Forum Replies Created
actually a little to attractive…
Cheers,
sisHi Westan,
N.Z. definetly offers that attraction….
Cheers,
sisHi Kay,
lol… i didnt even know thats in Jamies Video… i thought he was just all about cover calls…
oh well…
ok, one way that this can easily be done is, apply for a loan for an investment property, let it perform, after some performance, refinance and take out the orginal capital you began with, go to another bank or use your same existing bank and reinvest that same capital into another growth property and just repeat the cycle, keep money aside to fund what negative and outflow costes you might have and just keep repeating…
Cheers,
sisanother quick example is…
theres a person who buys a property, puts $20k in to purchase a $100k property… property goes boom, and the person holds on…
ideally, i would take my profits and run and reinvest it into the next boom, now i have both my profits to invest with, but also my orginal capital to begin with… and then with a little diversification and reinvesting…
try to time and grab the next boom and repeating what im doing…
but if you just simply hold on, and hold on to the capital gains your making, but dont make any move to sell, soon or later you will realise, that the boom will be over and prices all around you will have crept up, and that your money is now, useless due to the increase in price in everything…
Cheers,
sisHi Kay,
ill try to give the best example, try picturing a share trading chart…
theres a share, that steadily inclines, and increases upward over many months…
theres also a second share, that is going sideways, continously its going up and down and the share is quite volitile, but also its following the trend of the first share were its heading the same direction of increased inclince over many months…
the trick here is to buy the share at entry level and profit at the top of the peak and keep, following this cycle as the trend pushes forward and inclines upwards over the many months…
this is the same thing that just happened with the property market, excellent and huge capital gains were to be made, but instead to many and many investors, from novice to mums and dads… were chasing around the +ve cashflow properties… when they were missing the boom occuring…. and the huge capital gains that were made and then reinvested back into the market for more quick profit and fast bucks…
i dont know, if im quite clear… in what im trying to explain, but money that doesnt move, or that sits around, gets eaten away each day, due to inflation and as the CPI increases, that money is worth less against the indexed prices… of all goods… but keeping and moving money continously… you can beat and be ahead of the market… and always be knowing your money is increasing…. due to beating the odds and trends…
the trend is your friend….
Cheers,
sisHi Ezy.home.loans,
personally, for me its how quickly i can move money around, the faster i can move money around, the more money that can be made, for example…
the money goes in one deal, and then comes out again, but at the same time, so does the profit, move on to the next deal and keep putting money in, and then taking it out and collecting the profit at the same time…
… honestly i dont know, but the faster i can move money around, the quicker it grows quickly, but all the profits that can be taken and grabbed along the way too, are reinvested as fast as they are taken out…
Cheers,
sisHi Mortgage Advisier,
lol… i think you scared everyone away, but lets say if we punched thoses figures in to an IRR caculator with capital growth at about 10% a year…
… you’d still be well ahead, and over time, the net yeild over the owning mortgage, will increase, and in time blow out both net and gross yield figures that are current…
… but hey, i like your style…
… now, one person can imagine, even the effect and small returns of cashflow positive property. (that dont experience capital gains.)
Cheers,
sisThanks Monopoly and Derek,
and everyone elses for their responses, feeling much more assured now…
Cheers,
sisHi Monopoly,
the caculation you have described above, is the only way i know in caculating annual yeild…
as opposed to gross yeild and net yield of where you just add, or subtract, all your expenses from the annual rent.
and then work it out, with the same caculation as above to get your gross or net yeild figures.
Cheers,
sisHi Monopoly and Guys,
on another note, and trying to work things out…
lol.. im confusing myself now…
but does Corp. Body fees also, cover public liability?
Cheers,
sisps. thanks in advance, much appreciated
Hi Monopoly,
are you referring to public liability?
yes and also lost of rent…
… just trying to workout which is the best insurance to take out if, building insurance is taken out by Body Corp fees. or if there is any other necessary insurance needed, that isnt covered by the Body Corp.
Cheers,
sisHi Guys,
ex student, but every now and again, doing some short course.
night worker – maintenance guy…
soon to be fulltime investor
Cheers,
sisThanks Guys,
so, all really, that is necessary, due to a body corporate fee is, just really your landlord insurance…
is that correct?
Cheers,
sisHey XXX,
rock on brother…
Capital growth is what increases your wealthCheers,
sisHi Celivia,
for staying calm and relax, when most people would be stressed and many would have countless sleepless nights, to be honest i sit on a 10, my nerves and risk tolerance, can stay very calm and with no slight indication of stress or nervousness, im no superman, but i feel i have been gifted with the nerves of steel…
as for my gearing levels, i sit some where on a 9-10, but am conservating, because im countinous trading and offloading in exchange, but always increasing and pushing it to the next limit…
Cheers,
sisHi Kay,
interesting post, lol.. you know me, im always buying, and offloading, as little as possilbe… the year is definetly shaping up, and hopefully this july, will be purchasing a PPOR, am looking still at investing overseas… but am keeping very quite and where abouts in which country, though if i do, will be definetly buying a few in a quick hit (in the unidentified area…) though, my interest is only in neutral and negative geared properties.
Cheers,
sisOriginally posted by Physics:Hi Glen,
You’re correct, any property can be made cashflow positive with a sufficiently large deposit but that’s not the point. It’s the return on that deposit that counts, or to use Steve’s terminology, ‘cash on cash return’.A positive cashflow property returning 4 or 5 percent is a waste of time and money (unless you can guarantee fabulous capital growth), better to put your money in the bank. Similarly a negatively geared property, that costs you money limiting further investment on the promise of possible future returns, is also problematic.
Much better to have a cashflow positive property that produces high returns now that enhances your ability to invest further.
Phil
Hi Phil,
Sorry but i have to contridict and i am with Glenn, i honestly dont bother with CoCR, to me there not that important, yeilds i do like to know, for when the property was purchased and its, todays current market value…
… but most importantly, i work on IRR…
one comment that you mentioned that, i totally disagree with is…
Similarly a negatively geared property, that costs you money limiting further investment on the promise of possible future returns, is also problematic.sorry, but i do beg to differ, personally, my portfolio, consists of a number of -ve geared properties, and most people, would squeal and stress and have many, sleepless nights…
but, by just using simple caculations like IRRs, im definetly way ahead, than if i was to invest in +ve cashflow properties…
…there is positives about negative geared properties…
Cheers,
sisOriginally posted by Chan$:Monopoly,
Success is a journey, not a destination….not alway true.Success is a destination, not a journey….trading
Hi Chan,
heres another motivating… saying…
“The Trend is your Friend”…. Trading
Cheers,
sisps… are you going to that seminar, this coming tuesday night with Robert Allen…?
Hi CastleDreamer,
yes, will be over there from late june to early july, but not in the interest of looking at property, just a holiday and doing some skiing… and having a quick break from the investing game…
… will be going to both north and south island, but just out there to have some fun…
Cheers,
sisWoohoo! Congratulations
To Kay Henry
Our Newest Forum ModeratorCheers,
sis
