat are the capital gains like if that’s not a dirty word?
SpockyHi Fullout, and everyone, I am totally new to this but could you please tell me where on earth you can buy a property of $83,000???
I am in Melbourne and keep being told to buy around 10km from the CBD but $250,000 is the starting price for small 1-2 bed units. They will of course be neg geared at about -$100pw. Please help.
Spockyquote:
Hi Fullout,I was just doing some calculations based on your numbers and wanted to share my figures with you.
Based on that and the purchase figures you mentioned, my calculations are as follows:
Property – $83,000
Deposit – $8,300
Loan – $74,700
I/O rate – 6.11%
Payment – $380/month
P&I rate – 6%
Payment – $447/month
Upfront Costs – 3,735Total cash invested – $12,035
Rent – $520/monthRates – $100/month approx
insurance – $40/month approx
5% vacancy allowance – $52/month
5% maintenance allowance – $52/month
Total – $244/month
P&I costs – $691/month
I/O costs – $624/monthFrom these figures a P&I loan would see you with a $171/month loss and I/O loan would see you with a $104/month loss.
These figures do not take into account any depreciation or other tax benefits, this is purely based on the income and expense of the property.
Now these figures may not be 100% accurate but would probably be very close. At the end of the day you need to ask yourself does purchasing this property get me closer to my goal. Only you can answer that question.
Hope this helps.
Cheers,
Mathew.
