Hi Joff,

Your are correct, in what you say. Though the problem is, that the 11 second solution does not work on interest rates of 7%, unless the property you are purchasing on the 11 second solution, can have enough deposit payed down, to reduce the actual loan borrowed. Where the rental exceeds all expenses and loan repayments and leaves a…[Read more]

Sorry se7en,

But i do agree with Kay Henry,

quote:If you can’t see what’s wrong with this, then it’s probably unlikely that it could be explained to you. It’s just one of those things that most people know.

kay henry

cheers
s.i.s

Save on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working…[Read more]

Thanks Mortgage Hunter,

I am lucky and with in the time frame, just a quick question, to anybody who knows….

How long around will FHOG be around for, before the government takes it back?

cheers
s.i.s

Save on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around…[Read more]

Hi Guys,

If you really want a place, your gonna have to really work your butts off, i mean for me, i was very lucky i had my first casual job when i was about 13-14 since then, ive pretty much just saved hard and limited myself, from spending any monies if possible to save.

Though i have mates, who are in the similar position, and all they wish…[Read more]

Hey Team,

The rental figures may seem high, but thats what you have to aim for, if you want positive cashflow.

Though if you had trouble finding 10.4% returns, your gonna find harder with 13.5% returns at 7% interest rates.

cheers guys, good look with your hunting.
s.i.s

Save on a regular basis
“People forget that by saving just $3 per day and…[Read more]

Hi team,

quote:what if your first property you purchase is after when FHOG became available and your first property purchase is an IP.

Would you still be eligible for the FHOG, when you buy an actual property, that is not an Investment Property but going to be your PPOR because you are moving into it now?

The answer is YES,, Here is the link to…[Read more]

Hi Guys,

Whats your opinion say if the town had a population of 8500 people and this has been the same for the last few years. This town is just like every other small town.

But… the town has its own centrelink office…

What would you say the risk on the town is now? Would it be best to say, that the risk is lowered, also one other thing…[Read more]

Hi Guys,

what if your first property you purchase is after when FHOG became available and your first property purchase is an IP.

Would you still be eligible for the FHOG, when you buy an actual property, that is not an Investment Property but going to be your PPOR because you are moving into it now?

cheers
s.i.s

Save on a regular basis
“People…[Read more]

Hi Kay Henry,

I love debt, the more debt i have, the more money ill make.

But i love high debts, i mean the bigger the invested debt, the more money you can make.

Actually ive got that problem now, one of my properties is vacant, im guessing maybe up to another 4 weeks vacant, because of christmas, but i always factor in vacancies when…[Read more]

Hi Kay Henry,

I agree with TerryW, about not selling, but if you have to sell, i would suggest try to sell a minimal amount of property each year.

Personally for me im gonna sell one of my properties and hope fully be able to purchase more investments from the profits made, but i do see your point and i agree with you about your borrowing…[Read more]

Hi diclem,

Here is the “SIS Rule” very similar to the 11 second solution. Because of interest rates are going up. This rule will work out a 13.52% (we just round it to 14%)Gross yield Return, that must be achieved to obtain a positive cashflow property at 7% interest rates.

SIS Rule no.7 as follow

(Selling Price divide by 769) x 2 = 13.52%…[Read more]

Hi Mobile Mortgage,

Thanks for your info, and TerryW, i can now see were you are coming from.

thanks guys
cheers
s.i.s

Save on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”
http://www.theenlightenedway.com/tools/mil_calc.shtml

Hey PropertyGuru,

thanks for that, but i still couldnt have done it, with out your help. But PropertyGuru is right everyone

10.4% return is no more +ve flow property I hope people must be knowing this by now

If you are finding 10.4% returns, they are only neutrally geared, unless you are able to get low interest rates, they may still fall…[Read more]

Hi Terryw,

how can he be nearly there, if he only has 140k equity? The block of flats are roughly selling at 600k, i see he has a long way to go. It would be much easier to get 120k in cash rather than get 600k in equity. His equity would have to quadrouple more than 4 times to get near to 600k

cheers
s.i.s

Save on a regular basis
“People…[Read more]

oh by the way i forgot, most banks want 30% cash deposit for a block of flats/units if there are more than 4 flats/units with in.

Problem is with a loan like that, it will most likely be a Business loan, incuring more fees, quarterly fees, higher interest rates, and larger security, or insurance premiums.

cheers and good luck.

s.i.s

Save on a…[Read more]

Hi Luckyone,

Just gonna give you a quick summary, you have no chance at all due to how much equity you have. 105% works say on…a 100k equity and the property for example you are buying is 60k
a 105% loan would be 63k mortgage loan,
But you can only do this, if you have the security or equity available, though there are other little things…[Read more]

Hi Xenia,

Here is the website that Strw23 is talking about http://www.richdad.com there are 3 types of games. For the kiddies, young adults and for the adults and business minded, though im sure if you look around, you might find an old game board of Monolpy around, doesnt do the same sorta deal as Rich Dad’s games, though it will be a stepping stone…[Read more]

Hi guys,

but sorry to be the party pooper. The 11 second solution was only good when interest rates were at 5%. Now that they arent and if you are using interest rates of 7% you need to find a property with a gross yield of 14% to be positive cash flow.

If not, forget that 11 second solution, it might be good for sorting out properties, but…[Read more]

Hey Guru,

your like me, i love my credit card too, i cant go anywhere with out it, and the idea of frequent flyer points… [][][], and its convidency to pay online and over the phone, is all to convident.

cheers
s.i.s

Save on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end…[Read more]

Hi Xenia,

I dont think, you will find many schools around,
You can try to teach your kids so much, but its up to them, if they want to pursue and further go on and become succesful.

A good book i can suggest is, Rich Kid, Smart Kid – How to give your child a financial Headstart. by Robert Kiyosaki

hope this helps
s.i.s