Forum Replies Created
- Originally posted by Chan$:
SIS,
You are now a -ve CFP guru and therefore you can partner with Yack as he is the expert in the so called ‘Quality Investment Property’.
If it is now hard to find +ve CFP, therefore there are a lot of -ve CFP out there. The market seem to peak already (I think)! I just wondering how one consider -ve gearing property is a good strategy and how do they know that the area that they are investing is going to grow in the future.
I am sure most -ve gearing’s guru would say it will grow if you hold it for long term! (7-10 years. Can you manage to hold that long become you invest into another property?
What if you want to build your portfolios much bigger and faster then the norm (7-10 years)? How do you do it?
With -ve gearing, there are serviceabilty and therefore you will reach your limit eventually, how do you go on from there?
Your positive and negative respond is appreciated in advance.
Kind regards
Chan Dollars
Hi Mini,
your correct in what you say, but do please have a read of what i wrote again,
is positive cashflow the real way to go, even if the property doesnt make any capital growth over time, or takes many years to go up in value,
as long as your property does go up in value, its fine, but the value of the property has to index to the increase of inflation at the same rate and time, and this so goes as well for the rent.
… though if your +ve cashflow property does not do this, it will in actual fact be a blinded loss.
the other way to combat against this, is to have as many +ve cashflow properties, but when i say many, as many as it takes so that your passive income from your properties are the same as what the current inflation rate is for the amount you want each week in cashflow.
Cheers,
sisHi Guys,
with cba have got some pretty low loan rates for some invesments loans, one was down to 5.05% and then further brought down to 4.95%, but cba are pretty negotiable with rates.
Cheers,
sisjust up the rent, honestly why worry if it still undermarket value, if this person cant get any cheaper else where, theres not much they can do with up rent that still remains the cheapest…
Cheers,
sisHi Kay,
thats correct, the proper term actually used is neutral gearing, but, she refers to it as positive cashflow, yet the twist to this all is, she uses a 21YD form or now known as a 1515 (i think), which allows you to get your tax back every week instead of having to wait till the end of the financial year, doing it this way, will then cause your income to actually be lessed taxed as your are claiming all taxable losses against your income week to week.
in thus meaning, you have a bigger pay check now, than having to wait till the end of financial year for your rebate.
Cheers,
sisHi Celivia,
unfortantly, i wont be able to attend, but if any thing from now till then, that keeps me here, you can count me in, went to last years one, and it does go off.
… heaps of gurus, but you just sit there, on every word they are saying, hoping they drop off a hint or suburb, in which they are investing or going to invest… but, when i think about it, dam im going to miss out on all the fun… [glum]
Cheers,
sisOriginally posted by georgisj:Tell me, how does one achieve financial freedom on $1646 profit per year and the probability of a very small or negligable capital return. Even a 10% increase on $25000 is only $2500.
James
Agree, a property that maybe +ve cashflow today, may look like an excellent deal…
…but if the irr does not stack up over time or increase at the same as the currnet cpi…
…may still seem to be providing a +ve cashflow, but in actually fact will be running and providing a blinded loss.
Cheers,
sisHi RussH,
didnt see any expenses to be subsidise, but with your figures it all stacks up well, but heres the problem, if your going to base your figures on cocr, what about the irr when the property is still renting at $90pw, in 5 years or even 10 years…
…but lets assume the rental has gone up from $90 a week to say $120, and the value of goods that were $90 at the same time, have gone up to $180 over the 5 years, is your asset really still making money or is it now running at a blinded loss? a cocr is no good, in factoring inflation and cpi, if you the property does not grow in value or even if you cant onsell it for a profit…
Cheers,
sisHi Guys,
it is harder to find +ve cashflow properties, but, really you have to ask yourself is positive cashflow the real way to go, even if the property doesnt make any capital growth over time, or takes many years to go up in value, im more of a -ve gearer, but i do invest in both, but over time +ve cashflow properties that dont go up in value, there IRR are wasted and in actual fact you will begin to lose money…. hate to say it, but it is true.
Cheers,
sisHey Celivia,
dont know if you know, but theres a Property Expo at Sydeny Darling Harbour this friday – sunday, at last years one, Margaret Lomas was there and was a guess speaker, though i dont know if she will be there again this year, but if you have the chance, it will be definetly worth the going…
Cheers, sis
Hi blondie_bec,
wont take too long, after a short while, you’ll get so carried away, you’ll forget what work is… [lmao]
Cheers,
sisHey Celivia,
it sorta works out like this, this wednesday, head up to brissy, for the night, then following day, going to asia, (cant say were, but doing some guarantees and might buy), then head back to brissy, for a week, catch up with some friends and finish off some paper work, then head back overseas (to a secret location… cant say were but may end up buying there), back to brissy for a day and then back here to sydney… but at the same time, on the trip, will be sorting out some other things, that may lead to quitting work, but starting up something that will hopefully allow me to work from home… but at the moment, have to see how things go first…
Cheers,
sisps… but it could be [buz2] or [strum]…
been looking at some highly -ve geared properties, and been signing more contracts, but have booked some tickets for my brother and me to travel to overseas for the next 6 weeks to 2 differnt countries…
Cheers,
sisps… i recieve my platinum card to today… [thumbsup2]
Hi residentialwealth,
if interest rates rise tomorrow, ill come along and join ya… [rambo2]
Cheers,
sisOriginally posted by residentialwealth:To advance the origional question I would like to know how may people on the site own any property at all who post comments. regards Phil
Hi residentialwealth,
have property and do post…
Cheers,
sisHi PurpleKiss,
so far been awake for 3 days and no sleep…
…. lol just joking, Mini is right,
Originally posted by MiniMogul:but consider the possibility that SIS has cable modem and stays logged on even if not actually using the site.
[whistle]
Cheers,
sisHi HHH,
got a little lost in your post, but if you only want a LOC of $20k, maybe you might be just better off getting a credit card with a $20k limit…
but also not all debt is deductible on a LOC, check with your accountant first, which ones are… and in what you invest and purchase for your business.
Cheers,
sisHi itsamoorey,
im not sure if you want a book on IRR’s but the best way to do IRR’s is to use property software program, there way to hard to on paper.
the 3 main caculations most people use for finding returns and % amounts are.
Yeilds
CoCR
IRRthe rest are more of formulas that the guys and gals on here use for quick arthmitic, with out having to get into, too much detail or straining on the brain… [headphone]
Cheers,
sisHi Yack,
heading over to Parramtta Westfield, but no investing or market researching today, if anything just catch up on some filing…
Cheers,
sisi think we both have bad luck Guru…
[glum]
Cheers,
sis
