Forum Replies Created
Hi daaj10242,
$143000 P&I(6.19% over 25 years) = $938.03 monthly repayment.
minusing $7600, sitting in an offset account, your monthly repayments would then equal…
$143000 – $7600 P&I(6.19% over 25 years) = $888.17 monthly repayment.
Would equal a monthly saving of $49.86
Cheers,
sisOh wait,
you still there Bear,
… Chan does know the “domino effect” and Yack is sorta on the lines of it…
though its all secret…
Cheers,
sisps… do you guys know why is called the domino effect, if it fails, your in trouble…
Hi Richmond,
portfolio is back to 12, but have been trading off a couple properties, nothing to special, but replaced them with better quality properties and made some quick cash…
apart from that, nothing else been happening…
Hey Bear,
domino effect – big secret…
Cheers,
sisHi Richmond,
i do have a partner, but not in doing my deals, my partner is a CPA, but also we do a thing called a domino effect, when getting closer to our LVR limits…
…. this is one little secret ive never told, yet only 2 people on this forum board else know about the “domino effect”
…. this is one of the biggest techniques, but only a very few know this.
Cheers,
sisdoing this, costs me nothing, yet both properties are looking after one another, then through the beauty of offset gearing, my whole income from my job is not effected, while still at the same time my portfolio grows…
… my safety net is open, as im position of my own income + a few of the properties can be offloaded at anytime…
… lol, of course this is all my own property, ask many of the guys who i meet up with, they have seen statements and contracts of proof of me purchasing them.
Cheers,
sisOriginally posted by MiniMogul:How do you service a 2.1 million portfolio without being positively geared? what’s your safety net if neutrally geared? Is it really your property, or is it your parents’?
Hey Mini,
the way i service and control the amount of debt vs my cashflow is through offset gearing…
through the principles of “offset gearing” one property provides finance, while another property which is +ve cashflow, looks after itself, yet also at the same time, has enough cashflow to pay down the debt of a -ve geared property…
property 2
purchased price and including all cost around $65,000
weekly rental of $150 pw
gross yeild return of 12%
property evaluation $80,000
predicted IRR growth for this year $88kproperty 3
purchased price and including all cost $73,000 weekly rental of $165 pw
gross yeild return of 11.7%
property evaluation low $90,000
predicted IRR growth for this year $100k – 105kthese are the really best examples of my better performing +ve cashflow properties, though most importantly, these properties before being purchased, were tested for their irr.
Cheers,
sisHi Mini,
im not too against +ve gearing, just as long as the property does go up in value, consistenly and so does the rent, im really more concerned about a property holding its value and its rental over time.
… but sure im happy to share some +ve cashflow stories…
here a few of the better returning gross yeild property i have that have had really high evaluations and growth.
property 1
purchased price and including all cost $55,000
weekly rental of $150 pw
gross yeild return of 14.1%
property evaluation $70,000
predicted IRR growth for this year $80 – $85kHey Chan,
seems like, some people are upset…
especially poordad…
Cheers,
sisps… are you related to robert kiyosaki?
Originally posted by melbear:I reckon you wouldn’t find more than 1 or 2 of the 30000+ members on this site actually planning on owning 130 properties, let alone in 3.5 years.
Hey Mel,
im planing on owning 100’s and 100’s of properties…
lol… isnt that the idea of property investing…
Cheers,
sisHi VIP,
you seem to be very anti towards property investors…. [thumbsdownanim… but if not for the investors, who do you think would provide a roof over every person who doesnt own a place, i cant imagine the goverment doing so…
and if Labour gets in, and abolishes -ve gearing, which wont happen again, do you think rents would still stay the same…
… give it a couple of weeks to a few short months and people will be paying more in rent and wont get that chance of ever owning their own home…
it a perfect world, it would be great, but in reality, this isnt a perfect world and with many of the politicans, owning property, they will seek to look after their best interest first…
Cheers,
sisHi Bear,
im fine… [whistle] but been lazy all day… [sleepy2]… and yes i do see your drift, and im more surprise Chan said this
“If I have to opportunity (in the future) I will look for quality investment property “
i knew, id turn him round… lol [tongue]
Cheers,
sisps… Hi Michelle_G, heres a link on IRR’s
Hi Kay,
if anything changes from now till the weekend, and im still abouts, i’ll definetly come by, but so far… still here in sydney…
[whistle]
Cheers,
sisbut, that country property that was bought for $4000, may only be worth $50,000 today and maybe renting for only $100 per week…
has the irr, returned a great deal or has the irr on the Sydney property return a greater irr than expected, and caused the ability to further fund and purchase more properties…?
irr’s can be very confusing but it is very important that people and investors understand the return of an irr.
hope this is clear to all…
Cheers,
sisHi RussH and All,
ill shoot another example of an irr.
lets presume, back in 30 years ago, there are 2 fellas, both of them purchase a property one buys in Sydney and the other buys in a country town.
now lets furhter presume both properties cost $4000 each, but both men put down a $1000 cash deposit and borrow, $3000 each…
lets say, the country property is +ve cashflow and the Sydney property isnt, but over the duration of 2 years, the Sydney property does become +ve cashflow… due to tax rebates and benefits.
… would both properties today still hold the same value in price, or has one sky rocket yet the other one has slowly gone up in value, yet both are +ve cashflow….
uh oh….
i think you will Chan, i might not be here tomorrow and worst part is… ill see you cross me…
[worried]
Cheers,
sisHey Chan,
Big Congratulations
Well done, thats a record, your so close to catching up to me now…. this aint fair… lol
lol, wasnt it just the other day i was congratulating you again… lol
[thumbsup2][upsidedown][thumbsup2]
Cheers,
sisHey Chan,
dont know what happened, there, but for some reason, if i write a long post, its splitting it into smaller parts…
… i dont mean this to be anything against anyone, but +ve cashflow properties that have low returns or that have no growth are just not worth, the waste of time and effort for such a small return…
as long as the IRR stacks up on a +ve cashflow property, then you should really consider it…
Cheers,
sisi will admit, i am a +ve cashflow buyer, but when the figures stack up, a few $100’s a year to a few $100k, is not going to have me searching all over the country for those small extra dollars…
i have nothing against +ve cashflow properties, but the IRR must stack up, and choosing between both properties is a hard choice, but i am very sure i have made the correct and right choices, and have always used the importancy of IRRs and growth vs cashflow….
but with my parting words…
“Quality Investment Property” that have an IRR, that will stack and prove to have growth and can still be funded… are always going to be a better deal even, when the money gets tight.
Cheers,
sisHi Chan,
Congratulations on your 20 tonner! [thumbsup2]
im with Yack all the way on this, and i do also invest in both types of +ve and -ve geared properties, but lets say for my argument sake, there is no way today possible that i could achieved what ive down with out purchasing -ve geared properties.
not only that my portfolio is over $2.1 mill ++ and in less than 12 months, (thanks to the -ve geared properties [party]) there is no way, i could have done that with +ve cashflow properties, and with my part time job and continously reducing my working hours every few months…
yet still at the same time, my equity is still blowing through the roof and giving me huge buying power to purchase properties ranging between the $250k – $300k mark, which have been the last few, yet at the same time, non of this is costing me a cent…
