Angie!_____________

Good on you !! Congratulations, that first one is sooooo hard to do. As a wonderful friend of mine said to me “you have moved through a lot of fear….”.

Leigh______________

11 Sec solution or rule is:
(weekly rent / 2) * 1,000 = Max buy price

It gives a yield of around 10%, and yes, same numbers that you mentioned. It is a great filtering tool as the first of the many steps of due diligence.

A while ago I heard an agent tell me that he had all of these “out of town” buyers paying exactly the 11 sec solution price for houses, even when it was possible to negotiate lower !! It did occur to me that maybe the purchasers didn’t have the benefit of actually knowing WHY they needed to use that rule…. Mmmm…. maybe they overheard it at the pub ! []

cheers

the B

Hi Terry

Good call (! []), but, the info on changes was from two of our advisors who are in touch with a number of policy makers.

You may / may not recall that a bill that enabled entity taxation was defeated only just before last election. If it had gone through trusts would have had to register for TFN’s and would have become taxable entities, unlike the situation now where (for instance) family/discressionary trusts are the conduit to distribute assessable income between their beneficiaries.

regards

Bruce

AD

are you saying the Elliott waves occur in the property market too ??

Mmm is this a dumb question??

the Bruce []

AD

remember…. “Smell the Roses!!” []

Congratulations and good on ya maaaaaaaaaaaaate!

The B

Hi Tamara

how about adding some info like your rough time frames for investing remotely and returning too.

Bruce []

ps: is Brunei pretty ??

Mornin’ Ally

I have just re-read the last bit of your post and realised that I missed one point.

If the accountant advised saving for a large deposit they were offering safe advice in that it should cost you less overall for your loan if price in the future is relatively the same as today. This is not imposible especially as there is current “opinion” (nb: NOT fact) that the boom will bust soon. As all previous booms in human history have busted, or at least cooled down, it is most likely this one will too. As to when….? Ah, that is the question. Certainly factors affecting it are scarcity of properties, interest rates (affordability), greed and fear.

However, your call on “get into the market now” may be quite appropriate, if your research shows that in the area that you area interested in it is unlikely even a slowing or drop in the market will affect growth and returns due to the special “it” that the particular area/place has.

eg absolute waterfront, bridge views, opera house in your front garden…..

bye bye

Bruce (non sleeeping variety thereof)

Ally

sounds like you are not only on the right track, you are cruising along it []

There may well be good reasons why they offered you that advice, i.e. leverage in with small deposit, don’t buy your own home and invest instead.

If you get a chance why not cross examine her/him a little and see what come out of it?

Remember, in life experiences are neutral, we decide if they are positive or negative….

TTFN

Bruce

hi Hiu

Mmmmm, well after six days I am glad that I found the time to read, digest, and find some constructive things to say !

Don’t be too fussed if you don’t get an answer on this forum straight away. There are a lot of really “happenin'” investors who check here regularly, but many of them are too busy actually doing deals to answer all of the time; unless your questions are specific (i.e. can answer while doing 5 other thing& drink your cuppa ! <grin>)

Anyway, after reading one of your other posts mentioning elements of discounted cashflow analysis, I reckon that you probably have the numbers pretty well sorted….. []

Given that, is the issue really one of management ?

If so, Steve’s Wrap Secrets reveled deal swith a lot of the issues and is really good all round resource. I have also heard the Rick Otton’s Wrap pack is good. There was a post reviewing both some time back, so go do a search.

Australian Property Investing Masters is a “must do”.

Building a relationship with an agent whom you trust and can safely empower to spend your money up to level “x” on maintenance, etc is great. We have a couple of remote places we manage ourselves, but nothing more than 3 hours drive away. Mmm I reckon that AD and a few other folks will read this and laugh about that tiny amount of time []

Structuring is covered at the Oz PI masters event, but Steve McK & Paul Harper releasing a product called Wealth Guardian in the next month or so that should be invaluable in getting the comcepts into your head. The notes that were provided at the event were EXCELLENT and helped de-mystify a great many misconceptions; and the new product is an enhaced version of them.

I guess that it is worth reading other folks thoughts on the event to see what came out of it. So go search the data base again.

Anyway, howzat ?? Hope that I have helped out a bit…..

cheerio

the Bruce []

(And now for your viewing pleasure, I will get into the swing of having a catchy last line….)

“Luck is the meeting point of preparation and opportunity” – loosely taken from Erasmus, a Roman scholar

Hi Gordy

Welcome, welcome to PI.com ! []

All depends I am afraid….. everyones circumstances are different.

I started out with hummungous credit card debt and a line of credit maxed out, but, I had a job that threw of enough $s (in the lenders assessment) to support other investment and allow me to service all of the bad debt.

Made a decision to only do deals in excess of the interest rate on the bad debt, else pour money into paying off the bad debt.

2 1/2 years later all is resolved and we have a property portfolio.

My feeling here is that if I can mend my ways, anyone can !!! (though I must tell you that there is probably a business somewhere else in the universe that has gone under because I finally learnt to spend less that I earned…) []

best of luck and fun on the journey…

the Bruce

Elvis

the point here is that the wrappee’s name does appear on your contract of sale to them.

Other comments by AD & others still hold. i.e. you need to aoccount it correctly, etc.

the Bruce