Forum Replies Created
Hey Chan$,
though the gangs might be there, but it will be like a place like Inala, bad area to begin with, but over time, it became one of the best places to purchase, gang members moved out and people started moving in, and the suburb had a huge turn around and property prices went up, hope it all goes well for you.
cheers
s.i.sSave 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.shtmlHi Jaja,
To be honest i’ve lived in Brisbane for about 10 years or more, and one area to stay away from is Woodridge and Kingston area. Like said, low socio economy, vanadalism and poorer area of Brisbane, lots of gangs and wannabe youngies out that way.
But do your due dillgence on the area, and call the local police up and find out, if that property is in a good neighbourhood area.
cheers
s.i.sSave 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.shtmlHi 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 cash on cash return.
But due to the interest rate rise. The SIS Rule is now applicable, though, its going to be harder to achieve.
For the people who were able to get properties that met the 11 second solution, when interest rates were at about 5% as such, maybe fine. But when there loan repayments become or start working at 7% interest rates, – were their existing left over “Total Loan Balance” must have a property achieve 13.52% GYR to keep up with weekly, fortnightly or monthly loan repayments. If not, their property will not be +ve geared.
But i very much do agree with you “treat + positive cash flows as a by product of good asset and financial management”
cheers
s.i.sSave 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.shtmlSorry 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.sSave 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
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.sSave 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.shtmlHi 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 now is, if they didnt waste their money while still in school, they would have enormous savings today.
There is still many opportunities for you, but really just save hard now and work out a plan, or a goal of how much you want to save by a specific date.
You can do it, just work hard at it.
cheers
s.i.sSave 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.shtmlHey 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.sSave 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.shtmlHi 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 the Queensland Government FHOG link-
Go down to the 5th question here is what the question and answer is.
I have owned an investment home previously. Can I still be eligible for the grant?
A person is not eligible if they or their spouse (including de facto spouse) has had a relevant interest in any residential property in Australia prior to 1 July 2000, whether they live in it or not.
However, a person may be eligible if they or their spouse (including de facto spouse) has only ever had a relevant interest in any residential property in Australia on or after 1 July 2000 and they have not resided in that property.
However i called up the FHOG Branch in Brisbane and spoke to a FHOG officer, to confirm this and they said yes this is still legal and claimable.
First Home Owner Grant
Postal Address:GPO 2593,
Brisbane Qld 4001
Phone:1300 300 118
Fax:(07) 3227 8292
E-mail:[email protected]Im not sure about other states, but i suggest you check and find out cause you might still be applicable to do so as well.
Thanks very much for the link YoungInvestor.
cheers
s.i.sSave 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
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 the centrelink has been there for about 15 years im sure.
What do you think the risk could be, in investing in this town?
cheers
s.i.sSave 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.shtmlHi 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.sSave 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.shtmlHi 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 caculating any ROI, not really too worried about it, i guess its just something you expect.
cheers
s.i.sSave 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.shtmlHi 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 capacity eventually drys out.
Lets say for example you make 80k and thats the profit from just one property, you can then go out and buy 3 small 75k properties all at 20% cash deposits and have them all positive cash flow too and still have some left over cash for what ever use… This is just a senario, but you end up with more
An old saying “Sometimes to win, you have to lose”
cheers
s.i.sSave 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.shtmlHi 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% Gross Yield Return.
No matter what the selling price is, this will show what the weekly rental must be to achieve a 13.52% GYR, which is now applicable for +ve cash flow properties at 7% interest rates.
If you are having trouble findin a minimal 10.4% return, wait till you try this one, +ve cashflow properties are now harder to find, if you are getting loans at 7% interest rates.
cheers
s.i.sSave 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.shtmlHi Mobile Mortgage,
Thanks for your info, and TerryW, i can now see were you are coming from.
thanks guys
cheers
s.i.sSave 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.shtmlHey 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 under +ve cashflow, but those low rates are quickly disappearing.
cheers
s.i.sSave 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.shtmlHi Michael,
Here are a few that i can think of.
Richmastery
Ez Rent
Finsoft Destiny
Loan Master 2.0
Quickloan Mortgage
PIA Professional PIAPROcheers
s.i.sSave 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.shtmlHi 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.sSave 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.shtmloh 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 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.shtmlHi 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 involved but this is the main way it works.cheers
s.i.sSave 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.shtmlHi 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 for your kids, or you can first try to teach your kids yourself about money, give it a shot.
Just a short note i want to add, if your kids dont do well school it might not make you feel the best, but if they understand money and how it works, there still gonna be smarter than the kids that didnt. Take it from me, and this is honest, i went to 5 highs schools and failed (this is because i didnt like school and school, i always saw as a waste of my time), but i still graduated and went on to a private college, then on to uni, which i just dropped out of, and now doing tafe next year, yet i might have a messed up education, but my smart friends, they have no idea on how money works… though for everyone this can be different.
cheers
s.i.sSave 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
